TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT
CONTENTS
MEDICLINIC’S
CORE PURPOSE
IS TO ENHANCE
THE QUALITY 2 Introduction
OF LIFE About Mediclinic
4 At a glance
5 Safeguarding the future
6 For people and planet
7 Highlights
Mediclinic’s approach
8 ESG in the Group’s DNA
9 Material issues
10 ESG index
16 Significant stakeholders
25 Sustainable development snapshot
Conserve
Mediclinic takes Conserve
responsibility for its 27 Carbon neutrality
operations beyond its 28 Energy usage
facilities to mitigate the 29 Climate change
risks of climate change. 29 Biodiversity
31 Waste
Mediclinic Stellenbosch, 32 Environmental management systems
South Africa
32 Water usage
Connect
The Group is dedicated to Connect
partnering with all its 35 Client value proposition
stakeholders and forging 36 Employer of choice
long-term relationships. 44 Employee engagement
50 Diversity and inclusion
54 Wellness and safety
57 Supply chain
60 Future workforce
Mediclinic Bloemfontein, 62 CSI
South Africa
62 Human rights
Comply
The Mediclinic corporate Comply
culture entrenches the 64 Ethics
values of ethical and 65 Governance
responsible behaviour. 65 Healthcare infrastructure
66 Information assets
Mediclinic Medforum,
South Africa 68 Independent assurance
70 Glossary of terms
72 Data
73 Contact details
ABOUT THIS
REPORT
Mediclinic International plc (‘Mediclinic’ or the ‘Company’) is requires disclosure of information about policies, risks and
proud to publish a Sustainable Development Report annually as outcomes regarding:
part of a suite of reports in respect of both the 2020 calendar
year and 2021 financial year (‘FY21’). • environmental matters – refer to Material issue 1: Minimising
The reporting suite listed below is available on the Group’s environmental impact on page 26;
website. • employee, social and human rights matters – refer to Material
2021 Annual Report and Financial Statements issue 2: Building stakeholder trust on page 34; and
2021 Clinical Services Report • anti-corruption and anti-bribery matters – refer to Material
issue 3: Being an ethical and responsible corporate citizen on
2021 Sustainable Development Report page 63.
2021 Modern Slavery Statement
ESG DISCLOSURES
2021 Notice of Annual General Meeting As a healthcare provider, Mediclinic commits to doing no harm.
Yet, as with any other business, the Company’s operations have
SCOPE ESG impacts. All these impacts have an effect on the natural and
The goal of this report is to provide Mediclinic stakeholders with living environments, and on society at large. The Group’s efforts
an overview of the most important sustainable development in responsibly managing and minimising these are interwoven into
initiatives across its divisions in Switzerland, Southern Africa the way it does business.
(South Africa and Namibia) and the United Arab Emirates (‘UAE’) Global pandemics, climate change, natural resource scarcity,
(collectively, the ‘Group’) for the 2020 calendar year. Information social inequity and the evolution of technology continue to
is disclosed on a calendar year basis, unless stated otherwise. confirm that what Mediclinic once classified as non-financial risks
Mediclinic reports on its material issues at a Group level, are emerging as material.
but also discloses information on divisional initiatives and The Group routinely engages with ESG-rating organisations,
performance, as this is the level at which data is collected. good governance initiatives and investors to better understand
Although certain information is segmented per division, it their expectations and reflect their priorities in its business
should be noted that in some instances data from other South activities and disclosures.
Africa-based entities, which are either wholly owned by or a
subsidiary of the Company, has been included in the disclosure Name of History of
allocated to the Southern African region. Company/
index, rating Country inclusion/
The report does not include information on initiatives undertaken Organisation
or principles participation
by Spire Healthcare Group plc, a leading private healthcare group
based in the United Kingdom (‘UK’) and listed on the London FTSE4Good 5th consecutive
Stock Exchange (‘LSE’), in which Mediclinic holds a 29.9% interest. FTSE Russel UK
Index year
ISS ESG Prime
ASSURANCE ISS Germany 1st year
Status
During 2021, the Group’s Internal Audit function verified a
selection of the environmental, social and governance (‘ESG’) MSCI ESG United 3rd consecutive
MSCI
data reported on in this report. In this, it relied on the integrity AAA Rating States year
of the information received from the divisions and recalculated Sustainalytics
and confirmed the information contained in the data sources. 9th consecutive
Sustainalytics (a Morningstar Netherlands
The following data was verified: year
company)
• carbon emissions; International
• employee numbers, age, gender, training and turnover, as well Ethical Finance
as employment equity; Principles in Corporation (a United
1st year
Health Care member of the States
• corporate social investment (‘CSI’) expenditure; and
(‘EPiHC’) World Bank
• number of calls made to the ethics lines. Group)
13th consecutive
APPROVAL CDP CDP UK
year
Mediclinic’s Clinical Performance and Sustainability Committee
approved this report on 19 May 2021. Hampton UK 5th consecutive
UK
Alexander Government year
GUIDELINES
Mediclinic reports in accordance with the core option of the GLOSSARY OF TERMS
Sustainability Reporting Standards developed by the Global Capitalised terms used in this report are defined in the Glossary
Reporting Initiative (‘GRI Standards’). The GRI Standards of terms on page 70.
Disclosure Index, which indicates the location of the standard
disclosures, is published on the Group’s website.
NON-FINANCIAL INFORMATION STATEMENT SHARE YOUR VIEW
The Company’s Non-financial Information Statement is published Mediclinic welcomes the opinions of its
in the 2021 Annual Report, in accordance with the Companies,
Partnerships and Groups (Accounts and Non-financial Reporting) stakeholders. Please contact Ms Marlene de Beer
Regulations 2016. The regulations adopt the European Union on email: marlene.debeer@mediclinic.com with
(‘EU’) Non-financial Reporting Directive 2014/95/EU, which queries or suggestions.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 1
INTRODUCTION
HEALTHCARE MEDICLINIC’S SUSTAINABLE
DEVELOPMENT MISSION STATEMENT
WITH HEART
The important role of large corporates in modern ‘We are committed to ensuring
society was already widely recognised before the
emergence of the COVID-19 pandemic, and must that every day we improve
be emphasised even more at this time. Each
business today plays a vital role in supporting sustainability by managing
livelihoods – of its employees, the communities
it serves and the national economies in which
our resources responsibly
it operates. and efficiently to the benefit
Healthcare is unique in that, during this time,
it has been the industry around which national of our stakeholders and the
responses have been designed. It has been, and
continues to be, centre stage – what the industry environment.’
does during this time will define it for decades
to come.
Mediclinic’s actions are guided by an
unwavering motivation to prevent, treat, care
and protect. In this, it dedicates resources –
whether physical, social or natural – towards
achieving its purpose. The Group is eschewing
a culture of consumption in favour of a culture
of conservation and connection. These goals
transcend the natural environment to include
interactions with each other, protection of human
rights, and a commitment to doing the right
thing, even when no one is watching.
2 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORT
GROUP SUSTAINABLE DEVELOPMENT
GOVERNANCE STRUCTURE
The Group Sustainable Development Strategy gets reviewed
biannually by the Clinical Performance and Sustainability
Committee, with a strategy feedback session once a year.
BOARD OF DIRECTORS
Number of directors with ESG knowledge and experience: 4
RESPONSIBLE FOR
Responsible for ensuring:
• good corporate governance;
• strategy and long-term sustainable success;
• alignment of activities with organisational culture; and
• effective stakeholder engagement.
AUDIT AND RISK CLINICAL PERFORMANCE AND NOMINATION
COMMITTEE SUSTAINABILITY COMMITTEE COMMITTEE
Responsible for Responsible for: Responsible for
reviewing the reviewing the
• ensuring the Group remains a
principal risks implementation of
good and responsible corporate
of the Group, the Group Diversity
citizen;
including those and Inclusion
related to material • promoting a culture of excellence Strategy.
sustainability issues. in patient safety, quality of care
and client experience together
with Mediclinic’s values, ethical
standards and behaviours; and
• monitoring the sustainable
development performance of
the Group.
GROUP CHIEF GOVERNANCE OFFICER
Responsible for coordinating sustainable development activities across the Group.
ACCOUNTABLE TO
GROUP SUSTAINABLE DEVELOPMENT FORUM
Responsible for ensuring alignment and execution of the Group Sustainable
Development Strategy at divisional level and the entrenchment of best practices
across the Group.
DIVISIONS
Responsible for the implementation and management of divisional sustainable
development activities.
For more information on the focus areas and outcomes of Board and committee
activities for FY21, as well as the Board’s engagement with stakeholders, please refer
to the 2021 Annual Report.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 3
ABOUT
MEDICLINIC By evolving across the continuum
of care, offering services that care,
AT A GLANCE recover, enhance and prevent, the
Group is deliberately positioning
itself for a sustainable future.
PURPOSE FROM ACUTE CARE TO HEALTHCARE
To enhance the quality of life
Established in South Africa in 1983 as a provider of
acute care in hospitals, the Group has expanded and
VALUES evolved significantly since inception, and currently
In behaviour, Mediclinic commits to being: has divisions in Switzerland, Southern Africa (South
• client centred Africa and Namibia) and the UAE, through Hirslanden,
• trusting and respectful Mediclinic Southern Africa and Mediclinic Middle East
• patient safety focused respectively.
• performance driven Over the past few years, the healthcare industry
• team orientated has encountered unprecedented change due to
rapid development in the global landscape, most
OPERATIONS notably driven by ageing populations, a growing
Mediclinic is a diversified international private burden of lifestyle diseases, advances in new medical
healthcare services group with divisions in technology, virtual care and emerging healthcare
Switzerland, Southern Africa (South Africa and consumerism. These provide opportunities for growth.
Namibia) and the UAE. The Group operates more than Mediclinic is adapting to address this changing
115 healthcare facilities across the continuum of care. landscape in which convenient access to the most
Mediclinic International plc has been listed on the appropriate care in the most appropriate setting at
JSE since 1986, the Namibian Stock Exchange since the most appropriate cost has become critical to
2014, and the LSE since 2016. Refer to the 2021 success. By evolving across the continuum of care,
Annual Report for changes in the Group’s business offering services that prevent, care, recover and
and operating environment during FY21. enhance, the Group is deliberately positioning itself
for a sustainable future.
4 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORT
SAFEGUARDING
THE FUTURE
Dr Felicity Harvey, Chair of Mediclinic’s Clinical
Performance and Sustainability Committee, reflects
on the Group’s efforts to create a better world.
Dr Felicity Harvey
Chair of the Clinical Performance
and Sustainability Committee
What inspires you to work on The fact that we have been able to I am proud that we
sustainability? sign up to carbon neutrality and zero
Sustainable development is about waste to landfill by 2030 is incredibly have set challenging
improving our place in the world. important. I am proud that we have targets – and that we
From a public health perspective, set challenging targets – and that
which I have been involved in we are determined to meet them. are determined to
for many years, it is also about We will continue to develop the meet them.
improving people’s lives. Sustainable roadmaps that will get us there.
development and why I went into The pandemic has also put a
healthcare are so intertwined that spotlight on what we do to support
I naturally gravitate towards it. our employees. More than at any
other time in our history, we are
What difference can a single really focused on our healthcare Do you see parallels between
business such as Mediclinic make? workers and the huge amount with the pandemic and climate
We may think of ourselves as a which they have to cope. They are change?
single organisation, but the reality is so critical to everything we do, so The scale of the pandemic’s impact
we touch thousands of people. That we have applied ourselves, more than is far greater than anyone ever
is because of our stakeholders, who ever, as to how we support them. imagined and therefore it has
include not only the people we treat focused minds across the globe on
and who work for us, but also the Over the past year, Mediclinic our vulnerability. Every aspect of life
companies that partner with us, the has made minimising its has been affected, which has made
governments in whose countries we environmental impact one of the us realise that unless we take serious
work, and the regulators with whom Company’s strategic goals. What steps, our children will not be able
we work. When we are clear about led to this shift in emphasis? to live the way we have. In the same
why sustainability is important, it Sustainable development has been way, we need to be thinking about
enables us to spread the message a key aspect of what we do for many our extremely fragile planet and
widely and to impact what our years, but in 2020 we approved our what we can do to protect it.
contacts do. One organisation can Group Sustainable Development
actually have a huge multiplier effect. Strategy. To achieve our challenging
environmental goals, we needed
Which of the sustainability to make minimising environmental
initiatives give you the greatest impact a key aspect of our strategic
pride? goals. Bringing it to the fore in the
What we have achieved on the way we have, means we are far
environmental front is notable. Not more likely to be successful. Over
only is the environment impacted the past year, there has also been
by what we do in healthcare, but growing interest in looking after the
we also feel its impact ourselves. environment and that really engages
We are seeing the effects of climate all of our employees. Now we need
change every year and in 2020 we to accelerate our efforts to turn our
experienced these quite dramatically. goals into a reality.
View a condensed video interview.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 5
ABOUT MEDICLINIC CONTINUED
FOR PEOPLE
AND PLANET
As the executive responsible for coordinating
sustainable development, Group Chief Governance
Officer Gert Hattingh talks business.
Gert Hattingh
Group Chief Governance Officer
Besides working for As demands and needs change, ecological offset solutions to clients
Mediclinic, you are also a farmer. we have adapted our business with impacts to natural resources.
How does your relationship with and implemented best practices Having all this in place, however,
the land inform your thinking to the benefit of people and the empowers us to achieve more going
around sustainability? planet. With the Group Sustainable forward.
I have seen first-hand how Development Strategy, we will
climate change affects the ensure that this remains the case and What are you doing to ensure
countryside. Large parts of South that all aspects receive the necessary that sustainability is top of mind
Africa, especially the Karoo, are focus in a coordinated approach for all employees?
experiencing one of the worst across the Group. This happens by way of Group and
droughts in history, which has divisional communication campaigns
already lasted for more than seven Do you see Mediclinic’s which address the E, S and G
years. Drought does not only impact sustainability initiatives play a priorities of each division, as well
the land and farming operations but role in the Company’s bottom as those managed at a Group
also the surrounding communities. line? level. In addition, the ISO 14001
We need to combat climate change Definitely. The Group Sustainable management system is a practical
to ensure that these drier areas of Development Strategy has goals day-to-day tool which serves
the country, and in the rest of the across ESG to ensure we become as a constant reminder of the
world, do not turn into deserts. more efficient with our energy environmental component of
use, reduce waste and lower the the strategy. But, ultimately, the
Your tenure at Mediclinic Company’s risk profile. Having access organisational culture, together
spans three decades. How has to uninterrupted electricity supply, with leadership from the top of the
the Company’s approach to along with saving on the cost thereof, organisation, ensures sustainability
sustainability been refined over has a direct impact on the bottom line. remains a focus for everyone.
that period?
Mediclinic has always managed What were the main What gives you hope for the
the business in a sustainable way. challenges you faced on the future?
In 2002, Mediclinic Southern Africa sustainability front in 2020? Around the world there is
was the first hospital group in The most difficult was the roll-out of an awareness of sustainable
Africa to implement the ISO 14001 the ISO 14001 management system at development and its importance.
environmental management system. Hirslanden and Mediclinic Middle East. We all have our part to play. What
Not only had we given new priority to gives me hope is the fact that we
the Group’s ESG strategy in 2020, but have a dedicated workforce who
we also had to reallocate resources respect global best practices and
due to the COVID-19 pandemic. ensure that the Group’s Sustainable
Added to that was the difficulty of Development Strategy is properly
implementing the Environmental executed. They also make sure that
Banc & Exchange (‘EBX’) data we improve daily by considering new
management system and obtaining technologies and things we can do
data across divisions in a year with differently to save our planet. This
operational disruptions. The EBX data speaks to our organisational culture,
management system was developed the way we have conducted business
by an American company that in the past, and how we will continue
View a condensed video interview. provides customised mitigation and to do going forward.
6 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORT
HIGHLIGHTS
GROUP
Established Group Amended Signed up Ranked as Ranked 32nd
Sustainable diversity and to EPiHC the foremost globally on
Development inclusion goal healthcare REFINITIV Diversity
Forum to ensure for senior provider according and Inclusion
execution of the management to MSCI ESG rating Index, the top
Group Sustainable to 40% female with a top AAA ranking Healthcare
Development and 40% male score for third Providers and
Strategy consecutive year Services company
HIRSLANDEN
16 out of 17 hospitals Clinique La Colline and Ranked fifth and Ranked 22nd in its sector
registered as Clinique des Grangettes, sixth most attractive across Europe in the
CO₂-reduced businesses as part of Association employer in Swiss Financial Times’ Diversity
by the Energy Agency des Cliniques Privées de healthcare by Leaders Survey and
of the Swiss Private Genève, Genève-Cliniques healthcare and awarded the title Leader
Sector (‘EnAW’), (the Association of Private medical students, in Diversity
and awarded with Hospitals of Geneva), together and healthcare
CO₂ & kWh-reduced with the University Hospitals professionals
certificates of Geneva (‘HUG’), were respectively in an
awarded the Geneva Innovation independent study
Prize 2020, highlighting the by Universum
remarkable collaboration of Communications
public and private hospitals
during the COVID-19 pandemic
Mediclinic Louis Leipoldt, South Africa
MEDICLINIC SOUTHERN AFRICA
Ranked 28th of all Achieved Global B List Donated personal
JSE-listed companies status from the CDP for protective equipment
in the Top 50 Brand water conservation and (‘PPE’) worth ZAR15m
South Africa rankings for climate change actions to provincial health
2020, making it the top departments in response
South African healthcare to the pandemic
provider for more than
six years in succession
MEDICLINIC MIDDLE EAST
Awarded Superbrand Mediclinic City Hospital’s Chief Executive
status by the UAE Comprehensive Cancer Officer (‘CEO’)
Superbrands Council Centre awarded the David Hadley
for 2020, the fifth time prestigious Dubai awarded the titles
in six years Healthcare City Authority of Healthcare
Award in two categories: Leader of the
the Healthcare Innovation Year and Business
Award and also the Top Leader of the Year
Mediclinic
Emirati Contributor Award at the 2020 Gulf
Zakher, the UAE for Dr Shaheenah Dawood Business Awards
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 7
MEDICLINIC’S APPROACH
ESG IN THE
GROUP’S DNA
MEDICLINIC’S RESOURCES
Talent Natural Technology1 Suppliers Partnerships Operations
resources and
(energy, water, governance
Expertise Affiliated
consumables)
doctors
ENABLE IT TO OFFER
Client Physical And virtual Healthcare Across the 24/7
centred services continuum
of care
Patient
safety
focused
Integrated
TO CLIENTS AND THEREBY
Create jobs Actively Have access Improve the Build and Maintain
reduce to data health of implement and replace
Contribute to
carbon communities scalable, assets
the economy Make business
emissions and their replicable
decisions Enhance
Help train and waste access to operations1
based on efficiency
future quality
data science and optimise
healthcare healthcare
management1 resource
workers
use
Note
ENVIRONMENTAL SOCIAL GOVERNANCE 1
Represents Mediclinic Group Strategic Goals.
8 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTMATERIAL
ISSUES
MATERIALITY ASSESSMENT
The Clinical Performance and Sustainability Committee and relationship, and natural) as identified by the
annually reviews the Group’s material sustainability issues. International Integrated Reporting Framework;
This is done to ensure that management initiatives are
• Reference – the guidance on determining materiality
directed at the sustainable development matters that are
contained in the GRI Standards and the Sustainability
most significant to the business, and which directly affect
Accounting Standards Board materiality map for
the Group’s ability to create long-term value for its key
healthcare; and
stakeholders. The assessment is informed by the following
considerations: • Requirements – regulatory requirements/developments
relating to non-financial reporting, information needs
• Relevance – whether the Group’s prior year
of indices and sustainability assessments by investor
sustainability focus areas are still relevant;
groups, sustainability megatrends (e.g. poverty and
• Risk – Mediclinic’s ESG impacts/risks, taking into inequality, environmental degradation and climate
account the views, concerns and legitimate expectations change, technological innovation, demography),
of stakeholders (as set out in the ‘Significant and global initiatives such as the United Nations (‘UN’)
stakeholders’ section on pages 16–25) and those Global Compact Principles and the 17 UN Sustainable
impacts which the Company can influence or control; Development Goals (‘SDGs’).
• Resources – Mediclinic’s dependency on the six capitals Refer to page 10 for more information on the Group’s
(financial, manufactured, human, intellectual, social SDG contributions.
Material is
s ue
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2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 9ESG INDEX
Mediclinic’s relationships with its stakeholders are key to its sustainability, informing
how the Group manages strategy, performance and risk. The link between the
Group’s three material issues and the Mediclinic Group Strategy is detailed below.
LINK TO GROUP UN SDG KEY
ENVIRONMENTAL MATERIAL ISSUES
STRATEGY ALIGNMENT STAKEHOLDER/S
To minimise the This ESG goal was Clients,
ESG GOAL
Company’s elevated to a communities,
environmental impact Mediclinic Group employees
Strategic Goal in and potential
2020 applicants,
governments
Become carbon Carbon emissions
and authorities,
neutral by 2030 Energy efficiency
industry associations,
investors, media,
Minimise the impact Climate change medical
of climate change on Biodiversity practitioners and
the business suppliers
Sustainably use and Water
SUB-GOALS
reuse water resources
resources
Have zero waste to Waste and hazardous
landfill by 2030 waste management
Drive environmental Biodiversity
sustainability by An effective
way of an effective environmental
environmental management system
management system
Mediclinic Panorama, South Africa
10 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTCHF4m, ZAR40m and AED8m
budgeted for green initiatives
in FY22 at Hirslanden, Mediclinic
Southern Africa and Mediclinic
Middle East respectively.
RISKS RISK MITIGATION 2021 FOCUS AREAS
• Business • Environmental goal forms • Conclude renewable energy purchase agreements at five
interruptions part of Mediclinic Group Mediclinic Southern Africa facilities for 8GWh/year for
• Increased Strategy implementation in FY22
operational costs • Risk management process • Photovoltaic (‘PV’) installations at 10 Mediclinic Southern
• Reputational and systems of internal Africa facilities, generating 4.9GWh/year
damage control embedded in Group • CHF4m, ZAR40m and AED8m budgeted for green
• Impact of • Annual review of policies: initiatives in FY22 at Hirslanden, Mediclinic Southern Africa
carbon tax and Enterprise-wide Risk and Mediclinic Middle East respectively
climate change Management Policy, • Divisional Natural Resources Sustainability Committees
legislation Sustainable Development to conclude targets and roadmaps for 2021, up to 2030,
• Fines and Policy, Environmental to (a) achieve carbon neutrality; (b) reduce electricity
penalties Policy, Group Waste usage and shift to renewable energy; (c) reduce water
Management Policy usage and secure quality water supply; and (d) have zero
waste to landfill by 2030
• All divisions to participate in Environmental Sustainability
Risk Assessment
• Conduct divisional water quality and quantity risk
assessments
• In collaboration with the Procurement department, review
top suppliers’ environmental practices and discuss plans
to reduce packaging waste
• Implement ISO 14001:2015 Environmental Management
System at three Hirslanden and five Mediclinic Middle East
hospitals
Klinik Im Park, Switzerland
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 11ESG INDEX CONTINUED
LINK TO GROUP UN SDG KEY
SOCIAL MATERIAL ISSUES
STRATEGY ALIGNMENT STAKEHOLDER/S
To be the partner
of choice that
ESG GOAL
stakeholders trust
Improve diversity and Human rights Without a Employees and
promote a culture of Diversity and diverse, engaged, potential
inclusion inclusion competent applicants
workforce that
prescribes to the
Group’s purpose,
vision and mission,
and live the
organisational
values every day,
Mediclinic will not
be able to execute
Enhance employee Employee
any of its strategic
experience to engagement
goals
strengthen the Employee recruitment
position as employer and retention
of choice
Advance employee Employee wellness
SUB-GOALS
health and safety and safety
Optimise Group Supply chain Healthcare insurers,
supply chain management industry partners,
performance investors and
significantly suppliers
Improve the client Patient experience This ESG sub-goal Clients, employees
value proposition Healthcare is also a Mediclinic and potential
significantly infrastructure Group Strategic Goal applicants,
governments
and authorities,
healthcare insurers,
industry partners
and medical
practitioners
Contribute effectively CSI Clients, communities,
and in an aligned Human rights employees and
manner to CSI across potential applicants,
the Group and governments
and authorities
12 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTRISKS RISK MITIGATION 2021 FOCUS AREAS
• Poor employee • Group Sustainable
engagement Development Strategy
and wellness with social objectives
• Inability to • Implementation of
recruit Mediclinic Diversity and
healthcare Inclusion Strategy
practitioners to • Effective execution of
meet business employee engagement • Strengthen Group and divisional talent pipelines towards
demand action plans achieving target of at least 40% female and at least 40% male
• Ageing nursing • Extensive training and skills representation at senior management and executive level
workforce with development programmes • Achieve 2% Emirati representation by the end of 2021 at
decreasing • Establishment of Global Mediclinic Middle East
entrants to Leadership Development • Achieve Employment Equity targets aligned to B-BBEE
profession Framework targets in Southern Africa
• Poor clinical • Continued implementation • Continue implementation of divisional action plans to improve
outcomes and of a Group learning culture of inclusion in answer to employee perspectives
services architecture to build shared in Your Voice employee engagement survey
• Medical competence aligned to
malpractice Group strategy
liability • CSI initiatives monitored by • Conclude roll-out of Group recruitment management system
• Reputational senior management with at Mediclinic Southern Africa and Mediclinic Group Services
damage feedback to Clinical
• Inability to Performance and
continue Sustainability Committee
business due • Group purchasing
to inadequate organisation (‘GPO’) • Continue implementation of divisional initiatives aligned to
supplies established to secure Group policy to ensure optimal employee outcomes
products at reduced prices
• E-procurement pilot project at Hirslanden go-live during
• Five-year Group
May 2021
procurement vision to
optimise end-to-end
supply chain performance
Refer to the 2021 Clinical Services Report
Strengthen Group and divisional talent
pipelines towards achieving target
of at least 40% female and at least
40% male representation at senior
management and executive level.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 13ESG INDEX CONTINUED
LINK TO GROUP UN SDG KEY
GOVERNANCE MATERIAL ISSUES
STRATEGY ALIGNMENT STAKEHOLDER/S
To strengthen the Clients, employees
corporate culture to and potential
remain an ethical and applicants,
responsible corporate
ESG GOAL
governments
citizen and authorities,
healthcare insurers,
industry partners
and medical
practitioners
Prevent bribery and Ethics, anti-bribery
corruption and anti-corruption
Sustain effective
and transparent
governance
Establish effective Information assets Links to Mediclinic
measures, practices Group Strategic
SUB-GOALS
and controls to Goals ‘to transform
protect the Group’s our services and
information assets client engagement
through innovation
and digitalisation’
and ‘to evolve as a
data-driven
organisation’
Allocate appropriate Healthcare Links to Mediclinic
resources for the infrastructure Group Strategic
maintenance of Goal ‘to improve
high-quality our value
healthcare proposition
infrastructure significantly’
14 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTRISKS RISK MITIGATION 2021 FOCUS AREAS
• Fines and • Group Sustainable
possible Development Strategy with
prosecution governance objectives
• Reputational • Visible ethical leadership
damage • Regular fraud and ethics
• Inability to feedback to management,
continue Board and relevant Board
business committees
due to • Independent ethics lines
legal and available to all employees and
regulatory external parties
non-compliance • Established Group Risk • Conclude roll-out of Group ethics line awareness campaign
or changes in Management and Compliance
regulatory and Internal Audit functions
environment • Compliance risks
• Financial assessed as part of risk
damage management process
caused • Annual review of policies: Code
by poor of Ethics, Anti-bribery Policy
governance, and Guidelines, Guidelines on
unethical Competition Law Compliance,
practices and Enterprise-wide Risk
inadequate risk Management Policy, Fraud Risk
• Continue roll-out of Group information security and
management Management Policy, Regulatory
data privacy awareness campaign
• Cyber incidents Compliance Policy, Investor
• Improve maturity of the information security
• Data privacy Relations Policy, Group Privacy
management system
breaches and Data Protection Policy,
• Mature compliance with framework of the EU’s General
• Poor facility Group Information Security
Data Protection Regulation (‘GDPR’)
conditions Management Policy, Data
Retention and Disposal Policy
and Procedures, and Code of
Practice in Dealing in Mediclinic
Securities
• Information security controls
• Data privacy awareness
campaigns and structured
e-learning
• Implementation of key financial
controls
• Planned facility maintenance
and upgrades
• Facility audits
Continue roll-out of Group
information security and data
privacy awareness campaign.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 15SIGNIFICANT
STAKEHOLDERS
Mediclinic’s key stakeholders are those groups
who have a material impact on, or are materially
impacted by, Mediclinic and its operations.
CLIENTS
The wellbeing of clients and WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
building long-term • Easy access to safe, quality The client is entrenched in three
relationships with them form and cost-effective healthcare by of Mediclinic’s organisational
means of world-class facilities values: being client centred, trusting
the cornerstone of the
and technology and respectful, and patient safety
business and the Group’s • Appropriate care settings focused.
ability to pursue its purpose. • Treatment information
• The right to make decisions on Putting Patients First remains a
their care strategic focal point for the Group.
• Client experience Mediclinic continues to invest in
• Personal data and patient rights its people, clinical facilities and
technology.
HOW MEDICLINIC ENGAGES
• Systematic patient rounds during Patient experience programmes
hospital stay focus on improved caregiver
• Dedicated employees attend empathy and communication,
to guest relations at Hirslanden service recovery, intentional
I carefully considered the facilities rounding, food service processes
nature of the relationship • Patient experience managers at that enhance patient experience
between Mediclinic and Mediclinic Southern Africa facilities and safety, and effective
those who make use of our • Dedicated employees attend management of complaints.
services within an evolving to client complaints at Mediclinic
Middle East The Group reports on the clinical
healthcare landscape. performance and patient experience
• 24-hour helplines
A patient is a person results of all three divisions in the
• Press Ganey® patient experience
receiving medical care; index surveys annual Clinical Services Report.
a client is a person who • Health awareness days
receives advice. The latter • Brochures and magazines Hirslanden Privé and Hirslanden
implies a level of trust and • Websites and blogs offering Préférence programmes offer
a long-term relationship health-related information premium patient experience
• Social media offerings to privately insured and
that extends beyond mere
• Client-centred product and semi-privately insured clients. Private
treatment. We want our patient fixed fees is one of the
programme development
patients to interact with alternative reimbursement models
• Corporate events
Mediclinic beyond the established by Mediclinic Southern
conventional treatment Africa to offer uninsured patients
process, rather as a client greater choice and access to its
who turns to us to enhance facilities and services.
their quality of life.
To continually improve access and
Dr Ronnie van der Merwe, affordability, Mediclinic conducts
Group CEO tariff negotiations with insurers in
16 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTPutting Patients
First remains a
strategic focal point
for the Group.
COMMUNITIES
a fair and transparent manner; Strong relationships, based on mutual understanding, build trust
expands facilities based on need; in the Group’s ability to offer high-quality healthcare services,
pursues joint initiatives with and support both its referral network and the economic
government; seeks partnerships
development of the communities surrounding its operations.
with healthcare providers that
complement its services; and actively
participates in healthcare reform. WHAT MATTERS TO THEM establishment of a Solidarity
• Development of communities Fund aimed at assisting the most
The Group Data Privacy project within the Group’s ambit vulnerable citizens to deal with
continuously improves privacy • Improved health outcomes through the impact of COVID-19, the Group
and data protection measures and greater awareness, better public CEO and Group Chief Financial
ensures compliance with applicable healthcare training and pro bono Officer (‘CFO’) voluntarily donated
data privacy legislation. procedures 30% of their salaries for three
months to this essential national
At Mediclinic Middle East, the initiative. Similarly, the divisional
HOW MEDICLINIC ENGAGES
Mediclinic Baby programme is CEOs and all non-executive
• Corporate social responsibility
designed to offer standardised directors of the Board voluntarily
(‘CSR’) initiatives
services. Benefits include antenatal donated 30% of their salaries or
• Support for employee volunteer
care packages, free antenatal classes, fees for three months to benefit
initiatives
maternity tours, email and telephone charities with similar aims in the
• Public-private partnerships (‘PPP’)
helplines, breastfeeding advice countries in which Mediclinic has
and joint ventures at Hirslanden,
from qualified lactation consultants, a presence. In addition, all other
Mediclinic Southern Africa and
a free Mediclinic baby bag filled with Group and divisional executive
Mediclinic Middle East
essential supplies for newborns and committee members made similar
mothers, and access to free baby donations to related charities in
massage classes after the birth. MEDICLINIC’S RESPONSE their respective countries.
Healthcare awareness campaigns Employees at Mediclinic Middle
COVIDEVELOPMENT run throughout the year. East were encouraged to make
At Mediclinic Southern Africa, a donation to the Social Solidarity
affiliated doctors are provided with COVIDEVELOPMENT Fund Against COVID-19, a
a telehealth solution, enabling virtual Hirslanden served as medical charitable organisation established
consultations with patients. partner for the national by the Islamic Affairs and
Mediclinic Middle East’s newly OneMillionRun which aimed to Charitable Activities Department
launched mobile application, ‘run out of lockdown, together’ – in Dubai, to support the fight
MyMediclinic 24x7, allows clients to Hirslanden participants accounted against COVID-19 in collaboration
book and manage all in-person and for 2 261km of the total 1 124 737km with government entities, charity
teleconsultation appointments, and run in 48 hours. It also supported associations and members of
speak to their doctor on a video call. the I care for you Foundation and its society. Employees’ donations
fundraising campaign, #zämefüralli through the division’s payroll
(#togetherforall), for people in totalled AED285 170; a number
Switzerland affected by COVID-19. of employees also made private
In support of South Africa’s donations.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 17SIGNIFICANT STAKEHOLDERS CONTINUED
EMPLOYEES AND POTENTIAL APPLICANTS
The exceptional talent and HOW MEDICLINIC ENGAGES reviewing, assessing and reporting on
dedication of employees, • Annual Gallup® employee workforce engagement to the Board
whose behaviour is guided engagement surveys and investors.
• Pulse surveys on relevant topics
by the organisational values, COVIDEVELOPMENT
(such as COVID-19)
enable sustained success. • Employee interest group In addition to the annual Your Voice
They are the key to discussions or focus groups employee engagement survey,
consolidating Mediclinic’s • Internal communication campaigns a COVID-19 employee survey was
reputation of ‘expertise on key topics, i.e. diversity administered in Southern Africa and
you can trust’, maintaining and inclusion, ESG, employee the UAE at the peak of the pandemic
high standards of care, engagement, ethics, data privacy, to gain insight into employee needs.
wellbeing Hirslanden launched an employee
and achieving the Group’s
• Newsflashes and regular electronic app, Beekeeper, during the first
strategic and ESG goals.
updates wave of COVID-19 in April 2020 to
• Performance reviews and formal address the need for fast, proactive
WHAT MATTERS TO THEM recognition and widespread communication.
• Recognition • Leadership video conferences At present, Hirslanden reaches
• Flexible work arrangements and roadshows around 40% of all employees via
• Competitive remuneration • Continuous leadership the app, with variance in adoption
• An ethical, safe, fair and healthy communication rates at facility level.
working environment • Employee wellness programmes Specific care and wellness
• Access to training and • Magazines and newsletters campaigns were launched in each
development opportunities • Work-from-home support division to educate employees on
the physical and emotional support
MEDICLINIC’S RESPONSE offered by occupational health clinics
Market-related salaries and benefits and employee wellness programmes.
are offered based on the principles of
View page 55 for more information.
internal equity, external equity
and affordability.
Through its geographic footprint,
the Group offers international career
opportunities and the possibility of
cross-division appointments.
Your Voice employee engagement
surveys are conducted annually
across all divisions through Gallup®,
an internationally recognised service
provider. Through the surveys
the Group measures levels of
engagement, identifies gaps at
a departmental level, and supports
line managers in implementing action
Specific care and wellness plans to address concerns.
campaigns were launched in
Through training and development
each division to educate
opportunities Mediclinic enhances
employees on the physical the skill-set of its employees, thereby
and emotional support empowering the entire organisation
offered by occupational and unlocking individual potential.
health clinics and employee A non-executive director is
wellness programmes. designated as responsible for
18 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTGOVERNMENTS AND AUTHORITIES
Having a business model
founded on compliance
with applicable legislation
and regulations within
Mediclinic’s geographies
safeguards the Company’s
ability to offer services and
operate facilities.
WHAT MATTERS TO THEM
• Healthcare legislation and
regulation compliance
• Initiatives and collaboration on
issues such as skills shortages
and the cost of private healthcare
• Universal access to affordable,
quality healthcare
HOW MEDICLINIC ENGAGES Participation in the Public Health COVIDEVELOPMENT
• Regular meetings Enhancement Fund (‘PHEF’) in
Hirslanden plays an active role in the
• Participation in conferences South Africa in support of the
fight against COVID-19 throughout
and seminars training of medical doctors, as
Switzerland by operating COVID-19
• Representation on industry well as masters and PhD students
test centres at more than 10 locations.
bodies and government boards in the field of healthcare, the
Furthermore, Hirslanden is involved in
• Participation in national health Presidential Health Summit,
the Swiss government’s vaccination
training and education Public-Private Growth Initiative,
strategy. It has been commissioned
• Participation in PPPs to enable CSR commitments, working groups
to operate vaccination centres in the
healthcare, training and research on health technology regulations
cantons of Geneva, Thurgau, Zug
• Engagement with senior country and drafting of the revised 2030
(in collaboration with the Cantonal
leaders Human Resources for Health
Hospital of Zug) and Zurich.
Strategy.
MEDICLINIC’S RESPONSE Mediclinic Southern Africa donated
New PPP with Spitäler Schaffhausen Mediclinic Middle East is represented PPE worth ZAR15m to provincial
to create the Centre for Urology on the Department of Health in Abu health departments in response to the
Zurich at Klinik Hirslanden, bringing Dhabi’s strategic advisory board; pandemic.
the total number of PPPs to six. the electronic health record (‘EHR’) Mediclinic Middle East collaborated
roll-out committee in Abu Dhabi; closely with the Dubai Health Authority
Engagement with Swiss and strategic, clinical quality and and the Department of Health in Abu
government through Hirslanden’s price regulation committees. The Dhabi, with the division’s CEO and
Head of Health Affairs, who holds divisional CEO has been appointed Chief Operating Officer forming part
a seat in the cantonal parliament to the new Economic Public and of the respective COVID-19 command
of Zurich, and the divisional CEO, Private Collaborative Group in Abu centre teams. During the first wave of
who is a member of the Economic Dhabi, and the divisional Chief the COVID-19 pandemic, management
Advisory Board of the National Information Officer has a seat on the agreements were concluded with the
Government (Economiesuisse). engagement boards of Nabidh and UAE Government to manage several
Malaffi health information exchanges. quarantine and isolation facilities.
Mediclinic Southern Africa forms A partnership was formed with the
part of the Business Unity South Long-standing partnerships with Department of Health in Abu Dhabi to
Africa (‘BUSA’) collaboration with academic institutions support the deliver remote care to an initial cohort
government’s National Health development and training of medical of 1 000 patients with chronic diseases,
Insurance (‘NHI’) Bill negotiations. students. with a view to expand the service.
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 19SIGNIFICANT STAKEHOLDERS CONTINUED
HEALTHCARE INSURERS
All role players in healthcare HOW MEDICLINIC ENGAGES At Hirslanden, a chapter of the
funding, such as the medical • Regular discussions on alternative operations committee meets every
insurance companies and reimbursement models second week to ensure compliance
• Annual tariff negotiations in a fair with standardisation in hospitals.
schemes, administrators and
and transparent manner Due to potential cost savings,
managed care companies, specialist groups in cardiology and
play a key role in Mediclinic’s MEDICLINIC’S RESPONSE orthopaedics meet twice annually
business, with privately The Group reports on the clinical to review standardisation of specific
insured patients remaining performance and patient implants.
the Group’s largest client base. experience results of all three
divisions in the annual Clinical Services At Mediclinic Southern Africa, cost
Healthcare provider prices are
Report. Mediclinic shares information efficiency is proactively measured
regulated in Switzerland and
with insurers to address any concerns. by benchmarking doctors’ use of
the UAE, and pay-for-quality hospital resources against peers for
initiatives are planned for Dubai Transforming from an infrastructure similar procedures and diagnoses.
and Abu Dhabi. provider to an integrated healthcare
provider is a key strategic goal for the The Clinical Utilisation Committee
WHAT MATTERS TO THEM Group. of Mediclinic Middle East monitors
• Quality of care utilisation trends by medical
• Affordability of care View the Strategy overview in practitioners against peer
• Integrated clinical services the 2021 Annual Report for more benchmarks, both proactively and
• Hospital network arrangements information. in response to queries by insurers.
INDUSTRY ASSOCIATIONS
Engagement with key HOW MEDICLINIC ENGAGES Clinical Officer serves on the quality
stakeholders via an industry • Membership of industry committee for Acute Medicine of the
body could in certain associations and representation Swiss National Association for Quality
on governing bodies Development.
instances be more effective
• Participation in research
than individual representation. commissioned by associations Mediclinic Southern Africa is a
Mediclinic leverages these • Participation in conferences member of the Hospital Association
associations to ensure its of South Africa (‘HASA’) and has two
active participation in national MEDICLINIC’S RESPONSE representatives on its Board.
conversations. Hirslanden is represented on the
Sciana Health Leaders Network Mediclinic Middle East is an active
WHAT MATTERS TO THEM in Europe, Privatkliniken Schweiz and founding member of the Dubai
• Legislation and regulations that (association of Swiss private Hospitals Business Group (similar to
affect the healthcare industry hospitals) and H+ Die Spitäler der HASA in South Africa).
• Informing the public about Schweiz (hospital association for
challenges facing private COVIDEVELOPMENT
public and private hospitals in
healthcare Switzerland). The divisional CEO Mediclinic Southern Africa forms
has a seat on the executive board part of the Business 4 South
of Herzchirurgie Hirslanden Bern AG Africa (‘B4SA’) collaboration and
and the Swiss Ostheopathy Science participates within their various
Foundation. The divisional Chief health work streams.
20 MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORTMediclinic has a philosophy of taking long-term
growth decisions that support its core business
and future positioning.
INDUSTRY PARTNERS
Partnerships, joint ventures
and cooperations with other
leading healthcare providers
that complement Mediclinic’s
services will ensure it
expands across the
continuum of care in line
with the Group Strategy.
WHAT MATTERS TO THEM
• Cultural alignment
• An understanding of respective
strengths and weaknesses
• A comprehensive and objective
understanding of operations
• Well-defined and mutually
beneficial operational and
financial frameworks
• Collaboration
Clinique des Grangettes, Switzerland
HOW MEDICLINIC ENGAGES
PARTNERSHIPS IN PRACTICE
• Direct engagement based on
HIRSLANDEN
industry knowledge and market
• Cooperation between Hirslanden Klinik Aarau and Klinik Barmelweid in
reputations
the western part of Aargau in the area of accompanying psychosomatic
• Cooperation and PPPs
treatments, pneumological services and rehabilitation
• Introductions through advisors
• Oncology collaboration ‘ambulante onkologische Rehabilitation Aargau’
• Industry conferences and events
between Hirslanden Klinik Aarau and and the Krebsliga Aargau (Cancer
League Aargau)
MEDICLINIC’S RESPONSE • Radiotherapy cooperation between Klinik Hirslanden and Spital Männedorf
Mediclinic has a philosophy (Radiotherapie Hirslanden Männedorf)
of taking long-term growth • Collaboration between AndreasKlinik Cham Zug and RehaClinic Gruppe
decisions that support its core for outpatient care and inpatient physiotherapy at AndreasKlinik Cham Zug
business and future positioning. • AndreasKlinik Cham Zug operates the Pflegezentrum Ennetsee on
a management contract
Building innovative care delivery • Cooperation with Medbase in outpatient and inpatient care
models is an active focus for the • Cooperation between See-Spital Foundation and Klinik Im Park to expand
Group to ensure that appropriate on existing medical care offerings
and affordable care settings
MEDICLINIC SOUTHERN AFRICA
are developed in line with
• Partnership with the Institute of Orthopaedics and Rheumatology at
industry trends and regulatory
Mediclinic Winelands Orthopaedic Hospital
requirements.
• Participation in CareConnect health information exchange
• Investment in Intercare Group’s day case clinics, subacute facilities and
While property ownership drives
specialist hospitals
operational and financial benefits
and is relevant for most of the MEDICLINIC MIDDLE EAST
Group’s acute care hospitals, the • Investment in fertility specialists Bourn Hall International MENA Ltd
approach to this remains flexible • Management contract with Al Murjan Group for the establishment of an
as Mediclinic looks at expanding internationally accredited 200-bed hospital in the Kingdom of Saudi Arabia
across the continuum of care. by mid-2022
2021 SUSTAINABLE DEVELOPMENT REPORT MEDICLINIC INTERNATIONAL PLC 21SIGNIFICANT STAKEHOLDERS CONTINUED
INVESTORS
As the owners and providers HOW MEDICLINIC ENGAGES (Group Chief Financial Officer’s
of equity capital to the Group, • Investor Relations department Report); long-term value creation
investors can rightly expect • Shareholder annual general (Investment case); shareholder
meetings engagement strategy (Corporate
that their needs be
• Financial results reporting and Governance Statement); and
understood and addressed. presentations directors’ remuneration and
• Investor meetings, roadshows alignment of incentives with
WHAT MATTERS TO THEM
and conferences shareholder experience and long-
• Profitable growth
• Operational site visits term value creation (Remuneration
• Financial sustainability and
• Stock exchange announcements Committee Report).
performance
• Sell-side analyst and salesforce
• Diverse opportunities for
meetings The Group’s ESG strategy is
long-term value creation
• Corporate website discussed in detail in this report
• The Group’s strategic and ESG
and summarised in the Sustainable
goals
MEDICLINIC’S RESPONSE development overview included in
• Regulatory environment
The established investor relations the 2021 Annual Report.
• Operational drivers of each
division programme involves regular and
transparent communication while Remgro Ltd, as a principal
ensuring the Board understands shareholder, is represented on the
investors’ views on all relevant Company’s Board of Directors in
matters. line with an established relationship
agreement.
The Group’s 2021 Annual Report
provides more information on the Refer to the Corporate Governance
Company’s purpose, vision, values Statement included in the 2021 Annual
and strategy; financial performance Report.
MEDIA
The media acts as an WHAT MATTERS TO THEM MEDICLINIC’S RESPONSE
intermediary between • Company contribution to local Mediclinic monitors industry-related
Mediclinic and its and national economy news and responds proactively.
• Ethical business practices It also arranges interviews, when
stakeholders on Company
• Advances in clinical care appropriate, and responds to media
and industry developments, • Timeous engagement enquiries.
and assists in building and • Transparency
sustaining a professional • Accurate information Dedicated communication
reputation. • Two-way dialogue strategies deal with major industry
affairs issues and media response to
HOW MEDICLINIC ENGAGES quality of care follows an established
• Media releases process.
• Press conferences
• Financial results reporting
and presentations
• Paid advertisements
• Social media
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