Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Energy Efficiency
• Resource Conservation

Environmental Achievements

• Reduced Scope 2 (location-based) emissions by 1.75% compared to FY2016, mainly due to energy efficiency initiatives.
• Reduced water consumption by 8.3% compared to 2011 baseline.
• Recycled 1283 tonnes of waste in 2016.

Social Achievements

• Implemented employee awareness training on water conservation.
• Installed water-saving technologies in several hospitals.
• Engaged with stakeholders through surveys, meetings, and industry associations.

Governance Achievements

• Board mandated the Audit and Risk Committee to monitor climate change risk management.
• Implemented an Enterprise-wide Risk Management policy.
• Integrated climate change into business strategy.

Climate Goals & Targets

Environmental Challenges

• South African carbon tax (anticipated in 2018)
• Mandatory GHG emission reporting regulations
• Fuel and energy taxes and regulations
• Changes in mean temperature impacting energy consumption
• Changes in precipitation patterns leading to water shortages
• Reputational risks related to environmental incidents

Mitigation Strategies

• Provided input to research and studies on carbon tax.
• Outsourcing of healthcare risk waste treatment.
• Appointed external consultants for carbon footprint determination and verification.
• Implemented energy conservation and cost-efficient initiatives (e.g., chiller replacements, solar panels).
• Installed bulk water storage facilities and boreholes.
• Implemented water-saving initiatives (e.g., employee training, efficient technologies).
• Adherence to ISO 14001 Environmental Management System.

Supply Chain Management

Responsible Procurement

• ISO 14001 standard compliance incorporated into agreements with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in mean temperature
• Changes in precipitation patterns

Transition Risks

• Carbon taxes
• Emission reporting obligations
• Fuel/energy taxes and regulations

Opportunities

• Reduced operational costs through energy savings and tax allowances
• Reduced capital costs through incentives for energy-efficient equipment and renewable energy technologies
• Reduced operational costs through water conservation
• Reputational benefits from sustainable practices

Reporting Standards

Frameworks Used: CDSB Framework, Greenhouse Gas Protocol

Certifications: ISO 14001

Third-party Assurance: National Quality Assurance London (for ISO 14001); Third-party verification for carbon footprint

Environmental Metrics

ESG Focus Areas

• Developing an engaged and productive workforce
• Minimising environmental impact
• Being an ethical and responsible corporate citizen

Environmental Achievements

• Installation of heat pumps at Hirslanden Klinik Belair and AndreasKlinik significantly reduced energy consumption.
• Photovoltaic installations at seven Mediclinic Southern Africa hospitals increased renewable energy generated by 81.61% to 795,015 kWh (2018: 437,765 kWh).

Social Achievements

• Overall participation rate in the annual Your Voice employee engagement programme increased to 82% (2018: 77%), higher than the Healthcare overall peer participation rate of 78%.
• Group-wide engagement scores increased, with the ratio of Engaged to Actively Disengaged employees improving significantly.
• Mediclinic Middle East launched an Employee Wellness Programme in January 2018.

Governance Achievements

• A three-year compliance monitoring programme was developed to enhance the existing compliance culture.
• No major findings or weaknesses were identified in the compliance monitoring programme.

Climate Goals & Targets

Environmental Challenges

• Global shortage of healthcare professionals, specifically specialist nurses and clinicians.
• Rising electricity costs.
• Water shortages (especially in Southern Africa and the UAE).
• Extreme weather conditions in the UAE negatively affecting energy and water consumption.
• Delayed new nursing qualifications framework in Southern Africa causing a gap in the education pipeline.
• Ageing nursing workforce with decreasing entrants to the profession.

Mitigation Strategies

• Extensive training and skills development programmes.
• Targeted sourcing and recruitment initiatives.
• Proactive international recruitment programme.
• Tailored retention strategies.
• Investments in energy-efficient equipment and alternative renewable energy sources.
• Water Resilience Committee established in the Western Cape to govern water usage.
• Bulk water storage facilities installed at hospitals and boreholes sunk for strategic sustainability.
• Initiatives to reduce water consumption, including employee awareness training and monitoring of uncontrolled leakages.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply Chain Risk Management Policy
• Formal procurement processes for tenders, contracting, and preferred supplier agreements
• Global contracts with key multinational suppliers
• Group Purchasing Organisation (GPO)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages
• Business interruptions due to water shortages and electricity supply

Transition Risks

• Rising electricity costs
• Increased operational costs due to cost of electricity, water and healthcare risk waste
• Impact of Carbon Tax and Climate Change legislation

Opportunities

• Investments in energy-efficient equipment and alternative renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 9001

Third-party Assurance: British Standards Institute (for ISO 14001 in Southern Africa), Swiss Association for Quality and Management Systems (SQS) (for ISO 9001 in Switzerland), Joint Commission International (JCI) (for Mediclinic Middle East)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FTSE4Good Index Series constituent
• FTSE/JSE Responsible Investment Index constituent
• Global B List status from CDP for water conservation and climate change actions
• Various awards received by individual hospitals and employees

Environmental Metrics

ESG Focus Areas

• Minimising environmental impact
• Building stakeholder trust
• Being an ethical and responsible corporate citizen

Environmental Achievements

• 16 out of 17 hospitals registered as CO₂-reduced businesses by the Energy Agency of the Swiss Private Sector (‘EnAW’), and awarded with CO₂ & kWh-reduced certificates
• Achieved Global B List status from the CDP for water conservation and climate change actions
• CHF4m, ZAR40m and AED8m budgeted for green initiatives in FY22 at Hirslanden, Mediclinic Southern Africa and Mediclinic Middle East respectively

Social Achievements

• Amended diversity and inclusion goal for senior management to 40% female and 40% male
• Ranked as the foremost healthcare provider according to MSCI ESG rating with a top AAA score for the third consecutive year
• Ranked fifth and sixth most attractive employer in Swiss healthcare by healthcare and medical students, and healthcare professionals respectively in an independent study by Universum Communications

Governance Achievements

• Established Group Sustainable Development Forum to ensure execution of the Group Sustainable Development Strategy
• Signed up to EPiHC
• Concluded roll-out of Group ethics line awareness campaign

Climate Goals & Targets

Environmental Challenges

• Roll-out of the ISO 14001 management system at Hirslanden and Mediclinic Middle East
• Reallocation of resources due to the COVID-19 pandemic
• Difficulty of implementing the Environmental Banc & Exchange (‘EBX’) data management system and obtaining data across divisions in a year with operational disruptions

Mitigation Strategies

• Reallocation of resources
• Implementation of EBX data management system
• Group and divisional communication campaigns

Supply Chain Management

Responsible Procurement

• Mediclinic’s Supply Chain Risk Management Policy and the Ethics Code provide a framework wherein supplier selection is, inter alia, based on alignment with the Group’s purpose and culture, as well as delivering products and services of the highest quality.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001

Third-party Assurance: Group’s Internal Audit function

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Dubai Healthcare City Authority Award
• Geneva Innovation Prize 2020
• Healthcare Leader of the Year
• Business Leader of the Year
• Superbrand status