We coined the term “gender-smart” to reflect the larger ethos of those who understand that gender is material to financial, business, and social outcomes. Gender-smart investors recognise that financial systems engage with and benefit men and women differently, and particularly women of colour, and are actively committed to using finance as a tool to promote gender equality. This integration of an intersectional diversity lens is a more recent evolution of the field, promoted by the JEDI community of practice.

JEDI investing is in large part about who is investing, who receives investment, what results occur, how investments/investment terms are structured and how those decisions are made. It covers gender, racial and ethnic diversity at the ownership level, governance, leadership, decision making, employment, value chains, and products, services, and customers. It is also about power dynamics and engagement.

JEDI can also mean different things depending on the country or region. In Australia, for example, it refers to indigenous Aboriginals; in Africa it could be a marginalised ethnic group; in Europe it could be refugees. In the Global North, high impact strategies may include enhancing racial diversity at the investment team or fund manager level, while the Global South perspective often focuses on expat versus local founders.