Healthcare's ESG Disconnect: Why compliance-first thinking is holding back the sector
The global healthcare industry is facing a sustainability paradox. Despite being uniquely positioned to champion planetary and human health, our research reveals that regulatory pressure has pushed many companies into a dangerous 'compliance trap' when it comes to communicating their sustainability progress.
Our analysis of 28 leading healthcare companies across Europe, the UK, and the US exposes a stark disconnect between what matters most and what gets measured. Whilst all companies dutifully report on easily quantified metrics like employee equality, only 36% identify health awareness and outcomes as material to their business, despite being in the business of health.
The research highlights striking regional differences: European companies, driven by stringent CSRD requirements, focus heavily on substances of concern (82% disclosure rate), whilst US companies prioritise community impact and cybersecurity. Meanwhile, critical areas like biodiversity (25% disclosure) and pollution (32%) remain dangerously underreported across all regions.
The sector's greatest missed opportunity lies in communication strategy. Most companies fail to craft compelling narratives that connect their sustainability efforts to their core mission of improving lives. By embracing the 'cure-cause' dynamic, acknowledging that healthcare both heals and contributes to environmental risks, companies can transform ESG from a compliance burden into a powerful storytelling advantage.
The window for authentic sustainability differentiation is rapidly closing. Healthcare leaders must move beyond generic reporting templates to reclaim their unique narrative and communicate the global transformation they're uniquely positioned to champion.
Download the full report to discover:
- Regional differences in ESG priorities across EU, UK, and US companies
- Best practice examples from companies
- The three strategic imperatives for transforming ESG from burden to advantage
- Missing pieces in current frameworks that will define the sector's future impact