In an absolute sense, however, the WHEB strategy is a minute proportion of the global economy. In 2018, the WHEB strategy represented approximately just one millionth (0.0001%) of global capital markets. As illustrated above, the strategy’s positive contribution is disproportionate in the context of the broader economy. Over the last decade in England life expectancy has stalled, years spent in poor health have increased and health inequalities have widened. Those living in the most deprived areas die up to a decade earlier and spend an average of 19 extra years in poor health than those living in the least deprived areas.

Of the GHG reductions required from 2018 emissions to achieve global warming of no more than 1.5° Celsius by 2030, the money currently invested in the WHEB strategy contributes approximately just under one basis point (0.01%) of this global annual reduction objective 5,6. As the year unfolded, the world saw an estimated 1.4 million children striking globally in March, and in April Mark Carney, Governor of the Bank of England, wrote an open letter on climate related-financial risks. Most recently, The Guardian has replaced ‘climate change’ with ‘climate emergency, crisis or breakdown’ and ‘global heating’ in place of ‘global warming’. Consider the local context – reflect on local economic, environmental and social conditions, strengths and assets, and political factors that may constrain or support the development of inclusive and sustainable economies. Establish place-based inclusive and sustainable economy networks – building inclusive and sustainable economies requires coordinated and collaborative action across a broad range of cross-cutting sectors.

"Prosperity With A Purpose"

Figure 1. Framework to support planning and action on inclusive and sustainable economies. Taking a 6-step approach to using the inclusive and sustainable economies framework and data catalogue The Institute for Public Policy Research has predicted an increase in unemployment from 3.9% at the beginning of 2020 to 9.8% in 2021. The retail, tourism, entertainment and hospitality sectors have been the most hard-hit by the economic fall-out of COVID-19 – all of which disproportionately employ low-income workers, women, ethnic minority communities and young people. It is worth noting that the companies in the WHEB portfolio do use energy and produce GHG emissions themselves. This includes the direct production of emissions from their own operations (Scope 1 emissions) as well as emissions related to their use of electricity that has been generated through the burning of fossil fuels (Scope 2 emissions). Focusing purely on these operational greenhouse gas emissions, the strategy still compares favourably against the benchmark (see graph below).

It has become increasingly clear that COVID-19 has had a disproportionate impact on many who already face disadvantage and discrimination. A review of the disparities in risk and outcomes from COVID-19 by Public Health England (PHE) found that its impact has replicated existing inequalities and, in some cases, has increased them. At the end of December 2018, there were 58 holdings in the portfolio with each company categorised into one of nine WHEB investment themes, relating to seven of the 17 United Nations’ Sustainable Development Goals (SDGs). You can find more specific examples of our underlying investments relating to the relevant SDGs below. 3 Prioritise areas for action – prioritise areas for action based on the above considerations ensuring that effort is targeted towards the areas of greatest need.Consider the 6-step inclusive and sustainable economies approach to support local whole system planning and action on this agenda. Set a holistic vision – use the inclusive and sustainable economy network to set a local vision which looks beyond gross domestic product (GDP) as a measure of economic success. An inclusive and sustainable economy is one that works for everyone, with no one being left behind. It also protects the needs of future generations by ensuring that these can be met within the means of our planet.

The indirect impacts of the mitigation measures put in place by the government to reduce the spread of COVID-19 have disproportionately affected those most vulnerable in society. For example, school closures led to a generation of children losing out on months of education, with children from more deprived households having been left at a greater disadvantage to continue their learning from home.Through action across the 3 domains and 12 sub-domains, an inclusive and sustainable economy strives towards the vision detailed in the outer blue layer, consisting of: Today, climate-related financial risks are firmly on many investors’ agendas. A significant proportion of the WHEB investment strategy is invested in companies, such as IPG Photonics, which manufacture and sell products and services that help to reduce greenhouse gas (GHG) emissions. The difference is a consequence of two factors. Firstly, the strategy has no exposure to heavy carbon emitting sectors such as the energy sector. Furthermore, the strategy has much greater investment, compared to the MSCI World, in low emitting sectors such as healthcare and information technology. Health inequalities occur due to differences in the social, economic and environmental factors that shape our lives. It has been estimated that the unequal distribution of such factors accounts for between 40% and 50% of the variation in health outcomes (health inequality) between the most and least deprived areas. Seek opportunities to achieve social value to generate the greatest possible social, environmental and economic value from public spending.