Strategic Report Sustainability Report

Scope and Boundary Our key home markets where we have Boundary of Our Disclosures IHH Healthcare Berhad (IHH or the our largest operating capacities are The entities included in our Group) continuously strengthens its , , and . scope of reporting for this year sustainability performance to develop a The Group also operates in Greater are listed below. In this report, trusted brand in the world of healthcare , , Bulgaria, Macedonia, we have chosen case studies services. In our fifth Sustainability Report, Myanmar, and the Netherlands. Across from our home markets that we build on last year’s efforts and these 10 countries, we have 80 hospitals holistically represent our economic, disclose our performance on the and over 15,000 licensed beds (including environmental and social efforts economic, environmental and social Fortis Healthcare) and, in Malaysia, we to strengthen sustainability across aspects of our operations. also have the International Medical our hospitals, clinics and at University (IMU), our academic arm. our university.

Malaysia

Hospital (MOD) • Pantai Hospital Cheras (PHC) • Gleneagles Medini (GMH) • Pantai Hospital Sungai Petani (PHSP) • Pantai Hospital Ampang (PHA) • Gleneagles Kota Kinabalu (GKK) • Pantai Hospital Penang (PHP) • Pantai Hospital Batu Pahat (PHBP) • Pantai Hospital Ipoh (PHI) • Pantai Hospital Ayer Keroh (PHAK) University: • Pantai Hospital Manjung (PHM) • Pantai Hospital Laguna Merbuk (PHLM) • International Medical University (IMU) • Pantai Hospital Klang (PHK) • Gleneagles (GKL) • Pantai Hospital Kuala Lumpur (PHKL) • Gleneagles Penang (GPg)

Singapore (SOD)

• Mount Elizabeth Novena Hospital (MNH) • Parkway East Hospital (PEH) • Mount Elizabeth Hospital (MEH) • Gleneagles Hospital (GEH)

India (IOD)

• BGS Gleneagles Global Hospitals • Gleneagles Global Hospitals Parel • Continental Hospitals (Hyderabad) Kengeri (Bengaluru) (Mumbai) • Gleneagles Global Hospital, • Aware Gleneagles Global Hospitals Richmond Road (Bengaluru) LB Nagar (Hyderabad) • Gleneagles Global Health City • Gleneagles Global Hospitals Perumbakkam (Chennai) Lakdi-Ka-Pul (Hyderabad)

Greater China

China (GCOD) • Shanghai Rui Xiang Clinic Co. Ltd • Chengdu Shenton Health Clinic Co., Ltd • Gleneagles Chengdu Hospital (Hongqiao Clinic) (Chengdu Shenton Clinic) • Shanghai Xin Rui Healthcare Co. Ltd • Shanghai Rui Ying Clinic Co. Ltd (Luwan Clinic/GPS Clinic) (Tomorrow Square Clinic) • Shanghai Rui Xin Healthcare Co. Ltd • Suzhou Industrial Park Yuan Hui Clinic • Gleneagles Hong Kong (GHK) (Shanghai Center Clinic) Co. Ltd (SIP Clinic) • Shanghai Rui Pu Clinic Co. Ltd • Shanghai Hui Xing Jin Pu Clinic Co. Ltd (Jinqiao Clinic) (Jinmao Clinic) (Ceased operations on 24 June 2020)

IHH Healthcare Berhad 60 Annual Report 2020 Turkey and Central and Eastern Europe (ASYH)

Turkey • Acibadem International Hospital Bulgaria • Acibadem Adana Hospital • Acibadem Kadıköy Hospital • Acibadem City Clinic Tokuda Hospital • Acibadem Altunizade Hospital • Acibadem Kayseri Hospital • Acibadem City Clinic Cardio Hospital • Acibadem Ankara Hospital • Acibadem Kocaeli Hospital • Acibadem City Clinic Mladost Hospital • Acibadem Bakırköy Hospital • Acibadem Kozyatağı Hospital • Acibadem Bodrum Hospital • Acibadem Maslak Hospital Macedonia • Acibadem Bursa Hospital • Acibadem Mehmet Ali Aydınlar • Acibadem Sistina Hospital • Acibadem Eskişehir Hospital Üniversitesi Atakent Hospital Netherlands • Acibadem Fulya Hospital • Acibadem Taksim Hospital • Acibadem International Medical Center

Reporting Timeline Securities’ Sustainability Reporting Guide such a framework provides a way for IHH This report covers our performance for (2nd Edition). To ensure that our sustainability to examine and communicate our financial the reporting period from 1 January to statement is disclosed in a meaningful and and non-financial drivers comprehensively. 31 December 2020 (FY2020), unless balanced manner, we have referred to the Since sustainability is so intrinsically otherwise stated. Global Reporting Initiative (GRI) Standards, connected to the way IHH operates, we and GRI’s Sector Specific Sustainability have integrated sustainability into other Reporting Framework Topics for Healthcare Providers and key areas of reporting to reflect the way Our sustainability statement for FY2020 Services and Healthcare Technology. we communicate our sustainability efforts. has been prepared in accordance with Securities Berhad’s Like our Sustainability Report in FY2019, this The table of sustainability content below (Bursa Securities) Main Market Listing year’s Report demonstrates our commitment guides readers in accessing sustainability Requirements, with reference to Bursa to the principles of Integrated Reporting as information within this Report.

Contents of the Sustainability Statement Can be found in Page number

Material sustainability matters Stakeholder Engagement 38 to 41 • How they are identified Our Material Matters 42 and 43 • Why they are important to IHH

The scope and boundary of the Sustainability Statement Sustainability Report 60 and 61

Sustainability highlights Sustainability Report 62

Sustainability approach and policy Sustainability Report 63

• Sustainability Journey Chairman’s Statement 22 and 23 • The Group’s Strategic Thrust and Sustainability Strategy Business Strategy 36 to 37

Benchmarking Sustainability and Sustainability Pillar Sustainability Report 64

Our global initiative Sustainability Report 65

Material sustainability matters Our Patients 66 to 71 • Policies to manage these sustainability matters Our People 72 to 75 • Measures and actions taken to deal with these sustainability Our Organisation 76 to 82 matters which demonstrate how IHH has performed in managing Our Environment 83 to 85 these sustainability matters Our Community 86 to 89

• The governance structure in place to manage economic, Sustainability Governance Report 137 environmental and social risks and opportunities

IHH Healthcare Berhad Annual Report 2020 61 Strategic Report Sustainability Report

Report Highlights As we understand that our stakeholders public without compromising the safety In FY2020, we reached a key milestone value more transparency and accountability of our own people. in our sustainability journey by rolling from us, we have reviewed our Anti-Bribery out the Group-wide Sustainability Policy and Corruption (ABC) Policy to ensure The pandemic forced us to think on our in the fourth quarter of 2020. We also that we are up to date with the latest feet to meet new patient expectations, embarked on a 5-year sustainability regulatory requirements and best which resulted in innovative methods of roadmap to strengthen accountability practices. In doing so, we uphold healthcare consultation, as demonstrated and build the Group’s sustainability integrity across the Group and foster by our telemedicine services. We are performance to meet annual targets. trust among our stakeholders through proud of the commitment demonstrated Through this initiative, we intend to the elimination of unethical behaviour by our employees and leadership team secure our future by creating long-term and practices. in managing the COVID-19 pandemic. value for our stakeholders. This roadmap will drive us forward in our journey to This year, with the coronavirus (COVID-19) Despite challenges brought on by the become a leading, sustainable premium pandemic spreading across the pandemic, we were able to monitor our healthcare provider. globe rapidly, IHH rose to acclimatise performance and achieve milestones in ourselves to unfamiliar environments our journey to be sustainable. Looking We have established key performance by developing policies and procedures ahead, we will continue to plan and indicators (KPIs) to help measure, track to manage the pandemic across all implement initiatives for long-term and and implement corrective action for the operations. In our home markets, shared value creation, bringing us closer continuous improvement of the Group’s we mitigated the impacts of the pandemic to our vision of becoming the world’s sustainability performance. This year, we by contributing to national efforts – most trusted healthcare services network. achieved three KPIs representing these from lending ventilators to rapid testing three sustainability pillars: Our Patients, in communities, we put in our best Here are our key achievements this year Our People and Our Environment. effort to protect the health of the across our home markets:

Sustainability Highlights for FY2020

Our Patients • Implemented Antimicrobial Stewardship programmes across ALL IHH hospitals in Malaysia • Achieved target NPS scores across ALL home markets

Our People • 100% of eligible employees underwent performance appraisals in FY2020 • Recorded ZERO fatalities for FY2020

Our Organisation • 100% of employees were offered access to training on the Group’s Anti-Bribery and Corruption Policy • Established telemedicine and e-Health video consultation services across IHH hospitals to limit the spread of COVID-19

Our Environment • 15% of non-scheduled waste generated was diverted from landfills in FY2020

Our Community • 78% of community contributions provided by IMU was in the form of COVID-19 aid and relief

IHH Healthcare Berhad 62 Annual Report 2020 inability Po Susta licy Our Patients

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m P IHH’s Sustainability Approach Healthcare Improve e m o Our approach to embed sustainability o Build trust locally, p

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e r culture synergise throughout our business is multifold. u IHH’s O globally The illustration below demonstrates Sustainability how our business strategy, Approach sustainability pillars, the recently Sustainable Eco- established Sustainability Policy Growth Efficiency and the United Nation’s Sustainable Development Goals interweave Develop robust, in our comprehensive approach. sustainable growth platforms

O n u o r i E at nv is iro an nm rg e r O nt Ou

Sustainability Policy This year the IHH Board approved our Sustainability Policy, which outlines our commitment to uphold sustainable practices across our operations. The policy was developed in alignment with the Group’s sustainability approach by building on our vision and mission, strategic thrusts, sustainability strategy, core values and pillars of sustainability.

IHH’s Sustainability Policy Tenets

Ensuring that stakeholders receive quality healthcare Conducting business with the highest standards of services through highly trained medical, nursing and ethics and transparency across our operations 1 6 administrative staff

Ensuring compliance with legislation, regulations and Identifying and monitoring the environmental impacts codes of practice governing healthcare facilities in the of the Group’s business activities and facilities to 2 countries we operate 7 improve our environmental performance

Delivering sustainable economic growth and returns Improving environmental awareness amongst employees 3 to our investors and enriching the local economy 8 and promoting green practices where possible

Continuously engaging with relevant stakeholders Contributing to local communities and assisting them who include, but are not limited to patients, employees, in improving and enhancing their socio-economic status 4 suppliers, students, amongst others, to address and 9 and well-being manage their concerns and expectations of the Group

Constantly working to improve the quality of our healthcare services to ensure delivery meets 5 stakeholder expectations

IHH Healthcare Berhad Annual Report 2020 63 Strategic Report Sustainability Report

Benchmarking Sustainability create sustainable and scalable impacts. IHH’s Sustainability Pillars IHH recognises its responsibility to the They are: SDG 3 Good Health and IHH identified five areas that have an global community in contributing towards Well-being, SDG 4 Quality Education, impact on our business performance. a healthy and sustainable future. The SDG 7 Affordable and Clean Energy, These five areas are the pillars by Sustainable Development Goals (SDGs) SDG 8 Decent Work and Economic which we define our approach to were announced under the aegis of the Growth, SDG 9 Industry Innovation sustainability within the organisation. United Nations Sustainability Agenda 2030 and Infrastructure, SDG 12 Responsible They cover key economic, governance, to eliminate economic, environmental Consumption and Production and SDG 16 environmental and social aspects of and social disparities across the globe. Peace, Justice and Strong Institutions. our business and this categorisation We review our goals and initiatives has helped us expand and strengthen The Group focuses its efforts on seven regularly to ensure that our activities our sustainability disclosures and SDGs for which we are positioned to are aligned with these seven SDGs. reporting framework.

Our Efforts towards the SDGs

• Deliver quality healthcare services throughout different regions such as Malaysia, Our Patients Singapore, Greater China, India, Turkey and Central and Eastern Europe • Provide sponsored health screenings and medical treatment for vulnerable Patients are a crucial component of socio-economic groups as part of corporate social responsibility programmes our operations as a global healthcare provider. We keep our patients satisfied • Deliver health talks to raise awareness on pressing health issues and to promote through the provision of safe, effective healthier lifestyle choices and quality healthcare services. • Ensure proper management of medical waste to safeguard public health. • Protect the safety and promote the well-being of our employees

• Provide quality education focused on medical and health sciences through our educational institutions, International Medical University (IMU) and International Our Organisation Medical College in Malaysia We uphold organisational integrity and • Conduct training for employees to keep abreast of the latest healthcare industry operate ethically in accordance with applicable best practices and knowledge legislation and industry best practices.

• Where possible, our hospital buildings have been built in accordance with the standards of internationally recognised green building accreditation schemes that increase energy efficiency Our People

Our human capital is an essential resource that drives value creation across our operations. We continuously provide a • Provide safe work environment for employees conducive work environment to safeguard employee satisfaction and loyalty. • Provide training for employees to keep abreast of latest industry knowledge and best practices • Create opportunities in the regional markets by hiring locally

• Keep up with the latest medical advancements in the healthcare industry to enhance Our Community the provision of healthcare services • Utilise the latest technology to ensure the safety of our patients and employees during We strive to promote the health and the COVID-19 pandemic, such as strict procedures for COVID-19 screening at hospital well-being of the communities we operate in. entrances and telemedicine & e-Health video consultations By providing basic healthcare and health education programmes, we encourage good public health practices within each community.

• Comply with all environmental regulations with regard to waste management practices. • Ensure that all medical waste and other toxins are treated before discharge or incinerated to protect public health Our Environment

IHH works to reduce our environmental footprint. We implement stringent measures • Establish internal policies and procedures for strong corporate governance to ensure our environmental footprint is • Implement a Code of Conduct, Whistleblowing Policy and Anti-Bribery and minimised through efficient consumption Corruption Policy of natural resources and appropriate • Ensure all employees undergo training on internal policies management of generated waste.

IHH Healthcare Berhad 64 Annual Report 2020