Corporate Impact Investing Case Study – Sanofi Global Health Unit
Sanofi’s Global Health Unit is a pioneering, not-for-profit social business model with a mission to improve the lives of underserved populations in 40 countries with the highest unmet medical needs through innovative inclusive healthcare models and partnerships, delivering a sustainable impact. Established in 2022, the Impact Investment Fund is focused on supporting the scale up of local businesses to improve access to healthcare by supporting startup companies and other innovators who can deliver scalable solutions for health care in underserved regions.
Organisational Profile
>Legal Structure – Internal Business Unit
>Affiliated Company - Sanofi
>Headquarters – Paris, France
>Thematic Area – Access to Healthcare
>Geographical Focus – African, Middle East, Southeast-Asia
Impact Investing Approach
Which Approach & Why?
Sanofi is committed to improve and accelerate affordable and sustainable access to quality medicines, vaccines and healthcare for underserved populations in places where the company can have the greatest impact. Sanofi’s Global Health Unit (GHU) puts forward tailor-made health solutions for underserved communities in countries with the highest unmet medical needs and where Sanofi has little or no commercial activities, thus avoiding geographical overlap
The GHU builds its work on three pillars :
1) Improve the availability of quality medicines, including its Impact brand, at , affordable, and accessible prices in 40 countries with the highest unmet medical needs.
2) Support capacity-building programs for healthcare professionals and community healthcare workers, aimed at strengthening ecosystems for greater healthcare access through the collaboration with Ministries of Health, pharmacists, doctor councils, NGOs and
3) Support the scale-up of local, inclusive businesses to improve healthcare access through its Impact Investment Fund. Impact investing has become crucial, as the private sector often offers innovative, tailored solutions that improve healthcare accessibility and affordability and requires the appropriate funding to be able to scale.
The Business Case
Supporting the Corporate Purpose:
Fostering a culture of purpose and innovation for the employees supporting the start-ups through skill-based mentorship. The Impact Fund is not just about providing financial support and capital; it also focuses on leveraging Sanofi’s business expertise to help local innovators and start-ups scale their operations and improve healthcare delivery. Sanofi employees throughout the company play a crucial role by volunteering and serving as advisors, enhancing the impact of our investments and fostering a culture of engagement and purpose within our organization. The employees can also benefit from being exposed to the innovative mindset and agility of the start-up they support.
The Impact Case
Deepen the Support
The GHU stands on three pillars – providing affordable medicine, subsidising capacity-building for healthcare professionals, and investing impact capital – which simultaneously reinforce each other and address the challenge of healthcare access from multiple angles. For example, impact investing strengthens the distribution infrastructure for medicine, while investees can benefit from the Access managers’ networks and advice as well as potentially leverage the GHU’s Impact Brand products. Additionally, the profits generated by impact investments support capacity-building programs for healthcare professionals, creating a sustainable and integrated approach to improving global health.
Bridge Impact and Business:
The term ‘additionality’ refers to achieving positive outcomes that are better than what would have happened without an investment. The GHU demonstrates additionality beyond its financial investments by ensuring investees benefit from Sanofi’s expertise, resources and networks. This way, the impact fund’s investment thesis is aligned with Sanofi’s priority areas. Such can be seen through the GHU’s mentorship program that connects Sanofi employees with investees to address specific needs, providing employees with valuable insights relevant to their fields while ensuring investees gain the expertise needed to scale their impact.
Synergies between Impact Investing & Other Business Areas
Integration into a Holistic Social Impact Strategy:
Sanofi’s social impact strategy is embeeded throughout its organization. The company has adopted multifaceted approaches to provide and accelerate access to medicines that complement each other. The approaches are commercial (CSR), social (GHU) and philanthropic (Foundation S), They have distinct mandates and geographic scopes, they work together to consolidate impact metrics , ensuring coherence and transparency in impact-related activities.
Integrated Governance:
The impact fund’s investment committee comprises the heads of Corporate Venture Capital, Manufacturing & Supply, Corporate Affairs, and China Finance Operations. This diverse composition ensures strategic alignment between desired impacts and business priorities, making room for potential synergies between the two.
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"Impact funding is crucial in our mission to bridge the healthcare gap in LMICs. By investing in sustainable and scalable healthcare solutions, we can ensure that essential medicines and services reach the most vulnerable populations. This approach not only addresses immediate health needs but also builds resilient health systems for the future."
-Jon Fairest, Head of Global Health Unit
