3 minute read 8 Mar 2024
Green hospital

How sustainable practices ensure a green healthcare ecosystem

Nitesh Mehrotra
By Nitesh Mehrotra

EY India Partner Sustainability and ESG

Committed to building a better working world by challenging the status quo. An advocate of treating sustainability, at par with financial success. A nature lover and traveler.

3 minute read 8 Mar 2024
Related topics Climate change and sustainability Sustainability Technology Health Innovation
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  • How can Sustainability and ESG be the microscope and telescope in the Indian healthcare sector?

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As major megatrends, sustainability and climate change profoundly impact the entire healthcare ecosystem and its stakeholders.

In brief

  • Creation of value led sustainability program and business linked KPIs, including a net-zero transition plan.
  • Analyzing ESG risks and opportunities to protect and create value for healthcare sector.
  • Embedding sustainability across the enterprise's value chain using digitalization and analytics for real-time business decisions.

Sustainability and climate change are crucial megatrends affecting the healthcare ecosystem, impacting stakeholders such as investors, customers, regulators, and financial capital providers. The leading science research guided by planetary boundaries framework update indicates that six of the nine boundaries have been transgressed, implying that Earth is now significantly beyond the safe operating space for humanity.

The planetary boundaries framework draws upon Earth system science, identifying nine critical processes essential for maintaining the stability and resilience of the Earth system as a whole. Currently, all of these are heavily perturbed by human activities.

A recent EY report, “How can sustainability and ESG be the microscope and telescope in the Indian healthcare sector” highlights the following three key goals for a leading healthcare enterprise: 

  • Implementing value-driven sustainability in healthcare programs with net-zero plans
  • Evaluating sustainability challenges and opportunities in healthcare
  • Integrating the role of technology in sustainable healthcare throughout the value chain

The carbon and environmental footprint of the healthcare sector emphasizes the urgent need for circular strategies, emphasizing reuse, extended product lifecycles, and efficient reverse logistics. Moreover, transitioning to green healthcare solutions, including renewables and the implementation of net-zero plans, is crucial for sustainable progress. Embracing these innovative sustainable healthcare practices can drive value creation and foster resilience. 

Implementing an ESG value-led proposition and roadmap is crucial for sustaining healthcare businesses. It aligns with stakeholder expectations, mitigates risks, enhances reputation, ensures regulatory compliance, helps realize cost saving benefits of sustainable healthcare, attracts capital and talent, and fosters innovation and competitive advantage.

ESG value-led proposition and roadmap

ESG value led proposition and roadmap

In today's climate-conscious world, healthcare companies can play a pivotal role in combating climate change by eliminating greenhouse gas emissions. Through a multifaceted approach, they can pull multiple levers to reduce their environmental impact and contribute to a more sustainable future. One crucial aspect lies in adopting green hospital design principles, which prioritize energy efficiency, waste reduction, and ecological considerations. By integrating these strategies, healthcare organizations not only enhance their environmental stewardship but also promote healthier communities and build a more sustainable healthcare systems for the future.

It is imperative for healthcare organizations to prioritize ESG data as a foundational element for their business services, given its role in enhancing risk management, stakeholder trust, regulatory compliance, operational efficiency, and innovation.

Amid the urgent global need for a rapid transition towards a low-greenhouse gas emission economy, implementing a net-zero transition plan emerges as a vital strategy for healthcare entities. This approach allows them to demonstrate climate leadership, mitigate risks, achieve cost-saving benefits, inspire investor confidence, and promote public health, leading to improved patient outcomes and sustainability.

How can data be the microscope and telescope?

Needs a plug and play data model at its foundation
EY ESG data / digital platform

Our EY ESG data and digital platform offered comprehensive insights and performance analysis for the formal sector during FY 2022-23, with a dedicated focus on the top healthcare service providers in the country. Through its ESG dashboard, the platform showcases a robust ESG data model, providing a holistic view of environmental, social, and governance factors. The dashboard’s completeness ensures a thorough understanding of key metrics and trends, while sector-specific insights offer tailored analysis for the healthcare industry. With advanced analytics capabilities, the platform enables in-depth performance analysis, empowering organizations to make informed decisions and drive sustainable business practices.

Maintaining sustainability in healthcare business is important due to its profound impact on public health and environment, and long-term viability. By prioritizing sustainability in healthcare, organizations can mitigate risks, enhance stakeholder trust, drive innovation, and contribute to a healthier and more resilient future. The summary above offers brief insights into the role of technology in sustainable healthcare by leveraging platform like the EY ESG Compass digital platform to navigate the complexities of sustainability, providing valuable analytics and performance analysis to guide strategic decision-making and drive positive change in the healthcare sector.

EY ESG Compass

EY ESG Compass is a comprehensive digital ecosystem that seeks to help organizations evaluate their ESG maturity levels and adapt a sector-specific strategy, using the power of analytics.

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How EY can help

ESG and sustainability

Integrate ESG and sustainability into business strategy, and improve and communicate performance to stakeholders with help from EY teams.

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Smart Health solutions

Smart health imagines what a hospital and health system can be in the digital health age, then builds it: a blend of physical and virtual care, connecting patients via sensors and smartphones to clinicians, connected buildings and their health data.

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Climate change and energy

Our pragmatic business approach helps clients to respond to the physical risks of climate change, as well as to operate in new markets and regulatory environments related to carbon and renewable energy.

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Summary

Navigating the journey towards sustainability in healthcare presents a myriad of challenges and opportunities. Implementing sustainable practices demands a delicate balance between ecological responsibility and operational efficiency. Challenges include transitioning to renewable energy sources, reducing waste production, and ensuring equitable access to healthcare services. However, this journey also offers opportunities for innovation, cost saving benefits and improved public health outcomes whilst also ensuring a more sustainable healthcare system. By enhancing its resilience, mitigating environmental impact, and contributing to a healthier future for all, the healthcare sector can play a significant role in fostering sustainability.

About this article

Nitesh Mehrotra
By Nitesh Mehrotra

EY India Partner Sustainability and ESG

Committed to building a better working world by challenging the status quo. An advocate of treating sustainability, at par with financial success. A nature lover and traveler.

Related topics Climate change and sustainability Sustainability Technology Health Innovation
Upvote