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ESG Evaluation Key Sustainability Factors: Health Care

Health care companies are exposed to material environmental risks across their value chain. The most material direct environmental impacts of the health care sector are waste, pollution, and GHG emissions resulting from the product development and manufacturing processes: - Waste management- Negative environmental outcomes can result from hazardous and biohazardous waste because of the chemical and radioactive components involved in producing and delivering many drugs and therapies. The materiality of this factor will likely vary depending on the type of product or treatment the company produces or delivers. For example, some medical device companies may hardly use harmful chemicals but may use large amounts of single use plastics and will be exposed to a slightly different set of risks than a pharmaceutical company that would typically be less reliant on high volumes of plastic inputs.