67% of Indian healthcare companies form ESG boards: EY-CII report

Around 67 per cent of Indian healthcare companies have set up environmental, social, and governance (ESG) boards, according to a recent joint report by EY and the Confederation of Indian Industries (CII).

The report also stated that over half of Indian healthcare firms have embraced zero liquid discharge (ZLD) and implemented sustainable sourcing practices as part of their ESG commitments.

ESG commitments are strategic frameworks for identifying, assessing, and addressing organisational objectives and activities ranging from a company’s carbon footprint and its commitment to sustainability, to its workplace culture.

Highlighting a surge in renewable energy adoption and sustainable sourcing practices in the Indian healthcare industry, the report stated that 18 per cent of the energy utilised by healthcare providers came from renewable sources, signalling a progressive shift towards renewable energy adoption.

“Additionally, 61 per cent of inputs employed by these companies are sustainably sourced,” the report added.

The report also highlighted that there has been an increase in allocations towards environmental and social initiatives within the analysed companies' research and development (R&D) activities and capital expenditure.

 

According to the report, 21 per cent of these companies' spending in R&D was dedicated towards environmental and social activities. “13 per cent of the spending within capital expenditure was directed towards environmental and social initiatives,” the report stated.

Commenting on the trends, Kaivaan Movdawalla, partner and healthcare leader at EY Parthenon India, said that with healthcare being a high-consumption industry, it is crucial to streamline consumption needs through leaner staffing strategies and maximising the utilisation of green energy sources for a sustainable future.

“The figures affirm a strategic commitment to infrastructure and operational enhancements for bolstering sustainability performance,” he added.

The EY-CII report analysed 15 listed healthcare service provider companies, delving into over 1,200 key performance indicators (KPIs) such as renewable energy adoption by healthcare companies and sustainable sourcing practices.