
A Brainier Approach to ESG Investing
Devoting funds to better benefit brain health could improve society as a whole.
COMMENTARY
Brains are the indispensable drivers of human progress, but brain health issues can wreak havoc on society. Consider the devastation of disorders like depression, anxiety, and Alzheimer disease—which cost the economy trillions each year. There are currently
The cost of mental disorders and dementia has shown us the disproportionate vulnerability of the elderly and disabled, and caused us to refocus on brain health. Brain health challenges exist across the life span from development disorders in the young, to multiple sclerosis and trauma in midlife, to stroke, Alzheimer disease, and Parkinson disease in later life. These conditions—coupled with the disorders of depression, schizophrenia, and bipolar illness—account for a tremendous cost to society and cause untold individual suffering. Beyond these familiar diagnoses, there are a plethora of other impediments to good brain health. Poor nutrition, limited exercise, and poor learning environments all keep individuals from reaching their brain health potential. As just one example,
Financial investments in ESG have grown tremendously over recent years. Many companies are investing in businesses that prioritize sustainability-related disclosures, business practices, and plans. Transitioning to a greener, more sustainable economy will also require adaptability, new skills, collective problem solving, and other brain skills.
There are some examples of prioritizing health interventions in the ESG field. For instance, the Culture of Health for Business (
Unfortunately, neither approach pays much attention to brain health. This is a missed opportunity. Brain-focused investing can help advance the ESG agenda, especially now that rates of
We recently launched the
There are some promising trends to note. Venture capital investing in mental health technologies neared
Imagine a world without mental suffering. We would be flourishing—fulfilled, connected, resilient, and accomplishing meaningful and worthwhile tasks that would be good for individuals and the planet.
Erin Smith is an associate with the PRODEO Institute and Thiel Fellow at Stanford University. Rashi Ojha is an MD candidate at David Geffen School of Medicine at UCLA. Dr Lo is the Charles E. and Susan T. Harris Professor, a Professor of Finance, and the Director of the Laboratory for Financial Engineering at the MIT Sloan School of Management. Dr Cummings is a research professor and Director of Chambers-Grundy Center for Transformative Neuroscience at the University of Nevada, Las Vegas. Dr Hynes is Senior Advisor to the OECD Secretary General and Head of the New Approaches to Economic Challenges Unit at the OECD. Dr Eyre is cofounder of the PRODEO Institute, adjunct associate professor with IMPACT at Deakin University, and co-lead of the OECD Neuroscience-inspired Policy Initiative.
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