Impact Investing

We know that strengthening health systems and building capacity are important to improve access to quality health care and to help address underlying barriers to health.

Highlights
  • In 2019, reached an estimated nine million people through a variety of health interventions
  • Established an internal Impact Investing Committee of senior executives to review new investments and monitor the overall portfolio performance
Our commitments
  • Through impact investments we seek to generate health-related social impact and meaningful financial returns
  • Our impact investing seeks to address five complementary facets of a sustainable and resilient global health ecosystem: physical infrastructure, financial inclusion, digital and diagnostic solutions, pharmaceutical and vaccine research and development (R&D), and emergency response
  • We intend to direct any financial returns from our impact investments into other corporate responsibility activities

Impact investing is one of our core approaches to advancing sustainable global health systems. Through impact investing, we are able to deploy financial resources in ways that may generate not only improved access to health care for underserved populations, but also financial returns and commercial opportunities—all while growing a sustainable global health ecosystem and attracting additional capital and partners.

Our approach

Through impact investing, we seek to address five complementary facets of a sustainable and resilient global health ecosystem: physical infrastructure, financial inclusion, digital and diagnostic solutions, pharmaceutical and vaccine R&D, and emergency response.

Governance

Impact investing is led by our Office of Social Business Innovation with guidance from the Impact Investing Committee. Established in 2019, the Impact Investing Committee is a cross-functional team of senior company leaders that reviews and approves new investments in line with established policies and guidelines and monitors the financial and social returns of the impact portfolio.

We are also members of the Global Impact Investing Network (GIIN), through which we can contribute to and benefit from the growing body of expertise in the impact investing

Programs and initiatives

Our impact investing portfolio is summarized below, and we continue to evaluate impact investing opportunities that are aligned with our corporate responsibility priorities and business objectives. In 2019, more than nine million people were reached by health interventions via our impact investments; as our investments continue to mature, we will continue to measure the social impact of our portfolio. In addition, to support the sustainability of our work, we intend to direct any financial returns from our impact investments into other corporate responsibility activities.

In 2014, we invested in the Global Health Investment Fund (GHIF), a social impact investment fund that supports the development of innovative medicines and other health interventions for patients in low- and middle-income countries.

In 2016, we invested in what is now The Evercare Health Fund, managed by TPG, a global investment firm. Evercare consists of a growing portfolio of hospitals, diagnostic centers and other facilities in high-growth countries in Africa and Asia. The sustainable business model of Evercare is developing commercial solutions to provide needed health services to reach patients who currently lack adequate health care and medical support.

In 2018, we joined the UNICEF Bridge Fund by making a five-year loan to this novel investment vehicle that accelerates the provision of critical health care commodities to benefit vulnerable children in limited-resource settings, including for disaster relief. By providing a fixed rate of return to investors, the Bridge Fund combines timely, high-impact health assistance with sustainable deployment of our company’s financial resources.

Throughout 2019 we made three new impact investments:

We invested in Leapfrog Investments Fund III, which is developing a portfolio focused on investing in innovative businesses providing financial services and health care services and products to low- and middle-income consumers in high-growth emerging markets. Investments will focus on health care inclusion (e.g., retail pharmacies) and financial inclusion, including health insurance companies and other businesses.

We also made an investment into TEAMFund, expanding access to affordable, appropriate and sustainable medical technologies that address unmet health needs for underserved populations, with an initial focus on India and Sub-Saharan Africa.

We joined Adjuvant, a successor to the Global Health Investment Fund that will invest in opportunities to address global health challenges such as infectious diseases, maternal and newborn health, and nutrition.

In 2020, we have made one investment to-date, joining HealthQuad Fund II, an Indian healthcare venture capital fund which will invest in early stage opportunities in disruptive, technology-based and innovation-driven healthcare businesses that help create transformational healthcare solutions and deep social impact.

Performance data

Impact investment20152016201720182019
Investment in partnerships for activities to address underlying barriers to health, such as health-system strengthening and capacity building (in millions)1NR5NR118
People reached through a variety of health interventions (in millions)2NRNRNR2.99.0
NR: Not reported
1Represents investment commitments into impact investment vehicles.
2Represents the number of people reached for a variety of healthcare products and services through our impact investing portfolio.