Title: Volume 30—Managed Care
Category: Part B—Industry-based Guidance for IFRS S2
Source: IFRS Foundation (https://www.ifrs.org)
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PDF: https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards-issb/english/2023/issued/part-b/ifrs-s2-ibg-volume-30-managed-care-part-b.pdf?bypass=on
Year: 2023
Type: Industry
Industry-based Guidance on implementing
Climate-related Disclosures
Volume 30—Managed Care
June 2023
IFRS S2
IFRS
® Sustainability Disclosure Standard
International Sustainability Standards Board
This Industry-based Guidance accompanies IFRS S2 Climate related Disclosures (published
June 2023; see separate booklet) and is issued by the International Sustainability
Standards Board (ISSB).
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IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023
© IFRS Foundation
1
Introduction
This volume is part of the Industry-based Guidance on Implementing IFRS S2 Climate-related
Disclosures. This guidance suggests possible ways to apply some of the disclosure requirements in
IFRS S2 but does not create additional requirements.
This volume suggests possible ways to identify, measure and disclose information about
climate-related risks and opportunities that are associated with particular business
models, economic activities and other common features that characterise participation in
this industry.
This industry-based guidance has been derived from Sustainability Accounting Standards
Board (SASB) Standards, which are maintained by the International Sustainability
Standards Board (ISSB). The metric codes used in SASB Standards have been included for
ease of reference. For additional context regarding the industry-based guidance contained
in this volume, including structure and terminology, application and illustrative
examples, refer to Section III of the Accompanying Guidance to IFRS S2.
IFRS S2 INDUSTRY-BASED GUIDANCE
2
© IFRS Foundation
Volume 30—Managed Care
Industry Description
The Managed Care industry offers health insurance products for individual, commercial,
Medicare and Medicaid members. Entities also provide administrative services and
network access for self-funded insurance plans and manage pharmacy benefits.
Enrolment in managed care traditionally has been correlated with employment rates,
whereas revenue is driven by medical cost inflation. Legislative uncertainty and a focus
on reducing health care costs may create downward pricing pressure and continue to
drive industry consolidation. In addition, a focus on patient outcomes and plan
performance continues to shape the industry’s sustainability risks and opportunities.
Sustainability Disclosure Topics & Metrics
Table 1. Sustainability Disclosure Topics & Metrics
TOPIC
METRIC
CATEGORY
UNIT OF
MEASURE
CODE
Climate
Change
Impacts on
Human Health
Discussion of the strategy to address
the effects of climate change on
business operations and how specific
risks presented by changes in the
geographical incidence, morbidity and
mortality of illnesses and diseases are
incorporated into risk models
Discussion
and Analysis
n/a
HC-MC-450a.1
Table 2. Activity Metrics
ACTIVITY METRIC
CATEGORY
UNIT OF
MEASURE
CODE
Number of enrollees by plan type
Quantitative
Number
HC-MC-000.A
Climate Change Impacts on Human Health
Topic Summary
An increase in extreme weather events associated with climate change could have
significant health impacts. These events, coupled with the potential spread of infectious
diseases and food and water scarcity, may present material implications for the Managed
Care industry through an increase in encounters with the health care system. Entities
that manage the risks posed by extreme weather events and potential changes in the
incidence, morbidity and mortality of illnesses and diseases may protect shareholder
value better.
IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023
© IFRS Foundation
3
Metrics
HC-MC-450a.1. Discussion of the strategy to address the effects of climate
change on business operations and how specific risks presented by changes in
the geographical incidence, morbidity and mortality of illnesses and diseases are
incorporated into risk models
1
The entity shall discuss its strategic business approach to addressing significant
risks related to the effects of climate change, which may include changes in the
following aspects of illnesses and diseases:
1.1
Geographical incidence
1.2
Morbidity
1.3
Mortality
2
Relevant disclosure may include discussion of:
2.1
Increases in allergic responses, asthma rates and heat-induced illness
2.2
Migration of tropical diseases such as malaria, dengue fever and other
vector-borne tropical diseases to non-tropical regions
2.3
Increases in waterborne diseases, such as cholera, because of increased
natural disaster incidence
2.4
Increased rates of human developmental diseases such as malnutrition
because of decreased food availability
3
The entity shall discuss any projected impacts on revenue, costs or plan
affordability.
4
The entity may discuss how it incorporates the effects of climate change into its
risk assessment and risk adjustment activities.
IFRS S2 INDUSTRY-BASED GUIDANCE
4
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