SMU Sustainable Investment
Sectors of Focus
Agriculture | Energy | Financial Services | Healthcare
Agriculture
An estimated 14 million children under the age of five worldwide suffer from severe acute malnutrition and only 25 percent of them have access to lifesaving treatment.
Small farmers, herders, and fishermen are working hard to produce more food, hitting about 70 percent of the global food supply. Yet they are still especially vulnerable to food insecurity. Agritech aims to be the solution to these problems by increasing food production and helping farmers to better manage their crops.
Agritech aims for zero hunger and decent work and economic growth which are SDG 2 & 8 respectively. These are challenging, but realistic goals. High tech farming and modern aquaculture is set for food production to take the next leap. With increased investments into the agriculture industry, it also ensures that farmers are able to have increased income through increased crop yield. With a concerted effort, we will be able to hit the key impact goals the agriculture industry was made for.
Key Impact Goals:
1) Allowing farmers to have continuous monitoring for their crops
2) Increased automation of crop harvests and production systems
3) Increased yield productivity without having an impact in the environment
Earth's resources are running out. Oil will run out in 30 years, gas will run out in 40 years, coal will run out in 70 years.
What then?
With populations increasing and countries developing rapidly, the demand of non-renewable energies such as fossil fuels are increasing rapidly, and there is no way to sustain their consumption. Currently, 85% of global energy consumption is derived from non-renewables, and only 15% is derived from renewable energy. We all know the effect using non-renewable energy has on the Earth and its climate. As demand for energy continues to grow, the adoption and uptake of renewable energy throughout the world will become more crucial in sustaining the Earth and meeting climate goals.
Key Impact Goals:
1) Ensuring access to affordable, reliable, sustainable and modern energy for all
2) Increase the share of renewable energy in the global energy mix
3) Double the global rate of improvement in energy efficiency
Energy
Financial Services
Financial services is an important sector of focus in impact investing as it makes up the single largest proportion of impact investments.
According to a research report by GIIN and JP Morgan, financial services accounted for 42% of all assets under management in impact investing.
Of which in particular, microfinance accounts for half of financial services in assets under management. Microfinance offers low-income and unemployed groups the opportunity to become financially stable. Through microcredit, these groups will be able to generate enough income to pay for their basic needs such as food, shelter, and healthcare. It also reduces the load on public assistance programs as families attain long-term financial stability.
Key Impact Goals:
1) Access to relevant financial products and services in underserved communities
Healthcare
More than 5 million children die before their fifth birthday each year.
More than a billion people lack sufficient health services. In Sub-Saharan Africa, 115 people die every hour from diseases linked to poor sanitation, poor hygiene, and contaminated water. Diseases like diabetes, cancer and AIDS are on the rise across the world. It is our conviction that there is an opportunity to connect a global healthcare market with the urgent need for basic, quality health services as well as increase health standards across the world.
Key Impact Goals:
1) Equity and equality of healthcare solutions available to everyone through the appropriate distribution channel
2) Reduce the total cost of healthcare using different forms of health insurance
3) Improve the quality of healthcare delivery, service and patient outcome