Home Healthcare Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Home Healthcare Industry

ESG is the core of any healthcare company or institution that intends to continue to provide quality care and services. The emergence of advanced home healthcare services has enabled the delivery of high-quality healthcare in the comfort of one’s home. The COVID-19 pandemic paved the way for a shift in trend towards home healthcare as compared to hospital care due to changing norms and restrictions.

Home healthcare is found to be most effective for the world's constantly expanding elderly population. The demand for these services in developing nations is being driven by disease diagnosis and treatment given at home to patients with severe chronic conditions, such as diabetes, dementia, and Alzheimer's. The market for home care services in India is expected to grow over the next few years because of the increased prevalence of chronic diseases among the elderly and the demand for better primary and postoperative care. Ageing study of India estimates that 70% of elders have chronic diseases, so the usage of nursing homes, hospices, and home healthcare services becomes necessary for this group.

This provides a significant scope for companies in home healthcare industry to consider innovative ways to integrate sustainability in their operations due to their large environmental and social footprint.

ESG Trends

Home healthcare services provide the patient with professional medical care in their own familiar surroundings. Healthy mindset and familiar surroundings are proven to help patients heal fast and better, thereby promoting good health and well-being, which is one of the most important United Nations’ Sustainable Development Goal.

Hospital surroundings overtime can have a negative health impact on certain elderly individuals; on the other hand, being in a warm and familiar environment can help them relax and relieve stress. Thus, these institutions help in building sustainable communities and cities.

The ‘E’ in the ESG – the environmental criteria, is a key factor that makes investment in this sector uniquely attractive to investors. The traditional healthcare companies or institutions are subject to the physical risks caused by climate change as their infrastructure and operations can be disrupted, while this is not the case with home healthcare services. Research into top companies in this industry reveal that services provided by these companies prevent avoidable trips to the hospitals which can help in reducing emissions.

ESG Challenges

The biggest challenge for investors is the lack of transparency by the home healthcare companies with respect to ESG disclosures especially on Governance and Social front like social inequity, corruption, tax avoidance, and a lack of security, Home healthcare providers will need to improve their governance. According to a healthcare expert, annually around 20 million cases are handled by home-healthcare in India, but around 98 percent of this industry is unregulated. Also, health care organizations are major contributors to the global warming as it accounts for about 4.5% of worldwide emissions, making it the fifth-largest greenhouse gas emitter on the planet, if we consider global health care sector as a country. Disposal of medical equipment at homes also remains an important challenge which contributes to significant end-of-life waste.

Growth of The Home Healthcare Market

The global home healthcare market size was valued at USD 320.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2022 to 2030. The India market size was valued at USD 7.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 19.27% from 2022 to 2030. Demand for home healthcare equipment is expected to rise due to a shifting trend towards home healthcare services in the coming years. The heroic efforts of healthcare providers and hospitals during the Covid-19 pandemic, and the rapid development of vaccines and tests, have transformed public opinion of the healthcare industry. This will increase opportunities for regional and international medical equipment manufacturers.

Key Companies in this theme

    • McKesson Medical-Surgical Inc

    • Fresenius Medical Care

    • Medline Industries, Inc.

    • Medtronic PLC

    • Sunrise Carlisle LP

    • Care UK Limited

Scope of the Home Healthcare 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 Home Healthcare Industry ESG Thematic Report:

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

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

    • Identifying ESG risks and opportunities to business among leading players in the home healthcare industry

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