The digital health industry has a significant impact on the environment, society, and governance (ESG) factors. With the increasing demand for healthcare services, the industry is faced with the challenge of balancing the need for quality care with sustainable operations. In this post, we’ll explore some of the key ESG considerations in the digital health industry.
Environment:
The digital health industry has the potential to significantly reduce the carbon footprint of healthcare services. Online consultations and digital health platforms can help reduce the need for patients to physically travel to healthcare facilities, reducing transportation-related emissions. Additionally, digital health solutions can reduce the amount of paper used in healthcare, leading to reduced deforestation and waste. However, the industry must also ensure that the production and disposal of electronic devices used in healthcare do not have negative environmental impacts.
Society:
Digital health solutions have the potential to improve healthcare access and outcomes, particularly for underserved communities. Telemedicine and remote monitoring technologies can help bridge gaps in healthcare access, enabling patients to receive care regardless of their location. Additionally, digital health solutions can help reduce healthcare costs, making it more affordable for patients. However, the industry must address issues of data privacy and security to ensure that patient information is protected.
Governance:
The digital health industry must adhere to regulatory requirements and ethical standards to ensure patient safety and trust. Companies must ensure that their products and services are compliant with relevant laws and regulations. Additionally, companies must be transparent about their data collection and usage practices, and ensure that patients have control over their data. Companies must also address issues such as bias in healthcare algorithms to ensure fair and equitable access to care.
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The digital health industry is a rapidly growing and diverse field, with a wide range of companies operating in various sectors. Here are some key companies in the digital health industry:
1. Cerner Corporation: Cerner is a healthcare technology company that offers electronic health record (EHR) solutions, population health management tools, and clinical decision support systems.
2. Apple: Apple is a technology company that has recently expanded into the healthcare sector, offering wearable health tracking devices, health data management tools, and telehealth solutions through its Health app and Apple Watch.
3. Allscripts: Allscripts is a healthcare technology company that offers electronic health record (EHR) solutions, population health management tools, and patient engagement solutions. The company has made sustainability a priority, with a focus on reducing the environmental impact of its operations. Allscripts has set targets to reduce greenhouse gas emissions, water consumption, and waste generation, and has implemented sustainability programs across its business operations.
4. Telefónica S.A.: Telefónica is a multinational telecommunications company that has expanded into the digital health sector, offering connected health solutions and telemedicine services. The company has made efforts to address environmental impacts through its “Green ICT” program, which aims to reduce its carbon footprint and promote sustainable business practices. Telefónica has also prioritized social impact, with a focus on digital inclusion and promoting access to healthcare services for underserved communities.
5. McKesson Corporation: McKesson is a healthcare services and technology company that offers pharmaceutical distribution, medical supplies, and health IT solutions. The company has made sustainability a priority, with a focus on reducing its environmental impact and addressing social and governance issues. McKesson has set targets to reduce greenhouse gas emissions, water consumption, and waste generation, and has implemented sustainable sourcing practices across its supply chain. The company has also prioritized social impact, with a focus on promoting diversity and inclusion, ethical business practices, and community engagement.
6. Orange: Orange is a telecommunications company that has expanded into the digital health sector, offering connected health solutions and telemedicine services. The company has made efforts to address environmental impacts through its “Green IT” program, which aims to reduce its carbon footprint and promote sustainable business practices. Orange has also prioritized social impact, with a focus on digital inclusion and promoting access to healthcare services for underserved communities.
ESG Challenges
– Accessibility is a major challenge for the digital health market globally, with 50% of people lacking remote internet access and a lack of diversity and inclusion.
– Cybersecurity and interoperability of data are also a barrier, leading to poor quality data and potential security vulnerabilities.
Growth of the Digital Health Market
In 2021, the global Digital Health market size was valued at USD 175.6 billion and is projected to expand at a compound annual growth rate (CAGR) of 27.7% from 2022 to 2030. The sector is identified to observe a year-on-year growth of between 21.2% to 29.8% post-Covid-19 in the coming five years. Factors driving growth include smartphone penetration, internet connectivity, increasing healthcare expenditures, and accessibility of virtual care. Healthcare professionals and patients are voluntarily adopting telehealth options to avoid in-person consultations.
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Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.
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