Unlocking new investments for a more nourished world

Nutrition is the cornerstone of our societies and a key driver for a healthier, more prosperous and sustainable future. Investing in nutrition is very rewarding; according to the 2024 World Bank Nutrition Investment Framework, $1 invested in nutrition generates  $23 in wealth.  

Globally, 1 in 8 people are living with obesity, and 2.5 billion adults are overweight, a figure which has doubled since 1990. Overweight and obesity increase the risk of non-communicable diseases, which are the leading cause of death globally. Close to a quarter of children under 5 suffer from poor growth due to undernutrition.  Micronutrient deficiencies affect half of all children under 5 and two out of three women of reproductive age.  While often viewed as separate issues, overnutrition, undernutrition and micronutrient deficiencies are cause by a failure of the food system to deliver affordable, nutritious foods.  

Most governments already devote some resources to nutrition despite constrained budgets. New sources of financing are urgently needed. We need to step up efforts to curb the global obesity pandemic while also accelerating progress for tackling undernutrition and micronutrient deficiencies. 

Markets play a crucial role in shaping food offerings and actively food consumption patterns. Low- and middle-incomes countries are seeing rapid expansion in consumption of processed and packaged food. All high income countries, and a growing number of low and middle income countries face a surplus of packaged foods high in sugar, salt and fat, but often low in essential micronutrients. Accessing a nutrient dense diet, meeting energy, protein and micronutrients needs costs, on average, 2.6 times more than an energy only diet, and remains a challenge for many around the globe. These issues fuel a growing public health crisis that requires immediate attention. 

The silver lining is that both public and private financing can help.  

On one hand, development banks have the capacity steer food systems towards healthier, more sustainable outcomes providing financing that can leverage private sector investments, provide technical support and facilitate policy dialogues. However, their role can be further utilised. This is one of the main priorities of the Paris Pact for people and planet (4P), an outcome of the New Global Financial Pact Summit organised in Paris in June 2023. (cont…)

 

Development Banks’ support will be key to achieve the objectives of March 2025 Nutrition for Growth Summit (N4G) in Paris. Their support not only strengthens nutrition interventions but also aligns with broader development goals including poverty reduction and sustainable growth. 

On the other hand, capital markets can help steer food companies towards healthier food portfolios and responsible marketing, making the food environment healthier. Perhaps most importantly, private financing can ensure more sustainable resources for nutrition in the long run.  

Both can complement constrained government and donor funds.  

N4G Paris provides an excellent opportunity to anchor nutrition as critical element of capital markets and environmental, social and governance (ESG) investment practices, as well as development banks portfolios. This, in turn, will help confirm the business case for nutrition, convince the food industry that health is indeed wealth and facilitate a transition to healthier food product portfolios especially in low and middle income countries.    

A recent 2024 assessment on the materiality of nutrition – lead by Planet Tracker and Access to Nutrition initiative (ATNi) uncovered that embedding nutrition in ESG investment practice would have multiple positive effects including 1) mitigating risk for investors; 2) helping decrease the costs to society linked to the consumption of unhealthy food products; and 3) realising gains for companies, who will increasingly recognise nutrition affects their bottom line. 

To fully leverage ESG for nutrition, we need better standards and disclosures by food companies.  There have been recent encouraging wins, helping to tap into private financing and capital markets for nutrition. Earlier this year, dozens of investors started to ask food companies to use only one of three government-endorsed nutrient profiling models to measure the healthiness of food portfolios.

We are pleased that Nutriscore is one of the selected profiling models, which was developed by French research institutions. While the tool was originally designed to inform consumers, we are pleased it is also a useful tool for measuring the healthiness of product portfolios. Following an extensive year-long consultation,  an investor group – including responsible investors such as Achmea, LGIM and BNP Paribas Asset Management—who represent a combined US$21 trillion in assets under management (AUM), backed ATNi in its call to use common standards to measure the healthiness of food portfolios at major corporations. These gains are encouraging and should be pursued.   

As we approach N4G Paris, partnerships with this institutional investor group, the financial sector and development banks will be key in driving the commitments to standardize nutrition reporting from food companies. What’s more, we will encourage new and ambitious commitments from investors support companies which are making measurable progress towards healthier food portfolios and responsible marketing practices. This in turn will help fuel a virtuous cycle of nutrition, healthier food production and environment, as well as a more resilient future for all.