ESG

ESG
The New Imperative

for Healthcare Thamil Mani Sethuram
Senior Partner – SWIFT-i Consulting
Swift-i Consulting
BHIVE WORKSPACE,
No.148, 5th Main Road,
Sector 6, HSR Layout
Bangalore – 560 102
info@swifticonsult.com
www.swift-i consulting.com
CHENNAI | BANGALORE
Now, more than ever, the world needs transformational leaders — not to cultivate change for it’s own sake,
but to lead through the inevitable evolutions in business and human society.
― Hendrith Vanlon Smith Jr

Setting the context – Why ESG compliance
Mandatory reporting in BRSR Format

Changing consumer
as part of the Annual Report demand
Aspiring to become/continue
to be part of the top 1000 Investor Demand
Principal companies would insist
Exporting or planning to export Social Pressure

goods/ services in international market
Reputational/legal & regulatory risk
ESG – OVERVIEW ESG – EVOLUTION ESG CHALLANGES IN HEALTHCARE ESG IMEPRATIVES ESG FRAMEWORKS UNSDG & BRSR APPROACH TO IMPLIMENT
ESG – An overview
ENVIRONMENTAL SOCIAL GOVERNANCE
an analysis framework to help measure and quantify

ESG - Environment
Environment assessment criteria

help stakeholders understand
organization’s impact on environment and climate
like its greenhouse gas emissions, and its management team’s
focus on natural resources like say fresh water, energy usage.
Includes aspects like: Carbon Footprint, Climate Change,

Energy Usage, Waste Management
ENVIRONMENT
ESG – Social
S examines an organization’s social impact
seeks to understand how well the leadership manages

relationships with its stakeholders
taking accountability of action and inaction of supply chain

partners
Includes Aspects like Fair/Minimum Wages, Safe Work Place,

Gender Equality, Vendor Relationship
SOCIAL
ESG – Governance
G - governance
how is the firm led and managed
A health corporate governance function can make or break

progress in the E or S realm
Can even create existential threat for business operations
Includes Aspects Legal Practices, Investor Relationships, Business Ethics,

Whistle-blower Policy, Transparent Accounting, Feedback mechanism etc
GOVERNANCE
ESG – it’s evolution
evolved from a number of older sustainability themed acts and frameworks like
EHS (Environmental Health & Safety), CSR (Corporate Social Responsibility)
older frameworks took a more philanthropic approach
unique about ESG is that it looks at these issues through the lens of business
risk and opportunity
E,S&G Challenges in Healthcare Industry

Energy Use Access to healthcare Regulation and oversight
E S G
Waste Generation Healthcare disparities Corruption and bribery
Chemical Use Healthcare costs Intellectual property
Water Use Technological advancements

ESG Imperatives in Healthcare
Everybody across the spectrum of the industry to recognize the

1 need to have a clear strategy outlining transparency and
accountability.
Health of our planet and the health of the people are intimately
2 connected. Impact of climate change has a direct impact on
individual’s health and it is the healthcare sector that will have to
deal with that.
Healthcare itself is contributing to that problem resulting in a
circularity. View this circularity as a complexity or also as opportunity.
Rise in investor interest has made it an imperative to embed

3 sustainability into business strategies.
Noteworthy Initiatives
Noteworthy Initiatives
Types of ESG reporting frameworks
SASB GRI
The SASB came to be in 2011 to address the The GRI first appeared in 2000 and is the most popular ESG
need for sustainability accounting standards. reporting framework, being used in over 90 countries by
Across the globe, companies use SASB in corporations, small and medium-sized enterprises (SMEs)
sustainability reports, financial disclosures, and more.
corporate websites and annual reports.
CDP TCFD
The CDP focuses on reporting environmental Concentrates on climate change factors and gives investors the
data so corporations can better know their data they need to make informed decisions. It does that by
impacts and relay that information to investors. providing comprehensive statistics on the impact of climate
change so that investors can reduce their risk and make
With the mission to fight climate change and
responsible investments for themselves and the planet.
reduce environmental degradation
While the SASB and GRI report on all ESG metrics, the CDP and TCFD are dedicated to environmental statistics.
India’s ESG Regulatory Framework – BRSR, it’s evolution

Year Event
Ministry of Corporate Affairs (“MCA”) issued the National Voluntary Guidelines (“NGVs”)
2009
on CSR.
SEBI mandated the top 100 listed companies by market capitalization to file BRR based
2012
on the NGVs along with their annual reports.
2014 CSR was mandated and CSR Rules came into force.
2015 BRR was extended by SEBI to the top 500 listed companies by market capitalisation.
Source: Business Today

SEBI advised that IR may be adopted by companies on a voluntary basis from financial
2017
year 2017-18 by the top 500 listed companies.
2019 MCA released the NGBRC.
2019 BRR was extended by SEBI to the top 1000 listed companies by market capitalisation.
2021 SEBI introduced BRSR in May 2021.
* BRSR allows interplay for organisations that are already publishing sustainability reports under other internationally recognized frameworks.
National Guidance on Responsible Business Conduct, 2018 (NGRBC) Sustainability 9 Principles
S.No. Particulars Principles
1 Conduct Conduct themselves in a fair, ethical, transparent and accountable manner
2 Safety Provide goods and services that are safe and sustainable
3 Employee Well Being Promote and encourage employee welfare
4 Stakeholder Ensure that the interests of the stakeholders are adequately protected
Management
5 Human Rights Understand, respect and promote protection of human rights as part of the
management system
6 Environmental Take adequate measures to measure, check, prevent pollution and restore
Protection environmental performance by adopting sustainable means of development
7 Public Policy Responsibly pursue public advocacy
8 Inclusive Growth Take a holistic view of social and economic components, business must support
inclusive growth and development
9 Public at large Ensure the well-being of the customer and society at large is adequate
maintained; avoid misleading and dishonest information regarding products
and services; and ensure adequate grievance mechanism
Tagging United Nation’s SDG Goals to 9 Principals of BRSR
TAGGING UN-SDG
GOALS TO 9 BRSR
PRINCIPLES
P3, P4, P8 P2, P6, P7, P8, P9 P3, P6, P8 P3, P8, P9 P3, P4, P5, P8 P2, P6, P8
9 Principles
1. Conduct
2. Safety
3. Employee Well-being
4. Stakeholder Management
P2, P6, P7 P3, P4, P5, P8 P3, P4, P8 P2, P6, P7 P3, P4, P7, P8 P2, P6, P9
5. Human Rights
SDG GOALS
6. Environmental Protection 1-5: People
7. Public Policy 5- 15- Planet &
Prosperity
8. Inclusive Growth 16 – Peace
9. Public at large 17 - Collaboration
P2, P6, P7, P8 P2, P6, P7, P8, P9 P3, P4, P5, P8, P9 P1, P3, P4, P5, P8 P3, P4, P5, P8
BRSR – Disclosure Format
BRSR
DISCLOSURE
Essential
Section A Section C Compulsory
Principle wise
General Disclosures
performance disclosure
About the Entity On each of the

Section B Leadership
9 principles
indicators
Management and Voluntary
process disclosures
About management
approach
* Voluntary disclosures and those disclosures

made without any existing regulation
Approach to Implement
1. Prepare & Scope 4. KPI Analysis

Reporting Goals, Scoping Information Management,
Projects and scheduling timelines data collection & Analysis
.
2. Determine Materiality 5. Content Creation

Engage stakeholders through Design Report Layout, write
a data-driven assessment content & create graphics
3. Define Approach Review & Publish

Define Sustainability Executive level review and
Management Approach and publish final report.
KPIs
Thank You

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The New Imperative

― Hendrith Vanlon Smith Jr

Mandatory reporting in BRSR Format

Exporting or planning to export Social Pressure

ENVIRONMENTAL SOCIAL GOVERNANCE

an analysis framework to help measure and quantify

Environment assessment criteria

Includes aspects like: Carbon Footprint, Climate Change,

S examines an organization’s social impact

seeks to understand how well the leadership manages

taking accountability of action and inaction of supply chain

Includes Aspects like Fair/Minimum Wages, Safe Work Place,

A health corporate governance function can make or break

Can even create existential threat for business operations

Includes Aspects Legal Practices, Investor Relationships, Business Ethics,

ESG – it’s evolution

older frameworks took a more philanthropic approach

E,S&G Challenges in Healthcare Industry

Waste Generation Healthcare disparities Corruption and bribery

Chemical Use Healthcare costs Intellectual property

Water Use Technological advancements

ESG Imperatives in Healthcare

Everybody across the spectrum of the industry to recognize the

Rise in investor interest has made it an imperative to embed

Types of ESG reporting frameworks

India’s ESG Regulatory Framework – BRSR, it’s evolution

Source: Business Today

2019 MCA released the NGBRC.

2021 SEBI introduced BRSR in May 2021.

National Guidance on Responsible Business Conduct, 2018 (NGRBC) Sustainability 9 Principles

S.No. Particulars Principles

1 Conduct Conduct themselves in a fair, ethical, transparent and accountable manner

3 Employee Well Being Promote and encourage employee welfare

Tagging United Nation’s SDG Goals to 9 Principals of BRSR

BRSR – Disclosure Format

About the Entity On each of the

* Voluntary disclosures and those disclosures

1. Prepare & Scope 4. KPI Analysis

2. Determine Materiality 5. Content Creation

3. Define Approach Review & Publish

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