An Ernest & Young survey of 15 companies in the healthcare sector revealed that 40% considered it likely that the risk of the absence or insufficiency of ESG compliance would materialize, with a high or critical impact for 53% of them. Concerns about compliance with environmental, social and governance aspects came third in the ranking of risks, behind market dynamics and revenue cycle failures.

The companies interviewed were three hospitals, two healthcare operators, three diagnostic laboratories and seven pharmaceutical companies. The consultancy’s finding makes it clearer how important it is for ESG principles to be aligned with organizations’ strategic planning. Companies need to incorporate sustainable practices, as well as promoting technological innovation, in order to guarantee their competitive advantages.

The issue of governance also takes center stage when you consider that the health sector is one of the most vulnerable to cyber attacks, due to the concentration of high volumes of confidential patient data. Márcia Bolesina, Ernest & Young’s cyber-security partner, in a statement to the EY Agency, points out that “more than half of hospital medical devices are vulnerable to cyber-intrusion. Because of the obsolescence of the adopted technology, the same applies to a third of IoT (Internet of Things) devices used in hospital beds”.

Regarding this risk, 53% of the companies that took part in the survey fear that a cyberattack is possible, with a high impact due to systemic downtime or network unavailability for 67% of them. In the case of hospitals, for example, the suspension of systems generates huge losses, not to mention the impact on patients’ health. The expert also pointed out that many companies don’t put cyber-security at the top of their priorities until they are breached, and then they end up changing their stance radically in order to avoid further disruption.

On the environmental issue, the high consumption of energy by the health sector was highlighted, which needs to motivate the adoption of clean and renewable sources. In addition, the circular economy needs to be used more and more, as it helps to reduce the amount of waste by reusing and recycling materials.