Government of Canada strengthens social equity and gender equality in the financial sector with new tool and funding to support implementation

News provided by

Employment and Social Development Canada

Nov 29, 2024, 10:56 ET

OTTAWA, ON, Nov. 29, 2024 /CNW/ - The Government of Canada is committed to greater social equity and gender equality. Today at the Sustainable Finance Forum, the Minister of Families, Children and Social Development Jenna Sudds announced the launch of the Pilot Social Equity Lens Investment (SELI) Coding System. This new tool is a taxonomy that will define, assess, and track progress toward the Social Finance Fund's investment targets of advancing social equity and gender equality. The Pilot SELI Coding System will be used to ensure that the Government of Canada is meeting its social equity and gender equality goals when it comes to investing in social finance initiatives. Indigenous reconciliation has been integrated as a foundational principle within the Pilot SELI Coding System.

The Government of Canada has allocated $1.35 million in technical assistance and ecosystem-building funding to support the implementation of the Pilot SELI Coding System across the social finance ecosystem. The full taxonomy and implementation guide will be publicly available in spring 2025 to any investors who want to adopt the taxonomy and more equitable practices.

Minister Sudds also announced that Employment and Social Development Canada is now a member of 2X Global – a network connecting members with resources and partnerships in the field of gender-lens investing across the globe. This membership creates opportunities for Employment and Social Development Canada to share best practices and innovative solutions in support of the Social Finance Fund's work across Canada.

Minister Sudds also highlighted Canada's progress on the 2030 Agenda for Sustainable Development, which was adopted by the United Nations to help build stronger, safer and more inclusive communities that leave no one behind. An online consultation is currently under way to gather community-level stories from Canadians who are advancing progress on the Sustainable Development Goals. Input from the consultation will contribute to the 2025 Annual Report, which will highlight Canada's efforts toward advancing these goals.

Quotes

"The Social Finance Fund is fostering new and innovative solutions for persistent social and environmental problems in Canada. The Pilot SELI Coding System is supporting critical progress in social equity and gender equality for the social finance market from coast to coast to coast. Canada is a global leader in social finance, and today, we continue our work to support innovation and build an inclusive economy that leaves nobody behind."

– Minister of Families, Children and Social Development, Jenna Sudds

"Boann welcomes the Social Equity/Gender Equality Lens Investment coding system as a key step in establishing clear, measurable benchmarks for the Social Finance Fund. We are looking forward to ongoing collaboration and refinement to ensure it effectively meets the diverse needs of communities."

– Derek Ballantyne, CEO, Boann Social Impact

"We are proud to join this Investment Coding System pilot project, an initiative that will demonstrate that inclusivity and social equity are at the heart of our investment decisions. This innovative system will enable our partners to analyze and code investments not only in terms of profitability, but also through the prism of gender and social impact. By shedding light on more informed and responsible investment choices, we are paving the way for a more equitable and sustainable financial future, as well as enabling the demonstration of the change that will be set in motion over the course of this program."

- Bernard Ndour, CEO, Fonds de finance sociale Cap finance

"At Realize Capital Partners, we hold ourselves accountable for the investments we make, to ensure our portfolio is set up to achieve its aims and the wider Social Finance Fund aims. We support the Government of Canada's desire to define what a social equity investment looks like. We welcome definitions, specificity and clear methodologies! They give us and all participants in the social finance market the clarity and confidence that is needed to build the market. We therefore welcome the SELI Coding System as a new tool to support our assessment of social equity and gender equality. In this SELI Coding System Pilot Phase we'll continue to collaborate with and learn from the Government of Canada and other social finance market participants to deepen a shared understanding of what strong social equity practices and outcomes look like."

- Kelly Gauthier, Realize Capital Partners

"Having ESDC become a member feels like a natural fit, considering the already strong existing linkages between 2X Global and Canada. The seeds of 2X Global were sown when the very first 2X Challenge was launched at the 2018 G7 Summit hosted by Canada, and ever since then, our relationship with Canada has continued to flourish and evolve, a reflection of our shared commitment to advancing gender equity. We're thrilled to welcome them into our network, where they will join other valuable members such as Global Affairs Canada and FinDev Canada in driving greater impact and shifting more gender smart capital. "

- Jessica Espinoza, CEO, 2X Global

Quick facts

  • The Social Finance Fund is a groundbreaking, long-term, $755 million initiative to advance the growth of the social finance market in Canada. It aims to address systemic biases and inequities that have been present in the traditional finance ecosystem and was designed through a social equity lens.
  • The Government of Canada has committed a minimum of 35% of SFF investments into initiatives promoting greater social equity and a minimum of 15% into initiatives promoting greater gender equality.
  • The Pilot SELI Coding System was established to ensure that these investment targets are met and have the desired impact.
  • Equity-deserving groups have often been excluded from traditional financial systems. Integrating a social equity lens into the SFF and the Pilot SELI Coding System tackles systemic barriers and unlocks new opportunities for these groups.
  • The SELI Coding System was developed through engagement with over 60 key stakeholders from the Social Innovation and Social Finance ecosystem working to advance social equity. It incorporates expertise from partners Criterion Institute and SVX, and is aligned with internationally recognized practices, such as the 2X Criteria.
  • The social finance and social equity landscapes will continue to change over the course of the sixteen-year SFF. The Pilot SELI Coding System is an evergreen tool and will evolve over time to ensure that the taxonomy remains meaningful and relevant.

Associated links

Follow us on X (Twitter)

SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Geneviève Lemaire, Press Secretary, Office of the Minister of Families, Children and Social Development, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]

Organization Profile

Employment and Social Development Canada