idhcrop.com
Integrated Diagnostics Holding Sustainability Report 2022
Integrated solutions for future-fit healthcare
TABLE OF CONTENTS
04 | 07 |
CEO LETTER | ABOUT THE REPORT |
25 | 37 |
APPROACH TO SUSTAINABILITY | 1. SOUND GOVERNANCE |
Our ESG Mindset | 1.1 ESG Integration |
Engaging with Our Stakeholders | 1.2 Doing Right |
Materiality Assessment | 1.3 Quality First |
78 | 91 |
3. LIVEABLE PLANET | 4. FLOURISHING SOCIETY |
3.1 Climate Action | 4.1 Health for All |
3.2 Circular Economy | 4.2 Human Potential |
3.3 Replenishing Water | 4.3 Stronger Together |
09
ABOUT IDH
IDH at a Glance
2022 Highlights & Key Achievements
Distinguished Brands and Services
Uncompromised Quality:
Accreditations
Awards & Recognitions
IDH's Journey Over the Years
58
2. NEXT ECONOMY
- Business for Good
- Customer Excellence
- Responsible Supplier
110
ANNEX
Abbreviations
Limited Assurance Letter
ESG Data
GRI Content Index
SASB Content Index
Alignment with the Integrated Reporting Framework UNGC Content IndexTCFD Content Index
Dear Stakeholders,
I am delighted to share with you our Sustainability Report for the fiscal year 2022. This report demonstrates our steadfast commitment to creating a sustainable future, while maintaining our unwavering focus on delivering high-quality healthcare services to our patients.
As we celebrate this milestone, it is important to note that our expansion is grounded in the principles of responsible and sustainable growth. We are keen on ensuring that our new operations align with our ESG commitments and contribute positively to the local communities we serve.
CHAIRMAN NOTE
LORD ST JOHN OF BLETSO
Chairman
EMBRACING AN ESG STRATEGY
Our commitment to Environmental, Social, and Governance (ESG) principles is more than just a responsibility; it is a part of who we are. Last year, we officially outlined our ESG vision and strategy, providing a clear roadmap for our sustainability journey. This year, we are excited to announce our new ESG strategy that not only fortifies our commitment but also addresses new challenges and opportunities that have arisen in our ever-evolving landscape.
FIRST YEAR OF TCFD REPORTING
We are proud to announce that 2022 marked our first year of Task Force on Climate-related Financial Disclosures (TCFD) reporting. This constitutes a significant step in our commitment to transparency and accountability in our ESG endeavours. For a thorough review of our TCFD disclosures, I invite you to refer to pages 80 to 84 of this report.
EXPANDING OUR FOOTPRINT SUSTAINABLY
Our growth journey took an exciting turn in 2023 as we embarked on a greenfield expansion into the Kingdom of Saudi Arabia. This new venture, in partnership with Biolab, IDH, and Izhoor, marks our entry into a fast-growing and under-served diagnostic market. We are confident that this strategic partnership will allow us to serve the Saudi people effectively while ensuring the long-term success and sustainability of this expansion.
OUR CONTINUED COMMITMENT
While we are proud of the progress we have made, we recognize that the journey towards sustainability is an ongoing one. Our management team continues to monitor and adjust our risk matrix and heat map to ensure robust governance and business continuity. We also remain committed to the professional development of our team, providing them with rewarding and fulfilling career opportunities.
To our valued shareholders, we extend our deepest gratitude for your unwavering support. We believe that our commitment to ESG principles, coupled with our strategic growth initiatives, will continue to create sustainable value for all our stakeholders.
As we move into 2023, we are well-positioned to deliver not only growth and profitability but also a positive impact on the communities we serve. We are excited about the journey ahead and look forward to sharing our progress with you in the coming years.
Lord St John of Bletso
Chairman
CEO
LETTER
PROF. DR.
HEND EL SHERBINI
IDH Group CEO
A DEFINING YEAR: OUR STRATEGIC APPROACH IN CHALLENGING TIMES
In this unique period of unprecedented sustainability challenges, IDH stands resilient and strategically positioned. Our journey, marked by rapid growth and a low-carbon footprint, is driven by the ambition to not just survive but to thrive amidst change. As we navigate this critical juncture, we are proud to say that this year marks a significant milestone as we have devised our first comprehensive Economic, Environmental, Social, and Governance (EESG) strategy.
Our EESG strategy underscores our commitment to confront the volatile, fragile, and rapidly changing world we live in.
It is a testament to our ambition to foster a sustainable business model, cultivate an inclusive and diverse workplace, harmonize advanced technologies with customer excellence, and take proactive measures to mitigate the climate crisis.
These pillars form the backbone of our priorities and actions, steering us towards our goal of transforming healthcare. We aim to drive responsible innovation, creating a future-fit and resilient healthcare system built on a holistic, proactive, and preventative approach to human health. Our vision is a world where everyone, regardless of their background or status, has access to affordable, high-quality integrated diagnostic solutions. This vision not only supports human well-being and longevity but also contributes to a flourishing and inclusive society.
While I am keen on sharing our sustainability vision, commitment, and progress, this would be impossible without first mentioning some of the critical issues of our time.
ENTERING THE ERA OF MULTICRISIS
Climate change has been named "the greatest public health challenge of the 21st century", and rightly so. As temperatures, pollution, and inequalities rise, millions will face new health conditions, respiratory and vector-borne diseases, and
abrupt extreme events over the upcoming decades. Heat stress, droughts, and water scarcity will first impact the most vulnerable groups. The array of second-order risks, such as stress related to the loss of jobs and livelihoods, will leave nobody untouched.
These events will put greater pressure on the healthcare system, challenging the accessibility of essential health services. This will impact our businesses, facilities and employees, with possible infrastructure disruptions influencing our capacity to ensure service quality and continuity. Growing financial constraints, global instability, regional exposures, and the availability of critical materials will require careful consideration.
At this point, the prospects sound grim, but they are just part of the story. Many of the outlined issues could unfold in very different ways if we manage to make the right decisions.
We have more than a few ideas on how to proceed, and our strategy is about bringing them together in a comprehensive and integrated manner.
FUTURE-PROOFING HEALTHCARE
Almost every issue mentioned above can be reversed to the opposite with a well-weighted approach, contributing to the WHO vision of building "the capacity of health systems to protect and improve population health in an unstable and changing climate".
An essential part of this shall be working with various stakeholders, harnessing innovative approaches, and cutting- edge technology, and building partnerships to facilitate the structural transformation of the healthcare system. We are ready to drive that change and lead within our domains while standing on the firm ground of our values, commitments, and best available evidence.
We know that the world is facing one of the most critical moments of its history. And we are ready to live through this time while supporting everyone who comes along. We are
here to care for the people, help the planet recover, and help meet shared sustainability goals.
KEY ESG ACTIONS OF 2022
Despite a challenging operating backdrop, particularly in our home market, Egypt, we are proud to report that IDH has achieved significant success this year. We have continued to invest in our people, processes, and technology to deliver high-quality healthcare services to our patients and customers.
As a founding signatory to IFC's Ethical Principles in Healthcare (EPiHC), we are committed to upholding the highest ethical standards in our operations, including in our interactions with patients, customers, and other stakeholders.
In 2022, we marked a significant milestone with Al Borg Scan becoming the first laboratory in Africa to earn the esteemed ACR accreditation for its nuclear medicine and ultrasound units. The ACR accreditation is globally recognized as one of the most prestigious certifications for radiology service providers. Additionally, Al Mokhtabar and Al Borg secured ISO 45001 and ISO 14001 certifications.
We uphold quality as our paramount priority, and we consistently adhere to international standards and best practices. In reflection of our commitment, we have successfully maintained a comprehensive suite of accreditations, including CAP, JCR, JAS, JCI, HCAC, ISO 9001, ISO 15189, ISO 27001, and ISO 17025. These certifications stand as a testament to our unwavering dedication to excellence in healthcare service provision.
In addition to these accreditations, we are proud to have been recognised as a Top Employer by the Top Employer Institute. This recognition is a reflection of our ongoing efforts to provide a positive work environment, foster talent development, and promote diversity and inclusion within our organization.
As a testament to our dedication, we proudly recall our recognition in 2021 by EDGE, the global certification standard for gender and intersectional equity, positioning us as the first healthcare company in the Middle East and North Africa region to receive this certification. We believe that diversity and inclusion are essential to creating a sustainable and socially responsible organization, and we remain committed to promoting these values.
In our journey towards sustainability, we have built our strategy on the pillars of Environmental, Social, and Governance (ESG) practices. To this end, we have set clear and measurable goals, and we are proud to have achieved GRI compliance. We believe that the integration of sustainability into every aspect of our operations is not only good for the planet but is also beneficial to the well-being of our communities and the future of our business. We will continue to enhance our strategies and practices to secure a sustainable and resilient future. This strategy was shaped by our holistic sustainability framework, which expands upon strategic ESG value propositions and material issues identified in our previous assessment. It is further refined by our updated understanding of materiality and emerging priorities across scales, distilled into four key pillars and twelve priority areas:
Sound Governance: Our commitment to ESG integration, doing what's right, and prioritizing quality first.
Next Economy: Our pursuit of business for good, customer excellence, and responsible suppliers.
Flourishing Society: Our dedication to health for all, human potential, and stronger communities together.
Liveable Planet: Our active engagement in climate action, promotion of a circular economy, and efforts towards replenishing water resources.
Our efforts delivered the desired results in 2022, with conventional revenue posting sustained growth throughout the year dually driven by rising test volumes and increasingly favourable pricing. More specifically, conventional revenue expanded 18% year-on-year to record EGP 2.9 billion in 2022, on the back of a 9% year-on-year increase in both conventional test volumes and average net sales per test. What is arguably even more impressive, and what clearly displays the effectiveness of our strategy over the last three years, is the fact that our conventional revenue now stands at a remarkable 33% above its pre-pandemic value, with test volumes also recording 11% higher than their corresponding figure in 2019, adjusting for increased testing due to the 100 Million Healthy Lives Campaign during 2019.
Sustained growth in our conventional business helped to partially offset a 75% year-on-year decline in COVID-19- related revenue as both tests performed and average revenue per test fell throughout the 12-month period. Overall, we recorded revenues of EGP 3.6 billion, down 31% year-on-year, and net sales1 of EGP 3.5 billion, down 30% from the previous year when our consolidated results had been boosted by
an exceptional contribution made by our COVID-19-related offering.
1. Net Sales is calculated as revenues excluding commission fees paid by Biolab as part of the company's revenue sharing agreements with QAIA and Aqaba Port..
1. Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.
From a supply chain front, we have continued to invest in our supply chain management and structure, and we now have 4 mega warehouses housing all IDH's supplies, with a fully digitized warehouse management system. We have also made significant progress towards digitalization, with multiple operating systems and processes now digitized, which we believe will help us to drive operational efficiencies and better serve our patients and customers.
Furthermore, we have developed and implemented a corporate-wide waste management policy and SOP, which has resulted in a reduction of waste across our facilities and branches. We believe that waste reduction is an important part of our sustainability efforts, and we remain committed to minimizing our environmental footprint in all areas of our operations.
Looking ahead, 2023 will undeniably present its unique set of challenges, including the continued impact of economic factors such as currency devaluation and inflation. However, we have taken proactive steps to address these issues.
We have introduced multiple price adjustments to partially account for the fast-rising inflation in Egypt. Nevertheless, we have refrained from passing on the full burden to our patients. We strongly believe that as a leading healthcare provider,
we have a responsibility to ensure that our services remain accessible to as many patients as possible. This approach not only reflects our commitment to our patients but also our confidence that providing additional support in times of financial need will enhance patient loyalty in the long term, thereby contributing to revenue generation. Furthermore, across all geographies, we aim to leverage our market-leading position to attract and retain new patients to the Group, offering them appealing value propositions that only a Group boasting our scale can offer.
In conclusion, IDH remains committed to delivering high- quality healthcare services while upholding the highest ethical standards and promoting sustainability and social responsibility. We would like to thank all our stakeholders for their continued support, and we look forward to working together to create a better future for all.
Prof. Dr. Hend El Sherbini
IDH Group CEO
ABOUT
THE REPORT
idhcorp.com
CEO LETTER | ABOUT THE REPORT | ABOUT IDH | APPROACH TO SUSTAINABILITY | SOUND GOVERNANCE | NEXT ECONOMY | LIVEABLE PLANET | FLOURISHING SOCIETY | ANNEX | ||
REPORTING STRUCTURE
The IDH Sustainability Report serves as a transparent and comprehensive account of our sustainability journey, showcasing our progress and performance on defined material topics. This report is a reflection of our commitment to meet the expectations and requests of our stakeholders, who play a vital role in shaping our sustainability agenda.
It is the second one in our series of sustainability reports, representing our ongoing efforts to communicate our sustainability strategy, initiatives, and outcomes. It provides a holistic view of our sustainability framework, encompassing the four key pillars: Next Economy, Liveable Planet, Flourishing Society, and Sound Governance. We believe that by addressing these interconnected areas, we can create long-term value for our stakeholders while effectively managing our social, environmental, and economic impacts.
Furthermore, this report delves into the specific activities undertaken by IDH, shedding light on our sustainability practices across our operations and supply chains. By focusing on these material topics, we ensure that our efforts are directed towards addressing the most pressing sustainability challenges and opportunities that we face.
Through this comprehensive reporting structure, we aim to foster transparency, accountability, and continuous improvement. We value the feedback and engagement of our stakeholders, and this report serves as a means to engage with them by communicating our sustainability journey.
REPORTING SCOPE AND PERIOD
The reporting period for this sustainability report is January 1st, 2022, to December 31st, 2022. It encompasses
the different sustainability initiatives of IDH and their performance during this timeframe.
REPORTING FRAMEWORKS
To ensure that our sustainability reporting is standardised and aligned with global best practices, IDH follows the following reporting frameworks and guidelines:
IDH has reported in accordance with the GRI Standards.
IDH is aligned with Sustainability Accounting Standards Board (SASB) - Health Care Delivery Standard, focusing on energy and waste management, patient privacy, service quality, health & safety, among other aspect
IDH is compliant with Task Force on Climate-related Financial Disclosures (TCFD) within disclosing its sustainability governance, strategy, management of risks and opportunities; metrics and targets concerning the financial implications of climate change.
IDH has applied the complementary Integrated Reporting (IR) Framework and Integrated thinking approach by IFRS Foundation, providing a comprehensive methodology for defining how we contribute to the creation, preservation, or erosion of value through activities, relationships, and interaction, including between various operating and functional units and the capitals that our organization uses or affects.
IDH is committed to submitting the Environmental and Social Annual Monitoring report (AMR) to IFC. The AMR helps IFC assess on a yearly basis the E&S risk of the project and revise and update the ESRR score (Environmental and Social Risk Rating). In order to ensure that the corporation maintains a quality E&S portfolio.
IDH is committed to implementing the principles of the United Nations Global Compact (UNGC) and reports on its progress in integrating the ten UNGC principles related to human rights, labour standards, environmental protection, and anti- corruption measures.
IDH reports on its contribution to The United Nations Sustainable Development Goals (SDGs) and remains steadfast in its commitment to advancing the global agenda for sustainable development.
ASSURANCE
Masader Corporate Sustainability Consulting Firm (S.A.E) has provided a limited assurance statement on the content of this report.
CONTACT POINT
Ms. Nancy Fahmy Investor Relations Director nancy.fahmy@idhcorp.com
SUSTAINABILITY REPORT 2022 8
ABOUT
IDH
idhcorp.com
CEO LETTER | ABOUT THE REPORT | ABOUT IDH | APPROACH TO SUSTAINABILITY | SOUND GOVERNANCE | NEXT ECONOMY | LIVEABLE PLANET | FLOURISHING SOCIETY | ANNEX | |
IDH at a Glance
Integrated Diagnostics Holdings (IDH) is a leading provider of medical diagnostic services in the Middle East and Africa. The company has established operations in Egypt, Jordan, Sudan, Nigeria, and most recently, in the Kingdom of Saudi Arabia (KSA), as of the end of 2023. It provides an extensive suite of more than 2,000 internationally accredited diagnostic tests and radiology services, serving 10 million patients annually, and conducting over 30 million tests.
#1
Private Sector Lab in Egypt and Jordan
C.10 MN
Patients served per year
DUAL-LISTING
LSE in 2015 | EGX in 2021
+2,000
Internationally accredited diagnostic tests offered in IDH labs
MAX 24HR
Turn-around time
+40 YEARS
First lab established in 1979
38TH
On Forbes' 2023 list of Middle
East's Top 100 Healthcare Leaders
C.30 MN
Tests conducted per year
+70,000 | ||||||||||
Tests conducted | ||||||||||
552 BRANCHES | per day | |||||||||
As at 31 December | ||||||||||
2022 | ||||||||||
SOLE CAP & ACR | ||||||||||
Accredited lab and | ||||||||||
scan in Africa |
20%
Sustainable growth Revenue CAGR 2015-2022
SUSTAINABILITY REPORT 2022 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
IDH - Integrated Diagnostics Holdings plc published this content on 31 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 December 2023 16:16:45 UTC.