A recent report by Bain & Company and APACMed (a MedTech trade association located in Singapore) has issued a report on Asian MedTech companies’ growing appetite for ESG initiatives. According to this report, the Asia region has doubled its ESG policies compared to seven years earlier. This has resulted in more ESG efforts by MedTech investors, purchasing organizations, consumers/patients, and employees. Besides pay, benefits, and good products, over 70% of healthcare employees value environmental factors at their MedTech companies as an important factor in employment decisions. Over 23% of MedTech purchasing managers value environmental factors when buying MedTech products in addition to their value and cost – and this percentage is growing. Investors too prefer MedTech companies that have included environmental factors into their game plan. For example, Australia’s National Reconstructive Fund which provides equity and other investment vehicles, supports medical devices and projects that focus on environmental factors.
While generally, it is the more advanced countries that focus on MedTech products that reduce energy, carbon neutrality, etc., less developed Asian markets are trying to catch up too. There are more and more examples of MedTech companies in Asia supporting ESG initiatives. For example, several medical device companies manufacturing their products in Asia, have begun to utilize energy more efficiently at their manufacturing facilities helping to reduce operating costs. A MedTech company making consumable products has re-developed its products with less plastic to reduce waste. In addition, there are some MedTech hardware companies working to reduce landfill waste by working with new waste and recycling partners. In short, going forward, MedTech companies that make devices or sell devices in Asia will do better if they embrace ESG principles upfront.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.
Source used in the article: https://www.bain.com/insights/why-esg-matters-for-medtech-in-the-asia-pacific-region/