Investors’ urge science-based targets to combat antimicrobial resistance

Investors’ managing over $13 trillion in assets are urging global policymakers to establish science-based targets to combat the growing threat of antimicrobial resistance (AMR), drawing parallels to the approach used in the 2015 Paris Agreement on climate change. This call to action comes from 80 institutions, including Legal & General Investment Management and Aviva Investors, who signed a statement advocating for an international framework and a scientific panel to address AMR, which is increasingly seen as a global risk comparable to climate change.

AMR, which occurs when bacteria become resistant to antibiotics, currently kills nearly 1.3 million people annually. If left unaddressed, it could lead to an estimated $1 trillion in additional healthcare costs by 2050, a 3.8% reduction in global GDP, and about 10 million deaths each year. Despite the United Nations highlighting the issue in 2016, efforts to combat AMR have since lost momentum. The investor group behind this new initiative emphasizes that AMR poses significant risks to global financial markets, economic stability, and long-term value creation.

The growing resistance of bacteria to common drugs is primarily driven by the overuse of antibiotics in both humans and animals, making infections harder to treat and increasing the risks associated with surgeries and medical treatments. Maria Larsson Ortino, a senior global ESG manager at Legal & General, noted that AMR presents financial risks across critical sectors, from agriculture to healthcare. Emma Berntman of the FAIRR Initiative stressed the importance of understanding antibiotic use across industries to develop effective policies and action plans. The investors believe that coordinated scientific targets could guide companies and governments in crafting strategies to mitigate the economic and health impacts of AMR