KPMG: Healthcare CEOs are Facing ESG Gaps & Digitalisation

KPMG has released its 2025 Healthcare CEO Outlook, presenting a vision of a healthcare sector that is currently undergoing a massive transformation, balancing the promise of innovation against operational pressures. 

Through a survey of 110 global healthcare CEOs, KPMG explores how these leaders are navigating a future defined by shifting demands, the necessity for digitalisation and the imperative of long-term sustainability. 

This report underscores the critical need for healthcare executives to adopt strategic, data-driven approaches to ensure their systems remain resilient and effective for the communities they serve.

Healthcare sustainability & ESG

According to the KPMG 2025 Healthcare CEO Outlook, while healthcare CEOs are optimistic about navigating the evolving ESG landscape, there remains a notable gap between their stated ambitions and actual execution. 

“Growing workforce shortages, rising demand, stretched budgets and concerns about cyber-attacks and the next pandemic should loom large on CEO’s minds,” says Beccy Fenton, Global Head of Healthcare at KPMG International and Head of Infrastructure, Government and Healthcare at KPMG UK, in the report.

“Yet our survey suggests that most sector leaders believe that AI and digitalisation will deliver the panacea to their problems.”

KPMG notes that only 30% of healthcare leaders comprehensively calculate and integrate sustainability costs and potential return on investment into their major capital decisions.

Furthermore, only 12% of CEOs are highly confident that their organisations will meet Net Zero goals by 2030, a challenge often hindered by a lack of internal skills and the complexities involved in decarbonising healthcare supply chains.

Beyond environmental goals, KPMG highlights that 84% of healthcare respondents feel increasingly compelled to address the impacts of climate change and geopolitical conflict on their local communities. 

Consequently, KPMG recommends that healthcare organisations prioritise resilience, working closely with governments and other stakeholders to build the mental, physical and systemic infrastructure necessary to withstand future crises.

“Rising demand is usually good news for business, but healthcare is different,” says Beccy.

“When public services face surging demand, governments are forced into tough trade offs between areas such as health, education and defense. 

“Productivity isn’t optional, it’s the key to survival for every healthcare organisation, public or private.” 

“Many sector CEOs say they are seeking to address many of their communities’ most urgent ESG challenges, from sustainability and resilience through to enhancing access and care, through new partnerships, innovation and investment.”

Tech and AI use in the industry

Digitalisation and AI are viewed by many healthcare CEOs as the critical drivers of future productivity, with KPMG reporting that 72% of leaders believe their organisations are successfully keeping pace with AI development.

To harness this potential, KPMG data indicates that 87% of healthcare organisations plan to invest over 10% of their budgets into AI solutions in the upcoming year, with 83% expecting a return within three years.

“There is no question that digitalisation will serve as a pivotal catalyst in shaping the future of care delivery models,” says Dr. Jaz Dhaliwal, Global Digital Healthcare Lead KPMG International and Partner, KPMG in the UK, in the report.

However, KPMG warns that technology is not a simple panacea; 55% of healthcare CEOs cite "data readiness" as a significant barrier to implementation, alongside challenges regarding ethics and technical capabilities.

To succeed, KPMG emphasises that healthcare leaders must move beyond isolated technology adoptions and focus on building robust foundations, such as electronic health records, integrated data platforms and smart hospital technologies.

Furthermore, the company stresses that without adequate change management support to address generational skills gaps and employee adoption, these technological investments in healthcare may fail to deliver the expected operational improvements.

Healthcare supply chains

The KPMG 2025 Healthcare CEO Outlook identifies supply chain resilience as a top-tier pressure driving the short-term decisions of healthcare CEOs, a priority sharpened by the lingering memories of the global pandemic.

“Many health systems are focusing on how to encourage their workforces to operate more effectively in multi-disciplinary teams across organisations and AI, and technology will play a key role in achieving that,” says Sarah Abbott, Partner, Health, Ageing & Human Services, KPMG Australia, in the report.

As healthcare organisations modernise, KPMG warns that the rapid expansion of telehealth, connected medical devices and electronic health records has significantly increased exposure to cyber-attacks, fraud and identity theft, making cybersecurity a strategic imperative.

Indeed, KPMG reports that regulatory pressures and supply chain resilience remain among the most significant challenges competing for leadership attention within the healthcare sector.

Beyond immediate operational risks, KPMG notes that the complexity of decarbonising these supply chains is a major hurdle in achieving long-term climate goals.

To mitigate these multifaceted risks, KPMG advises healthcare executives to secure their data and systems with appropriate investment while simultaneously fostering deeper partnerships to build a more stable, resilient and transparent supply chain across the global healthcare ecosystem.