In Conversation with Cameron McPherson: putting ESG into practice

Regulators are undoubtedly raising the benchmark on quality standards and accountability. It’s no longer good enough to just talk about doing the right thing — providers must show it and demonstrate real progress. In short, ESG (environmental, social and governance) is now the sector’s licence to operate.

Yet too often, I’ve seen many aged care providers fall into the trap of treating ESG like a compliance checkbox with a framework that is ‘set and forget’, rather than integrating it into their long-term strategy and brand values. In turn, they miss the full benefits of a comprehensive ESG approach.

Rising expectations, tight budgets, regulatory pressures, outdated infrastructure and board fatigue are making it incredibly difficult for aged care providers to see past day-to-day survival, leaving very little room for long-term investment or strategic planning. However, by embedding a practical ESG framework, providers can ensure they meet regulatory standards, as well as meeting the expectations of residents, staff and the broader community.

The opportunity

A meaningful ESG framework means making ESG principles part of the day-to-day decisions to enable valuable connections, trust and safety with residents and their families, while also driving long-term financial value through improved reputation and operational efficiency.

It’s more than a framework. It is about creating opportunities for residents to feel purposeful and connected to the wider community. One example is our involvement with Backpacks 4 Vic Kids, a program that provides essential items to children entering out-of-home care, often with little time to prepare. Each month, residents at Casey Manor and Casey Aged Care collect and make items, and our care teams help to pack and deliver the backpacks, filled with everything from toothbrushes and clothes to colouring books and toys.

What might appear to be a small initiative has an outsized impact. Children feel supported at a vulnerable moment, while our residents experience the pride and joy of contributing meaningfully to the lives of others. This is the essence of ESG in practice: It’s about building human connection, fostering belonging and making a tangible difference in people’s lives.

A practical roadmap

At MACG, at the heart of our ESG approach is the resident experience and fostering a sense of belonging while focusing on genuine outcomes.

Technology supports all areas of our framework, helping to make a tangible difference to the daily lives of our residents by driving engagement, and greater inclusion across our homes. Innovations include TeaTime, an app that helps families, aged care residents and carers to stay connected; Abi, a humanoid robot that engages and entertains residents; Project Ciao, a video conferencing initiative that links residents with homes around the world; and immersive technologies like Sensory Wizard and SiLVR Adventures. We continue to track adoption and the reach of these tools across our homes.

Our framework is guided by measurable targets and regular monitoring, enabling continuous improvement and tangible outcomes. We align with Australia’s Aged Care Quality Standards, track our progress to keep pace with reform and we benchmark our work against university and industry partners to stay ahead of best practice for the aged care sector.

Where to start

Embedding an effective ESG framework within our business and day-to-day operations hasn’t been without its challenges, especially in an industry marked by uncertainty amid the aged care reform. So how can providers begin to embed ESG in a meaningful and practical way?

Here are a few things to consider:

1. Treat connection like a core clinical asset, not a ‘nice to have’. Connection has a direct impact on so many things in aged care, including mental health and overall wellbeing. It needs to be treated with the same importance as other areas of care and be funded accordingly.
2. Co-design your ESG framework with residents, families and your workforce. Your best ideas might not be on the balance sheet but can still drive long-term value.
3. Pilot, measure, scale — avoid framework paralysis. Start small, learn quickly and expand what works. Try a small, manageable ESG initiative, track outcomes to understand what’s working and what’s not. Don’t risk doing nothing while trying to get the perfect framework.
4. Leverage technology to strengthen ESG outcomes. Again, start small — test what works and scale to maximise impact. Technology innovation is most impactful when it is deeply human-centric and thoughtfully integrated into the care ecosystem.
5. Build flexibility into the framework. Make sure the framework can evolve as regulations and priorities change so you can stay the course amid lots of uncertainty with repeated changes to the aged care reform. By doing this, you can respond quickly and remain constant.

Having real impact

Embedding an ESG framework doesn’t need to be complex, but it needs to have real impact. At its core, ESG is about building a more sustainable and people-centred future for aged care to improve the quality of care for older Australians; however, no provider can achieve this on their own. This is why collaboration across the aged care sector is so important, and sharing what works so we can learn from each other. To build tomorrow’s aged care, we need to work together as an industry to make it happen.

Cameron McPherson has almost two decades of experience in healthcare leadership, specialising in enhancing staff experience and evolving innovative care environments. Believing in the importance of having a strategic vision and with a deep commitment to enhancing the quality of life for seniors, Cameron joined Medical & Aged Care Group (MACG) more than 17 years ago and has been the CEO since 2020.

Image: Supplied