Investing for human development
Rising population, lengthening life expectancy, urbanisation and the increasing scarcity of natural resources engender a long-term vision in terms of human development. We see orienting investments towards companies undertaking to overcome these challenges as being essential.
Human development is a term that covers many major issues facing society
The phrase “human development” comprises of two components:
- Satisfying basic human needs, which consists primarily of giving the greatest number of people possible access to:
- a good-quality diet, in reasonable quantities and at a moderate cost
- clean drinking water
- minimum standards of hygiene
- basic health care at acceptable prices
- education and training
- Participating in solving the modern world’s societal problems, which means seeking new solutions to issues such as the ageing population, developing and putting new generation medicine on the market, and the development of a responsible and sustainable world.
Companies are helping to meet the major challenges facing human development
Some companies are already helping to fulfil basic human needs and to solve today’s societal problems by providing:
- access to fundamentals such as a good diet (by increasing the nutritional value of food, optimising irrigation, etc.) and health care (by dedicating a significant part of their budget to research and development in the fight against infectious diseases and by producing generic medicine so that people in emerging countries need only pay much less for their medication, etc.); or
- products and/or services that help to satisfy major social needs (access to education and information, access to housing, inclusion in the labour market, etc.) and environmental needs (urbanisation and infrastructure, sustainable public transport, etc.).
Did you know?
Two examples that illustrate the challenges to human development:
- Ageing population: in 2050, there will be more people aged 60 or over than children aged 14 or less
- Worldwide, diabetes affects 366 million people but only 6% of these are being efficiently treated
Source: BNPP AM, 2015.
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