The need for sustainable strategies to conduct business responsibly and ethically has prompted healthcare IT industry players to invest in ESG practices. Robust ESG policies can foster innovation, build trust, minimize risk, reduce costs and boost trust among stakeholders. Regulators and industry leaders are assessing the demand for ESG in the healthcare sector, which can play an invaluable role in enhancing healthcare access and fostering environmental justice, diversity and workplace safety. Prominent companies have furthered their emphasis on patient access, service distribution and quality of care with a focus on social issues and sound governance. 

Stakeholders, including patients, employees, shareholders and bondholders, expect ESG to have a compelling impact on the healthcare sector. Soaring demand to minimize environmental impact and bolster product quality, labor management, access to finance and human capital development have played a pivotal role in reshaping the industry. Moreover, good corporate behavior, anti-competitive practices and transparency have remained catalysts in the landscape. 

In a bid to bring medicine and vaccines to save and improve lives, increasing access to healthcare may partly depend upon a commitment to ESG performance. The prevailing dynamics can foster sustainable value for society and business. 

Environmental Perspective

ESG action integrated into business strategy has gained ground as climate resilience garners headlines to build future healthcare organizations. Low-carbon sustainable health systems have become the talk of the town amidst the healthcare sector being infamous as a major emitter of GHG and other pollutants. For instance, Philips has been at the forefront as it has aligned its goals with UN Sustainable Development Goal 13, “Take urgent action to combat climate change and its impacts.” Overconsumption of resources, pollution, waste and soaring demand for healthcare have furthered the need for strong ESG performance.

Philips focuses on a more agile and simplified operating model, supply chain reliability, patient safety, and quality. The company is also investing in products that consume less energy and materials and contain recyclable substances. Rising adoption of digital technology, shifting consumption patterns and transition to value-based care provide opportunities for leading players to underpin solutions that enhance people’s health and protect the planet. 

Social Perspective

Employee safety risks, soaring costs of care, access to healthcare and privacy & data security have spurred the need for a robust social pillar in business operations. Reported health disparities and the prevalence of behavioral and mental health issues have compelled organizations to infuse funds into digital technology in healthcare. For instance, WELL alluded to zero reportable data breaches in 2021 in its inaugural ESG Report.

Harnessing the insights and knowledge of a diverse workforce and a strategic approach to employee development and workplace inclusion need bullish social goals. Notably, 70% of senior executive team members represented a visible minority at WELL as of June 2022. Meanwhile, Cardinal Health has fostered its diversity, equity and inclusion efforts with the representation of a 71% female and 14% ethnically diverse workforce in its executive leadership team (according to its FY 2022 ESG Report). 

Is your business one of participants in the Global Healthcare IT Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Incumbent players have raised the bar with investments in corporate governance, board diversity, accounting, ethics and corporate behavior. An emphasis on ESG priorities can help build trust and make informed decision-making. Notably, the healthcare sector has evolving regulatory requirements, prompting prominent companies to underscore the regulatory aspect. In FY 2022, McKesson integrated regulatory excellence into its business strategy playbook as a major foundational discipline. It has also upped its investments in traceability and transparency. The company is gearing up for the next stage of the Drug Supply Chain Security Act (DSCSA), which is slated to be witnessed in November 2023. The prescription drugs are expected to be serialized in the U.S. and need to be traceable throughout the supply chain. 

ESG will continue to gain ground in the mission-driven nature of the industry as its integration into the core of the business will be pronounced in the ensuing period. Forward-looking companies have furthered their focus on organic & inorganic strategies, including but not limited to collaboration, mergers & acquisitions, technology advancements and innovations. For instance, in November 2022, the GE Board of Directors approved the spin-off of GE Healthcare. Under the ticker “GEHC,” the company was expected to start trading on Nasdaq on January 4, 2023. These trends suggest the global

Environmental, social and governance (ESG) performance has become invaluable in minimizing carbon footprint, boosting waste management and enhancing board diversity in the cloud computing industry. The rising footprint of cloud services across healthcare, automotive, media, gaming, financial services, public services and e-commerce has furthered the need to bolster the sustainability profile. Brands are expected to use AR/VR, edge computing, big data, blockchain and cloud-native technologies to foster brand recognition, complement sound corporate behavior and bolster sustainable investing. 

ESG strategies have gained prominence in the wake of surging environmental awareness and consumers’ willingness to pay premium prices for sustainable products. Environmentally and socially conscious practices have become prevalent to attract and retain investors and customers. Cloud computing service providers have exhibited profound traction to expedite their ESG progress. For instance, the Google Cloud Platform offers carbon-free energy scores for Google Cloud regions, enabling companies to choose GCP locations optimized for reduced carbon emissions. 

Key Companies in this theme

• Adobe Inc.
• Alibaba Group Holding Limited
• Amazon.com Inc.
• Google LLC
• International Business Machines Corporation
• Microsoft Corporation 
• Toshiba Corporation

Environmental Perspective

The global push to meet sustainability goals has prompted forward-looking organizations to achieve their ESG objectives. Industry leaders are inclined to use green equipment in data centers to minimize power consumption. Moreover, businesses are expected to receive impetus from recycling and reuse to reduce waste and capital expenditure. In essence, Google suggests that 5 of its data centers operate at almost 90% carbon-free energy (CFE). With data centers continuing to be sought-after in the energy transition, sustainable cloud services will witness investments galore. In August 2021, the American giant announced an infusion of USD 1.2 billion in Germany’s Cloud Computing Program by 2030 to undergird cloud computing infrastructure and renewable energy usage. 

Social Perspective

Diversity representation and the emphasis on inclusivity have become a viable portfolio to foster a positive change within the company and across societies. Prominently, women account for over 30% of the Microsoft workforce globally. Moreover, women in technical roles have risen between 1.4 and 1.6% points over the past half a decade. It has also embarked on a mission to represent the population of people with disabilities. As of June 2022, around 7.8% of the Microsoft employees in the core business in the U.S. self-identified as having a disability. With the global push to propel racial equity, the company has injected around USD 150 million to reinforce inclusion and the number of U.S. Black and African American and Hispanic and Latinx people managers, senior leaders and senior individual contributors by 2025. An emphasis on diversity, equity and inclusion will redefine computing solutions and help employees be more innovative and creative. 

Is your business one of participants to the Global Cloud Computing Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Cloud-based management can unlock avenues of growth in ESG with increased transparency, data standardization, and process automation. Tax transparency, board diversity, executive pay, and sound governance structure will leverage companies to create long-term value. Brands and institutions have fostered governance frameworks and brought new skills and global perspectives. To put this in perspective, eleven out of 12 director nominees are independent in IBM. Meanwhile, two women directors and three ethnically diverse directors were included in the past three years, according to the IBM 2021 ESG report. The American giant has an Audit committee to help identify financial and audit risks with the assistance of IBM’s enterprise management framework about AI ethics, privacy and cyber. Development of practices and policies that emphasize transparency, trust, ethics and accountability could be pronounced, auguring well for the industry growth. 

The competitive landscape indicates an increased focus on organic and inorganic strategies, such as technological advancements, product offerings, mergers & acquisitions, innovations and collaborations. For instance, in October 2022, Alibaba announced opening a new campus with investments in cloud computing. The design of the campus is reportedly eco-friendly, including flowerpots made from recycled plastic, a photovoltaic power generation system and high-efficiency low-energy devices in the on-site coffee shop. The global cloud computing market size was pegged at USD 368.97 billion in 2021 and could observe a 15.7% CAGR between 2022 and 2030. 

About Astra – ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research

Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. The companies that fall under the 5G services industry have been transitioning and addressing their sustainability progress and agenda.

This segment has more social impact compared to environmental impact. Accessibility has been the primary focus of this market is to provide high quality services, solutions and optimal attention to people, profit and planet. These companies also disclose their own data privacy and protection policies which ensures security for customer’s personal information. This safety is also accompanied by technological advancements like big data, Internet of Things (IoT) and Artificial Intelligence.  Stakeholders are also concerned about the negative health impact of 5G services due to its carcinogenic nature.

During the COVID-19 pandemic, this market had been significantly impacted with increased use of the internet by professionals and students alike. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

In this blog, we delve into the importance of ESG in the 5G services industry and how it can drive positive change.

Environmental Sustainability:

The 5G services industry has the opportunity to lead the way in environmental sustainability. By prioritizing energy-efficient infrastructure, optimizing network operations, and leveraging renewable energy sources, companies can reduce their carbon footprint and minimize environmental impact. Sustainable practices can pave the way for a greener digital future.

Social Inclusion:

Ensuring digital inclusion is a critical aspect of the 5G services industry’s ESG journey. Companies must work towards bridging the digital divide by providing affordable and accessible 5G services to underserved communities. Promoting digital literacy programs and addressing connectivity challenges can empower individuals and promote social equity in the digital era.

Governance and Ethics:

Strong governance and ethical practices are fundamental for building trust and ensuring responsible growth in the 5G services industry. Companies should prioritize data privacy, security, and transparent data governance. Compliance with regulatory frameworks and industry standards, along with responsible supply chain practices, can foster a culture of integrity and accountability.

ESG Trends

– Accessibility to all through 5G services is a vital trend in ESG, with companies focusing on reducing inequalities and providing faster internet access to consumers.

– Companies in this segment are innovating through big data, AI, and IoT, and adopting circular economy practices to reduce energy consumption and waste production. However, the 5g services industry is reported to have a negative health impact on health and wellbeing, with limited carcinogenicity compared to higher frequencies like FR1.

ESG Challenges

– Cyber security and data privacy are major challenges for the segment in terms of personal data and financial transfers.

– Lack of infrastructure and bandwidth is a major reason why some countries did not proceed with 5G services, and price transparency is a concern for only tech-savvy patients. 

– 5G deployment requires meeting National investigation agency criteria and obtaining licenses from UASL, CMTS, or UL, as well as addressing negative impacts on health, animals, and biodiversity.

Is your business one of the participants in the 5G Services Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices

Growth of the 5G Services Market

The 5G Services market has been flourishing along with new innovative spaces like big data, AI, IoT etc. Incorporating technologies to mitigate negative health impact for People and the planet should be critical areas of interest for this segment in order to sustain in this market. Joint effort from industries and telecommunication authorities of countries across the world who don’t have access to such technologies must also be propelled to retain market value.  This market has been valued at 48.25 billion USD in 2021 and is expected to propel to a massive 56.7% compound annual growth rate.

Key Companies in this theme

• T&T, Inc.

• BT Group plc 

• China Mobile Ltd.

• China Telecom Corporation Ltd.

• Bharti Airtel Ltd.

• NTT Docomo

• KT Corp.

• Saudi Telecom Company

• Vodafone Group

• Deutsche Telekom AG

• SK Telecom Co., Ltd.

• Verizon Communications, Inc.

• T-Mobile USA Inc.

• Rakuten Mobile Inc.

The 5G services industry has the potential to shape a sustainable, inclusive, and responsible digital future. By prioritizing environmental sustainability, social inclusion, ethical governance, responsible innovation, and transparency, the industry can unlock its transformative power while safeguarding the planet and benefiting society. Let’s work together to ensure that 5G services drive positive change for all.

About Astra – ESG Solutions by Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.