Pharmaceutical companies, life
sciences organizations and payers have traditionally worked on ESG issues such
as healthcare, developing medicine and devices to help people and protect them
from harm.
The Health Research Institute
of PricewaterhouseCoopers, or HRI, studied the ESG efforts of 45 healthcare
systems and payers as well as 32 pharmaceutical and life sciences companies.
Their analysis found that by
better understanding their surroundings and corporate governance strategies,
healthcare organizations could improve their overall strategy.
Many organizations already
contribute significantly to society by providing healthcare, life sciences and
pharmaceutical services. However, they aren’t able to quantify the value they
create or the work they already do. This is because many of these companies
aren’t aware of how much work they’ve already done.
Healthcare professionals can
use technology and existing strategies to identify ESG principles and measure
their effectiveness. They can also leverage new data collection processes that
might require collaboration with third parties. Once they do this, healthcare
leaders can hold their organizations accountable for the principles they've
adopted.
Data collection efforts have
been expanded in order to gather more information regarding the differences in
social outcomes and efforts being taken to remedy them.
Healthcare businesses can use
ESG reporting telling stories to their employees, customers, shareholders,
suppliers and other stakeholders. These stories help provide a proactive
approach for healthcare organizations.
Both for-profit and
not-for-profit healthcare organizations provide care to communities that need
it. However, their differing motivations, audiences and reporting requirements
differentiate them from ESG. Instead, both types of healthcare organizations
strive to be socially responsible.
More and more people —
including government agencies, financial institutions, investors and consumers
— demand responsible business practices.
Add
additional credibility to the stories that providers and payers tell by
incorporating ESG in their reports and storytelling. This makes it easier to
differentiate themselves from other players as a means of building trust with
stakeholders, donors, investors and more.
II- Health
organizations should consider integrating “ESG” into their drug development and
regulatory processes
Creating an effective ESG
strategy and goals shouldn’t be done through a division of labor. In fact, many
companies can integrate ESG into their overall strategy and goals. This
includes everything from the supply chain to the environmental footprint to clinical
trial demographics to the executive team’s diversity.
Institutional goals and ESG
efforts naturally intersect.
Creating an ethical socially
responsible stance or image allows businesses to stand out from competitors.
This can be done through developing an ESG strategy before widespread public
awareness of sustainability and corporate responsibility. This includes
preparing before consumers, investors, employees and other analysts notice the
change.
ESG factors are crucial to
staying ahead of vulnerabilities and seizing new opportunities.
Companies involved in the life
sciences and pharmaceutical industries can consider incorporating socially
conscious guaranteds into their business strategies.
People expect businesses to
act according to government regulations, investors and reviewers.
It's important for companies
to implement programs through which the ESG principles can be seen throughout
the organization. This way, it's possible to gauge their future success by
their performance.
Incorporating ESG principles
into product design can reduce the cost of creating sustainable products thanks
to green chemistry.
Positive ESG symptoms are
recognized throughout the world thanks to current trends in both the American
and European zeitgeuses.
ESG efforts have grown in
popularity since the creation of a worldwide influenza pandemic. Recent
legislation and regulation demonstrate the wide scope of ESG analysis, which
focuses on the life sciences and pharmaceutical industries.
Regardless
of the size or stage of commercialization of their company, companies in all
industries are expected to be well-managed on these issues. They are required
to proactively address ESG through their corporate structures, ideology and
product lines.
In order to
avoid repercussions from regulators, consumers, and the health service,
companies need to maintain high standards. This is why many choose not to do
so.
III- Health
organizations should integrate “ESG” into their decision-making
Healthcare organizations have
the opportunity to create a wider scope of ESG work beyond press releases. This
may include supply chain analysis, environmental impact, outreach efforts and
more. Creating these pieces of ESG work across an organization may also be
helpful with recruiting new employees and forming executive leadership.
The ESG project already
largely fulfills the goal of improving the community through coordinated
efforts with other initiatives.
Creating an impactful
Corporate Social Responsibility strategy helps organizations stand out from the
competition. This is because it allows them to gain the attention of employees,
investors, customers and analysts. People can easily spot organizations that
take early action by creating an ESG strategy.
Successfully taking advantage
of opportunities and staying ahead of security risks relies heavily on ESG.
The PwC Health Research Institute performed an in-depth analysis of 45
healthcare systems and payers as well as 32 pharmaceutical and life sciences
companies. This study was led by HRI, which is part of the PwC firm's Health
Research Institute. The purpose of this study was to understand how ESG
priorities were being incorporated into healthcare organizations and where there
is room for improvement.
By increasing efforts to address environmental issues, healthcare
organizations can better serve the needs of their stakeholders.
By creating an ESG initiative that crosses all departments, including
supply chain, environmental footprint, and diversity in leadership and clinical
trials, an opportunity to increase one's impact exists.
