LONDON — A recent report from Northeastern University suggests that public health can be a profitable area for investors if they choose the right strategies. The report, titled “Investor Action on Health: a review,” was backed by the U.K. charity Health Foundation and includes insights for major investors on how to profit while promoting public health.
This study involved collaboration among several experts, including Sabina Crowe, an economics professor at Northeastern’s London campus, and other Boston-based researchers. They aimed to guide institutional investors, like pension funds, on how health impacts their portfolios.
Kevin Chuah, one of the report’s authors, pointed out that investors are beginning to take a broader view. They not only seek profit but also consider issues like climate change and social inequalities. This shift shows that investors want their money to make a positive impact.
To make responsible investments, strategies like public engagement and forming coalitions have emerged. For example, investors can use their influence by collaborating with company boards or policymakers to improve working conditions and public health outcomes. Their aim is to make these sectors more attractive for investment.
One effective strategy is to engage directly with companies. If companies resist change, the report advises reaching out to policymakers to prompt necessary reforms. Chuah believes that demonstrating market failures can lead to profitable opportunities or regulatory interventions to address those failures. This way, investors can benefit financially while driving social change.
An example of successful public engagement is JANA Partners, which pressured Apple to enhance parental controls for its products in the interest of digital well-being. Their aim was not just ethical; it was about reducing risks associated with potential liabilities.
Kicking off in early 2025, Crowe and her colleagues conducted further research that highlighted a connection between health controversies and a decline in shareholder value. When companies proactively engage in health issues, their valuation tends to improve. This suggests that health matters not just for ethical reasons but importantly for financial returns.
The 43-page report outlines 15 priority public health issues, assessing the level of engagement they have received from investors. Established issues like smoking and alcohol consumption are well-known, while others, like air pollution and access to vaccines, are still developing. Newer topics, such as digital well-being, highlight the evolving landscape of public health challenges.
Understanding where an issue stands can guide investors on how and when to act. The less mature an issue, the longer it may take for financial returns to materialize. The report indicates that with thoughtful action, investors can achieve both profit and social impact.
In a world where health crises are increasingly relevant, this approach positions investors uniquely to contribute positively to society. By combining financial goals with a focus on public health, they’re poised to shape a healthier future while also enjoying potential financial rewards.
For further reading, explore resources from the Health Foundation and similar organizations.
Source link
alternative investments,health,Investing,investment banking,Northeastern University-London,NU Research,public health,united kingdom
