Goldman Sachs pledges $10 billion to support Black women in a new initiative

Goldman Sachs on Wednesday announced its $10 billion pledge to support Black women in business over the next 10 years. The funding is part of the firm’s commitment toward ending racial equity and creating equal economic opportunity for Black women.

The new initiative is called the “One Million Black Women.” It will focus on areas such as access to capital, job creation, workforce advancement, and financial health. Goldman says this funding is the “largest announcement of its kind in size and scope.” The firm has also announced the release of its “Black Womenomics” a report that seeks to quantify the gender and racial biases Black women are challenged with.

To better understand the challenges Black women face, the banking giant will partner with women-led organizations.

Goldman will also invest $100 million in philanthropic capital over the next decade. The funding will come in the form of direct investing and grants. According to the firm, the initial investments are already being processed.

The goal of the funding program is to positively impact the lives of at least 1 million Black women over the next 10 years. Its advisory council includes former Secretary of State, Condoleezza Rice, alongside Rosalind Brewer, the chief executive officer of Walgreens Boots Alliance, and Lisa Jackson, vice president of environment, policy and social initiatives at Apple Inc.

Goldman Sachs’s announcement comes as society calls for more advocacy for racial equity. Many companies have participated and are still participating to support communities of color, financially, and fight to end systemic racism.

The Goldman report found that Black women earn 35% less than white men. Reducing the earnings gap could create nearly 1.7 million new jobs in the United States which will also increase the U.S. GDP by nearly $450 billion, or 2.1% annually.

“Largely because of lower earnings and limited access to capital, Black Americans are much less likely to own high-return assets than white individuals, including homes, stocks, and especially their own businesses,” the report carried. It also revealed that the average Black household owns 90% less wealth than the average white household.

Last year, Goldman created a $10 million fund to promote racial equity. It said it has invested nearly $200 million over the decade to organizations that serve communities of color.