《貝恩公司：2024年ESG對亞太地區醫療技術行業的重要意義研究報告（英文版）（20頁）.pdf》由會員分享，可在線閱讀，更多相關《貝恩公司：2024年ESG對亞太地區醫療技術行業的重要意義研究報告（英文版）（20頁）.pdf（20頁珍藏版）》請在三個皮匠報告上搜索。

1、Why ESG Matters for Medtech in the Asia-Pacific RegionNearly 70%of medtech customers surveyed expect ESG will become a core purchasing criteria.By Vikram Kapur,Kevin Chang,Miki Yu,Glenda Ya-Wen Teng,and Benish Aslam Why ESG Matters for Medtech in the Asia-Pacific1APACMed|Bain&Company,Inc.As a new er

2、a for the medtech industry in the Asia-Pacific region approaches,the integration of ESG considerations emerges not merely as a trend but as an imperative.The upcoming decade promises rapid advancements in medical technology,intertwined with an intensified focus on sustainability and ethical governan

3、ce.The industry can expect innovations catering to medical needs while priori-tizing environmental and social concerns.The ascent of digital health solutions,telemedicine,and AI-driven diagnostics will revolutionize patient care and reduce the carbon footprint by minimizing reliance on physical infr

4、astructure and transportation.Challenges are inevitable.Evolving regulatory landscapes,shifting consumer expectations,and the global economic milieu will present unforeseen obstacles.Yet within these challenges lie unparalleled opportunities.Medtech companies that wholeheartedly embrace ESG will pos

5、ition themselves as market leaders and vanguards of thought and innovation.These trailblazers will set industry benchmarks,influence policy frameworks,and command consumer trust.Collaboration remains paramount.Governments,industry stakeholders,investors,and consumers must work together to create an

6、ecosystem that champions innovation while upholding ESG tenets.Endeavors such as cross-border research collaborations,sustainability-centric investment portfolios,and consumer education campaigns can expedite the industrys trajectory toward a sustainable future.This report is a collaboration between

7、 APACMed and Bain&Company and brought together 15 member companies from APACMed to develop an online,comprehensive dashboard of environ-mental regulations specific to the medtech value chain across six markets in APAC.This was supple-mented by surveys of 120 customers and more than 800 employees and

8、 various executives from medtech companies to better understand how stakeholders changing expectations are reinforcing the importance of ESG as a strategic priority for companies.The medtech landscape in the Asia-Pacific region stands on the brink of transformative growth.By embedding ESG in the cor

9、e of this metamorphosis,the industry can ensure growth that is expo-nential,responsible,resilient,and aligned with cherished values.ForewordHarjit Gill APACMed,CEOVikram KapurBain&Company,Senior Partner,SingaporeWhy ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.2At a GlanceEnvi

10、ronmental,social,and governance(ESG)initiatives are increasingly becoming prioritized by customers and employees throughout the Asia-Pacific region and the world.Bain&Company and APACMed partnered to survey 120 customers and more than 800 employees on ESG considerations within the medtech industry.M

11、edtech companies can choose to balance current competitiveness and future investments while connecting ESG to economic value.ESG in medtech requires collective industry action along three key objectives:sharing best practices,proactive dialogue,and tangible results driven by industry-wide initiative

12、s.Society is transitioning to foster sustainable development in energy,mobility,food,health,resources,circularity,community,and finance.The United Nations member states outlined 17 Sustainable Development Goals(SDGs)in 2015 to promote holistic growth across social,economic,and environmental aspects.

13、1 These SDGs have played an essential role in creating a global framework for sustainable development,which has led to a growing focus on environmental,social,and governance(ESG)priorities.Notably,customer awareness of ESG considerations is also rising,propelling companies to integrate sustainable p

14、ractices and highlighting the pivotal link between responsible business practices and customer loyalty.However,the medtech industry faces unique challenges in aligning with these global goals,especially in the diverse Asia-Pacific region,which is growing at a rapid rate.The Asia-Pacific region repre

15、sents 18%of the approximately$660 billion global medtech industry and is projected to be the fastest-growing region,with a 9%compound annual growth rate over the next five years .2 With this growth,global and domestic champions will continue expanding their commercial,manufacturing,and supply chain

16、footprint in the region.The concerted efforts of medtech firms in the Asia-Pacific region demonstrate their commitment to contribute to ESG targets and foster sustainable development.Medtech companies are proactively addressing various ESG issues and have launched numerous initiatives.These include

17、energy-efficient manufacturing,supply chain engagement,recycling,waste reduction,remanufacturing,and eco-material adoption.Additionally,medtech firms continue to focus on improving healthcare access,community engagement,diversity,and inclusion.Further acknowledging the importance of ethical business

18、 practices and transparency,medtech companies in the Asia-Pacific region have restructured their standard operating procedures and offered supplementary compliance training for employees.Why ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.3ESG is an important strategic priority f

19、or medtech companiesRising expectations across all stakeholder groups,including policymakers,investors,customers,and employees,reinforce the importance of ESG as a critical strategic priority for medtech companies.This commitment to ESG targets has led to a significant transformation of the ESG prac

20、tices land-scape.This trend reflects a broader shift toward responsible and ethical business conduct,spurred by the collaborative efforts of governments and industries to tackle pressing environmental and social challenges.More than 35 Asia-Pacific countries have committed to reducing greenhouse gas

21、(GHG)emissions.3 Furthermore,as of August 2021,the Asia-Pacific region had witnessed a twofold increase in ESG policies compared to 2016,totaling more than 200 policies and amendments.4In addition to the changing policy landscape,investor expectations are rapidly evolving.Eighty-two percent of asset

22、 managers globally factor ESG considerations in their investment processes,5 and approximately 60%of global investors foresee ESG becoming standard practice within the next five years.6 The Covid-19 pandemic has further propelled this trend,as 79%of Asia-Pacific investors have substantially or moder

23、ately increased the integration of ESG criteria into their investment strategies.7 The Asia-Pacific region notably witnessed an impressive fivefold surge in ESG securities issued in 2021 compared to 2016,underscoring an expanding appetite for sustainable investments.8 Not only investors but also med

24、tech customers across the Asia-Pacific region are highlighting the growing importance of ESG considerations.More than 70%of 120 medtech purchasing decision makers from Australia,China,India,Japan,South Korea,and Vietnam indicated that their organizations had already defined ESG strategies adopting a

25、mbitious objectives,precise metrics,and quantifiable targets.9 Notably,China and Australia are at the forefront of this movement,with more than 90%of surveyed customers possessing well-defined ESG strategies.Fifty-three percent of surveyed customers anticipate that the significance of ESG criteria i

26、n their organizations supplier selection will rise over the next two years,with 69%expecting a further increase in importance over the next five years.The majority of respondents from Australia(85%)and China(60%)predict their organizations will prioritize ESG factors in their key purchasing criteria

27、 within two years,while respondents from India,South Korea,Vietnam,and Japan came in below the Asia-Pacific average for planning to integrate ESG considerations into supplier selection processes(see Figure 1).Why ESG Matters for Medtech in the Asia-Pacific4APACMed|Bain&Company,Inc.Note:Other key pur

28、chasing criteria include cost(total cost of ownership and upfront cost),performance,ease of use,government purchasing policy,etc.Sources:Bain ESG in Medtech Survey,2022(n=65);Bain APACMed ESG MedTech Customer Survey 2023(n=120)n=1765%82%58%75%53%69%60%100%45%80%85%75%50%60%40%50%35%50%48120202020202

29、020DEUSAsia-PacificAverageCNSKAUVNINJP0Question:Compared to other key purchasing criteria,how do you expect the relative importance of ESG criteria(asthey relate to supplier selection)to change in the short and medium term?Increase slightly Increase significantlyMedium term(Next 5 years)Short term(N

30、ext 2 years)US/EUAsia-PacificIncrease slightly Increase significantly6%59%29%53%4%54%27%48%6%47%26%43%10%43%55%45%45%20%60%10%75%15%60%5%45%35%25%10%30%25%25%35%5%45%Figure 1:ESG metrics in Asia-Pacific will be more important when considering supplier selection in the next two to five yearsThe growi

31、ng emphasis on ESG initiatives is shaping customer expectations and significantly impacting the perspectives and aspirations of employees throughout the Asia-Pacific region.Among the 874 employees surveyed,60%reported that their companies have already established ESG ambitions and set specific targe

32、ts,while 43%confirmed the existence of separate ESG strategies for their companies suppliers.10Why environmental stewardship is critical If the global healthcare industry were a country,it would rank as the fifth-largest GHG emitter in the world.It is responsible for approximately 4.4%of carbon diox

33、ide equivalent(tCO2e)global emissions.11 Approximately 71%of these emissions are classified as Scope 3,12 primarily driven by production,transportation,and disposal processes deeply intertwined within the healthcare supply chain.Notably,fossil fuel combustion accounts for more than 50%of the healthc

34、are industrys climate footprint,with the majority of emissions classified as Scope 2 and Scope 3.13 While medtech represents a smaller but important part of the broader healthcare industry,there is a growing acknowledgment within the medtech community about the need to address these environmental ch

35、allenges collaboratively.Why ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.5If companies do not act to mitigate adverse environmental impacts in the next 5 to 10 years,they are likely to face various consequences,including increased costs.For instance,Singapore plans to increas

36、e the carbon offset price to$33/tCO2e in 202627,reaching$59/tCO2e by 2030.14 Similarly,China15 and South Korea16 could experience carbon price increases of around 34%and 25%,respectively,by 2030.Indias carbon prices are also expected to reach$80/tCO2e17 by 2050 with the introduction of a carbon mark

37、et.18 Other Asia-Pacific countries,including Vietnam,are also examining carbon trading mechanisms to monetize GHG emissions reductions.Environmental sustainability policies are progressively tightening in the Asia-Pacific region,with more than 15 Asia-Pacific countries committing to ambitious net-ze

38、ro emissions objectives in the past five years.Consequently,a transition toward mandatory climate disclosures and significant emissions reductions by 2030 is underway.For instance,the Australian government intends to mandate climate-related financial disclosure requirements from 2024,placing a great

39、er emphasis on companies adopting environmentally responsible practices.Moreover,stringent waste disposal regulations are on the horizon,with Japan19 and South Korea20 targeting 25%and 50%reductions in plastic waste,respectively,by 2030.Consequently,the medtech industry and the broader healthcare se

40、ctor are increasingly embracing environmental stewardship.While other factors such as compensation,good products,and benefits remain table stakes for employment decisions,environmental leadership is becoming an emerging consideration and is expected to increase over time.Three-quarters of surveyed A

41、sia-Pacific medtech employees consider environmental impact an important criterion when selecting employers.Approximately 70%of employees indicate a greater willingness to work for a company known for its efforts in reducing GHG emissions,while 74%of employees express reservations about working for

42、companies that have a high negative environmental impact(see Figure 2).While employees are weighing environmental performance in selecting employers,companies are increasingly considering environmental factors in the supplier selection process within the Asia-Pacific medtech industry.Approximately 2

43、3%of surveyed customers prioritize environmental considerations alongside product quality and cost when selecting suppliers.The importance of environmental factors is expected to increase in the next two years,with 30%of surveyed customers ranking it as a top-three criterion when selecting medtech s

44、uppliers(see Figure 3).Why ESG Matters for Medtech in the Asia-Pacific6APACMed|Bain&Company,Inc.Figure 2:Environmental leadership can be a differentiator in attracting talentFigure 3:While product,financial,and supplier specific factors are ranked higher today,environmental criteria are expected to

45、increase in importance in next two yearsNote:Product(diagnostic accuracy,reliability,etc.),Financial(total cost of ownership,upfront cost,etc.),Supplier(company reputation,customer service,etc.),Efficiency(reducingmanpower requirement,lower operating cost,etc.),Social(supplier social effort such as

46、labor standards,health,and safety track record),Environmental(lower carbon emissions,less water use),Governance(effective supplier risk management policies,anti-corruption,etc.)Source:Bain APACMed ESG MedTech Customer Survey 2023(n=120)ESG factors are expected to be more important in next two yearsW

47、hen it comes to selecting a third-party supplier,please select the three most important criteria that yourorganization uses,as of today and in next two yearsEnvironmental criteria will be more important to customerswhen purchasing capital equipment products in next two yearsChangeCriteriaToday2yrsTo

48、day2yrsToday2yrsToday2yrsToday2yrsToday2yrsToday2yrsProductFinancialSupplierSocialEnviron-mentalGovernanceEfficiencyMedical devicesImplantsConsumables1.Product1.Product1.Product2.Supplier2.Supplier2.Financial3.Financial3.Financial3.Supplier5.Social5.Efficiency5.Efficiency4.Efficiency4.Social4.Social

49、6.Environmental 6.Environmental 6.Environmental7.Governance7.Governance7.GovernanceCapitalequipment1.Financial2.Product3.Efficiency5.Environmental4.Supplier6.Social7.Governance80%Respondents(%)6040200Rank 1Rank 2Rank 372%72%58%57%50%48%41%40%36%33%23%30%19%20%Linking environmentalfactors to economic

50、 valuecan accelerate adoption-1-2-1-3710Source:Bain APACMed ESG MedTech Employee Survey(n=874)Salary/compensationGood productsGood benefitsMost advanced technologyGood reputationLoved by customersEnvironmental leaderWork from homeConvenient locationFlexible leavePay equity initiativesHiring/intervie

51、w experienceAffordable medical treatment programsRank 1Rank 2Rank 3Question:Please rank the three most important criteria when deciding whetheryou would like to work for a particular companyQuestion:How would your willingness to work for a company change,if youfound out that it is the industry leade

52、r in reducing greenhouse gas(GHG)emissions/largest polluter in the town/city where you live(assuming otherfactors such as salary and benefits remain the same)?0100%806040203%4%4%8%9%13%17%22%32%32%36%40%76%Company is industry leaderin reducing GHG emissionsCompany is largestpolluter in town/city69%7

53、4%Slightly less willing towork for company(23%)Significantly less willingto work for company(51%)Significantly more willingto work for company(31%)More willing to workfor company(38%)Why ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.7Professionals within medtech organizations a

54、lso view environmental factors as vital.A substantial portion(89%)of customer-facing teams classify environmental issues as crucial to their companys daily operations.This sentiment is echoed at the executive level,with 85%of executives recognizing the significance of environmental issues in shaping

55、 their organizations day-to-day activities.In conclusion,the growing expectation of stakeholders to adopt sustainable practices,coupled with the evolving regulatory environment,is raising the stakes for businesses within the region.Challenges exist,but so do opportunitiesAs medtech companies continu

56、e to develop the“environment”aspect of their ESG agendas,there are several challenges but also an ecosystem of support,opportunities,and incentives in a growing number of markets.The environmental policy landscape in the Asia-Pacific region displays varying degrees of maturity,which introduces a nua

57、nced layer of complexity for medtech companies.For instance,Australia stands out as a leader in ESG maturity,implementing a comprehensive array of regulations and covering a wide range of policies related to environmental matters at both state and national levels.Furthermore,the medtech industry in

58、Australia encounters specific requirements and incentives designed to encourage sustainable practices,such as the National Reconstruction Fund,which supports sustainable projects in priority sectors such as medical science and devices through equity,loans,or guarantees.Similarly,countries such as Ch

59、ina,Japan,and South Korea have made significant progress in environmental policies over the past five years,emphasizing the reduction of energy intensity and the pursuit of carbon neutrality.Circularity initiatives around sustainable material use and waste management in these nations are also gainin

60、g traction and are anticipated to experience increased adoption in the years ahead.On the other hand,countries such as India and Vietnam remain in the nascent stages of environmental development.These markets are currently creating more environment-specific rules,including those designed to address

61、the unique needs of the medtech sector(see Figure 4).Such a diverse environmental policy landscape across the Asia-Pacific necessitates substantial resources from medtech companies to guarantee compliance.Maneuvering through the intricate and constantly evolving policy frameworks imposes considerabl

62、e financial and operational strains on these manufacturers.The absence of comparable and reliable data presents difficulties for companies when they are trying to make well-informed ESG-related investments and business decisions.Despite the lack of comparable and reliable data,medtech companies are

63、approaching new environmental regulations proactively.Given the industry-agnostic nature of many environmental policies,medtech companies often need time to adapt effectively.Obstacles include regulatory requirements(including sterility mandates)when transitioning from single-use to reusable product

64、s,blanket bans on single-use plastics in India without clear alternative plans,and challenges related to repackaging and cross-border regulations.Why ESG Matters for Medtech in the Asia-Pacific8APACMed|Bain&Company,Inc.Note:Environmental aspects include GHG/carbon emissions,air pollution,water stewa

65、rdship,safe disposal of waste,product circularity and recycling,hazardousmaterials,e-waste management,and energy managementSource:Literature searchMaturity ofregulationCNJPSKINVNClarity of rulesForward-looking natureBreadth ofcoverageEase ofcomplianceAULowMediumHighLarge amountsof regulationentrench

66、ed andin practiceSpecific tomedtech withclear regulatorybodiesConscious stateand federal effortto tackle mostpressing issuesSignificantcoverage,in detail,across all“e”elementsDifferences instate and federalregulation giveslayer of complexity Rapidly introducingregulations overthe last five yearsLaws

67、 not specificto medtech sector;covering business/factories/unitsSignificant push toreduce energyintensity andpollutant emissionsSignificantcoverage,in detail,across most“e”elementsPrimarily regulatedat federal level withpush towardmandatory reportingPre-Covid plans toaccelerate uptake ofhydrogen,cir

68、cularity,and energy mgmt.Specific to medtechwith clearregulatory bodiesSignificant push toachieve carbonneutrality,circularity,and energy savingLacking detailedregulation acrosscircularity,hazardousmaterial,e-wastePush towardstandardizedreporting acrossESGFast developingregulation over thelast five

69、yearsSpecific to medtechwith clear regulatorybodiesSignificant push toachieve neutralityand circularitySignificant coverage,in detail,acrossmost“e”elementsQuick-evolvingregulation will addchallengesFocus on basicenvironmentalprotectionLaws not industryspecific Significant push tomeet commitments;lar

70、ge starting pointdeficitDetails of achievingcarbon neutral goalto be expandedDifferences in stateand federalregulation givelayer of complexityMostly rudimentary,covering onlyindustrial pollutionLaws not specific tomedtech sector;covering factoriesLimited specificityon forward-lookingregulationLimite

71、d progress onhazmat,e-waste,energy efficiencyAlready attained bycompanies operatingin other Asia-PacificmarketsFigure 4:Regulation maturity and compliance requirements vary across marketsNonetheless,some policies offer exemptions for the medtech industry,potentially serving as models for ecosystem s

72、upport in other markets to prevent disruptions and impacts on the accessibility of products.For example,Australia(New South Wales)21 exempts the supply of single-use plastics for medical purposes,while South Korea22 exempts medical devices from hazardous material restrictions,recycling,and take-back

73、 obligations.In India,23 certain medical and surgical equipment that does not generate effluents or emissions during operation is exempted from the requirement to obtain a“No Objection Certificate”from the pollution control board.Stakeholder engagement on ESG aspects presents untapped opportunities

74、for medtech companies.By collaborating with governments,civil society organizations,and other broader communities,these firms can use their expertise and interests to elevate ESG standards within the medtech industry.The medtech industrys response to ESG concerns is also driven by customer requireme

75、nts,which can vary across Asia-Pacific markets.Although traditional key purchasing criteria such as price and product quality remain paramount,environmental factors are increasingly influential in supplier selection for Australian customers.For example,approximately one-third of surveyed customers i

76、n Australia rank environmental considerations among their top three criteria for supplier selection,with 40%expecting this to be the case in two years.Among these environmental considerations,electronic waste management and product circularity are rated as the most important criteria for supplier se

77、lection.In contrast,only 18%of surveyed customers in Vietnam and South Korea rate environmental factors as one of their top three purchasing criteria.Why ESG Matters for Medtech in the Asia-Pacific9APACMed|Bain&Company,Inc.*Responses include critical priority,quite important,and somewhat importantSo

78、urces:Bain APACMed ESG MedTech Employee Survey(n=874);Bain APACMed ESG MedTech Customer Survey 2023(n=120)StakeholderRegulatorsMaturity of regulationLowMediumHighINVNCNSKJPAUVNINJPCNSKAULowJP55%IN65%SK65%VN70%AU90%CN100%AU33%CN28%IN25%JP23%SK19%VN18%IN98%VN96%CN84%JP78%SK88%AU89%CN80%AU78%JP73%IN94%

79、VN91%SK81%MediumHighBreadth of coverageMedtech customers with ESGtargets for their organizationsMedtech customers who rate“e”as oneof top three criteria in supplier selectionMedtech employees who say environmentalissues are important*in personal lifeMedtech employees who say environmentalissues are

80、important*to company operationsCustomersEmployeesIndicators1A1B1CFigure 5:MedTech firms want to do more but face multiple challengesOn the other hand,employees in developing markets perceive environmental issues as more critical than their counterparts in developed markets.More than 90%of surveyed e

81、mployees in India and Vietnam consider environmental factors important in their daily lives and their companies opera-tions.Furthermore,about 78%of surveyed employees in these two markets agree that environmental stewardship is a crucial driver for attracting talent(see Figure 5).The significance of

82、 ESG factors,as perceived by customers,employees,and other stakeholders,var-ies by region.While Europe and the Asia-Pacific have made noteworthy progress in this regard,US-based organizations are comparatively lagging.The challenge lies in devising ESG strategies that cater to the distinctive region

83、al requirements,while ensuring enterprise-wide compliance with critical measures such as GHG reporting and addressing Scope 3 emissions in the supply chain.Medtech companies in Asia-Pacific have a unique window of opportunity to fully unlock their ESG potential The medtech industry in the Asia-Pacif

84、ic region should play a significant role in collaborating on global ESG strategy development and shaping regional and country-specific priorities and initiatives.Successful medtech companies emphasize global sustainability while recognizing the importance of addressing local market nuances and engag

85、ing with local stakeholders.Why ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.10Numerous healthcare and medtech leaders have effectively executed ESG initiatives addressing vital environmental issues within the region.For instance,a global diagnostic company is working with was

86、te and recycling partners in Australia to dispose of and manage end-of-life instruments properly.Similarly,a global medical devices company partnered with the Japan Containers and Packaging Recycling Association for waste recycling.In 2021,the company recycled 31 tons of paper and 207 tons of plasti

87、c packaging materials with the help of contracted recycling firms of the association.Organizations can generate tangible customer value,attract and retain talent,and align with local government priorities by implementing initiatives tailored to local market intricacies and engaging with local stakeh

88、olders.While medtech companies understand the importance of ESG initiatives,healthcare investment as a proportion of GDP in many Asia-Pacific markets falls short of the appropriate level,with access to care continuing to be a significant concern.This lack of investment has a cascading effect on pric

89、ing and reimbursement for innovative medtech,resulting in disparities compared to other regions and markets.Medtech companies can choose to balance current competitiveness and future investments while connecting ESG to economic value.Many of these companies have employed various strategies to demons

90、trate the value of their ESG initiatives to key stakeholders.For instance,a medical device company enhanced energy efficiency across its Asia-Pacific manufacturing sites and offices,resulting in substantial operating cost savings.Another medtech firm specializing in consumables redesigned products t

91、o be more environmentally friendly by using less plastic material in their new-generation intravenous(IV)infusion pumps and IV solution bags,addressing key customer needs and promoting sustainability.These ESG efforts translate into improved business value while fostering sustainability.Successful m

92、edtech companies deliver on“table stakes”(topics important to a broad range of stake-holders,where they aim to set objectives and achieve various benefits)while strategically selecting areas where they can“reach for the stars”(topics where they seek to create a differential competitive advantage wit

93、h key constituents).Several factors can help determine in which areas companies should“reach for the stars,”including identifying material ESG issues specific to the subindustry or product mix,understanding critical stakeholders concerns,and leveraging global competitive advantages to surpass regula

94、tory requirements and the regional competitive baseline.At the same time,implementing sustainability-focused changes presents challenges,requiring a shift in organizational culture and approaches.Sustainability must be incorporated into every facet of the business with flexible scenarios and increme

95、ntal steps over rigid plans.Investments in new capabilities and skill sets,as well as a focus on scalability and adaptability,are crucial for achieving a capability shift.Furthermore,collaborating with unexpected allies,such as renewable energy providers,government agencies,educational institutions,

96、and environmental nongovernmental organizations,is vital for effectively driving systemic change.Why ESG Matters for Medtech in the Asia-Pacific11APACMed|Bain&Company,Inc.Figure 6:ESG is a mandate for the entire industry to come together to create the path forward,and APACMed can play a leading role

97、Key objectives010203Best practicesProactivedialogueTangible resultsdriven by industry-wideinitiativesSupport members in theirESG journeysEngage stakeholders tocommunicate the value ofthe medtech industry andprovide medtech-specificperspectives on ESGLaunch industry-wideinitiatives that drive tangibl

98、eresults for stakeholdersESG requires collective industry action,encompassing three key objectives to pave the way forward 1.The medtech industry in the Asia-Pacific region should take proactive measures to enhance its ESG capabilities and promote the exchange of best practices(see Figure 6).In the

99、short-to-medium term,APACMed is curating and maintaining a repository of ESG resources tailored to each countrys specific nuances,catering to the needs of key stakeholders such as regulators,customers,and employees.Furthermore,an online dashboard has been developed to track the evolving environmenta

100、l regulations in six key Asia-Pacific markets,providing a comprehensive overview of requirements.This dashboard aids medtech companies in navigating the market and effectively addressing particular environmental themes.APACMed also aims to periodically update environmental regulatory developments in

101、 the region,benefiting the entire medtech industry,including small-and medium-sized enterprises,start-ups,and smaller companies that may lack dedicated ESG resources.This includes proactively scanning for upcoming ESG-related developments in other regions through regular touchpoints with trade assoc

102、iations such as Medtech Europe and Advanced Medical Technology Association globally,and associations within the Asia-Pacific region,such as the Medical Technology Association of Australia,among others.Why ESG Matters for Medtech in the Asia-PacificAPACMed|Bain&Company,Inc.12In the long term,the medt

103、ech industry can establish a center of excellence to facilitate thesharing of best practices,educate stakeholders on the challenges and needs of medtech,andpartner with educational institutes to develop curriculum and training programs.2.The medtech industry should proactively engage in dialogue wit

104、h stakeholders,emphasizinghealthcare considerations and unique factors that should be accounted for in crafting fit-for-purpose ESG regulations for the medtech sector.The value and positive impact that medtech brings to society need to be communicatedin the right manner:Medtech has made contribution

105、s to improving health outcomes andpatient experiences,advancing population health,and reducing overall costs of care,makingcare more accessible.Through partnerships with healthcare stakeholders,medtech con-sistently explores disruptive solutions to ensure patients have access to the right care in th

106、eright format at the right time.An advocacy platform can be employed to collaborate with policymakers,underscoringthe importance of industry consultation on policy changes that impact the sector.Advocatingfor and supporting carve-outs,grants,and incentives that promote sustainable practices,innovati

107、on,and investment in environmentally responsible solutions is crucial.This collab-oration will enable sufficient transition time,ensuring compliance without compromisingproduct quality and safety.Capitalizing on its role as an innovation catalyst,the medtech industry should encouragecollaboration wi

108、thin its own system to provide potential solutions or recommendations forfuture policy developments.Participation in multilateral platforms,forums,conferences,and working groups can be critical in shaping the ESG agenda and promoting environmentalstewardship within the medtech industry.3.To substant

109、ially impact and address critical environmental issues in the medtech sector,it isvital to pursue industry-wide initiatives concentrating on one or two urgent challenges.Theseinitiatives should be tailored to address each countrys unique insights and requirements,delivering tangible results that ben

110、efit local stakeholders.To efficiently confront material issues related to environmental stewardship,establishingdedicated technical working groups comprising industry experts and stakeholders is essential.Through collaborative endeavors,these groups can devise and launch industry-wideinitiatives th

111、at directly target the identified environmental challenges.AuthorsThis report was jointly produced by a collaboration between Bain&Company and APACMed.Contributing authors are as follows:Vikram Kapur Senior Partner,Singapore Bain&CompanyKevin Chang Partner,Hong Kong Bain&CompanyMiki Yu Senior Practi

112、ce Manager,APAC Healthcare&Life Sciences Bain&CompanyGlenda Ya-Wen Teng Director,Government Affairs and Market Access APACMedBenish Aslam Manager,Government Affairs and Market Access and ESG Lead APACMedAcknowledgmentsWe would like to thank the team that has worked tirelessly to develop this report:

113、Bain&Company Gerry Mattios Yang Liu Gwyneth Fries Kenneth Goh Ishan Ramanathan Mayank Puri Sudhanshu Sharma Manvi Singhal Shreya Ghosh Tuhin Dutta Sakshi VohraAPACMed ESG Working Group1.Jasraj Virdi,Director,Global Citizenship and Sustainability,Abbott2.Karen Wong Chayavirabood,Regional Director,Pub

114、lic Affairs Asia-Pacific,Abbott3.Chee Ming Song,Head of Facilities Management,B Braun 4.Dr.Pinaki Ghosh,Senior Manager,Asia Pacific,HEOR/Market Access,B Braun5.Allison Fox,Director,Project Management Office APAC,Boston Scientific6.Aniruddha Patankar,Managing Director,Direct Markets Asia,Cardinal Hea

115、lth7.Jane Crowe,Managing Director ANZ,Cardinal Health 8.Steven Shen,Director,Global Sustainability Program,Fresenius Medical Care9.Victor Thevaraj,Regional Senior Manager,Environmental Health and Safety,Fresenius Medical Care10.Jane McMillan,Head,APAC MedTech,Government Affairs and Policy,Johnson an

116、d Johnson11.Dion Everts,Territory Manager-Enabling Technologies,Australia Sustainability network co-ordinator-APAC South,Karl Storz12.Kapil Rana,Head-Operations&Regulatory India,Sustainability network co-ordinator-APAC North,Karl Storz13.Jane Wagstaff,Director,Environmental Health and Safety,APAC,Me

117、dtronic*14.Quettfenn Lai,Regional ESG Lead-APAC,Olympus*15.Nicole Ling,Environmental Regulatory Affairs Lead,APAC,Roche*16.Vineet Gupta,Head,Govt Affairs India,Varian and Siemens Healthineers17.Annie Watt,Head of ESG APAC,Senior Manager Clinical Education APAC,Steris Corporation18.Alastair McLean,Se

118、nior Director Orthopedics,Spine,T&E and Digital Marketing APAC,Stryker19.Anne Smith,Director,Govt Affairs,Stryker Japan20.Ankur Datta,RA Manager,Teleflex21.Dhruv Dayal,General Manager and Head of Govt and Corporate Affairs,Thermo Fisher Scientific*Part of the editorial team for report reviewWe would

119、 like to thank APACMed CEO Harjit Gill and APACMeds Board of Directors and members for their constant support and guidance.The report also included more than 120 customer survey respondents across the six key Asia-Pacific markets and more than 800 employee survey respondents from some of the above m

120、ember companies.The insights and content of this report also benefited from the wisdom of leading industry experts and local trade associations across the Asia-Pacific and beyond.The richness and clarity of thought in this report would not have been possible without the thought leadership of these i

121、ndividuals.To those who answered our call or wrote a thoughtful email,we owe our deepest thanks.We would also like to thank the following from MTAA for sharing their valuable insights in the development of this report:1.Pravin Siriwardena,Policy Manager,MTAA2.Stuart Anderson,Clinical Translation and

122、 Commercialization:Medtech Manager,MTAAReferences1.United Nations,“2030 Agenda for Sustainable Development,”January 20152.Fitch Solutions,Medical Devices Market Size Data3.United Nations,Economic and Social Commission for Asia and the Pacific,United NationsEnvironment Programme,United Nations Childr

123、ens Fund(2022),“2022 Review of Climate Ambition in Asia and the Pacific:Raising NDC targets with enhanced nature-based solutions,”November 20224.Goldman Sachs,“GS SUSTAIN:APAC ESG Regulation.,”February 20225.Russell Investments,“ESG Manager Survey,”November 20216.Natixis Investment Managers,“ESG Inv

124、esting-Everyones on the bandwagon,”April 20217.MSCI,“MSCI Investment Insights 2021-Global Institutional Investor survey,”February 20218.J.P.Morgan,“Asia Pacific ESG Research,”January 20239.Bain and Asia Pacific Medical Technology Association(APACMed),“ESG MedTech CustomerSurvey,”May 2023.The survey

125、aimed to gather opinions of medtech customers regarding their suppliers ESG considerations in the Asia-Pacific region,specifically in China,India,Japan,Korea,Vietnam,and Australia.It focused on understanding customers existing and future perspectives on ESG maturity,strategies,and primary selection

126、criteria for third-party providers across Asia-Pacific markets.The survey targeted large healthcare providers(20 healthcare providers per market,with no more than one respondent from the same company)in the six key markets,spanning public hospitals,private not-for-profits,and private for-profits;res

127、pondents had major responsibility for purchasing decisions.10.Bain and Asia Pacific Medical Technology Association(APACMed),“ESG MedTech EmployeeSurvey,”May 2023.The survey aimed to gather opinions from employees within medtech companies in the Asia-Pacific region regarding ESG considerations.It foc

128、used on employees views on the importance of environmental stewardship,whether ESG initiatives attract talent in hiring efforts in Asia-Pacific,and whether customers care about environmental sustainability today and in the short-to-medium-term future.The survey targeted employees in China,India,Viet

129、nam,Japan,South Korea,and Australia and included regional headquarters employees in Singapore,Malaysia,or Hong Kong overseeing Asia-Pacific markets.11.Healthcare without Harm&ARUP,“Health Cares Climate Footprint,”September 2019.Healthcareindustry includes all organizations,institutions,and resources

130、 devoted to producing health,actions ranging from hospitals and ambulatory care to ancillary services,preventive care,pharmacies,administration,financing.12.Scope 1 emissions refer to direct emissions from company-controlled sources;Scope 2 emissionsrefer to indirect emissions from purchased energy;

131、Scope 3 emissions refer to indirect emissions from external activities,including supply chain and product use13.Healthcare without Harm&ARUP,“Health Cares Climate Footprint,”September 201914.Reuters,“Asias carbon pricing and emission trading systems,”March 2023 15.S&P Global,“Commodities 2023:Chinas

132、 carbon market to slow in 2023 as energy security,economy take priority,”January 202316.The World Bank,“Carbon Pricing Dashboard,”May 202317.S&P Global Market Intelligence,“India may announce details of national carbon market schemethis year,”March 202318.The Hindu,“Time to put a price on carbon emi

133、ssions,”April 2023 19.Plastic Atlas Asia,“Japans Plastic Waste Management Challenges and Potential Solutions,”May 202220.MDPI,“New policy framework with plastic waste control plan for effective plastic waste management,”July 202021.NSW Environment Protection Authority(EPA),“Plastic Reduction and Cir

134、cular Economy Bill,”202122.Ministry of Environment(Resource Recycling Division),“Draft Revision of Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles,South Korea,”202323.Central Pollution Control Board(CPCB),“Classification of Industrial Sectors into Red,Orange,Green and

135、 White Categories:A Tool for Progressive Environmental Management,”2016Copyright 2023 Bain&Company,Inc.All rights reserved.This work is based on secondary market research,analysis of financial information available or provided to Bain&Company and a range of interviews with industry participants.Bain

136、&Company has not independently verified any such information provided or available to Bain and makes no representation or warranty,express or implied,that such information is accurate or complete.Projected market and financial information,analyses and conclusions contained herein are based on the in

137、formation described above and on Bain&Companys judgment,and should not be construed as definitive forecasts or guarantees of future performance or results.The information and analysis herein does not constitute advice of any kind,is not intended to be used for investment purposes,and neither Bain&Co

138、mpany nor any of its subsidiaries or their respective officers,directors,shareholders,employees or agents accept any responsibility or liability with respect to the use of or reliance on any information or analysis contained in this document.This work is copyright Bain&Company and may not be publish

139、ed,transmitted,broadcast,copied,reproduced or reprinted in whole or in part without the explicit written permission of Bain&Company.Founded in 2014 and headquartered in Singapore,APACMed represents manufacturers and suppliers of medical equipment,devices and in vitro diagnostics,industry association

140、s and other key stakeholders associated with the medical technology industry in Asia Pacific.Providing a unified voice for the medical devices and in-vitro diagnostics industry in Asia Pacific,APACMed works proactively with bilateral,regional and local government bodies to shape policies,demonstrate

141、 the value of medical technology and promote regulatory harmonization.We strive to promote digital health innovation and impact policy that advances healthcare access for patients by engaging with medical device associations and companies in Asia Pacific.Bold ideas.Bold teams.Extraordinary results.B

142、ain&Company is a global consultancy that helps the worlds most ambitious change makers define the future.Across 65 offices in 40 countries,we work alongside our clients as one team with a shared ambition to achieve extraordinary results,outperform the competition,and redefine industries.We complemen

143、t our tailored,integrated expertise with a vibrant ecosystem of digital innovators to deliver better,faster,and more enduring outcomes.Our 10-year commitment to invest more than$1 billion in pro bono services brings our talent,expertise,and insight to organizations tackling todays urgent challenges in education,racial equity,social justice,economic development,and the environment.Since our founding in 1973,we have measured our success by the success of our clients,and we proudly maintain the highest level of client advocacy in the industry.For more information,visit