Undervaluation of and underinvestment in women is leaving money on the table, says Sandra Osborne Kartt, Deputy Chief Investment Officer, ImpactAssets Capital Partners.

Sound the alarm – we stand to miss out on US$290 billion a year in the US economy.

In an era focused on capturing every bit of economic growth, it’s almost inconceivable that such a vast sum – the equivalent of nearly US$800 million every day – could slip under the radar. And yet, that’s exactly what may happen with the care economy.

According to BCG, the care sector commands a valuation of up to US$6 trillion, nearly a quarter of the total US GDP. Roughly half of care work – which underpins much of the economy at large – is unpaid, and it is disproportionately performed by women. Addressing the issue requires solutions that reduce the unpaid care burden as well as boost the supply of paid care. For example, improved access to child and elder care would enable more women to enter and stay in the workforce. But the way our mainstream discourse often overlooks the sector represents a glaring blind spot about work and productivity.

And unfortunately, the care economy oversight is just the tip of the iceberg – one element of a broader social disregard to pervasive and systemic gender inequality. Persistent undervaluation of and underinvestment in women is leaving money on the table and holding back progress toward true equality.

For the world’s four billion women and girls, there is too much at stake to stall any longer.

Catalysing gender equality

While impact investing alone cannot be a panacea for gender inequality, it is an indispensable component of a larger solution. There are three essential areas of need where the patient and flexible capital of impact investors can be most effective at driving gender equality: advancing economic inclusion; delivering products and services that improve lives and outcomes; and increasing representation and voice.

Gender equality is, fundamentally, a moral imperative. It is an objective worth striving for, even in isolation. But it also supports a host of broader global goals – driving progress toward a healthier, less violent, increasingly productive, and more stable society.

And yet, at our current pace, the UN estimates it will take an unacceptable 286 years to achieve such equality. To make meaningful progress more quickly, impact investors must focus on the targeted areas of need where they