One Million Black Women: How Goldman Sachs Is Investing in Black Women and Creating a Sustainable Future for EveryoneDecember 17, 2021
Dec. 16, 2021
Since the pandemic hit, individuals and businesses across the country have suffered a major blow to every aspect of their lives, from earnings to growth to future opportunities. But Black women in the U.S. have found themselves disproportionately affected.
This shouldn’t come as a shock to anyone, though. Throughout history, Black women have carried, and continue to carry, the burden of income inequality. They face a 90% wealth gap when compared with white male earnings. And even as they bear the brunt of the disadvantages brought on by racial and gender biases, studies have shown that Black women are a galvanizing force for economic movement in their communities and the nation.
According to Goldman Sachs research Black Womenomics, if that earnings gap were reduced, the national GDP could see an increase of up to $450 billion, as well as the creation of over 1.2 million jobs.
Goldman Sachs is tapping into that potential and partnering with multiple organizations led by or focused on Black women to help build their wealth and plant the seeds for long-term financial benefit. With the One Million Black Women initiative, the industry-leading global investment company is investing in the future of Black women.
What’s Being Done?
Goldman Sachs has committed to investing $10 billion in direct investment capital and $100 million in philanthropic support to address the disparities that disproportionately impact the lives of Black women. Read that again. It means that, in major sectors that directly impact Black women, the financial giant plans to openly invest in resolving the issues and causes that directly impact Black women’s lives.
Partnering with multiple organizations, Goldman Sachs has been working to put this initiative into action. The company’s directing its efforts to lean into the voices of the women it’s trying to help by giving them center stage to express their needs, hopes and experiences. Through dozens of listening sessions, the goal is to center the conversation around Black women who are directly affecting change in their communities and solicit ideas and feedback to help shape the initiative.
What Will This Do?
Through this first-of-its-kind effort to support Black women through direct investments and grants, Goldman Sachs is making a huge step forward in working to narrow the radical income gap that Black women continually face. Making this change has the potential to directly impact the lives of at least one million U.S. Black women. But that effect is so much bigger. Goldman Sachs is getting it right here: When Black women win, we all win.
“By centering Black women in this investment strategy and being intentional about the impact on this group, we will not only narrow opportunity gaps for them but also their families, communities and beyond,” said Margaret Anadu, Global Head of Sustainability and Impact for Goldman Sachs Asset Management. “If we can make our economy work for Black women, we all benefit.”
Where Will Those Investments Go?
To best allocate resources, Goldman Sachs’ investment strategy spans sectors that currently stand to benefit the most. Here’s the breakdown.
Some of the areas where Goldman Sachs hopes to turn out the most growth are:
Health care: To increase access to affordable, quality health care for everyone, Goldman Sachs is committed to financing Federally Qualified Healthcare Centers, hospital partnerships and telehealth innovations.
Job creation and workforce advancement: By financing workforce development and companies that create opportunities for upskilling, this initiative will ultimately create new opportunities for career advancement and higher incomes.
Education: This strategy will help provide increased access to affordable secondary and vocational education, as well as investment in K-12 and early childhood education.
Housing: Goldman Sachs is working to provide financing toward creating and preserving affordable housing.
Digital connectivity: The company is making the effort to close the digital divide by increasing access to connectivity and affordable internet.
Financial health: It’s actively creating opportunities to improve financial health, including innovations in financial education.
Access to capital: This initiative will help increase access to capital for Black female entrepreneurs.
Centering these efforts on Black women isn’t just crucial for them. It’s in the best interest of everyone.
Learn more about what Goldman Sachs is doing to advance the One Million Black Women initiative, and stay tuned to find out how it’s passing the mic to influential Black women making changes in their communities.