Uniting Healthcare Forces: Transforming Supply Chains, Reducing Emissions

Summary: The Healthcare environmental footprint is closely linked to its supply chains, where materials, equipment, and services contribute substantially to carbon emissions. By uniting forces with suppliers, logistics partners, and regulators, healthcare organisations can streamline procurement, embrace circular models, and promote sustainable practices that reverberate across the entire value chain. This collaborative movement not only reduces carbon output but also fosters innovation, enhances cost-efficiency, and supports better health outcomes for patients and the planet alike.

Keywords: Collaborative procurement; Sustainable supply chains; Scope 3 emissions; Circular healthcare; Supplier engagement; Environmental impact reduction.

Introduction: A New Era of Sustainable Collaboration

Healthcare systems around the world are facing a pressing challenge: the urgent need to reduce their environmental footprint. While many organisations have already made commendable efforts to cut energy usage, switch to renewable resources, and minimise direct emissions, a significant share of their environmental impact still resides deep within their supply chains. In fact, the vast majority of healthcare’s carbon footprint – a staggering 71% – originates from the production, transport, and disposal of goods and services. This includes everything from medical devices and pharmaceuticals to hospital furniture and office supplies.

In order to address this challenge, healthcare organisations are embracing a powerful and far-reaching approach: collaboration. By working hand-in-hand with suppliers, distributors, manufacturers, policymakers, and waste management experts, healthcare providers can ensure that sustainability principles and carbon reduction targets are embedded at every stage of the supply chain. Such collaborative strategies not only align with upcoming governmental regulations but also help reduce operational costs, enhance resilience, and protect public health over the long term.

As we move towards a net-zero future, healthcare leaders are starting to recognise that targeting their Scope 3 emissions – the indirect emissions produced by suppliers and other partners throughout the value chain – can have a more profound impact on overall environmental performance than simply tackling direct emissions. Research suggests that reducing these indirect emissions yields results that are seven times more impactful than merely curbing a healthcare organisation’s direct emissions. By leaning into this form of strategic cooperation, providers can rapidly advance on their climate goals, delivering tangible results for their patients, communities, and stakeholders.

Understanding Scope 3 Emissions in Healthcare

Carbon emissions fall under three categories: Scope 1, 2, and 3. Scope 1 covers direct emissions from sources owned or controlled by the organisation, such as on-site fuel combustion. Scope 2 involves indirect emissions from the generation of purchased energy. Scope 3 encompasses all other indirect emissions that occur in the organisation’s value chain, including those produced by suppliers, transportation, waste disposal, and end-of-life product processing. In healthcare, where the procurement of complex medical devices, consumables, and services is common, Scope 3 emissions dominate the carbon footprint.

By addressing Scope 3 emissions through collaborative measures, healthcare organisations can more effectively control their environmental impact. This requires open communication and data sharing with suppliers, active engagement in product design decisions, and the pursuit of innovative, circular approaches that reduce waste and extend product lifecycles. The realisation that there is far more to gain by targeting Scope 3 provides an impetus for cooperative efforts aimed at slashing carbon outputs and building a more resilient, sustainable healthcare system.

The Rising Importance of Supplier Engagement

One of the most vital pillars of this new collaborative approach is supplier engagement. Healthcare organisations rely on a vast and often complex network of suppliers for crucial goods and services, from critical surgical equipment and pharmaceuticals to linen, catering, and facility management. To reduce supply chain emissions, it is essential to work closely with these partners, setting clear sustainability expectations and incentivising them to meet measurable environmental standards.

According to the 2024 Future Health Index report, a significant shift in procurement strategies is on the horizon. Over the next three years, 41% of healthcare leaders plan to choose suppliers with sustainable targets and initiatives, and an equal percentage plan to implement sustainable procurement strategies, including circular equipment. This trend signals a major transformation in how healthcare systems select their partners and emphasises the need for open dialogue, joint action plans, and accountability measures.

Companies such as Philips exemplify this approach, working directly with their suppliers to ensure they adopt cleaner technologies, responsibly source materials, and meet rigorous environmental criteria. By encouraging sustainable innovation at the supplier level, healthcare organisations can catalyse positive change across the entire value chain rather than limiting improvements to their own operations. Through close engagement with suppliers, healthcare providers can drive a collective shift towards greener, more efficient practices that minimise waste, carbon output, and resource consumption.

Regulatory Drivers and Global Policy Momentum

Governments and regulatory bodies worldwide are increasingly mandating stricter environmental standards for healthcare and other industries. The United Kingdom’s NHS, for instance, has set ambitious targets to achieve net-zero emissions by 2040 for its directly controlled emissions and by 2045 for its wider supply chain. Meeting these objectives will require close collaboration with suppliers and manufacturers to ensure products meet stringent environmental standards.

On a global scale, frameworks such as the Paris Agreement and the United Nations’ Sustainable Development Goals (SDGs) reinforce the urgency of transforming healthcare supply chains. International climate commitments, as well as emerging carbon accounting standards, encourage organisations to measure, report, and reduce their Scope 3 emissions. In turn, suppliers must step up and align their offerings with the environmental targets set by their healthcare clients.

As these regulations tighten and climate disclosure becomes a standard practice, healthcare organisations have a vested interest in working closely with their suppliers. Early engagement, joint target-setting, and proactive measures to minimise emissions not only help healthcare providers comply with the evolving policy landscape but also position them as leaders in sustainability. These steps enhance organisational reputation, patient trust, and competitive advantage in an increasingly eco-conscious marketplace.

The Power of Transparency and Data Sharing

Transparency is key to fostering collaboration and trust throughout the supply chain. Without a clear understanding of each supplier’s environmental footprint, it is challenging to identify the most impactful opportunities for emission reductions. Collecting accurate and detailed data on energy use, greenhouse gas (GHG) emissions, waste streams, and resource utilisation allows healthcare organisations to pinpoint areas for improvement and guide their suppliers towards cleaner, more efficient operations.

Supplier scorecards and sustainability audits are emerging as powerful tools for driving positive change. By assessing suppliers against standardised criteria, healthcare providers can measure their progress, highlight areas that need attention, and set clear benchmarks for improvement. Additionally, sharing best practices, case studies, and success stories encourages suppliers to learn from one another’s achievements and collectively raise the bar for environmental performance.

Digital platforms and advanced analytics are making it easier than ever to track and manage supply chain emissions. By integrating data from multiple sources, healthcare organisations can gain a holistic view of their footprint and identify carbon hotspots. In turn, suppliers benefit from these insights as they strive to optimise their processes, reduce waste, and invest in renewable energy sources. This virtuous cycle of data-driven improvement strengthens collaboration and makes the entire ecosystem more adaptable and sustainable.

Circular Economy Principles: From Linear to Circular Systems

A promising way to reduce emissions across the healthcare supply chain is to adopt circular economy principles. Rather than relying on the traditional linear model of “take, make, dispose,” circular approaches aim to extend product lifecycles, maximise resource efficiency, and minimise waste. By designing products for durability, refurbishment, and recycling, healthcare organisations can significantly reduce their raw material consumption and carbon emissions.

Refurbished medical devices are a prime example of circular strategies in action. High-value equipment, for example, MRI scanners and image-guided therapy systems, can be restored to as-new condition, offering a lower environmental impact and reduced costs compared to manufacturing entirely new units. This approach not only cuts emissions associated with raw material extraction and production but also mitigates waste by returning valuable resources to the supply chain.

The refurbished medical devices market is expanding rapidly and is expected to grow from $17.05 billion in 2024 to $30.78 billion by 2029. As healthcare providers embrace circular practices, suppliers and manufacturers are encouraged to redesign their products with sustainability and modularity in mind. In doing so, they create equipment that is easier to maintain, upgrade, and eventually refurbish or recycle, achieving a continuous loop of value creation that slashes emissions throughout the supply chain.

Sharing Risk and Reward: Financing Green Transitions

Shifting to sustainable supply chains often requires upfront investments in technology, training, and infrastructure. These costs can present significant barriers for smaller suppliers or those new to sustainability principles. To overcome these hurdles, healthcare organisations and their suppliers must embrace financial arrangements that share both risk and reward.

One approach is to establish long-term purchasing agreements that guarantee demand for suppliers investing in greener processes. These contracts give suppliers the confidence to invest in cleaner technologies, knowing they have a stable customer base that values sustainability. By providing financial stability, healthcare organisations encourage their partners to meet environmental targets without fear of lost revenue.

Additionally, healthcare providers can collaborate with financial institutions, government agencies, and industry groups to secure grants, low-interest loans, or other forms of financing. These resources can help suppliers make the necessary capital investments to reduce their carbon footprint. In turn, suppliers can pass on cost savings achieved through efficiency gains, enabling healthcare organisations to benefit from cleaner products at competitive prices. This cycle of shared benefits strengthens relationships, fosters trust, and reinforces long-term collaboration.

Logistics and Distribution: Cleaner, Smarter Transport

Transport and distribution are critical links in the healthcare supply chain, contributing significantly to overall emissions. Traditional logistics models, reliant on fossil-fuelled vehicles and inefficient delivery routes, generate unnecessary carbon output. To cut these emissions, suppliers and healthcare organisations must work together to optimise transportation networks and adopt cleaner mobility solutions.

Consolidation of shipments, for example, can reduce the number of vehicles on the road. By planning delivery routes more strategically and collaborating with logistics providers, healthcare organisations can minimise unnecessary journeys and streamline the distribution of goods. Partnerships with freight companies that prioritise low-emission vehicles and alternative fuels, such as electric vans or biofuels, further decrease the environmental impact of transportation.

Innovative digital technologies are also transforming the way healthcare goods are moved. Real-time tracking, IoT sensors, and data analytics enable organisations to monitor supply chain flows, identify inefficiencies, and recommend improvements. With greater visibility into the entire logistics network, healthcare providers can work closely with suppliers to cut lead times, reduce inventory, and ensure that products arrive when and where they are needed – all while lowering overall emissions.

Waste Management and Circular Loops

Waste disposal is a critical dimension of healthcare’s environmental footprint, generating emissions through incineration, landfilling, and the breakdown of synthetic materials. By collaborating with waste management companies and suppliers, healthcare organisations can develop circular loops that extend product lifecycles and reduce emissions at the end of use.

Strategies include investing in reusable surgical instruments, encouraging suppliers to provide take-back services for used equipment, and implementing recycling programmes for packaging and consumables. When healthcare providers work hand-in-hand with their suppliers to ensure that products are designed with end-of-life considerations in mind, they can close the loop and minimise waste.

The involvement of waste management partners in the early design stages of medical products can inform choices of materials, ensuring they are easier to recycle or refurbish. Such cooperation aligns the entire supply chain towards common sustainability goals, reducing the burden on landfills, shrinking carbon footprints, and establishing a regenerative model that prioritises long-term resource security.

Educating and Empowering the Workforce

Building a culture of sustainability within the healthcare supply chain relies not only on technological improvements and financial incentives but also on the knowledge and commitment of the people involved. Training and education play a crucial role in ensuring that all stakeholders – from procurement officers and clinicians to suppliers and logistics partners – understand the importance of reducing emissions and the steps required to achieve it.

Healthcare organisations can host workshops, webinars, and training sessions to help suppliers and their own staff comprehend sustainability goals, regulatory requirements, and best practices. By spreading knowledge and encouraging open dialogue, healthcare providers empower their suppliers to innovate, experiment, and collaborate in pursuit of shared environmental targets.

At the same time, suppliers can educate their customers about the environmental implications of product choices. By explaining the life cycle impacts of different devices, materials, and packaging options, suppliers empower healthcare organisations to make informed procurement decisions. This two-way flow of information nurtures a collaborative environment in which all parties learn from each other and push the envelope for improved sustainability.

Engaging Clinicians and Patients in Sustainability Efforts

Whilst supply chain emissions may feel like a backstage concern, it is essential to recognise that they ultimately affect the quality of healthcare services and the wellbeing of patients. By engaging clinicians and patients in sustainability initiatives, healthcare organisations can create powerful momentum for change.

Clinicians, for instance, can advocate for products that are both clinically effective and environmentally responsible. They can help steer procurement choices towards equipment that reduces waste, energy use, and emissions. Patients, meanwhile, increasingly value healthcare providers that commit to environmental stewardship, and their preferences can encourage suppliers to align their practices with sustainability standards.

By broadcasting the collaborative efforts being made to reduce supply chain emissions, healthcare organisations demonstrate their commitment to holistic, patient-centric care. Patients and communities benefit not only from top-quality medical services but also from a healthcare system that safeguards the planet’s resources, preserving them for future generations.

Technology and Innovation: Pioneering New Solutions

As healthcare supply chains become more sophisticated, new technological solutions are constantly emerging to help tackle emissions. From advanced materials and sustainable packaging to AI-driven analytics and predictive modelling, innovation can unlock efficiency gains and novel ways of managing resources.

One area of rapid progress is the use of telemedicine and digital health tools, which reduce the need for physical equipment and cut the emissions associated with travel, distribution, and storage. By reducing the quantity of consumables required and streamlining the flow of information, digital health solutions have a positive knock-on effect across the entire supply chain.

Moreover, innovations in materials science are enabling the development of biodegradable plastics and coatings, recyclable packaging, and modular medical devices that are easier to repair or upgrade. By encouraging suppliers to invest in research and development, healthcare providers help cultivate a fertile ground for sustainable breakthroughs, paving the way for cleaner, greener supply chains that benefit everyone.

Setting Science-Based Targets and Measuring Progress

A critical aspect of effective collaboration is setting clear, evidence-based sustainability targets that can guide decision-making and measure progress. Science-based targets help ensure that healthcare organisations and their suppliers align their emission reduction goals with the global effort to limit temperature rise and combat climate change.

By committing to transparent, quantifiable targets, healthcare providers send a powerful message to suppliers: sustainability is no longer optional, but an integral part of doing business. This clarity drives continuous improvement, encouraging suppliers to innovate, optimise processes, and adopt new technologies that reduce emissions. It also makes it easier for healthcare organisations to compare suppliers, rewarding those that demonstrate a strong commitment to environmental responsibility.

Regular reporting and performance reviews keep both healthcare organisations and suppliers accountable. By tracking key metrics such as carbon intensity, resource efficiency, and waste reduction over time, supply chain partners can identify trends, highlight successes, and recalibrate their strategies where necessary. This evidence-based approach fosters trust, enables effective decision-making, and ensures that collaborative efforts stay on course.

Success Stories: Building Momentum and Celebrating Achievements

There is growing evidence that collaboration in reducing supply chain emissions delivers tangible benefits. Healthcare organisations that have partnered closely with their suppliers often report reduced operational costs, improved resource efficiency, and enhanced reputations. As more success stories emerge, other organisations gain the confidence to embark on their own sustainability journeys.

Philips, mentioned earlier, exemplifies how proactive supplier engagement can yield positive results. By insisting on sustainability standards and supporting suppliers in meeting them, Philips has helped create a network of partners who share environmental values. The company’s leadership in this area inspires others to follow suit, strengthening the collective effort to slash healthcare supply chain emissions.

Another example might be a hospital trust that prioritises the procurement of refurbished equipment. By working with manufacturers who excel in refurbishment, the hospital reduces both emissions and capital expenditure. As word spreads about these positive outcomes, other healthcare organisations feel encouraged to replicate the approach, creating a ripple effect of sustainable innovation throughout the industry.

The Road Ahead: Nurturing Long-Term Partnerships

Creating a sustainable healthcare supply chain is not a quick fix; it demands long-term thinking, adaptive strategies, and enduring partnerships. As technology evolves, regulations change, and new sustainability challenges emerge, healthcare providers and suppliers must remain agile and committed to continuous improvement.

Building such long-term relationships is founded on trust, mutual respect, and a shared vision for a net-zero future. By collaborating on product design, logistics solutions, financing mechanisms, and waste reduction initiatives, healthcare organisations and their suppliers can co-create more sustainable supply chains that deliver lasting environmental benefits.

These strong partnerships also help insulate the supply chain from future shocks. As climate change accelerates, resource scarcity, extreme weather events, and disruptions to global trade will pose mounting challenges to healthcare delivery. Organisations that have established collaborative frameworks, diversified their supplier networks, and invested in circular models will be better equipped to navigate these uncertainties. Reducing emissions now is not only the right thing to do ethically, but it also enhances the resilience and adaptability of healthcare systems in the decades to come.

Conclusion: A Collective Mission for a Healthier Planet

As the urgency of climate action intensifies, healthcare organisations are recognising the immense value of collaboration as a tool to reduce supply chain emissions. By engaging suppliers, governments, waste managers, clinicians, and patients, the industry can accelerate its transition towards a more sustainable, circular model that reduces carbon footprints, protects public health, and safeguards the environment.

This collective mission does not end at the hospital doors; it extends through factories, warehouses, shipping routes, and recycling plants, creating a vast ecosystem working together to heal both people and the planet. Healthcare leaders who embrace collaborative strategies today will be the pioneers of a cleaner, greener future, demonstrating that cutting-edge medicine and environmental stewardship can walk hand-in-hand.

The movement towards sustainable healthcare supply chains is gaining momentum. Through transparency, data sharing, circular thinking, and robust partnerships, the sector will continue to innovate and adapt, ultimately achieving ambitious carbon reduction targets that benefit everyone. It is a journey of learning, iteration, and celebration – a testament to the power of human collaboration in safeguarding the world we share.