Orange Guarantee Australia Launched to Advance Inclusion, Climate Action, and Sustainable Growth
Flagship pilot under the global Orange Movement™ introduces an innovative impact-linked credit guarantee model enabled by data and technology
Sydney, August 25, 2025 – Impact Investment Exchange (IIX), in collaboration with ygap and funded by Minderoo Foundation, LEEAF Trust, Paul Ramsay Foundation, and Snow Foundation, today announced the feasibility study of the launch of Orange Guarantee Australia (OGA). The study engaging the Australian ecosystem will be the first step in initiating a pioneering pilot guarantee facility under the global Orange Movement™ that aims to reshape financial systems to be more equitable, inclusive, and climate-resilient.
Australia’s 2.5 million small and medium enterprises (SMEs) contribute more than AU$500 billion to GDP and employ around two-thirds of the private sector workforce (Australian Government Small Business Statement, 2024). Within this, women-owned, women-led, and women-impacting MSMEs (WMSMEs) represent an estimated 35% of all enterprises—a driving force for economic participation, community cohesion, and innovation. Yet many WMSMEs face persistent barriers to finance, including rigid collateral requirements, higher borrowing costs, and the undervaluation of their social and environmental contributions.
The OGA tackles this gap by introducing an impact-linked credit guarantee model that recognises and rewards enterprises creating measurable inclusion and climate outcomes. Leveraging IIX’s proprietary Orange Seal™ and Risk-Return-Impact (RRI) framework, the model integrates verified impact data into credit assessments, enabling participating banks to offer lower borrowing rates to WMSMEs with strong social and environmental performance.
In its pilot phase, OGA will deploy a guarantee facility of over AU$15 million, structured through blended finance, to unlock at least AU$35 million in lending from financial institutions. This will be the first Orange Guarantee in a developed market, positioning Australia as a global proof point for gender-smart, climate-aligned lending with potential replication across Asia-Pacific and the rest of the OECD countries.
Meeting Australia’s Inclusion and Climate Goals
The initiative aligns directly with the Australian Government’s goals of:
- Women’s Economic Equality. Contributing to the 2023 Working for Women: A Strategy for Gender Equality, which calls for increased access to capital for women entrepreneurs.
- Net Zero by 2050. Recognising MSMEs as critical enablers of local climate action through sustainable production, renewable energy adoption, and community resilience measures.
- Inclusive Economic Growth. Strengthening regional economies and Indigenous communities by enabling diverse enterprises to access fair financing.
The role of MSMEs in climate action is increasingly recognised: from agricultural businesses improving soil health and reducing emissions, to small manufacturers adopting clean energy, to service providers building disaster preparedness in vulnerable communities. By making climate and inclusion central to credit decisions, OGA will ensure these contributions are not only valued but scaled.
“Our initiative is about creating a new model of finance—one that rewards inclusion, values impact, and sees community-led enterprises as vital drivers of Australia’s sustainable future,” said Professor Durreen Shahnaz, CEO and Founder of IIX. “With Australia already a leader in supporting global development, this is an opportunity to embed equity and climate action into financial systems at home and set a benchmark for the world.”
The feasibility study for OGA was made possible by anchor supporters Minderoo Foundation and LEAAF Trust.
“OGA exemplifies the bold, collaborative solutions needed to challenge systemic inequalities and advance gender equality,” said Jacqueline Joudo Larsen, Executive Director, Gender Equality at Minderoo Foundation.
“By supporting WMSMEs, we aim to shape a more inclusive and resilient financial system,” added Lisa Barlow, Director and Founder of LEAAF Trust.
Additional strategic partners include the Paul Ramsay Foundation, Snow Foundation, and ygap, each bringing unique capabilities in entrepreneurship, technology, and community development to ensure OGA achieves both scale and depth of impact.
At the heart of OGA is a paradigm shift in how creditworthiness is defined—integrating financial returns with inclusive and sustainable outcomes. This data-driven approach will enable banks and lenders to make smarter, fairer, and more forward-looking lending decisions, while empowering WMSMEs to grow their businesses, create jobs, and deliver climate benefits for their communities.
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