The medical device sector is lacking in its commitment to environmental, social, and governance (ESG) issues. This was highlighted on Earth Day, observed annually on 22 April, to promote awareness and action on environmental challenges. According to a survey conducted by GlobalData, 46.1% of respondents believed that companies used ESG as a marketing exercise.

Selena Yu, Medical Analyst, at GlobalData, comments: “Medical device companies that are not only quick to speak on ESG issues but also commit to ESG will win stakeholder support (customers, employees, investors, and partners). This support pushes the company’s reputation and provides a competitive advantage that incentivizes more change.”

Yu adds: “Earth Day brings attention to the increasing severity of issues that are caused by the global temperature rising. With almost 50% of respondents believe that most companies use ESG as a marketing exercise, companies that act and have results to show will gain stakeholder support.”

GlobalData’s report, “Thematic Intelligence: Global Environmental Trends in Healthcare, 2022,” highlights events like North America having its warmest September in 2022. The next generation of consumers has a greater sense of global responsibility and acting against climate change will attract more customers, partners, and employees.”

According to the report, 96% of G250 companies are publishing their ESG-related data, which highlights the increasing importance of ESG in business decision-making. Moreover, the report emphasized that the most important environmental trend in medical devices in 2023 is environmental sustainability. Medical device companies are slow to change due to limited regulations pushing for environmental change.

Yu concludes: “Medical device companies can make small changes like partnering with manufacturers with strong ESG commitment to reduce total emissions, changing to sustainable packaging, and using artificial intelligence (AI) to improve recycling. However, we also need to keep in mind that many devices require medical-grade plastics, and potential changes to ensure ESG cannot be made due to health and safety concerns.”