Health Care Distributors

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Current language: English
Health care distributors purchase, inventory and sell pharmaceutical products and medical equipment to hospitals, pharmacies and physicians. Demand for the industry’s services is driven largely by insurance rates, pharmaceutical spending, illness and demographics. The health care sector continues to face an emphasis on reduced costs and improved efficiencies, which also will affect the Health Care Distributors industry. Entities in this industry face challenges from consolidation and partnerships between pharmacies, payers and manufacturers.

Relevant Issues (5 of 26)

Why are some issues greyed out? The SASB Standards vary by industry based on the different sustainability-related risks and opportunities within an industry. The issues in grey were not identified during the standard-setting process as the most likely to be useful to investors, so they are not included in the Standard. Over time, as the ISSB continues to receive market feedback, some issues may be added or removed from the Standard. Each company determines which sustainability-related risks and opportunities are relevant to its business. The Standard is designed for the typical company in an industry, but individual companies may choose to report on different sustainability-related risks and opportunities based on their unique business model.
  • Environment
    • GHG Emissions The category addresses direct (Scope 1) greenhouse gas (GHG) emissions that a company generates through its operations. This includes GHG emissions from stationary (e.g., factories, power plants) and mobile sources (e.g., trucks, delivery vehicles, planes), whether a result of combustion of fuel or non-combusted direct releases during activities such as natural resource extraction, power generation, land use, or biogenic processes. The category further includes management of regulatory risks, environmental compliance, and reputational risks and opportunities, as they related to direct GHG emissions. The seven GHGs covered under the Kyoto Protocol are included within the category—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).
    • Air Quality
    • Energy Management
    • Water & Wastewater Management
    • Waste & Hazardous Materials Management
    • Ecological Impacts
  • Social Capital
    • Human Rights & Community Relations
    • Customer Privacy
    • Data Security
    • Access & Affordability
    • Product Quality & Safety The category addresses issues involving unintended characteristics of products sold or services provided that may create health or safety risks to end-users. It addresses a company’s ability to offer manufactured products and/or services that meet customer expectations with respect to their health and safety characteristics. It includes, but is not limited to, issues involving liability, management of recalls and market withdrawals, product testing, and chemicals/content/ingredient management in products.
    • Customer Welfare The category addresses customer welfare concerns over issues including, but not limited to, health and nutrition of foods and beverages, antibiotic use in animal production, and management of controlled substances. The category addresses the company’s ability to provide consumers with manufactured products and services that are aligned with societal expectations. It does not include issues directly related to quality and safety malfunctions of manufactured products and services, but instead addresses qualities inherent to the design and delivery of products and services where customer welfare may be in question. The scope of the category also captures companies’ ability to prevent counterfeit products.
    • Selling Practices & Product Labeling
  • Human Capital
    • Labor Practices
    • Employee Health & Safety
    • Employee Engagement, Diversity & Inclusion
  • Business Model and Innovation
    • Product Design & Lifecycle Management The category addresses incorporation of environmental, social, and governance (ESG) considerations in characteristics of products and services provided or sold by the company. It includes, but is not limited to, managing the lifecycle impacts of products and services, such as those related to packaging, distribution, use-phase resource intensity, and other environmental and social externalities that may occur during their use-phase or at the end of life. The category captures a company’s ability to address customer and societal demand for more sustainable products and services as well as to meet evolving environmental and social regulation. It does not address direct environmental or social impacts of the company’s operations nor does it address health and safety risks to consumers from product use, which are covered in other categories.
    • Business Model Resilience
    • Supply Chain Management
    • Materials Sourcing & Efficiency
    • Physical Impacts of Climate Change
  • Leadership and Governance
    • Business Ethics The category addresses the company’s approach to managing risks and opportunities surrounding ethical conduct of business, including fraud, corruption, bribery and facilitation payments, fiduciary responsibilities, and other behavior that may have an ethical component. This includes sensitivity to business norms and standards as they shift over time, jurisdiction, and culture. It addresses the company’s ability to provide services that satisfy the highest professional and ethical standards of the industry, which means to avoid conflicts of interest, misrepresentation, bias, and negligence through training employees adequately and implementing policies and procedures to ensure employees provide services free from bias and error.
    • Competitive Behavior
    • Management of the Legal & Regulatory Environment
    • Critical Incident Risk Management
    • Systemic Risk Management

Disclosure Topics

What is the relationship between General Issue Category and Disclosure Topics? The General Issue Category is an industry-agnostic version of the Disclosure Topics that appear in each SASB Standard. Disclosure topics represent the industry-specific impacts of General Issue Categories. The industry-specific Disclosure Topics ensure each SASB Standard is tailored to the industry, while the General Issue Categories enable comparability across industries. For example, Health & Nutrition is a disclosure topic in the Non-Alcoholic Beverages industry, representing an industry-specific measure of the general issue of Customer Welfare. The issue of Customer Welfare, however, manifests as the Counterfeit Drugs disclosure topic in the Biotechnology & Pharmaceuticals industry.
General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for: Health Care Distributors

GHG Emissions
  • Fleet Fuel Management

    The distribution of health care products and supplies requires significant transportation networks. Concern over climate change and dwindling natural resources may affect fuel pricing, and it may expose health care distributors to cost fluctuations. Entities that improve transportation efficiencies may be better positioned to create value over the long-term.
Product Quality & Safety
  • Product Safety

    Health care distributors play an integral role in the delivery of health care products to consumers. The industry therefore has a shared responsibility with manufacturers to ensure product safety and address concerns related to toxicity. Further, health care distributors face additional risks related to controlled substances and the potential for mislabeled products. Entities that limit the incidences of safety or other product concerns may be better positioned to protect shareholder value.
Customer Welfare
  • Counterfeit Drugs

    The World Health Organization estimates that counterfeit drugs represent more than 10 percent of the pharmaceutical supply chain in low and middle-income countries. The issue of counterfeit or substandard medication also presents a significant risk in developed economies. Health care distributors may face added costs as governments and national regulatory agencies seek to implement drug supply chain regulations in an effort to prevent counterfeit or mislabeled drugs from entering the pharmaceutical distribution system.
Product Design & Lifecycle Management
  • Product Lifecycle Management

    Health care distributors have a responsibility to reduce the environmental impact of the products that they distribute. Specific opportunities to address these impacts exist in product packaging and take-back programs. Entities that are able to address these concerns may be better positioned to meet customer demand and reduce associated costs.
Business Ethics
  • Business Ethics

    Health care distributors are subject to various state, national, and international laws. In the U.S., such laws include the False Claims Act and the Foreign Corrupt Practices Act. Entities that are able to ensure compliance with relevant regulations may avoid litigation, which can result in costly fines or settlements.

Select up to 4 industries

Current Industry: Health Care Distributors

Health Care
Consumer Goods
Extractives & Minerals Processing
Financials
Food & Beverage
Infrastructure
Renewable Resources & Alternative Energy
Resource Transformation
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Technology & Communications
Transportation

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