Climate Change Data

Environmental Metrics

ESG Focus Areas

• Proactive healthcare
• Business sustainability
• Risk management
• IT infrastructure strengthening
• Data privacy

Social Achievements

• Provided much-needed PCR and other testing facilities in Egypt and Jordan, while expanding house call services.
• Worked side-by-side with health authorities in Egypt and Jordan to combat the spread of Covid-19, carrying out more than 2.1 million PCR and Covid-19-related tests.
• Longstanding track record of being at the forefront of government-organized awareness campaigns (e.g., 2.4 million tests for the 100 Million Healthy Lives campaign in Egypt).

Governance Achievements

• Acquired expertise and services of a top-tier ESG consultant to assess ESG performance, create IDH's first ESG policy, establish key indicators, and strengthen reporting frameworks.
• Governed by a world-class Board of Directors with a majority of independent, non-executive directors and a robust policy framework.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and related operational difficulties (temporary branch closures, reduced working hours)
• Riots in Nigeria
• Political transition and severe inflationary environment in Sudan
• Supply chain disruptions
• Risk of infection among IDH employees
• Government-imposed curfews and lockdowns
• High inflation in Egypt and Sudan
• Capital controls and profit repatriation difficulties in Nigeria
• Depreciation of the Naira in Nigeria
• Political volatility and civil disorder in the MENA region
• Pricing pressure from third-party payers
• Cybersecurity risk

Mitigation Strategies

• Leveraged the strength of IDH’s flexible business model and proactive COVID-19 response strategy
• Implemented comprehensive health, safety, and business continuity protocols
• Adjusted service offering and delivery to adapt to shifting patient needs (PCR testing, house calls)
• Price increases to keep in step with inflationary pressures
• Increased dependence on local hires in Sudan to limit expatriate salaries and foreign currency needs
• Reinvesting early profits into Nigerian business until currency exchange policy is clarified
• Capitalizing on regional agreements with suppliers to procure kits at competitive prices
• Continual dialogue with key suppliers to gauge risk of material shortages
• Building inventory of key test kits as necessary
• Appropriate protective equipment for staff
• Shift policy to avoid overcrowding in main offices
• Regular review of disaster recovery and business continuity policies
• Ramping up house call services in Egypt and Jordan
• Strong, longstanding relationships with key suppliers (Siemens, Roche, BM (Sysmex))
• Negotiating favorable pricing and maintaining raw material cost increases at a rate slower than inflation
• Strengthening human capital and engaging in succession planning
• Expanding senior management team
• Full disaster recovery plan with procedures and provisions for spares, redundant power systems, and mobile data systems
• Regular testing of disaster recovery plans
• Competitive compensation packages and in-house recruitment and training program for laboratory professionals
• Ongoing QA, training, and internal audit procedures to maintain certifications and accreditations
• Stringent security controls and independent stress tests of IT infrastructure

Supply Chain Management

Responsible Procurement

• Strong, longstanding relationships with key suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Social Achievements

• Published first Sustainability Report
• 5,000 employees served more than 10 million patients
• Expanded house call services
• Steady growth of radiology venture, Al-Borg Scan
• Expanded and strengthened Board of Directors

Governance Achievements

• Completed dual-listing on the Egyptian Exchange
• Welcomed IFC as a strategic shareholder
• Regularly monitors and revises risk matrix and heat map to ensure checks and balances are in place and business continuity processes

Climate Goals & Targets

Environmental Challenges

• Supply chain issues
• Fast-rising consumer demand
• Increased volatility in commodity prices
• Rising inflation
• Country/regional risk (economic & forex)
• High inflation in Sudan
• Capital controls in Nigeria
• Country risk (political & security) in Sudan and Nigeria
• Covid-19 pandemic (supply chain disruptions, government-enforced quarantines, risk of infection among employees)
• Global supply chain disruptions
• Supplier risk (suppliers reopening negotiations due to cost pressure)
• Remittance of dividend regulations and repatriation of profit risk
• Legal and regulatory risk
• Risk from contract clients
• Pricing pressure in a competitive, regulated environment
• Cybersecurity risks
• Management concentration risk
• Business interruption

Mitigation Strategies

• Resilient business model
• Closely monitoring the impact of rising inflation on cost base
• Long-term contractual agreements with raw material suppliers
• Minimising foreign exchange exposure
• Price increases in Sudan to keep up with inflation
• Limiting expatriate salaries and foreign currency needs in Sudan
• Reinvesting early profits in Nigeria
• Strong mitigation frameworks in place
• Rigorous standards for evaluating business processes in Nigeria
• Appropriate protective equipment for staff
• PCR, Antibody, and Antigen testing for Covid-19 in Egypt and Jordan
• Full vaccination of employees
• Strong focus on growing conventional business
• Proactive steps to build up inventory
• Continual dialogue with key suppliers
• Fixed-price contracts with suppliers (5-7 years)
• Strong, longstanding relationships with suppliers
• Group’s general counsel and quality assurance team monitoring legislative and regulatory changes
• Diligent work to maintain sound relationships with contract clients
• Wide national footprint
• Strong brand equity
• Stringent control over data security
• Regular stress tests of IT infrastructure
• Succession planning
• Expanding senior management team
• Executive Committee meetings
• Disaster recovery plan
• Ramping up house call services
• Important role in conducting PCR testing for Covid-19

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Became the first provider in Africa to earn American College of Radiology accreditation in 2022.
• Launched a new patient loyalty program.

Governance Achievements

• Issued its first Sustainability Report outlining its ESG vision and strategy.

Climate Goals & Targets

Environmental Challenges

• Economic challenges in Egypt (currency devaluation, inflation, interest rates, capital and import restrictions),
• Currency devaluations in Nigeria and Sudan,
• Global supply chain troubles,
• Decline in Covid-19-related revenues,
• Rising diesel prices in Nigeria,
• Economic and political instability in Sudan.

Mitigation Strategies

• Resilient business model,
• Proactive approach to shield the business from exchange rate fluctuations (long-term contracts, volume-linked pricing),
• Renegotiated supplier prices,
• Increased prices and cost-cutting in Nigeria,
• Price increases in Sudan,
• Increased dependence on local hires in Sudan,
• Comprehensive mitigation strategy to safeguard staff and operations in Sudan,
• Ramping up house call services in Egypt and Jordan,
• Marketing programs targeted at patients with compelling value components (bundled diagnostic test packages, point redemption system, affordable payment plans).

Supply Chain Management

Responsible Procurement

• Long-lasting supplier relationships enabling favorable pricing for new stock.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: American College of Radiology (ACR)