Introduction INCLUSIVE GROWTH The Economic Imperative for Inclusive Growth Inclusive growth is critical to a healthier, more vibrant economy for all and is a powerful performance driver for companies and investors. Growth That Is Not Inclusive Is Not Sustainable Our Womenomics research demonstrates We believe that there is an economic and social the economic case for increasing opportunities imperative to close access gaps in emerging for women. markets and low socioeconomic communities. Making these changes is essential to driving long- • The Womenomics 5.0 report estimates that term inclusive, sustainable outcomes. closing the gender employment gap could lift Japan’s GDP by 15%. • While people across all income groups experienced losses during the pandemic, the • The Investing in EM Womenomics report poorest 20% of the world experienced the found that investing in emerging markets with steepest decline in incomes1. higher gender equality would have yielded outperformance over time. • Low-income countries show the highest rates of women’s business startup but lower levels of • The Black Womenomics report estimates that investment2. reducing the earnings gap for Black women could create 1.2 million to 1.7 million US jobs and raise • In a variety of contexts, lower socioeconomic the annual US GDP by 1.4% to 2.1% each year status is associated with more access barriers to — which translates to $300 to $450 billion in healthcare, which is subsequently associated with current dollars. worse health outcomes3. • For companies in the top quartile for ethnic and cultural diversity, there is a 36% higher likelihood of industry-leading profitability — and top-quartile companies in gender diversity have a 25% higher 1—Worldbank: “2021 Year in Review in 11 Charts: The Inequality likelihood of outperforming on profitability when Pandemic,” December 2021. compared to less diverse companies4. 2—Global Entrepreneurship Monitor: “COVID-19 Impacts on Yet, women-only founded companies received Women Entrepreneurs in Emerging Economies: Insights and Indicators,” February 2022. only 2% of US VC investment, and Black 3—Frontiers in Public Health: “Socioeconomic Status and entrepreneurs received just 1.2% in the first half Access to Healthcare: Interrelated Drivers for Healthy Aging,” June 2020. of 20215. 4—McKinsey & Company: “Diversity wins: How inclusion matters,”May 2020. Sustainability Report 2021 5—Crunchbase: “Black Women Still Receive Just A Tiny Fraction Inclusive Growth | Introduction 50 Of VC Funding Despite 5-Year High,” July 2021.