Why has health replaced climate change as a top ESG priority for investors?

Health has become a top ESG priority due to the profitability of sectors like weight-loss drugs and wellness services, alongside a decline in investor focus on climate action, which has fallen to fifth place.

What are the health implications of climate change that investors might be overlooking?

Climate change poses significant health risks, including increased heat-related illnesses, the spread of vector-borne diseases, negative impacts on mental health, and issues arising from sea-level rise such as contaminated water supplies.

How do political factors influence investor focus on climate change?

Political toxicity surrounding climate change, including government policy shifts and funding cuts, has contributed to institutions engaging in 'greenhushing,' leading investors to shy away from climate-related concerns.

Home / Environment / Investors Ditch Climate for Health: A New ESG Priority

Investors Ditch Climate for Health: A New ESG Priority

16 Apr

•

Summary

Climate change fell to 5th place in ESG investor priorities, replaced by health.
Funding for health-tech accelerated, while clean and climate tech saw a decline.
Climate action's political toxicity has led to 'greenhushing' even in major institutions.

Investors Ditch Climate for Health: A New ESG Priority

Investor priorities have significantly shifted, with health now eclipsing climate change as a primary ESG concern. Berenberg Bank's recent survey revealed climate change fell to fifth place among institutional investors, a notable decline from its previous top rankings. This pivot towards health is further evidenced by PitchBook's analysis, which showed a decrease in clean and climate tech venture capital deals in 2025, contrasted with a substantial acceleration in health-tech funding.