-
Other sites :
Institutions & Consultants : Norway
-
More Capital Group Sites
- Capital Group Worldwide (corporate site)
More Capital Group Sites
- Capital Group Worldwide (corporate site)
- Private Markets
- Capital IdeasTM
-
American Funds
- Individual Investors
- Financial Advisors
- Employers & Plan Sponsors
- Third-Party Administrators
- Institutions & Consultants
- RIAs
- Private Client Services
More Capital Group Sites
- Capital Group Worldwide (corporate site)
-
Capital Group
More Capital Group Sites
- Capital Group Worldwide (corporate site)
- Private Markets
- Capital IdeasTM
-
RESEARCH FRAMEWORKS
US Health care services
We have developed a differentiated view on material environmental, social and governance (ESG) issues in the US health care sector.
Grounded in decades of experience
Our health care services investment framework is a tool to guide our investment analysis, track key ESG issues, and engage with management teams. It was created by our fixed income and equity analysts who have an average of 14 years' experience in the industry.*
Cheryl Frank, Capital Group portfolio manager and analyst, shares her perspective on the key issues that create and destroy value in the US health care sector.
Zeroing in on what matters
Our health care services analysts created this US-focused framework using their considerable global-sector experience, our proprietary research, issues identified by the Sustainability Accounting Standards Board (SASB), and engagement with companies and issuers.
From a comprehensive set of inputs, they prioritised the social and governance categories of consumer wellbeing and corporate governance as material to the long-term sustainability and success of health care companies.
Environmental
Climate change risk
Natural resource management
Pollution & waste management
Environmental opportunities
Social
Human capital management
Consumer wellbeing
Social opportunities
Governance
Corporate governance
Corporate behaviour
Consumer wellbeing
Our analysts concluded there are three critical factors when considering consumer wellbeing: safety, access and privacy.
-
-
Consumer safety
Consumer safety
Relevance:
Patients place enormous trust in health care providers. Patient welfare must be of the utmost priority. Long-term competitive success depends on superior health results.
Best practices:
Management prioritises patient outcomes
Quality is measured by keeping patients healthy
Target rigorous multi-year improvement goals that exceed regulatory standards
-
Affordability and access
Affordability and access
Relevance:
Quality health care must be affordable and accessible; failure in this effort may lead to regulatory intervention.
Best practices:
Focus on value-based health care that aims to deliver better outcomes
Price transparency and affordability innovation
Proactive partnership with government programmes
-
Privacy and data security
Privacy and data security
Relevance:
Patient data enables better care, but represents a vulnerability and must be appropriately secured.
Best practices:
Adherence to EU-US Privacy Shield Framework
Disclosure and rapid response to security breaches
Proactive use of data to improve patient outcomes
-
Corporate governance
Our analysts prioritised governance issues they believe may affect the company's dedication to ESG broadly: ethics, integrity and accountability.
Management quality, ethics and accountability
Relevance:
Identifying management teams with steadfast integrity is essential to long-term success. Management ethics are a key lens through which to understand all other ESG issues.
Best practices:
Management incentives linked to patient outcomes
Culture of regulatory compliance in law and spirit
Culture anchored in community service and social well-being
Our evolving approach
As one component of our three-part approach to ESG, our investment frameworks are continually evolving. Through our monitoring process as well as engagement and proxy, our analysts continuously gather and incorporate new information.
-
-
ESG at Capital Group
ESG AT CAPITAL GROUP
We incorporate environmental, social and governance factors into our investment process.
-
Global citizenship
GLOBAL CITIZENSHIP
We live the same high standards we expect of the organisations in which we invest.
-
*Average years of experience for the seven equity and fixed income analysts who worked to create the health care services research framework. Calculated as at 30 June 2020.