Topic

Health Care Equipment & Service companies demonstrate strong contributions towards social outcomes, but are lacking in terms of approaches to addressing the environmental challenges of their product portfolio.

July 5, 2021

ISS ESG InFocus: Health Care Equipment & Services

Each month ISS ESG’s team of specialist analysts releases an update on the ESG risks associated with a specific industry sector. The InFocus reports focus on the ISS ESG Corporate Rating for companies within each sector, and also provides headline results from other ISS ESG product lines. This month, the InFocus is on: HEALTH CARE EQUIPMENT & SERVICES­­

KEY TAKEAWAYS

  • The Health Care Equipment & Services industry has a relatively large share of Prime companies (18%), mainly due to its product portfolio, which contributes to the solution of global health challenges.
  • The majority of severe controversies in the Health Care Equipment & Services industry are related to high-profile cases of business malpractice, and customer and product responsibility issues.
  • The Health Care Equipment & Service industry offers a range of products that contribute toward the social aspects of the Sustainable Development Goals; industry participants tend to lack a clear approach to address the environmental risks related to their products and operations, however.
  • Investors should consider the impact of the COVID-19 pandemic on the Health Care Equipment & Services industry. As the industry is at the forefront of the response to the pandemic, certain sustainability challenges, such as business continuity and data security, have become more pronounced in a time when the continuous and secure delivery of health care is essential.
  • Access to health care is a key risk for investors to monitor: underserved populations often lack access to the beneficial products and services that the Health Care Equipment & Services industry provides. The level of access to products and services impacts the sector’s absolute contribution to sustainable development.
  • The Health Care Equipment & Services industry is a large producer of carbon emissions. Investors will need to focus on the industry’s approach to tackling the challenge of reducing their emissions in accordance with the Paris Agreement.

Explore ISS ESG solutions mentioned in this report:

  • Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating.
  • Use ISS ESG Climate Solutions to help you gain a better understanding of your exposure to climate-related risks and use the insights to safeguard your investment portfolios.
  • Assess companies’ adherence to international norms on human rights, labor standards, environmental protection and anti-corruption using ISS ESG Norm-Based Research.
  • Understand the impacts of your investments and how they support the UN Sustainable Development Goals with the ISS ESG SDG Solutions Assessment and SDG Impact Rating.
  • Understand the F in ESGF using the ISS EVA solution.
  • Use ISS ESG Sector-Based Screening to assess companies’ involvement in a wide range of products and services such as alcohol, animal welfare, cannabis, for-profit correctional facilities, gambling, pornography, tobacco and more.

By Allison Marill, Analyst, ISS ESG. Andrea Inzenhofer, Analyst, ISS ESG. Oxana Alipio, Analyst, ISS ESG.

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