Sustainability and Corporate Performance in Health Care : ESG Implications for the European Industry

This book explores the multifaceted relationship between sustainability and corporate performance in health care by providing a review of the relevant policy and academic literature, together with novel quantitative evidence to support strategic and managerial decision-making. The book uniquely investigates whether and how improvements in sustainability-related activities and reporting, and respective ESG scores assigned by international rating agencies, are related to corporations’ economic and market performance. The potential development and expansion in private health care services and products, accelerated by the COVID-19 pandemic, calls for a new paradigm in the health care industry. After introducing the reader to the social and policy context for sustainable development and to various normative and market instruments used to assess sustainability and corporate performance, the book presents the results of statistical analyses conducted on a representative sample of top health care companies listed in European capital markets and draws conclusions about the profitability and effectiveness of sustainability- and ESG-related investments. There’s a current debate about whether investing in sustainability not only fulfills ethical obligations but also drives long-term value. The empirical literature often presents conflicting findings, particularly when it comes to scholars’ relatively limited evaluation of the health care industry. The book sheds new light on this proposition and offers guidance on sustainable decision-making in health care, making it relevant for researchers and professionals. Foreword Acknowledgements Introduction Contents List of Abbreviations Chapter 1: Social and Normative Context of Sustainability Evolution of Sustainability Corporate’s Responsibility: A Paradigm Shift Sustainable Finance Implications for Corporate Performance Economic Performance Information Asymmetry References Chapter 2: Sustainability in Health Care Background The Industry’s Footprint Greenhouse Gas Emissions Waste Local and International Initiatives Digital Health What Is It? Electronic Health Records ePrescribing Telemedicine M-health and Wearable Devices The Rise of Digital Transformation Opportunities and Challenges ICT References Chapter 3: Normative and Market Instruments of Sustainability The Journey of Sustainability Disclosure Reporting Formats and Frameworks Annual Report Materiality Principles Sustainability Report GRI Integrated Report SMEs External Factors Internal Factors Opportunities ESG Reporting ESG Providers and Measures Refinitiv Platform References Chapter 4: Evolution of ESG and Corporate Performance in Health Care Background Data Source ESG Score Calculation Corporate Performance ESG-Relevant Indicators CSR and Board Characteristics ESG Measures Concluding Remarks References Chapter 5: ESG and Economic Performance in Health Care Background Theoretical Frameworks Agency Theory Stakeholder Theory Review of the Empirical Literature ESG and Economic Performance Focusing on Health Care Research Methods Data Source and Sample Variables Statistical Analysis Relationship Between ESG and Economic Performance Correlation Analysis Regression Analysis Concluding Remarks References Chapter 6: ESG and Information Asymmetry in Health Care Background Theoretical Frameworks Signaling Theory Value Relevance Theory Review of the Empirical Literature Research Methods Forecast Accuracy Explanatory and Control Factors Statistical Analysis Relationship Between ESG and Information Asymmetry Correlation Analysis Regression Analysis Concluding Remarks References Conclusions Appendix