The role of ESG in healthcare: balancing sustainability, care and corporate responsibility

Disease

  |  6 minute read
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By Dr Shamsheer Vayalil, Founder and Chairman of Burjeel Holdings, one of the leading private healthcare service providers in the Middle East and North Africa.

Shamsheer is a member of multiple medical committees, recipient of the Pravasi Bharatiya Samman Award, philanthropist. Inspired by our shared commitment to addressing climate change Burjeel Holdings and Saïd Business School launched the Oxford Saïd-Burjeel Holdings Climate Change Challenge in 2023 and he is a judge on the competition.

Healthcare systems are inherently resource intensive. From energy consumption to waste management, the industry has a vast environmental and social footprint. According to a report by Health Care Without Harm, healthcare systems are responsible for approximately 4.4% of global carbon emissions. With this significant environmental impact, the urgent need for healthcare organisations to adopt sustainability measures that align with global climate goals cannot be overstated.

Climate change is increasing the risk of adverse health outcomes by causing direct physiological changes, psychological distress and disruption of health-related infrastructures. Healthcare providers are collaborating to integrate climate-related counselling into clinical practices to better manage the risks associated with climate change. For example, during routine consultations, healthcare professionals should consider environmental factors – such as pollution or heatwaves – as underlying triggers for conditions like asthma or cardiovascular diseases. This approach will not only ensure more effective treatment, but also raise awareness of the direct impact that climate change has on individual health. 

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Moreover, as extreme climate events become more frequent, human health is increasingly under additional pressure. For instance, recent studies highlight that the heat index in parts of the Middle East has reached 152°F (66.7°C) —near the upper limit of human survival.

The growing threat of climate change further compounds the challenges facing healthcare systems, particularly in developing countries. It is projected that by 2050, climate change will cause an additional 14.5 million deaths globally, while contributing to $12.5 trillion in economic losses. Healthcare systems are predicted to bear an additional $1.1 trillion burden due to climate-induced impacts. These statistics highlight the necessity for healthcare organisations to adapt their systems to mitigate these risks and protect vulnerable populations.

 

Sustainability and reducing environmental impact

Healthcare systems are increasingly recognising the need to adopt environmentally sustainable practices. These include optimising energy use, minimising waste, reducing carbon emissions and embracing renewable energy solutions. Hospitals are exploring energy-efficient building designs, greener procurement methods and introducing innovative energy-saving technologies, such as solar power, in regions with high exposure to sunlight.

Environmental, Social and Governance (ESG) frameworks are a critical cornerstone across various industries, and healthcare is no exception. As the world faces escalating environmental challenges, healthcare organisations are being called upon to reduce their environmental impact, enhance patient care and demonstrate a robust commitment to ethical governance and corporate responsibility. Adopting ESG principles is no longer optional for healthcare systems; it is an essential strategy for ensuring long-term sustainability and positive societal impact.

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Burjeel Holdings was recently recognised for its strong commitment to environmental sustainability, recently earning an ‘AAA’ rating from MSCI, placing it in the top 6% of global healthcare leaders for ESG excellence. This achievement highlights how the healthcare group has successfully reduced its environmental impact through innovative practices and solutions.

We have also been promoting environmental sustainability within education. Our initiative, the Oxford Saïd-Burjeel Holdings Climate Change Challenge, has created a global platform for high school students to present ideas for addressing the climate crisis, and for educators to present their lesson plans integrating awareness and inspiration for students to think creatively about tackling one of our society’s most pressing concerns.

We are also implementing climate-related counselling and screening, another pioneering initiative for health systems in the Middle East and North Africa (MENA) region. By embedding environmental considerations into routine patient care, we will ensure that patients receive holistic care that accounts for climate-sensitive triggers like excessive heat and air pollution. These types of integrated care models represent the future of climate-adaptive healthcare systems.

Patient care and corporate responsibility

While environmental sustainability is crucial, the ‘social’ pillar of ESG emphasises the importance of quality patient care and addressing broader societal challenges. Healthcare providers must ensure patient safety, equitable access to healthcare and the highest standards of medical treatment. These values align with corporate responsibility, where organisations work towards bridging healthcare access gaps for underserved populations.

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Healthcare systems worldwide are focusing on improving healthcare delivery to vulnerable communities through telemedicine and mobile health clinics. In rural and underserved areas, for instance, telehealth has revolutionised the way patients receive care by eliminating the need for long-distance travel, thereby reducing both carbon footprints and barriers to access.

Corporate responsibility in healthcare extends beyond patient care to include the wellbeing of healthcare workers. Ethical labour practices, fair wages and creating an inclusive work environment are crucial to maintaining a motivated and capable workforce. Healthcare organisations that prioritise the wellbeing of their staff are better positioned to deliver superior patient care and meet the evolving challenges posed by climate change and public health.

Governance and building trust

Good governance is critical to healthcare organisations, given the sensitive nature of their work. Patients entrust healthcare providers with their most personal information, and the importance of data privacy and security cannot be overstated. Healthcare systems are required to comply with stringent regulations surrounding patient data protection and confidentiality. Transparent reporting, ethical leadership and robust risk management systems are key to fostering trust with patients, stakeholders and the broader community.

Good governance also extends to ethical decision-making. Healthcare providers must lead by example, upholding their values and ensuring that they contribute to sustainable practices while offering high-quality care. Strong governance structures not only reinforce the integrity of healthcare systems but also build public confidence in the sector’s ability to navigate complex health challenges in an increasingly climate-stressed world.

Climate change and public health: the path forward

As climate change continues to intensify, its impacts on public health are becoming more pronounced. Emerging economies, in particular, are increasingly vulnerable to extreme weather events, which strain healthcare systems and exacerbate health disparities. Developing regions with limited healthcare infrastructure must address the dual challenge of improving healthcare delivery while simultaneously adapting to climate-induced threats.

Healthcare providers in these regions have a unique opportunity to incorporate climate resilience into their operations. This involves identifying climate-sensitive health risks – such as heatwaves, air pollution and infectious disease outbreaks - and integrating these factors into clinical guidelines and treatment pathways. By doing so, healthcare systems can protect their patients from the direct and indirect effects of climate change while ensuring better health outcomes.

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The role of ESG in shaping the future of healthcare is undeniable. As climate change continues to alter the global health landscape, healthcare providers must be proactive in adopting sustainability measures, improving patient care and demonstrating corporate responsibility. ESG principles provide a comprehensive framework for healthcare systems to achieve these goals.

By embracing environmental sustainability, ensuring ethical practices and building strong governance structures, healthcare organisations are not only reducing their environmental footprint, but also positioning themselves to deliver high-quality care in a rapidly evolving world. Collaborative efforts between governments, private institutions and healthcare leaders will be essential in scaling ESG efforts and ensuring that the future of healthcare is both sustainable and equitable.