Material ESG Outcomes and SDG Externalities: Evaluating the Health Care Sector’s Contribution to the SDGs

40 Pages Posted: 5 Nov 2018

See all articles by Costanza Consolandi

Costanza Consolandi

University of Siena; Department of Business and Law

Himani Phadke

TruValue Labs

James P. Hawley

Saint Mary's College of California; TruValue Labs

Robert G. Eccles

University of Oxford - Said Business School

Date Written: November 2, 2018

Abstract

The 17 United Nations Sustainable Development Goals (SDGs) have created a framework for environmental and social impacts, which many large institutional investors and an increasing number of corporations are using to guide their resource allocation decisions or highlight those already in place. In this paper, we argue that the SDGs have clarified certain elements that have been predominantly missing (or implicit) in many ESG (Environmental, Social, and Governance) standards and metrics, specifically focusing on the environmental and social externalities (social costs) created by companies.

Using a methodological framework that maps the SDGs and their targets to the 30 generic issues developed by the Sustainability Accounting Standard Board (SASB), this paper focuses on health care as a case to evaluate the contribution of companies in this sector to the SDGs for which their material issues, as defined by SASB, are relevant. Issues not considered material by SASB are also evaluated. In doing so, we highlight where private sector firms can be (and have been) contributing to SDG impacts. Where that is either not occurring or perhaps not possible, the paper points to the need for public sector activities.

Keywords: SDG's, ESG, Materiality, SASB, TruValue Labs, Externalities, Sustainability

JEL Classification: Q01, Q56, I10

Suggested Citation

Consolandi, Costanza and Phadke, Himani and Hawley, James P. and Eccles, Robert G., Material ESG Outcomes and SDG Externalities: Evaluating the Health Care Sector’s Contribution to the SDGs (November 2, 2018). Available at SSRN: https://ssrn.com/abstract=3277421 or http://dx.doi.org/10.2139/ssrn.3277421

Costanza Consolandi

University of Siena ( email )

Via Banchi di Sotto, 55
Siena, 53100
Italy

Department of Business and Law ( email )

United States

Himani Phadke

TruValue Labs ( email )

660 Mission Street, 4th flr
San Francisco, CA California 94105
United States

James P. Hawley (Contact Author)

Saint Mary's College of California; TruValue Labs ( email )

San Francisco, CA 94105
United States
510-928-1327 (Phone)

Robert G. Eccles

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

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