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Medical Device's Environmental Impact Can
Challenge Innovation: Report
The report by GlobalData, a leading data and
analytics company, shows that the industry finds itself at a crucial juncture,
balancing technological advancements with sustainable practices.
The medical device industry is caught between
environmental responsibility and innovation, according to a report on Friday.
Despite the medical device industry's commitment to
healthcare innovation, achieving environmental responsibility has been hindered
by stringent regulations.
The report by GlobalData, a leading data and
analytics company, shows that the industry finds itself at a crucial juncture,
balancing technological advancements with sustainable practices.
It highlights the regulatory and disclosure changes
that are promoting commitment to environmental sustainability and the
initiatives by leading medical device companies to reduce emissions and better
manage resources.
"Many companies are implementing sustainable
packaging, efficient energy usage, and increased use of telemedical applications
to make an immediate difference. But due to the nature of medical products,
device quality needs to remain a priority, and swift eco-friendly changes will
not be made at the
expense of patient health. Larger, long-term changes to medical devices and
manufacturing will rely on proper regulation and risk mitigation," said Ashley
Clarke, Medical Analyst at GlobalData, in a statement.
Pressure from the private sector (customers,
investors, workers) is still an important factor driving environmental, social,
and governance (ESG) action by medical device companies. However, the ESG
regulatory landscape is starting to catch up. Popular opinion in GlobalData's
latest ESG survey indicated that legislature and pressure from governments
should lead ESG decisions (35 per cent of votes), superseding desire to improve
financial performance (29 per cent of votes).
The ESG survey also revealed that 45 per cent of
respondents said their company either had no ESG plan (27 per cent) or could not
say whether they had one (18 per cent). This is down from the combined 68 per
cent the previous quarter, suggesting communication surrounding ESG strategies
is improving.
Corporate governance and legislative disclosure
policies will continue to improve ESG transparency and promote open
communication between stakeholders and medical device companies. It is essential
to recognise the potential for positive change and collective action within the
industry.
"In the past, environmental and ethical actions may
have been exaggerated as companies become increasingly aware of the potential of
ESG action to improve customer loyalty. Many still believe that ESG is treated
only as a marketing exercise and companies are not fully committed to change,"
Clarke said.
"This has resulted in ESG plans working against
companies rather than for them, so companies may choose to keep quiet about
their ESG plans to avoid scrutiny and greenwashing allegations. But change
cannot be realised if there is not proper communication between companies,
consumers, workers, and
investors about environmental initiatives, progress, and challenges".
( Ref :
https://www.business-standard.com/india-news/medicaldevice-s-environmental-impact-can-challenge-innovationreport-123052600490_1.html
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