Healthcare is at a turning point on ESG, due to the huge challenges faced by the sector in recent years. Delaying an ESG strategy to date has been possible because of the sector’s positive social impact, but this will not be a viable option for operators for much longer.
The value of the sector to society is undeniable but needs to be measured and articulated. Acting now is key, commissioners, investors, stakeholders and lenders will increasingly demand evidence of ESG credentials to continue supporting healthcare businesses.
Perhaps most pressingly in the current employment context, credible ESG action supports recruitment, retention and the ability to attract and develop careers of the best talent. Where the executive level doesn’t match the diversity of the workforce and the community served by the business, is an issue that funders of sustainability-linked financing are increasingly focussing.