The consideration of Environmental, Social and Governance (ESG) factors has become critical to the success of businesses across all sectors in Africa.
Africa Health Holdings (AHH) has embraced ESG as a value driver, recognizes it as a globally accepted framework for the assessment of non-financial risk factors to a business and ascribes to global standards in its implementation. AHH has developed an Environmental & Social Management System (ESM) based on the IFC Performance Standards, and the approach the ESMS takes is founded on the four principles of Plan-Do-Check-Act (“PDCA”) as specified in the globally recognized Good International Industry Practice (“GIIP”) standard. The ESMS covers all phases of AHH’s operations cycle, from valuation of a target or construction of a new facility to completion of an acquisition and operating the facility. The ESMS will help AHH and its brands to integrate ESG into its core business operations through a set of clearly defined, repeatable processes.
The ESG policies at AHH are geared towards assessing and minimizing any adverse impact on the environment; taking into consideration social development contributions; promoting a culture of good governance, accountability and transparency in business dealings; and, using effective risk management and control systems to mitigate ESG risks. Having undertaken a comprehensive ESG audit of all its brands, AHH and its brands are well on the way to implementing various ESG-related improvements that will ensure ESG maturity over time.
Through ESG, AHH is committed to making a positive impact to achieve a healthy community, healthy planet and healthy returns. This commitment to ESG is demonstrated through AHH’s robust investment and management strategies, risk assessment and mitigation capabilities, ESG integration across its operations and emphasis on mastering the fundamentals.
AHH’s impact metrics are tracked based on commonly used Global Impact Investing Network (GIIN) objectives and metrics for healthcare investments, including:
- Expanding access to quality, affordable healthcare for low-to-middle income or underserved populations
- Improving the quality and delivery of healthcare by building local capacity or human capital
- Supporting healthcare facilities and enterprises through access to finance and increasing available capital to the health sector
- Creating jobs and job opportunities for local employees in the healthcare sector.
AHH has established a dedicated ESG department that works closely with all departments, and, in particular, with the Quality & Compliance department, to deliver excellent standards of care to produce a tangible positive impact on both patient outcomes and financial returns.