The 2X Criteria are a global baseline standard for gender finance. They are commonly adopted as a baseline/ minimum common denominator for investing with a gender lens across asset classes, markets and regions.
2X Criteria
Overview
The 2X Challenge, underpinned by the 2X Criteria, has played an important role in building the field of gender lens investing (GLI). Today, hundreds of companies and investors around the world use the 2X Criteria as a global standard for gender finance.
The 2X Criteria is a public good and can be used by anyone in the market to set their own targets for new business and portfolio, and self-report on their alignment with the 2X Criteria. This means, the 2X Criteria are applicable to any kind of investor or financial institution, whether you are an impact investor, development finance institution, international finance institution, multi-lateral development bank, pension fund, endowment, asset manager, private equity firm, individual investor or other capital providers to screen and mark/tag deals as 2X-aligned for their internal reporting and tracking purposes.
The 2X Criteria can also be used by private sector companies to assess their practices against the criteria.
To understand how to apply the 2X Criteria in various sectors, context and geographies, it is important to use the 2X Criteria Reference Guide. This guidance is tailored towards investment transactions. However, independent companies can also assess their practices against the 2X Criteria using this guide.
2X Criteria alignment
Alignment with the 2X Criteria can be achieved by meeting the Basic 2X ESG (including safeguarding) and minimum Governance & Accountability requirements, AND (a) have at least ONE of the six 2X Criteria met, and (b) provide a time-bound commitment to meeting an additional Criteria. Thresholds under each Criterion are country and sector specific.
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A basic 2X ESG assessment needs to be conducted by the investor to ensure fundamental environmental and social standards are met.
Due diligence to confirm that the investee is not involved (/ investing) in activities on the exclusion list,
Demonstrates commitment to respecting human rights across the value chain, and
Implements Gender-based Violence and Harassment (GBVH) safeguarding measures.
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The Governance & Accountability (G&A) Criteria is intended to offer a thorough assessment of intentionality. Intentionality has always been a key principle of the 2X Criteria and is now codified as G&A.
Minimum Governance & Accountability requirements to be 2X eligible include at least:
One (1) indicator in Strategic action,
One (1) indicator in Management systems, and
One (1) gender data requirement.
2X Criteria thresholds
These thresholds provide minimum requirements for global gender lens investment and organisational practices for companies and investors of all sizes.
It is responsive to country and sector-specific benchmarks based on the best available data at the time. All underlying sources & the methodology for benchmarking are linked underneath the tool. The tool works best when used on a desktop browser.
Questions? Clarifications?
If you have any questions or clarifications on the 2X Criteria Reference Guide or 2X Criteria Thresholds, please reach out to us. We are collating inquiries and will be publishing responses in the 2X Criteria Reference guide by the end of April 2024.
2X Challenge 2024-2026
The next round of the 2X Challenge (2024-2026) will unlock an unprecedented a multibillion-dollar target over a three-year period and welcome the full spectrum of investors and capital providers beyond DFIs and MDBs.
The new target and 2X Challenge members will be officially announced at the G7 Summit in June 2024. We invite capital providers to join us in a new bold collective commitment under the 2X Challenge. Contact us to join the 2X Challenge.
2X Criteria IRIS+ metrics
Download our guidance note for investors entitled “How to Measure the Gender Impact of Investments: Using the 2X Challenge Indicators in Alignment with IRIS+”.
This publication will be updated soon based on recent updates to the 2X Criteria.
