Poor ESG reporting in health sector ought to be a 'wake up call'

News that the healthcare sector is one of the worst performers in environmental, social and governance (ESG) reporting ought to be a wake up call, says Australia’s peak body on climate and health, the Climate and Health Alliance (CAHA).

The ESG Reporting Trends report was released Wednesday by the Australian Council of Superannuation Investors’ (ACSI), and shows no healthcare companies have a ‘comprehensive’ rating, highlighting a sector-wide gap.

ACSI says these companies will most likely have significant ESG risks – for example, post-pandemic workforce-related risks or modern slavery risks – that can be associated with healthcare supplies.

CEO of the Climate and Health Alliance, Roland Sapsford said, "The revelation that the healthcare sector is lagging behind mining companies, utilities, and real estate sectors in reporting on serious ESG risks is deeply concerning.

"We all experienced the anxiety of not knowing how supply chain disruptions could affect everyday goods during the pandemic.

"Many people’s health was also potentially at risk with shortages of medications highlighting how important it is for the sector to manage these risks.

"The health sector continues to operate under considerable strain, the health workforce is struggling, and we continue to face unexpected and unprecedented challenges from extreme weather conditions.

"The idea that the health sector, of all sectors, is lacking transparency around how it manages risks – whether to supply chains, workforce, the pandemic or climate change – should send shock waves through the community and lead investors to ask hard questions."

Media contact: Remy Shergill, [email protected], 0423 075 895