A new study from the University of Nottingham has assessed the actions investors are taking on health, highlighting a number of gaps and shortcomings across important areas of public health.
Led by Dr Niamh O'Sullivan and Dr Simon Bishop, both of Nottingham University Business School, and supported by the Health Foundation, the work reveals important insights into the impact of investors on health.
The study involved a detailed, critical analysis of the top 10 UK asset managers' (collectively representing approximately £584 billion assets under management as per May 2024) reporting on a range of public health priority themes to gain a deeper understanding of the nature and impact of investor action on health and health equity.
The study builds upon recent work examining the commercial determinants of health (CDoH) – the various ways in which private sector activities can negatively or positively impact people's physical and mental health (World Health Organisation).
To date, much of the focus has been on the manufacture and sale of a small range of harmful commodities, such as tobacco, alcohol and ultra processed foods, and the commercial interests that surround these.
There has been far less consideration of the role of institutional investors in this picture. In particular, the authors argue there has been insufficient attention paid to how investment in these commodities or other commercial activities affects public health, how these health impacts can simultaneously pose a financial risk to investors and, consequently, how investors could be mobilised to improve health and health equity.
In response, the study sought to examine the extent to which investors are integrating health-related matters into their responsible investment activities and how this is impacting, or could impact, public health.
Dr Niamh O'Sullivan, Assistant Professor in Sustainable Business, said: "We have some huge public health challenges facing the country, and investors clearly have an important part to play in addressing these through the companies they invest in and engage with."
The study was limited to the largest asset managers and did not look at historical actions. But it does suggest that there are large opportunities for improving investors action on health."
David Finch, Assistant Director – Healthy Lives, from the Health Foundation said "Our health is a precious asset, built on key foundations such as good quality jobs and access to healthy food. This study highlights the crucial role investors play in ensuring these foundations are secure and driving future business success. By increasing awareness of potentially health-harming activities their investments may support, they can help shape a healthier and more sustainable future."
The results of this study showed that some positive work is being undertaken on certain health themes – such as antimicrobial resistance (AMR), employment and physical and mental health, financial security and wellbeing, nutrition, and water pollution – across the top UK asset managers; yet none of them are reporting on all of the 14 health themes under investigation in a strong and consistent fashion. Other important themes had comparatively limited reporting, including, but not limited to, air pollution; gambling and mental health; nutrition and obesity.
The research found that only two of the asset managers have explicitly made health one of their current environmental, social and governance (ESG) thematic priorities.
Only one of those two asset managers had a dedicated health policy, and this health policy only prioritises two of the themes under review.
The researchers also raised their concerns about the serious gaps and inconsistencies across asset manager approaches to their health-related investment activities that require attention if public health is to be recognised and addressed as a systemic risk by the investment community.
The full study is available here.
