German Hospitals Face New Sustainability Reporting Obligations

German hospitals are preparing for new corporate sustainability reporting obligations mandated by the EU's Corporate Sustainability Reporting Directive (CSRD). This directive requires companies, including a significant number of German hospitals, to disclose their environmental, social, and governance (ESG) activities. The German healthcare sector generates approximately 68 million tons of CO2 emissions annually, accounting for about six percent of the country's total emissions.

Previous studies indicated that sustainability was explicitly integrated into the corporate strategy of only one in two hospitals, and fewer had specific annual plans for sustainability measures. Many hospitals face significant financial challenges, including liquidity shortfalls and increasing losses, making investments in sustainable practices difficult.

Hospitals now subject to CSRD must conduct a materiality analysis to identify key topics for their sustainability reports. This process involves assessing impacts, risks, and opportunities while engaging with internal and external stakeholders.

Findings from a new 2024 study by BDO and the German Hospital Institute (DKI) will be presented at the Health Economy Congress in Hamburg in September. The study examines how hospitals are preparing for these reporting requirements and the anticipated effort involved.