The healthcare industry is evolving to align with the future, and sustainability is one of the crucial elements. Over the past few years, Environmental, Social, and Governance (ESG) principles have gained significant traction across various industries, and the healthcare sector is no exception. According to a recent joint report by EY and the Confederation of Indian Industries (CII), around 67 per cent of Indian healthcare companies have established ESG boards to initiate sustainable practices in their daily operations.
Embracing ESG-focused principles
Healthcare organisations greatly impact the environment through energy consumption, water use, and other resources. As the Indian healthcare sector is one of the largest in revenue and employment, there is a greater need for a more sustainable and responsible approach to operations. Primarily, ESG principles enhance long-term sustainability by incorporating environment-friendly practices and reducing waste. This approach aligns with the healthcare industry's core mission of promoting health and well-being.
Also, ESG is becoming a key consideration for investors. They prioritise sustainability and ethical practices. Therefore, employing ESG principles in operations widens the scope for improved financial stability and growth opportunities. At the same time, healthcare organisations can build trust and improve patient care by prioritising social factors like diversity and inclusion. It ultimately contributes to positive health outcomes.
ESG initiatives in Indian healthcare
Indian healthcare organisations are gradually implementing ESG initiatives. Healthcare providers have started integrating smarter technologies, like remote patient monitoring, which makes it easier for patients to get health checkups. Tech-based healthcare services have enabled patient safety and access to healthcare services for underserved communities. It is a prerogative for the well-being of society. At the same time, tech-enabled solutions also provide telemedicine nowadays. This approach to healthcare directly reduces transportation costs as well as vehicular pollution. It is a progressive step towards energy conservation and minimising carbon footprint.
Moreover, the high use of reusable materials in hospital operations reduces hazardous and non-hazardous waste. According to an EY report, over half of Indian healthcare firms have embraced zero liquid discharge (ZLD) and implemented sustainable sourcing practices as part of their ESG commitments.
Similarly, integrating digital technologies in hospital management processes and workflows has also contributed to paperless operations and reduced the industry's environmental footprint. Additionally, the utilisation of renewable energy sources, such as solar panels and energy management systems in hospitals, has a direct impact on contributing to ESG initiatives.
Future outlook
The healthcare industry has the most potential to contribute to ESG by incorporating these principles into day-to-day operations. Healthcare organisations can reduce their environmental impact and promote social responsibility by implementing initiatives such as sustainable waste disposal, the use of green energy and renewables, process digitisation, and compliance with frameworks such as the Global Reporting Initiative (GRI) and the United Nations' Sustainable Development Goals (SDGs). It can be made easier to implement with new-age advanced technologies. This will not only elevate patient care but also ease the workload of healthcare professionals. By combining innovation with ethical and sustainable practices, the industry can pave the path toward a healthier future for both people and the planet.
The author is Director of Technical Operations and Quality, Redcliffe Labs
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