Sustainability reporting has become table stakes for most large companies. The International Federation of Accountants estimates nearly 98% of large companies globally reported on some ESG information in 2022. Estimates vary in the health care sector, but the consensus is that less than 50% of health care companies (and even less in hospital systems specifically) are reporting on any ESG or sustainability data.
Health Care Lags in Sustainability Reporting
The health care industry is responsible for nearly 5% of the world’s carbon emissions. For context, that’s the same amount as the aviation industry (thanks to Health Care Without Harm for these stats). But shockingly, there are only a handful of hospital systems and large health care institutions reporting on their environmental footprint or setting targets for reduction.
Consumer Sentiment Matters in ESG
It’s also easy to forget that health care is a consumer driven business. Health care costs are 8% of average U.S. consumer spending annually. Consumers today have more choices in health care than ever before. Younger generations care about transparency. Based on an HBR study, they are 30% more likely than older generations to spend more money with companies reporting transparently.
It’s high time for health care organizations to move forward with comprehensive sustainability reporting – recognizing their impact on the planet and their communities.
Organizations Leading the Way
There’s good news. Some organizations are breaking out and leveraging the natural synergy between the mission of health care delivery, sustainability and corporate social responsibility (CSR) activities to showcase their sustainability initiatives.
The following is a curation of the Veerless’ Favorite Health Care ESG/Sustainability Reports in recent years. Though not an exhaustive list, each of these reports is distinct, and they set the bar for other health care systems ready to launch their own reporting efforts.
Ascension Health – 2023 Environmental Impact and Sustainability Report
This report provides a concise but thorough overview of Ascension’s environmental sustainability efforts, including clearly highlighting their three pillars of focus (Net Zero Places, Supply Chain and Health Communities). Climate-related goals and progress are clearly stated and reference science-aligned targets.
Ascension’s report clearly considers their audience. Since many health systems are nonprofits, they are not publishing ESG info for investors, but for patients, families and the communities they serve.
Northwell Health – 2022 Corporate Responsibility Report
Northwell’s inaugural CSR report takes the bold step of launching the report focused heavily on their efforts to reduce gun violence, combat human trafficking, and change the conversation around substance use disorder. This places a clear stake in the ground about where the health system stands on some hot-button public health issues.
Northwell’s report also sets goals regarding environmental initiatives and frames ESG strategies within the duty to care philosophy of a health care organization.
AdventHealth – 2022 Sustainability Report & Our Commitment to Wholeness
AdventHealth’s first published ESG report links the organization’s sustainability efforts to their commitment to treating the whole person (connecting this concept of wholeness not only to patients served, but also fostering wholeness for business operations and strategic plan). It shares both initial successes and room for growth in environmental sustainability, DEI, health equity and advocacy, workplace wellbeing, business ethics, and more. The design of the report is easy-to-read and engaging and aligns the company’s ESG work with their faith-based clinical care philosophy.
DaVita Inc. – Community Care 2022: The DaVita Vision for Global Citizenship
Many health care organizations enjoy nonprofit status therefore are less driven by investors’ interests. DaVita Inc. is an exception. As one of the largest providers of kidney care services in the U.S., this for-profit organization is a leader in clinical quality, innovation and sustainability among health care peers.
DaVita’s report aligns to traditional corporate ESG frameworks (SASB, TCFD, CDP, SBTi, etc.). DaVita is one of few health care organizations that publishes information about materiality with their prioritization assessment.
Health Care’s Next Steps in Sustainability Reporting
As the landscape changes and health care organizations are becoming increasingly aware of the importance and relevance of strong commitment to sustainability, publishing reports is a crucial step in publicly proving that commitment.
Veerless is here to help propel health care organizations to the next level by developing and implementing bespoke sustainability strategy, and illustrating these efforts through a comprehensive ESG report. Connect with us today to transform your reporting and build trust and transparency in your organization.