2X Certification
2X Certification is a powerful lever to unlock gender-smart capital at scale and deliver on 2X Global’s goal of increasing the volume and impact of gender lens investing (GLI) across asset classes, sectors and geographies globally.
Overview
2X Certification is an independent and universally available certification mechanism that further advances the standard-setting work which 2X Global has been leading in the global field of gender lens investing (GLI). 2X Certification is a powerful lever to unlock gender-smart capital at scale and deliver on 2X Global’s goal of increasing the volume and impact of GLI across asset classes, sectors and geographies globally.
2X Certification builds on the foundation of the 2X Criteria. It serves as a comprehensive assessment of an organisation’s gender efforts across its full value chain and core gender themes and drives further credibility through third-party verification. 2X Certification acts as a guiding star, encouraging entities to implement robust gender practices and foster meaningful change across industries.
Designed for a wide range of audience types, 2X Certification offers a structured pathway towards excellence in gender equity for investors, companies and financial instruments. By providing clear standards and benchmarks, it aims to promote transparency, accountability, and credibility in the financial sector.
Our mission
The sustained increase in gender-smart funds, 2X-aligned companies, and instruments like 2X-aligned bonds and sustainability-linked loans has resulted in a significant demand among investors, companies, and financial institutions for an independent, universally available 2X Certification mechanism, promoting the opportunity to move beyond self-assessment through to third-party verification and certification for leading organisations in gender-finance.
2X Certification promotes greater transparency and accountability in GLI by differentiating levels of rigour, providing a benchmark in comparison to peers and identifying areas for action or improvement.
Get 2X Certified
While 2X Certification is designed for a variety of audiences, it is currently available for companies and funds. In the coming months 2X Certification will be expanded to include financial institutions and financial instruments, notably gender bonds and loans.
To learn more about the thresholds for different entity types, in different geographies and sectors, visit the 2X Criteria thresholds tool here.
Benefits of 2X Certification
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Achieving 2X Certification, which emphasises gender diversity, can significantly improve a company's bottom line. Research from McKinsey & Company’s “Diversity Wins: How Inclusion Matters” (2020) shows that companies with greater gender diversity, particularly at the executive level, are 25% more likely to have above-average profitability. This demonstrates that businesses embracing gender-smart practices, as advocated by 2X Certification, are better positioned for financial success.
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2X Certified companies are strategically positioned to capture new markets. According to McKinsey & Company’s “Delivering through Diversity” (2018) report, gender-diverse organisations have a 45% higher likelihood of increasing their market share. By fostering diverse teams, 2X Certified businesses can develop more innovative products and services that resonate with a broader customer base, driving growth.
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2X Certification can significantly enhance investor confidence, as more than 80% of investors consider gender diversity in their investment decisions, according to Morgan Stanley’s “Sustainable Signals” (2019). Companies with 2X Certification are viewed as lower-risk and better managed, often leading to higher valuations and stronger financial outcomes.
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The strong correlation between gender diversity and higher Return on Equity (ROE) underscores the financial value of inclusive leadership. MSCI's findings that companies with robust women representation at the board level achieve a 36% higher ROE than those without, reinforces the business case for gender-smart investing. The 2X Certification leverages this insight, promoting gender diversity within leadership and broader company practices as a strategic advantage, aligning with the goal of fostering more resilient and profitable investments.
2X Certification levels
2X Certification has identified 3 distinct levels of Certification: Good, Advanced and Best-in-Class. These levels differentiate among entities that demonstrate fundamental gender-focused efforts and those whose efforts and practices are more robust. They also invite approaches that vary in their breadth (“Broad”) and depth (“Targeted”) across and/or within different aspects of the value chain and core gender issues.
2X Certification levels are intended to outline clear standards for gender performance. Entities are encouraged to continuously improve their gender efforts over time, inviting opportunities to identify, adopt and implement further gender action.
Good: Demonstrates core gender-focused efforts that meet the minimum requirements. Broadly aligns with the 2X Criteria, with some differentiating requirements.
Ex. Company with clear intentions to drive gender equity AND gender diversity in leadership AND a commitment to driving gender diversity in its workforce.
Advanced: Demonstrates action beyond the minimum requirements. Broad approaches demonstrate greater gender efforts in an additional area while Targeted approaches demonstrate deeper efforts in one area.
Ex. Fund focused on portfolio companies bringing care products/services to market that specifically address women’s unpaid care responsibilities AND has an investment thesis that explicitly integrates a gender lens AND a commitment to driving gender diversity in its leadership.
Best-in-Class: Demonstrates gender efforts that are leading the field in their breadth (strong performance in multiple areas) and/or depth (strongest performance in one area with greater performance in one or more other areas).
Ex. Company with demonstrated gender diversity in its leadership and workforce, with efforts to support further improvement in these areas over time, as well as early efforts to address gender in its supply chain that include a clear commitment to women supply chain workers and related support programmes.
Start your 2X Certification process
In order to be 2X Certified, an entity must complete the 2X Certification process on the 2X Certification Platform. This is a four-step process that involves: (1) Self-Assessment, (2) Verification, (3) Certification, and (4) Action.