Woman, poor and of color. A trinomial to break, strengthened by the fact that "that reducing the earnings gap for black women could lead to the creation of 1,2-1,7 million jobs in the United States and an increase in US annual GDP of 300 -450 billion dollars”. That's why Goldman Sachs reaches into its wallet and announces an important project to reduce the huge gap that exists today: the median single black woman - in the report Black Womenomics, published on March 9 – owns 92% less wealth than the corresponding white man (single, median). A huge gap that impoverishes not only black women but the entire wealth potential of the country.
That's why Goldman Sachs, Inc. (NYSE: GS) group announced a new initiative on Friday, March 12.
“In partnership with organizations led by women of color, financial institutions and other partners, Goldman Sachs will allocate $10 billion in direct investment capital e $100 million in philanthropic capital over the next 10 years to address the double bias, gender and race, that women of color have suffered for generations and which has been exacerbated by the pandemic. One Million Black Women, as its name indicates, has a goal of impacting the lives of at least one million Black women by 2030.”
Goldman Sachs press release
“This initiative will be revolutionary”, is the comment released by Melanie Campbell, Convener of the Black Women's Roundtable and President and CEO of the National Coalition on Black Civic Participation, GS partner for the program. “What Goldman Sachs is doing has the potential to have a real impact on the lives of Black women, their families and communities across the country.”
Where will the funding go? They will serve to "stimulate investment in housing, healthcare, access to capital, education, job creation and development, digital connectivity and financial health". The objective, as has been said, is to reduce the gender difference not only towards men, white or black, but towards white women themselves who are currently paid 15% more than their black colleagues for the same job. A differential that particularly penalizes black entrepreneurs to whom only 0,3% of venture capital funds in the US is allocated.
High finance therefore turns out to be philanthropic and anti-racist. Or perhaps high finance has understood what society and politics often struggle to understand: namely, that it is precisely in the weakest segments that the greatest growth potential is often hidden. And that this improves the sustainability profile, which is increasingly relevant in the eyes of investors.
"Our just-released research, Black Womenomics, suggests no investment could have a greater impact than unlocking the economic potential of women of color. In the face of significant disparities, they have demonstrated admirable resilience, especially as they are starting businesses faster than anyone else in the United States.
David M. Solomon, president and CEO of Goldman Sachs
"Women of color are at the heart of this investment strategy because we know capital has the power to impact change, and we know women of color have the power to transform communities. If we can make our economy work for women of color, we all benefit".
Margaret Anadu, Global Head of Sustainability and Impact at Goldman Sachs Asset Management.
