5 ESG Trends that are Transforming Healthcare across Emerging Markets

5 ESG Trends that are Transforming Healthcare across Emerging Markets

Attributed to Massimiliano Colella, CEO, Evercare Group


Environmental, social, and governance (ESG) is no longer a passing trend, it has become a responsibility for every organization. Today, businesses are focused on ‘how’ to create and materialize tangible, practical plans to build a more sustainable business. The main goal of ESG reporting is to enable stakeholders to evaluate a company’s adherence to its commitment to society and its involvement and contribution to the Sustainable Development Goals (SDGs). Investors are increasingly incorporating ESG elements into their investment decision-making process, making it an indispensable element of business.

For the healthcare industry, all aspects of ESG have been significant. By including access to healthcare, racial equity, environmental justice, food equity, and affordable housing, healthcare organizations are making reforms in accordance with industry trends and ensuring sustainable care delivery.[1] By placing it at the center of business, healthcare companies can experience top-line growth through cost reductions, better access to resources through stronger community and government relations, and greater strategic freedom.[2]

There are five significant ESG trends that are currently being implemented across the healthcare ecosystem and are also influencing the evolution of this sector in fast-paced markets.

1. Greening the healthcare supply chain

Healthcare facilities generate significant waste and consume large amounts of energy and water. As the industry becomes more environmentally conscious, hospitals and clinics are adopting green practices, such as reducing single-use plastics, recycling medical waste, and using renewable energy sources. In addition, manufacturers are sourcing sustainable raw materials and adopting more efficient production processes to reduce their environmental footprint.

2. Telemedicine and digital health access

The pandemic has highlighted the need for readily available, reasonably priced, and high-quality healthcare services, particularly in developing nations. Telemedicine has become an essential tool to reduce the communication gap between patients and healthcare professionals. Through telemedicine and digital applications such as smartphone apps, remote patient monitoring, and virtual consultations, healthcare practitioners can reach underprivileged populations in an effective and sustainable manner. 

3. Preventive and community-based care

The sector in emerging markets is emphasizing early screening, detection, and disease prevention in line with the global shift toward preventive healthcare. Community-based initiatives such as vaccination drives, disease prevention programs, and health education and awareness campaigns are becoming more popular. These programs help to enhance long-term outcomes and lower healthcare costs by addressing the social determinants of health. For instance, in 2022, the Evercare Group completed over 690 community outreach, engagement, and care programs. This all-encompassing method of treating patients promotes social justice and improves the general health of communities.

4. Workforce diversity and inclusion

The industry is also increasingly recognizing the importance of a diverse, equitable, and inclusive workforce. A diverse workforce is better equipped to address the unique healthcare needs of different patient populations, and inclusive work environments can better attract and retain top talent. Measures such as gender and generational diversity, unbiased recruitment, equal pay, and female career development programs contribute to a more resilient and innovative ecosystem that is equipped to serve the needs of diverse communities.

5. Enhanced governance and compliance

Healthcare organizations are also strengthening their governance structures and regulatory compliance mechanisms. Transparent reporting, risk management, and ethical decision-making processes are being prioritized to ensure the long-term sustainability of the industry. By embracing robust governance practices, they build trust with investors, regulators, and other stakeholders, leading to better access to capital, improved operational efficiencies, and an enhanced reputation. This results in intangible benefits such as brand loyalty and patient trust.

The healthcare industry in emerging markets is undergoing a remarkable transformation driven by multiple ESG factors. Healthcare organizations must seize the opportunity to support and scale these trends for a more sustainable, equitable, and resilient healthcare system. However, these trends should be evaluated to recognize their value in the organization’s overall strategic mission and vision.


Comments

Post a Comment