Financing from both public and private means should be engaged to achieve Health For All and global health equity” “ How can we kick-start the process of a health taxonomy? With the WHO as the only dedicated health entity under the UN and its work on the commercial determinants of health as a foundation, it is the best organisation to spearhead the process and work with a consortium of stakeholders and health experts. The WHO can seek to work with other global entities, such as the EU PSF, the World Bank/IFC, the International Sustainability Standards Board, the International Capital Market Association and stock exchanges, as well as the private sector and financial market participants to develop a set of qualifying and continuing reporting health metrics that are impactful and measurable. Both public market and private market investors can actively include health metrics into their investment evaluations. Coordinated efforts among key stakeholders and organisations to develop a globally accepted health taxonomy will be imperative to effectively crowd in investments towards the common goals of Health For All and global health equity. ▪
Stakeholders now know to examine the broader impact of climate-oriented activities – while the intention can be good, the activities can potentially lead to negative externalities in some parts of society. Similar to climate-oriented products and initiatives, the healthcare ecosystem and supply chain of products and services are complex and multifaceted. For example, generic pharmaceutical companies sometimes face criticism for not creating value because they lack R&D innovations. However, it is virtually impossible to supply a world of more than eight billion people with drugs from only proprietary manufacturers. To scale up the supply of drugs and manage prices, generic pharmaceutical manufacturers
play a critical role in the overall pharmaceutical supply chain. Furthermore, as ESG investing became mainstream, it led to the development of many different green standards and climate checklists. There are arrays of service providers that aim to help companies and financial market participants interpret and comply with various climate and sustainability regulations. The lack of common definitions and the potential for greenwashing have been the two major challenges for the development of climate/sustainable financing over time. To effectively advocate for health investments, a globally accepted health taxonomy that sets common goals and clarity in communication will be crucial.
ZHI YANG Dr Zhi Yang is founder and chair of BVCF Management. He launched the firm in 2005 when he returned to China after two decades studying and working in the United States with the vision to bring the VC-driven innovation model to China. He launched BVCF as one of China’s first venture capital/ private equity firms focused on the healthcare sector. bvcf.com
1 World Health Organization. Social determinants of health. https://www.who.int/health-topics/social-determinants-of-health
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Health: A Political Choice – From Fragmentation to Integration
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