The Female Entrepreneurship Fund (FEF), which , was launched at an event on 24 May 2024 at the Spuerkeess in Luxembourg. With this fund, “there is a huge business case, huge opportunities,” argued Jennifer de Nijs, head of sustainable finance at the grand duchy’s finance ministry, in a speech at the launch event. A sub-fund of the Investing for Development Sicav, the FEF provides loans to financial institutions that in turn target women-led SMEs, offers tailored training through partnerships and supports increased diversity in the Central American business landscape.

“We really hope also that this can be a model that can be scaled also in other regions, because we believe this is obviously not something that can be contained to just one region, and is really something that can have a big global impact.”

Focus on the “S” in ESG

De Nijs in her remarks also discussed the “broader context” of where the fund sits “in the ambitions and priorities of the government of Luxembourg and the finance industry, specifically when it comes to gender finance.”

When it comes to sustainable finance, there’s been a lot of focus in the area of climate and environment of the last few years, she said. “Now, we have come to realise that it’s really time to go beyond green and to focus a lot more on the ‘S’ in ESG.” Following Luxembourg’s national elections in October 2023, “we have a new coalition agreement in which we actually address the fact that gender finance is--for us--an integral part of the diversification of the financial centre in Luxembourg.”

Gender finance is a “growing area of opportunity” that we would really want to develop. “Initiatives like the FEF are really important and really showcasing that these are worthwhile investments and also services that we can develop around in our financial sector,” said de Nijs, referring to the finance ministry’s 10-point action plan on sustainable finance, released in April.

In this action plan, de Nijs noted that one of the points was dedicated to gender finance, “with the ambition that we want to create a centre of excellence for gender finance.”

“The financial sector is a critical driver of the global economy, but it has historically been male-dominated,” she continued. “And I think we can all agree in the room today that we need more women at the top.”

“Huge task ahead”

But “this is something that won’t change overnight, by itself,” she argued. In Luxembourg, the , which aims to increase the representation of women in executive positions and board positions. “Change only comes if you have diversity--not just gender diversity, but, you know, we will start there--at the top, at the decision-making bodies.” The charter has some 75 signatories, with the goal that each signatory will set targets to increase gender equality within their organisations, de Nijs explained. The on the occasion of International Women’s Day on 8 March 2024, which will allow progress to be evaluated in the coming years.

“There’s such a huge task ahead in so many different areas related to gender equality in the financial sector, but also on the side of gender lens investment and certain financial services for women,” she said. “And this is the reason why in September last year, we decided to launch the .” De Nijs herself is chairperson of the task force, whose goal is to support, drive and simulate gender finance in the grand duchy’s financial centre.

“The task force is very unique--the finance ministry doesn’t just set up task forces all the time--but we really wanted to work with the financial sector together.” It’s composed of representatives from the ministry and from the financial sector, including Maria Löwenbrück (Union Investment), Carmen Niethammer (European Investment Bank), Hedda Pahlson-Moller (Tiime), Jessica Espinoza (2X Global), Julie Becker (Luxembourg Stock Exchange), Emanuele Vignoli (HSBC Luxembourg), Arnaud Gillin (Innpact), Kaspar Wansleben (Investing for Development), Paul Lecoublet (Generali), Rishi Goyal (IMF) and Simon Gorbutt (Luxembourg for Finance).

The participants are not only “passionate about this topic individually,” said de Nijs, but also have “the decision-making power to actually effectuate change.”

“Women in finance” and “finance for women”

Seven working groups have been set up in two categories, she explained. The first category is “women in finance,” which encompasses the “representation of women in the financial sector and at decision-making level.” In this area, “we are focusing on data, in terms of reporting, mentorship and sponsorship,” as well as education. There’s “a lot of work that can be donen to create the women leaders that we need to move to the top.”

The second category is “finance for women, where--for us--the FEF is a prime example.” But “finance for women” doesn’t just refer to finance for women abroad, but also in Luxembourg. “Do we have products and services and advice that is geared towards women as well as men?” she said, offering an example. “Definitions and standards are key,” and it will be important to decide which ones to apply, as well as in determining the initiatives and products that are set up.

“We are working on innovation and acceleration,” de Nijs added, along with “gender-intelligent products and services.” In Luxembourg, for instance, if I want to invest, what products are out there--as woman--that will interest me, and what advice is available?

Quicker than 130 years (hopefully)

“We really hope that we can get concrete outcomes out of this group,” concluded de Nijs, “and that a year from now, we can really showcase that this group has worked towards something, and that we’re not just talking about the issue, but that we’re really coming up with solutions that will also drive the discussion in the financial sector and really make us a hub for gender finance.”

There’s been a lot of engagement and enthusiasm in the financial sector, and despite some difficulties, “more often than not, people are really willing to make a change.”

“The World Economic Forum [in its ] said it will take us 130 years to close the gender gap. But for me, this is not acceptable. I really do hope that we can accelerate this and move a lot quicker.”