Planetary health aims to harmonize human health with the health of the planet.
Getty
Planetary health is an emerging field that seeks to harmonize human health with the health of the planet, creating solutions that mitigate environmental impacts, improve health, and promote sustainable development and economic growth. Investors, venture capitalists, and private equity stakeholders are uniquely positioned to leverage their resources to drive innovation and scalability in environmental technologies and drive this transformation.
Dr. Samuel Myers of the Planetary Health Alliance will host a workshop on linking fisheries and human health
Christopher Golder
Dr. Samuel Myers is a professor at the Johns Hopkins Bloomberg School of Public Health, where he led the launch of the university's interdisciplinary Planetary Health Institute. He also leads the Planetary Health Alliance, a 450-member organization representing governments, research institutes, and educational institutions from more than 70 countries. “The core premise of the planetary health field is that our way of life is suffocating life on Earth,” says Dr. Myers. Dr. Myers argues that the future of all life on Earth depends on rapid structural change across all systems, including energy, food systems, the built environment, and manufacturing. “That change can't happen without massive investments in infrastructure and businesses that support the new systems. Our future depends on private investment in planetary health.”
The role of venture capital and private equity
The interplay between VC and PE is essential to successful investments in planetary health. Venture capital is typically characterized by higher-risk, higher-reward investments targeting early-stage companies with breakthrough technologies. In contrast, private equity focuses on more mature companies, providing them with the capital they need to scale their operations and achieve broader market penetration.
Kyle Teamey, managing partner of RA Capital Management's Planetary Health team, emphasizes the importance of both venture capital and private equity in addressing environmental issues. He explains, “PE directly complements the VC side by acquiring companies at the commercialization and growth stage. This synergy helps breakthrough technologies get to market and achieve the scale they need to have a significant impact.” He says this holistic approach is crucial to the success of planetary health efforts.
“Unlike venture capital, which often sows the seeds of early-stage innovation, private equity can leverage a larger capital base and longer investment horizon to implement sustainable practices in more mature organizations,” said Payam Zamani, founder of One Planet Group, a mission-based private equity firm focused on advancing the public good. “This approach allows PE firms to innovate and scale solutions that have proven effective for the environment.”
Brigid O’Brien, managing partner in RA Capital Management’s Planetary Health team, emphasised the complementary roles of VC and PE, adding: “Technology is important, but ultimately it’s how you structure your business and position yourself in the market that will determine your success.”
Trends and Opportunities in Investing in Planetary Health
Funding for environmental technologies has been growing significantly over the past few decades. This trend clearly reflects the growing awareness of the economic and societal benefits that sustainable practices bring. Investment flows are cyclical, but the overall trend is upwards, with significant investments across the entire capital stack, from early-stage venture capital to large scale private equity.
A key focus for investors is the development of renewable energy technologies. Investment is playing a key role in funding the significant growth in renewable energy projects, with more capital now being directed towards renewables than fossil fuels. This shift is driven by both the economic viability of renewable energy and the need to reduce carbon emissions.
Challenges and Strategic Considerations
Investing in planetary health is not without its challenges. One major hurdle is the complexity of scaling up environmental technologies to a level where they can have a global impact, which requires significant capital and a deep understanding of market dynamics and logistics.
Solterra Senior Vice President of Operations and Commercial Development Ben Pope and Brigid O'Brien at Solterra's facility in Markle, Indiana.
RA Capital Management
O'Brien highlights another important aspect – the need for a holistic approach to environmental issues: “The health of the planet goes beyond climate change to include critical areas such as water quality, pollution reduction and resource availability. Investors need to consider the interconnectedness of these systems and the broader impacts on human health and economic development.”
Success stories
Despite challenges, there are many success stories in the area of investing in planetary health, and what's good for the planet is good for the bottom line. Sortera uses AI and automation to efficiently sort recyclable materials, reducing the need for virgin materials and lowering production costs. Similarly, AM Batteries has revolutionized lithium-ion battery manufacturing by eliminating the use of toxic solvents, thereby reducing carbon emissions, capital equipment, and overall production costs.
There are social benefits, too. “Sortera's highly automated sorting facilities accurately sort metal alloys at a much lower cost, making these materials valuable feedstock for domestic manufacturing. Innovations like this help the environment and boost economies by reducing reliance on imported materials,” says Teamey. “Venture capital investing in carbon reduction solutions and addressing the UN Sustainable Development Goals fosters innovation, creating markets and opportunities for talent and positive change for society,” adds Lie Shi, CEO of AM Batteries.
Future Directions
“Integrating environmental considerations into your investment strategy is not only a moral imperative, it's also a smart business strategy, delivering significant returns and fostering a sustainable and resilient global economy,” Teamy said. “Investors are uniquely positioned to contribute to a better world while generating significant returns,” Zamani added.
Investing in planetary health is a key strategy for addressing critical environmental challenges. By leveraging the complementary strengths of venture capital and private equity, investors can drive the development and scale of innovative solutions that advance sustainability and economic growth. A holistic, integrated approach to planetary health is critical to creating a future where people and the planet can both thrive.
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