TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc

 
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
TOGETHER
WE CARE
2021 SUSTAINABLE DEVELOPMENT REPORT
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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
TOGETHER WE CARE 2021 SUSTAINABLE DEVELOPMENT REPORT - Mediclinic International plc
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 REPORT
MATERIAL
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                    9
ESG 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 REPORT
CHF4m, 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            11
ESG 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 REPORT
RISKS               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   13
ESG 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 REPORT
RISKS               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   15
SIGNIFICANT
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 REPORT
Putting 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   17
SIGNIFICANT 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 REPORT
GOVERNMENTS 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   19
SIGNIFICANT 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 REPORT
Mediclinic 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   21
SIGNIFICANT 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

22    MEDICLINIC INTERNATIONAL PLC 2021 SUSTAINABLE DEVELOPMENT REPORT
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