As we await the impacts of the new administration’s economic policies, institutional investors and asset managers can strengthen their portfolios by proactively addressing gender-based violence and harassment within both their workplaces and investments.

Violence and harassment persists across the supply chain, with one in five workers reporting such experiences—and the financial sector is no exception. Institutional Investor has reported on continued sexual misconduct, harassment, and gender bias problems in private capital, and research on the British financial sector shows rising bullying and misconduct.

Private equity investments, and by extension, public pension assets, are often allocated to sectors with a well-documented history of gender-based violence and harassment, such as healthcare, hospitality, retail, and agriculture. Additionally, the exclusion of certain workers—including domestic workers, tipped workers, and farmworkers—from many state and federal protections in the US, heightens their vulnerability to sexual violence and harassment.

Weak workplace policies to support survivors of intimate partner violence and domestic violence contribute to the persistence of violence and harassment in the workplace.

Unaddressed gender-based violence and harassment pose significant risks to both human rights and the economy. The displacement of women from the workforce undermines diversity and, consequently, financial performance. In the European Union, it is estimated that the costs of gender-based violence total to 366 billion euros per year. Similarly, a recent study found that intimate partner violence in California alone cost the state $73.7 billion.

These economic implications highlight the importance for institutional investors to consider these risks.

Despite the scale of the problem, there are actions that can be taken.

• Institutional investors should ensure their internal practices align with international standards on violence and harassment. The International Labour Organization (ILO) Violence and Harassment Convention (C190), outlines employer responsibilities, including safety leave, flexible work arrangements, and temporary protection against dismissal. Resources for implementing these policies include the Department of Labor’s strategies and Futures Without Violence’s Workplaces Respond National Resource Center, which provides model policies for sectors like hospitality, healthcare, and agriculture.

• Support the right to organize. Unions play a key role in promoting safer and healthier working conditions, including addressing violence and harassment. To learn more about how to advance the rights to freedom of association and collective bargaining, the Labour Rights Investor Network is a powerful resource.
  
• Integrate gender-based violence and harassment into the investment process to mitigate risk. Conducting thorough due diligence on investments, with a focus on violence and harassment, helps protect investors. The Criterion Institute and Tiedemann Advisors provide a roadmap and curriculum on Investing to Address Gender-Based Violence, along with resources for identifying and managing related risks.

Beyond the upcoming administration’s impacts, technological advancements and the climate crisis will also shape the future of gender-based violence and harassment, including how it unfolds and is experienced. Taking proactive steps now will help investors manage these evolving risks and position themselves for future challenges.