Digital Health Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Digital Health industry

The integration of Environmental, Social, and Governance (ESG) factors within investment decision-making processes has contributed to an increase in responsible investing. Investment into ESG in the digital health sector has increased since the COVID-19 pandemic.

In 2020, the global, Covid-19 pandemic made way for online and digital wellbeing tools to expand, thereby helping companies operating in the Digital Health space to create a positive socio-economic impact globally. The shortfalls of the existing overburdened healthcare systems, exposed the potential of digital inclusion in healthcare facilities through major transformations and procedures, thereby amplifying the adoption of these solutions wherein it has observed a considerable growth trajectory.

Industry pioneers in the market are aware that health and wellness are critical to fulfilling corporate social responsibilities. The main aim of this industry is to help people motivate, engage and adopt healthy lifestyles from any part of the world with different medical conditions that could be easily accessible with the help of various eco-friendly technological strategies, thereby reducing the carbon footprint and the ultimate reason behind climate change.

Key Digital Health companies researched and analyzed in this theme have built on this market position while evolving several sustainable strategies focused on creating a positive ESG impact within this sector.

ESG Trends

Companies in the industry promote the development of innovative mobile or digital platforms which offers diversity and inclusion, enhanced remote access to health and wellbeing, and offer equal opportunities for people suffering from different disabilities and medical conditions globally. This targets on making convenient virtual care with enhanced engagement focused on wellbeing.

Leading companies in the market provide people with distinct advantages through teleconsultations, remote medication management, virtual fitness programs, and through online mentoring and training programs. Additionally, this sector provides customers with electronic medical records for convenient historical data.

The digital health market is dedicated to its comprehensive benefits in accomplishing the United Nations - Sustainable Development Goals (UN – SDGs). To mention some of the SDGs that come into focus areGood Health and Well-Being, sustainability and equity in distribution and access, therefore, coveringGender EqualityandReduced Inequality, andClimate Actionthrough a reduction in CO2 emissions and paper consumption.

Digitalization in Health Market has also extended women’s rights to provide them with better planning and preparation programs to avoid complications in their reproductive health. By promoting digital applications and platforms, companies in the Digital Health sector promise various other benefits such as a reduction in the difficulty of scheduling appointments and commuting to the healthcare facility, as a result leading to monetary gains by a reduction in healthcare expenses and unnecessary expenditures.

ESG Challenges

在全球范围内,the major challenge the digital health market faces are with respect to accessibility. Approximately 50% of the people in the world do not have remote access to the internet, which results in a digital separation that affects major facets of life including good health and wellness and a lack of diversity and inclusion. This is witnessed globally, where there is a disparity in accessibility to internet services across females and lower-income groups. Moreover, cybersecurity along with the interoperability of data remains a large barrier, eventually resulting in poor quality data, misleading or missing information, and leak of personal and target-specific medical records that could affect the hospital’s reputation and breach patient privacy leading to security vulnerability of Digital Health sector.

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. The factors driving the tremendous market growth are enhancement of smartphone penetration, internet connectivity, increasing healthcare expenditures, and accessibility of virtual care leading the prominent companies to revise and expand their product portfolios. Besides this, after the pandemic, healthcare professionals along with patients voluntarily began adopting telehealth options to avoid in-person consultations. Based on a report by the Center for Disease Control and Prevention (CDC), there has been an increase in telehealth visits for March 2020 as compared to March 2019 in the U.S.

Key Companies in this theme

• Cerner Corporation

• Allscripts

• Apple, Inc.

• Telefónica S.A.

• Mckesson Corporation

• and Orange

Scope of the Digital Health Industry ESG Thematic Report:

• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

• Key insights on infrastructure developments and ESG issues affecting the theme

• Identify key initiatives and challenges within the industry

• Identify ESG leaders within the industry

• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of Digital Health Industry ESG Thematic Report:

• Developing a comprehensive understanding of macro-economic, Policies & Regulations, and innovations affecting the Digital Health Sector, globally

• Key insights into Infrastructure developments and ESG issues affecting the theme

• Identifying ESG risks and opportunities for business among leading players in the industry

• Obtaining a clear and relevant understanding of company actions, progress, and impact and finding opportunities for investment