Abstract
The healthcare sectors tend to prioritise many materials ESG issues based on industry characteristics. First, environmental unsustainability in healthcare sectors may pose risks to companies’ waste management, energy management, and resilience to climate change. Second, social sustainability, such as product and service quality, has always been the general public concern, while data privacy and security are increasingly critical due to the development of advanced information technology, such as virtual reality. Third, governance sustainability on stakeholder engagement, board involvement, anti-corruption practices, tax management, and risk management in the healthcare sectors are increasingly important. The ESG risks would adversely affect companies’ financial performance by increasing the potential cost of compliance. However, organisations could transform the risks into opportunities by integrating ESG considerations and embedding ESG into corporate business strategies. ESG is expected to mitigate unsustainable issues and promote economic prosperity synchronously. Thus, healthcare service providers may benefit from ESG application in various aspects. This chapter will discuss the ESG risks and opportunities confronted by the healthcare industry, and ESG alignment brings opportunities for business sustainability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abouelmehdi K, Beni-Hessane A, Khaloufi H (2018) Big healthcare data: preserving security and privacy. J Big Data 5(1):1–18. https://doi.org/10.1186/s40537-017-0110-7
Adams CA (2002) Internal organisational factors influencing corporate social and ethical reporting. Account Audit Account J 15(2):223–250. https://doi.org/10.1108/09513570210418905
Alexis GK, Liakos P (2013) A case study of a cogeneration system for a hospital in Greece. Economic and environmental impacts. Appl Therm Eng 54(2):488–496. https://doi.org/10.1016/j.applthermaleng.2013.02.019
Alghababsheh M, Gallear D (2021) Socially sustainable supply chain management and suppliers’ social performance: the role of social capital. J Bus Ethics 173(4):855–875. https://doi.org/10.1007/s10551-020-04525-1
Backman CA, Verbeke A, Schulz RA (2017) The drivers of corporate climate change strategies and public policy. Bus Soc 56(4):545–575. https://doi.org/10.1177/0007650315578450
Balaisyte J, Nair N, Mahmood R (2021) MSCI ESG healthcare funds and SDG 3. MSCI. https://www.msci.com/www/research-paper/msci-esg-healthcare-funds-and/02599173086
Basta M, Lapalme J, Paquet M, Saint-Louis P, Abu Zwaida T (2018) How are supply chains addressing their social responsibility dilemmas? Review of the last decade and a half. Corp Soc Responsib Environ Manag 25(5):833–843. https://doi.org/10.1002/csr.1500
BDO Hong Kong (2 Dec 2019) Third-year ESG reports showed little improvement in overall disclosure and ESG practices in tackling the climate-related issues [Press Release]. https://www.bdo.com.hk/getattachment/News/2019/BDO-Survey-Third-year-ESG-reports-showed-little-i/(Final-Eng)-BDO_Press-Release_2019-ESG-Reporting-Survey_20191202.pdf.aspx?lang=en-GB
Berry LL (2019) Service innovation is urgent in healthcare. Acad Mark Sci Rev 9(1):78–92. https://doi.org/10.1007/s13162-019-00135-x
Boffo R, Patalano R (2020) ESG investing: practices, progress and challenges. OECD Paris. https://www.oecd.org/finance/ESG-Investing-Practices-Progress-Challenges.pdf
Buonomano A, Calise F, Ferruzzi G, Palombo A (2014) Dynamic energy performance analysis: case study for energy efficiency retrofits of hospital buildings. Energy 78:555–572. https://doi.org/10.1016/j.energy.2014.10.042
Busco C, Consolandi C, Eccles RG, Sofra E (2020) A preliminary analysis of SASB reporting: disclosure topics, financial relevance, and the financial intensity of ESG materiality. J Appl Corp Financ 32(2):117–125. https://doi.org/10.1111/jacf.12411
CFA Institute (2019) ESG disclosures in Asia Pacific. https://www.cfainstitute.org/-/media/documents/article/position-paper/esg-disclosures-apac.pdf
Christian MS, Bradley JC, Wallace JC, Burke MJ (2009) Workplace safety: a meta-analysis of the roles of person and situation factors. J Appl Psychol 94(5):1103–1127. https://doi.org/10.1037/a0016172
Cohen D, Furstenthal L, Jansen L (2021) The essentials of healthcare innovation. McKinsey Quarterly. https://www.mckinsey.com/~/media/mckinsey/business%20functions/strategy%20and%20corporate%20finance/our%20insights/the%20essentials%20of%20healthcare%20innovation/the-essentials-of-healthcare-innovation_vf.pdf?shouldIndex=false
Consolandi C, Phadke H, Hawley J, Eccles RG (2020) Material ESG outcomes and SDG externalities: evaluating the health care sector’s contribution to the SDGs. Organ Environ 33(4):511–533. https://doi.org/10.1177/1086026619899795
Copeland B, Raynor M, Shah S (2016) Top 10 health care innovations. Deloitte. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/life-sciences-health-care/us-lshc-top-ten-innovation.pdf
Corbett CJ, Montes-Sancho MJ, Kirsch DA (2005) The financial impact of ISO 9000 certification in the United States: an empirical analysis. Manage Sci 51(7):1046–1059. https://doi.org/10.1287/mnsc.1040.0358
Dai T, Tang C (2022) Frontiers in service science: integrating ESG measures and supply chain management: research opportunities in the postpandemic era. Serv Sci 14(1):1–12. https://doi.org/10.1287/serv.2021.0295
Dai T, Bai G, Anderson GF (2020) PPE supply chain needs data transparency and stress testing. J Gen Intern Med 35(9):2748–2749. https://doi.org/10.1007/s11606-020-05987-9
Davis AK, Guenther DA, Krull LK, Williams BM (2016) Do socially responsible firms pay more taxes? Account Rev 91(1):47–68. https://doi.org/10.2308/accr-51224
de Jong P, Paulraj A, Blome C (2014) The financial impact of ISO 14001 certification: top-line, bottom-line, or both? J Bus Ethics 119(1):131–149. https://doi.org/10.1007/s10551-012-1604-z
Demir M, Min M (2019) Consistencies and discrepancies in corporate social responsibility reporting in the pharmaceutical industry. Sustain Account Manage Policy J 10(2):333–364. https://doi.org/10.1108/SAMPJ-03-2018-0094
Diaz LF, Savage GM, Eggerth LL (2005) Alternatives for the treatment and disposal of healthcare wastes in developing countries. Waste Manage 25(6):626–637. https://doi.org/10.1016/j.wasman.2005.01.005
Eberhardt-Toth E (2017) Who should be on a board corporate social responsibility committee? J Clean Prod 140:1926–1935. https://doi.org/10.1016/j.jclepro.2016.08.127
Edgeman R, Eskildsen J, Neely A (2015) Translating triple top line strategy into triple bottom line performance. Meas Bus Excell 19(1). https://doi.org/10.1108/mbe-12-2014-0054
Edwards B, Chakraborty S (2012) Risk communication and the pharmaceutical industry. Drug Saf 35(11):1027–1040. https://doi.org/10.1007/BF03261989
Franco A, Shaker M, Kalubi D, Hostettler S (2017) A review of sustainable energy access and technologies for healthcare facilities in the Global South. Sustain Energy Technol Assess 22:92–105. https://doi.org/10.1016/j.seta.2017.02.022
Gable C, Shireman B (2005) Stakeholder engagement: a three-phase methodology. Environ Qual Manage 14(3):9–24. https://doi.org/10.1002/tqem.20044
Gajarawala SN, Pelkowski JN (2021) Telehealth benefits and barriers. J Nurse Practitioners 17(2):218–221. https://doi.org/10.1016/j.nurpra.2020.09.013
García Martín CJ, Herrero B (2020) Do board characteristics affect environmental performance? A study of EU firms. Corp Soc Responsib Environ Manag 27(1):74–94. https://doi.org/10.1002/csr.1775
Ghannadpour SF, Zandieh F, Esmaeili F (2021) Optimizing triple bottom-line objectives for sustainable health-care waste collection and routing by a self-adaptive evolutionary algorithm: a case study from Tehran province in Iran. J Clean Prod 287, Article 125010. https://doi.org/10.1016/j.jclepro.2020.125010
Gioia DA, Chittipeddi K (1991) Sensemaking and sensegiving in strategic change initiation. Strateg Manag J 12(6):433–448. https://doi.org/10.1002/smj.4250120604
Global Reporting Initiatives (2019) GRI 207: tax. https://www.globalreporting.org/standards/media/2482/gri-207-tax-2019.pdf
Haux R (2006) Health information systems—past, present, future. Int J Med Informatics 75(3–4):268–281. https://doi.org/10.1016/j.ijmedinf.2005.08.002
Henisz W, Koller T, Nuttall R (2019) Five ways that ESG creates value. McKinsey Quarterly. https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Strategy%20and%20Corporate%20Finance/Our%20Insights/Five%20ways%20that%20ESG%20creates%20value/Five-ways-that-ESG-creates-value.ashx
Hensher M, McGain F (2020) Health care sustainability metrics: building a safer low-carbon health system. Health Affairs 39(12):2080–2087. https://doi.org/10.1377/hlthaff.2020.01103
Hong Kong Exchanges and Clearing Limited (2022) Appendix 27 environmental, social and governance reporting guide. https://en-rules.hkex.com.hk/pdf-manipulate?/sites/default/files/net_file_store/HKEX4476_3841_VER18584.pdf
Hoi CK, Wu Q, Zhang H (2013) Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities. Account Rev 88(6):2025–2059. https://doi.org/10.2308/accr-50544
Huseynov F, Klamm BK (2012) Tax avoidance, tax management and corporate social responsibility. J Corp Finan 18(4):804–827. https://doi.org/10.1016/j.jcorpfin.2012.06.005
Husted BW, de Sousa-Filho JM (2019) Board structure and environmental, social, and governance disclosure in Latin America. J Bus Res 102:220–227. https://doi.org/10.1016/j.jbusres.2018.01.017
Iyengar A, Kundu A, Pallis G (2018) Healthcare informatics and privacy. IEEE Internet Comput 22(2):29–31. https://doi.org/10.1109/MIC.2018.022021660
Jackson G, Bartosch J, Avetisyan E, Kinderman D, Knudsen JS (2020) Mandatory non-financial disclosure and its influence on CSR: an international comparison. J Bus Ethics 162(2):323–342. https://doi.org/10.1007/s10551-019-04200-0
Jiang F, Jiang Y, Zhi H, Dong Y, Li H, Ma S, Wang Y, Dong Q, Shen H, Wang Y (2017). Artificial intelligence in healthcare: past, present and future. Stroke Vasc Neurol 2(4), Article e000101. https://doi.org/10.1136/svn-2017-000101
Kim J, Campbell AS, de Ávila BEF, Wang J (2019) Wearable biosensors for healthcare monitoring. Nat Biotechnol 37(4):389–406. https://doi.org/10.1038/s41587-019-0045-y
Kohler JC, Dimancesco D (2020) The risk of corruption in public pharmaceutical procurement: how anti-corruption, transparency and accountability measures may reduce this risk. Global Health Act 13, Article 1694745. https://doi.org/10.1080/16549716.2019.1694745
KPMG (2020) Managing China tax issues in Covid-19 disruption period. https://assets.kpmg/content/dam/kpmg/cn/pdf/en/2020/04/managing-china-tax-issues-in-covid-19-disruption-period.pdf
Lambert DM, Adams RJ, Emmelhainz MA (1997) Supplier selection criteria in the healthcare industry: a comparison of importance and performance. Int J Purch Mater Manag 33(4):16–22. https://doi.org/10.1111/j.1745-493X.1997.tb00021.x
Lányi CS (2006) Virtual reality in healthcare. In: Ichalkaranje N, Ichalkaranje A, Jain L (eds) Intelligent paradigms for assistive and preventive healthcare, vol 19. Springer, pp 87–116. https://doi.org/10.1007/11418337_3
Lopes MA, Almeida ÁS, Almada-Lobo B (2015) Handling healthcare workforce planning with care: where do we stand? Hum Resour Health 13(1):1–19. https://doi.org/10.1186/s12960-015-0028-0
Mathur B, Gupta S, Meena ML, Dangayach GS (2018) Healthcare supply chain management: literature review and some issues. J Adv Manage Res 15(3):265–287. https://doi.org/10.1108/JAMR-09-2017-0090
McCain K (17 Jan 2022) Predictions 2022: What are the biggest healthcare shifts? Here’s what health experts think. World Economic Forum. https://www.weforum.org/agenda/2022/01/biggest-healthcare-shifts-experts-expect-to-see-in-2022/
McDonough W (2002) Design for the triple top line: new tools for sustainable commerce. Corp Environ Strateg 9(3):251–258. https://doi.org/10.1016/S1066-7938(02)00069-6
McLinton SS, Loh MY, Dollard MF, Tuckey MMR, Idris MA, Morton S (2018) Benchmarking working conditions for health and safety in the frontline healthcare industry: perspectives from Australia and Malaysia. J Adv Nurs 74(8):1851–1862. https://doi.org/10.1111/jan.13580
Mehralian G, Nazari JA, Zarei L, Rasekh HR (2016) The effects of corporate social responsibility on organizational performance in the Iranian pharmaceutical industry: the mediating role of TQM. J Clean Prod 135:689–698. https://doi.org/10.1016/j.jclepro.2016.06.116
Mihomem C (2021) Women on boards: progress report 2021. MSCI. https://www.msci.com/documents/10199/093d46d8-982b-6466-74c9-2629d2c0229a
Mio C, Venturelli A, Leopizzi R (2015) Management by objectives and corporate social responsibility disclosure: first results from Italy. Account Audit Account J 28(3):325–364. https://doi.org/10.1108/AAAJ-09-2013-1480
Monetary Authority of Singapore (2022) Code of corporate governance. https://www.mas.gov.sg/-/media/MAS/Regulations-and-Financial-Stability/Regulatory-and-Supervisory-Framework/Corporate-Governance-of-Listed-Companies/Code-of-Corporate-Governance-6-Aug-2018.pdf
Moratis L, Brandt S (2017) Corporate stakeholder responsiveness? Exploring the state and quality of GRI-based stakeholder engagement disclosures of European firms. Corp Soc Responsib Environ Manag 24(4):312–325. https://doi.org/10.1002/csr.1408
Morsing M, Schultz M (2006) Corporate social responsibility communication: stakeholder information, response and involvement strategies. Bus Ethics: Eur Rev 15(4):323–338. https://doi.org/10.1111/j.1467-8608.2006.00460.x
Mosadeghrad AM (2013) Healthcare service quality: towards a broad definition. Int J Health Care Qual Assur 26(3):203–219. https://doi.org/10.1108/09526861311311409
Mosadeghrad AM (2014) Factors influencing healthcare service quality. Int J Health Policy Manage 3(2):77–89. https://doi.org/10.15171/ijhpm.2014.65
MSCI ESG Research LLC (30 Oct 2020) The rise of women on board. https://www.msci.com/documents/1296102/23446350/MSCI-Update-WOB.pdf
Nasdaq (2022) Nasdaq’s board diversity rule. https://listingcenter.nasdaq.com/assets/Board%20Diversity%20Disclosure%20Five%20Things.pdf
Norris SL, Holmer HK, Ogden LA, Burda BU (2011) Conflict of interest in clinical practice guideline development: a systematic review. PLoS ONE 6(10), Article e25153. https://doi.org/10.1371/journal.pone.0025153
Palea V, Drogo F (2020) Carbon emissions and the cost of debt in the eurozone: the role of public policies, climate-related disclosure and corporate governance. Bus Strateg Environ 29(8):2953–2972. https://doi.org/10.1002/bse.2550
Patil HK, Seshadri R (2014) Big Data security and privacy issues in healthcare. In: 2014 IEEE international congress on Big Data, pp 762–765. https://doi.org/10.1109/BigData.Congress.2014.112
Pichler PP, Jaccard IS, Weisz U, Weisz H (2019) International comparison of health care carbon footprints. Environ Res Lett 14(6), Article 064004. https://doi.org/10.1088/1748-9326/ab19e1
Prajogo DI, Sohal AS (2003) The relationship between TQM practices, quality performance, and innovation performance. Int J Qual Reliab Manage 20(8):901–918. https://doi.org/10.1108/02656710310493625
Prem Ananth A, Prashanthini V, Visvanathan C (2010) Healthcare waste management in Asia. Waste Manage 30(1):154–161. https://doi.org/10.1016/j.wasman.2009.07.018
PwC (2019) Risk reporting. https://www.pwc.co.uk/audit-assurance/assets/pdf/risk-reporting-accountability-tips.pdf
PwC (2021) ESG for healthcare organizations: what’s right for the world is good for business. https://www.pwc.com/us/en/industries/health-industries/library/assets/pwc-esg-health-insights-health-org.pdf
Radu C, Smaili N (2021) Alignment versus monitoring: an examination of the effect of the CSR committee and CSR-linked executive compensation on CSR performance. J Bus Ethics 180:145–163. https://doi.org/10.1007/s10551-021-04904-2
Salas RN, Maibach E, Pencheon D, Watts N, Frumkin H (2020) A pathway to net zero emissions for healthcare. BMJ 371, Article m3785. https://doi.org/10.1136/bmj.m3785
Schwartz J (27 June 2016) The future of 3D-printed prosthetics. TechCrunch. https://techcrunch.com/2016/06/26/the-future-of-3d-printed-prosthetics/
Sommersguter-Reichmann M, Wild C, Stepan A, Reichmann G, Fried A (2018) Individual and institutional corruption in European and US healthcare: overview and link of various corruption typologies. Appl Health Econ Health Policy 16(3):289–302. https://doi.org/10.1007/s40258-018-0386-6
Stocker F, Arruda MP, Mascena KMC, Boaventura JMG (2020) Stakeholder engagement in sustainability reporting: a classification model. Corp Soc Responsib Environ Manag 27(5):2071–2080. https://doi.org/10.1002/csr.1947
Sustainability Accounting Standards Board (2013) Biotechnology sustainability accounting standard. https://www.sasb.org/wp-content/uploads/2013/09/SASB_Standards_HealthCare_Sector.pdf
Task Force on Climate-related Financial Disclosures (2017) Recommendations of the task force on climate-related financial disclosures. https://assets.bbhub.io/company/sites/60/2020/10/FINAL-2017-TCFD-Report-11052018.pdf
Tamimi N, Sebastianelli R (2017) Transparency among S&P 500 companies: an analysis of ESG disclosure scores. Manag Decis 55(8):1660–1680. https://doi.org/10.1108/MD-01-2017-0018
Thakur V, Ramesh A (2015) Healthcare waste management research: a structured analysis and review (2005–2014). Waste Manage Res: J Sustain Circular Econ 33(10):855–870. https://doi.org/10.1177/0734242X15594248
Thakur V, Mangla SK, Tiwari B (2021) Managing healthcare waste for sustainable environmental development: a hybrid decision approach. Bus Strateg Environ 30(1):357–373. https://doi.org/10.1002/bse.2625
Torelli R, Balluchi F, Furlotti K (2020) The materiality assessment and stakeholder engagement: a content analysis of sustainability reports. Corp Soc Responsib Environ Manag 27(2):470–484. https://doi.org/10.1002/csr.1813
United Nations (2015) Transforming our world: the 2030 agenda for sustainable development. https://sdgs.un.org/sites/default/files/publications/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf
United Nations (2018) Personal data protection and privacy principles. https://unsceb.org/sites/default/files/imported_files/UN-Principles-on-Personal-Data-Protection-Privacy-2018_0.pdf
United Nations (2021) Our common agenda. https://www.un.org/en/content/common-agenda-report/assets/pdf/Common_Agenda_Report_English.pdf
U.S. Department of Labor (8 Feb 2022) As workers’ injury and illness rates soar, US Department of Labor urges healthcare facilities, providers to employ effective safety, health programs. [Press Release]. https://www.dol.gov/newsroom/releases/osha/osha20220208
Vitolla F, Raimo N, Rubino M (2020) Board characteristics and integrated reporting quality: an agency theory perspective. Corp Soc Responsib Environ Manag 27(2):1152–1163. https://doi.org/10.1002/csr.1879
Wang T, Li X, Liao P-C, Fang D (2016) Building energy efficiency for public hospitals and healthcare facilities in China: barriers and drivers. Energy 103:588–597. https://doi.org/10.1016/j.energy.2016.03.039
Weinhofer G, Busch T (2013) Corporate strategies for managing climate risks. Bus Strateg Environ 22(2):121–144. https://doi.org/10.1002/bse.1744
World Economic Forum (2022) The global risks report 2022. https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2022.pdf
World Health Organization (2016) Strategizing national health in the 21st century: a handbook. https://apps.who.int/iris/bitstream/handle/10665/250221/9789241549745-eng.pdf?sequence=41&isAllowed=y
World Health Organization (8 Feb 2018) Health-care waste. https://www.who.int/news-room/fact-sheets/detail/health-care-waste
World Health Organization (2020a) Health workforce policy and management in the context of the COVID-19 pandemic response. https://apps.who.int/iris/rest/bitstreams/1320071/retrieve
World Health Organization (2020b) Potential corruption risks in health financing arrangements: report of a rapid review of the literature. https://apps.who.int/iris/rest/bitstreams/1275307/retrieve
World Health Organization (2021) The protection of personal data in health information systems-principles and processes for public health. https://apps.who.int/iris/bitstream/handle/10665/341374/WHO-EURO-2021-1994-41749-57154-eng.pdf?sequence=1&isAllowed=y
World Health Organization (2022a) Global analysis of health care waste in the context of COVID-19. https://apps.who.int/iris/rest/bitstreams/1406822/retrieve
World Health Organization (2022b) Caring for those who care: guide for the development and implementation of occupational health and safety programmes for health workers: executive summary. https://apps.who.int/iris/rest/bitstreams/1411486/retrieve
Yin J, Zhang Y (2012) Institutional dynamics and corporate social responsibility (CSR) in an emerging country context: evidence from China. J Bus Ethics 111(2):301–316. https://doi.org/10.1007/s10551-012-1243-4
Yu KH, Beam AL, Kohane IS (2018) Artificial intelligence in healthcare. Nat Biomed Eng 2(10):719–731. https://doi.org/10.1038/s41551-018-0305-z
Zeisel S (2020) Is sustainability a moving target? A methodology for measuring CSR dynamics. Corp Soc Responsib Environ Manag 27(1):283–296. https://doi.org/10.1002/csr.1805
Zhang HJ, Zhang YH, Wang Y, Yang YH, Zhang J, Wang YL, Wang JL (2013) Investigation of medical waste management in Gansu province, China. Waste Manage Res 31(6):655–659. https://doi.org/10.1177/0734242X13482161
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Leung, T.C.H., You, C.SX. (2023). ESG Application in Sustainable Development of the Healthcare Industry. In: Environmental, Social and Governance and Sustainable Development in Healthcare. Sustainable Development Goals Series. Springer, Singapore. https://doi.org/10.1007/978-981-99-1564-4_4
Download citation
DOI: https://doi.org/10.1007/978-981-99-1564-4_4
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-99-1563-7
Online ISBN: 978-981-99-1564-4
eBook Packages: Social SciencesSocial Sciences (R0)