ESG investors name health a top priority in 2026

Health has overtaken climate change as the top priority for ESG investors. While environmental issues remain important, social and governance factors are increasingly discussed.

According to an article from the Times (7 April 2026), a poll of 200 fund managers revealed that they are starting to focus less on global warming and fossil fuels when considering ESG factors. Instead, a broader range of concerns is the focus, including health, AI, and corruption.

Indeed, health was named the leading priority for ESG investors for the first time in 2026, while climate change fell to fifth place. More than half (55%) of investors surveyed said health was “very important” in their decisions.

Numerous factors are fuelling the focus on health

Health as an ESG factor might encompass a broader range of areas than you expect. For example, investors may consider access to medicine for pharmaceutical companies, the impact on public health, or employee wellbeing.

There are numerous reasons why health has become a key priority for investors, including the following.

The long-term lessons of the Covid-19 pandemic

The pandemic highlighted health inequalities, and that health crises can have a direct effect on business performance. Businesses that were able to adapt quickly to prioritise employee health may be viewed more favourably by investors, as it could indicate operations are more resilient.

Pressure on the NHS

The performance of the NHS and the pressure the service faces feature regularly in the headlines. This might prompt ESG investors to consider how businesses could ease the burden on the NHS or reduce demand, which could create long-term growth opportunities.

A stronger link between health and productivity

There’s a growing recognition that employee health, particularly mental health, affects performance. Businesses that support their employees’ health could see lower absenteeism, higher engagement, and better retention levels which, in turn, boost productivity. From an investment perspective, that could lead to improved returns over a long-term time frame.

Consumer expectations

Consumers are increasingly aware of health risks and their potential causes, which could change their behaviour. For example, they may avoid items that contain chemicals that have been linked to cancer. This shift could cause profits to decline and potentially lead to reputational damage for businesses that don’t consider the effect.

A lack of data could present a challenge for investors

One of the challenges of considering health as an ESG factor is data availability.

Health impacts are often more difficult to quantify than other ESG issues. For example, when you’re assessing contributions to climate change, you might review carbon emissions data to assess performance. However, a lack of standardisation across health providers could make comparisons like this more difficult.

ESG ratings might provide guidance for investors by scoring healthcare companies on a range of metrics. However, how rating agencies do this varies, so they could produce very different results.

Another option is investment funds. A fund would invest your money and that of other investors into a range of opportunities that match its criteria, and some have a health focus. As an investor, this could allow you to invest in a way that aligns with your key values while taking a hands-off approach.

ESG values should be considered alongside your investment strategy

As you weigh up which ESG values are important to you, it’s important to consider your wider investment strategy.

You might need to factor in your investment goals, time frame, and risk profile to assess if an opportunity is right for you. There might be some investments that seem to align with your values, but are not appropriate for another reason.

A clear strategy and goals could provide a value framework when you’re reviewing investments.

Contact us

If you’d like to discuss your values and how you might make them part of your overall investment strategy, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.