US Medical Device Manufacturers Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the US Medical Device Manufacturers’ Industry

Responsible Investment comprises the consolidation of Environmental, Social, and Governance (ESG) parameters as a strategy and practice resulting in investment decisions and active ownership. The ESG factors could be unified into the traditional investment practices through three main techniques of integration, screening, and thematic. Investment into ESG has enhanced severely over the past decade; equally, the industry, is seen as a powerful tool for achieving certain ESG goals across the globe.

Prominent companies in the US medical device manufacturers sector are aware that health and well-being play a crucial role in evolving a sustainable society. It creates, absorbs, and drives people to promote a sustainable-based, healthy way of living, by training them on topics such as the benefits of healthcare and wellness, issues related to inequality in access, and the reason behind the lack of growth in society.

In 2019, the outbreak of the Covid-19 pandemic made sudden increased demand for ventilators, ventilator accessories, and further respiratory equipment in the market, hence creating a negative socio-economic impact globally. During this time, the US medical device manufacturers has gone mainstream through their enhanced production of medical equipment such as gloves, masks, syringes, infrared thermometers, pulse oximeter, and testing kits enabling companies to provide their possible products globally. Since then, medical devices have been declared a crucial factor in growth strategies by countries globally and the US medical device manufacturers industry has received enhanced observation from investors concerned about ESG impact investing.

Key companies researched in the US medical device manufacturer’s theme have expand their sustainable strategies and focused on creating a positive ESG impact within this sector.

ESG Trends

The social criteria are a critical factor that makes investment in this sector uniquely interesting to investors. Companies in the US medical device manufacturers industry promote the health and wellbeing of individuals, which extends the rise in access to devices, promotes health and wellbeing, and offers equal opportunities for women and girls at hospitals. More importantly, this focuses on creating a healthier lifestyle.

Top companies and organizations in the US medical device manufacturers’ space are helping people to engage in immersive training sessions and the importance of both mental and balanced lifestyles. Further, medical devices help patients with minimally invasive surgeries that involve small cuts, smaller hospital visits, fast wound healing, reduced pain, and surgical wounds with reduced risk than open surgeries that remain competitive in the ever-changing medical outlook. 

The US medical device manufacturers industry is comprehensive, as it provides far-reaching advantages in achieving the United Nations - Sustainable Development Goals (UN – SDGs).  To mention a few of the SDGs that come into the center are good health and well-being, gender equality, reduced inequalities, and partnerships for the goals. Medical devices have helped ensure business continuity through the treatment of patients with chronic diseases and controlling their healthcare expenses.  

By promoting medical devices, companies in this sector also depend upon research and development, and the availability of microelectronics, telecommunications, biotechnology, and software advancements.

ESG Challenges

The major challenges and restraints faced by the US industry are the high cost of medical devices and budgetary limitations of hospitals. While considering the high cost of medical devices it includes the enhanced cost of device maintenance which demands the hiring of trained personnel along with periodic maintenance thereby resulting in a critical factor in the market growth. In addition to this, many of the healthcare contributors collaborate themselves with integrated medical networks, cooperative buying groups, and joint delivery networks concerning government pressure to decrease medical and healthcare expenses.

These associations merge their members’ purchasing budgets and negotiate with medical device suppliers and producers for a reduced price, hence leading to another critical factor in the growth of the Industry. Many players have initiatives aimed at reducing the increased costs of medical devices and their efficient management through the adoption of various ESG parameters to ensure they operate sustainability. 

Growth of the US Medical Device Manufacturers Market

In 2020, the US medical device manufacturers size market was valued at USD 176.7 billion and is expected to expand at a compound annual growth rate (CAGR) of 5.0% from 2021 to 2028. In 2020, the massive market share of over 31% was due to the diagnostic imaging division due to enhanced demand for accurate and precise diagnostic processes and equipment.

The essential factors operating the market expansion involve increased instances of chronic diseases, convenient reimbursement policies, and enhanced acceptance of mobile surgery centers. Further, technological innovations in the medical equipment and products industry help in the advancement of medical and healthcare facilities to produce a profitable expansion opportunity in the market.

Key Companies in this theme

   • 3M Healthcare

   • Abbott

   • Baxter International, Inc.

   • B. Braun Melsungen AG

Scope of the US Medical Device Manufacturers 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 US Medical Device Manufacturers Industry ESG Thematic Report:

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