Month: June 2023

Healthcare companies are beginning to explore how artificial intelligence (AI) might unlock efficiencies for patients and medical systems. But to transform science fiction into reality, AI applications in the sector must prove that they can improve business profitability to deliver returns for investors.

Innovation is a powerful force for change in healthcare, and AI is well suited to shake up the sector. Healthcare systems hold huge amounts of data that can be mined for insight. Pharmaceutical companies are always searching for ways to speed up long drug-development processes. In theory, AI could help promote more effective management across the industry, helping healthcare firms get the right drugs in the right quantities to the right patients.

But there’s a vast distance from theory to practice, especially with nascent technologies. Bridging the gap will require business proof, more than scientific pizazz. Here’s how we think investors should start thinking about the future of AI in healthcare across four broad areas.

Research and development: AI could potentially be used to improve success rates for drugs in clinical trials. However, this will take years. Even if AI does eventually help boost drug-development success rates, it might not create competitive advantages. If the technology is adopted across the sector to speed time to market, the competitive benefits will diminish, and pricing may be pressured. Expect plenty of PR in this area, but it may not turn into profitability. 
 Clinical trials: The logistics of clinical trials are cumbersome. Companies must find the right sites, with the right pool of patients, as fast as possible. We think AI could help companies find clinical sites that enroll patients faster for trials, and identify underperforming sites, to help rectify them quicker. 
 Commercial development: Even successful drugs face big hurdles to get to market. AI could help companies identify doctors and specialists who might be prime candidates for a new product. It could also help companies target the most effective events for generating a buzz around a new drug. This might not sound as exciting as using AI for R&D, but it is an essential element of the business formula for any pharmaceutical company. 
 The human experience: Most consumers won’t know or care whether a drug trial is accelerated by AI. But every patient wants to get the best diagnosis from their doctor. We think AI could make a huge difference here. Imagine a smart physician’s AI assistant that can help a doctor zoom in on a rare disorder that a patient might have based on a given set of symptoms. These are the types of tangible benefits that consumers will be willing to pay more for—and can help contribute meaningfully to the bottom line of healthcare providers.

In all these areas, we believe AI’s success will be measured by its ability to produce better healthcare outcomes. For example, UnitedHealth Group says AI can help reduce the time taken to turn data into insights, enabling employers and insurers to better understand all the factors impacting a person’s health. When implemented strategically, this can lead to better healthcare decision-making, and lower costs for healthcare businesses.

Companies like Veeva Systems, based in the US, and Icon, based in Ireland, are already helping to introduce AI in commercial tools, with more advancements expected on the clinical side as well. Intuitive Surgical, which manufactures robotic surgical systems, collects data from millions of procedures to help address anomalies and complications. Google and Northwestern Medicine are working on an AI model that may be capable of detecting lung cancer earlier than current diagnostic tools, increasing the chances of effective treatment.

How Can Investors Evaluate AI in Healthcare? 

Companies that put cash to work by investing in innovation are signaling efforts to secure consistent long-term profitability. But investors shouldn’t try to predict which AI initiatives will be transformative. We believe investors in healthcare companies must always stay focused on business—not science. Just as we apply this principle to drug development, which is notoriously difficult to predict, we don’t think investors have any advantage in forecasting how AI technology will shape the future of healthcare.

The history of disruptive technology is littered with failure. When the dot-com boom dazzled investors, countless early darlings died on the vine. Yet the technology itself eventually transformed the world we live in beyond recognition and spawned many new profitable industries and businesses.

Similarly, the AI revolution will take time, and will progress in fits and starts. But technological wizardry doesn’t equal business success. In fact, if a successful AI application becomes commoditized, it could even reduce profitability. When a healthcare company unveils a shiny new robot, investors must ask: how will it make money? How long will it take to get to market? What’s your competitive strategy versus peers?

Keeping these questions front and center is crucial to navigating the AI craze. Investors in healthcare companies should always focus on durable businesses that reinvest above their cost of capital, in our view. If a company with these attributes also deliver on a promising AI plan, investors will benefit further. But if the AI initiative fails, investors will still have a profitable business as a cushion.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams and are subject to revision over time.

References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AB. The specific securities identified and described do not represent all of the securities purchased, sold or recommended for the portfolio, and it should not be assumed that investments in the securities identified were or will be profitable.

Learn more about AB’s approach to responsibility here

View the 2022 Sustainability Report

TAMPA, Fla., June 13, 2023 /3BL Media/ – Crown Holdings, Inc. (NYSE: CCK) (Crown) (www.crowncork.com) has published its 2022 Sustainability Report to share progress against its Twentyby30™ sustainability strategy and related achievements during fiscal year 2022. Crown’s comprehensive Twentyby30™ program includes 20 measurable sustainability goals to be completed by or before the end of 2030, set against a 2019 baseline. This year’s report, titled “Progress in Motion,” emphasizes Crown’s continued progress in several key areas of the program, its proactive execution plan and examples of internal and external collaboration to advance toward a more sustainable future.

“The goal of our Twentyby30™ program has always been to further embed sustainability into our global business practices and make meaningful reductions to our impact on the planet within this decade,” said Tim Donahue, President, CEO & Chairman of the Board at Crown. “Achieving our aggressive goals requires partnership across our Company and our industry, thoughtful strategy and a willingness to continue to make progress against those goals. Our 2022 Sustainability Report shares our progress and evidences our commitment to transparency with internal and external stakeholders.”

Some of the tangible advancements the Company has made toward its Twentyby30™ program goals (as of December 31, 2022) include:

Climate ActionCrown has achieved a 12% reduction in Scope 1 and Scope 2 GHG emissions, which is 24% of the way toward the Company’s goal of a 50% combined reduction by 2030.34% of Crown’s total electricity used in 2022 was generated from renewable resources. This achievement means the Company is 45% of the way toward its program goal to source 75% renewable electricity by 2030.Resource EfficiencyCrown is 8% of the way toward its 2030 goal of replenishing 100% of water consumed from high scarcity risk watersheds back to those watersheds.Crown signed onto the United Nation’s CEO Water Mandate, which offers a powerful avenue for companies to collaborate to address urgent water challenges related to scarcity, quality, governance and access to water and sanitation. Crown is committed to supporting collective action to replenish 1,000 watersheds.Optimum Circularity – Crown has reduced the overall global average standard (12oz or 330ml) can weight by 6.44%, which is over 60% of the way toward the Company’s goal of a 10% reduction by 2030.Working Together – 44% of Crown’s new recruits in their executive population were female, which was a 38% increase from 2019.Never CompromiseOver 60% of Crown’s R&D efforts are focused on sustainability improvements, surpassing the stated goal of 50% by 2030.By the end of 2022, Crown has assessed 75% of its core raw materials and core service suppliers by spend for compliance with Crown’s Responsible and Ethical Sourcing policy, which far exceeds its 2025 goal.

“Sustainability is top of mind for our Crown team members every day, and we are proud to be on target to meet our Twentyby30™ goals and initiatives,” said John Rost, Ph.D., Vice President, Global Sustainability and Regulatory Affairs at Crown. “Due in part to its inherent sustainability attributes, metal packaging continues to garner increased consumer demand, which fuels our efforts toward achieving our Twentyby30™ goals through measurable and achievable steps forward. We are constantly inspired by the people of Crown, in all settings and in all parts of the world, who keep us moving forward on our sustainability journey, and we look forward to our continued collaboration and success.”

The report is available on the sustainability section of Crown’s website. It has been prepared in accordance with the Global Reporting Initiative (GRI) Core Standard and adheres to the Ten Principles of the United Nations Global Compact (UNGC). The report maps Crown’s progress to indicators defined by the Sustainability Accounting Standards Board (SASB) Containers & Packaging Standard and key United Nations Sustainable Development Goals (SDGs). The Company’s climate reporting also follows the guidelines of the Task Force on Climate-Related Financial Disclosures (TCFD). The 2022 report includes the Company’s GRI index as well as its SASB and TCFD disclosures.

Crown’s 2022 Sustainability Report received independent assurance from Lucideon CICS Limited related to its total 2022 data for GHG emissions (Scope 1, 2 and 3 categories) and 2022 water usage data. Lucideon also provided GRI verification to the GRI Core Index, Limited Verification.

About Crown Holdings, Inc.

Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Tampa, Florida. For more information, visit www.crowncork.com.

For more information, contact sustainability@crowncork.com.

For editorial inquiries: Emily Hogan, Account Supervisor, FINN Partners;
Email: emily.hogan@finnpartners.com

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of federal securities law. These forward-looking statements involve a number of risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this report or the actual results of operations or financial condition of the Company to differ are discussed under the caption “Forward Looking Statements” in the Company’s Form 10-K Annual Report for the year ended December 31, 2022 and in subsequent filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

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By Nestor Mato

“Diverse talent is essential to serving a diverse customer base.”

The words are from Bibiana Gomez, who serves as business liaison for Regions’ diversity, equity and inclusion networks.

Regions Bank strives to have a workforce that reflects the communities we serve. We encourage those with different ideas to speak up.

Bibiana Gomez, DEI network business liaison at Regions

These networks are connecting colleagues across Regions Bank’s footprint and bringing more voices to the table. In turn, that better positions Regions to be the bank of choice for people and businesses representing diverse backgrounds.

Consider the diverse markets Regions serves – vibrant, thriving communities from South Florida all the way to Middle Tennessee, over to major cities in Texas, and far beyond.

Regions’ business is healthier, stronger, and better able to make an impact when the bank is in tune with the people who make up its markets.

“Regions Bank strives to have a workforce that reflects the communities we serve,” Gomez added in this recent editorial published by the South Florida Business Journal. “We encourage those with different ideas to speak up.”

And when that happens, Regions furthers its focus on serving as a trusted bank for all.

Take a moment to learn more here.

Check out some additional Doing More Today articles reflecting the many benefits of a strong commitment to diversity, equity and inclusion.

In the Limelight: Leaders in DiversityGreater Connections, Greater Belonging: Regions DEI NetworksArt and Understanding: Regions Bank Celebrates Diversity Awareness MonthLeading Supplier Diversity into the Future

If you spend any time on social media, you’ve probably seen the memes about companies offering their burned-out workers a pizza party. The employees feign joy — as if a few free slices and sodas will make up for long hours, muddled communication, disengaged leadership or having to commute to the office. What employees really want is good compensation; and then, work-life balance. And they also want to feel a sense of purpose at work — whether that’s a personal purpose or being able to say they work for a company that makes the world a better place. Continue reading at SustainableBrands.com…