With the United Nations Climate Change Conference (COP28) held in the UAE last year, the contribution of each sector to achieving a sustainable future was highlighted. The pharmaceutical and healthcare industries, the heart of global well-being, are no exception as they represent a major economic heavyweight and a direct lifeline for billions. These sectors have an exceptional ability – and responsibility – to lead a sustainable transformation.
Historically, healthcare-related industries have had a complex relationship with sustainability. Although they have provided remarkable innovations that have helped extend lives and improve the quality of human life, their extensive supply chains, energy-intensive operations, and waste production have raised environmental concerns.
According to a recent report from the World Economic Forum, healthcare is responsible for 4.4% of global emissions, which is much more per dollar of revenue than the automobile sector. To combat the adverse health consequences of the climate emergency, pharmaceutical companies need to expand access to healthcare globally and reduce greenhouse gas emissions through net-zero strategies.
The impact of climate change on and because of the healthcare industry is twofold. On the one hand, the climate is wreaking havoc on the tools that underpin industry, i.e. raw material production and the supply chain due to bad and destructive weather that directly impacts accessibility. Extreme weather systems, high temperatures, extreme cold, floods, etc., the pharmaceutical supply chain requires shipments to arrive at their intended destination in optimal condition to avoid delays that could impact the product. On the other hand, the emissions and carbon footprint of pharmaceutical manufacturing and the supply chain itself cause bad climate impacts as well.
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During the UN Climate Change Conference (COP27), research indicated that only 4% of biotech and pharmaceutical companies were aligned with the Paris 2030 climate targets, despite being a sector that ranks as one of the largest contributors to global CO2. In particular, a 2019 publication revealed that for every $1 million in pharmaceutical revenue, 48.55 tons of carbon dioxide equivalent (CO2e) are produced.
It is important to note that recent years have witnessed a shift. In the face of growing evidence of the impact of climate change on human health – from the spread of vector-borne diseases due to changing ecosystems to the consequences of extreme weather events on vulnerable populations – there is an increasing urgency for these industries to address their environmental problems. antiquities. We are already seeing decisions being taken to reduce these concerns. Consumers are driving this transformation with their voices. In 2021, a survey by GlobalData revealed that 43 percent of respondents identified environmental concerns as the key area the pharmaceutical sector must address. In this survey, 52 percent of respondents cited climate change as their most pressing concern.
A study cited by Euronews found that if the global healthcare sector were a country, it would be the fifth largest emitter of greenhouse gases. This has profound implications for how stakeholders view industry responsibility towards climate action.
Companies are beginning to re-evaluate their packaging strategies, adopting biodegradable materials and reducing excesses, potentially reducing thousands of metric tons of waste annually. Healthcare facilities, which traditionally consume large amounts of energy, have also increasingly adopted energy-efficient infrastructure and renewable energy sources, resulting in significant reductions in carbon dioxide emissions. Recognizing the environmental impact of raw material extraction, industries are moving towards sustainably sourced components and materials. Green chemistry is increasingly being examined and integrated into existing processes by the pharmaceutical sector, with an emphasis on designing products through processes that minimize environmental impacts and toxic waste.
Although these steps are laudable, they are still just the beginning. As government ministers, healthcare professionals, corporate decision-makers and members of the media debate our shared future at the UN Climate Change Conference (COP28), it is essential to highlight the role of sustainability in shaping an industry that treats not just people, but the planet. . Our only home.
So, what does the future of sustainability in healthcare hold?
Manufacturing, transportation, mobility and logistics technology is evolving faster than ever before, and most are taking environmental feedback and climate-related innovations seriously as part of this process. What is now a vision will quickly become a reality, and here we want to consider what that reality will look like.
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Sustainable healthcare has become a consumer standard
Medical devices, medicines and related materials will be produced in a manner that is environmentally responsible at its core, socially equitable as part of its mandate, and economically viable as part of its business decisions. This will include everything from greener production processes to sustainable raw material sourcing.
Potential investment indicators
Environmentally friendly packaging
As the production of single-use plastics becomes increasingly demonized and their use declines by consumers who are aware of their environmental impact, there will be a big push towards sustainable packaging alternatives, including biodegradable or recyclable materials. In the past, medical packaging was designed for open disposal dynamics in healthcare. Safety remains the primary goal of packaging. TRVST's current estimates are that about 25% of hospital waste is plastic. 1 As eco-friendly packaging becomes the norm, nearly a quarter of waste in hospitals around the world will be reduced.
Green chemistry
This includes designing products and processes that reduce or eliminate the use and generation of hazardous materials. In pharmaceuticals, green chemistry can lead to less waste and safer products. The EU Green Chemistry Support Program was launched for this purpose, offering several subsidies and financing programs under the EGD, to support the transition to a green economy. In February this year, the European Commission presented its Green Deal industrial plan for the net zero era with an initial investment of US$270 billion, providing a benchmark for other countries and regions to follow.
Energy efficient facilities
Manufacturing facilities are being modernized or designed from the ground up to reduce energy consumption. An example of this future can be seen today with Teva Pharmaceuticals, a global generic pharmaceutical giant, which recently partnered with Honeywell to improve energy efficiency. Teva reported a 24 percent reduction in absolute Scope 1 and 2 greenhouse gas emissions compared to 2019, putting it ahead of schedule to meet its 2025 target of a 25 percent reduction. Absolute Scope 3 greenhouse gas emissions also fell by 12 percent compared to 2020. In August 2023, AstraZeneca concluded a deal with Stratcraft, Europe's largest renewable energy producer. Under the deal, AstraZeneca will purchase 200 gigawatt-hours per year for 10 years, equivalent to about 80 percent of the company's total electricity needs at its research facility in Gothenburg and its plant in Södertälje, Sweden.
Sustainable sources
Companies are already working to ensure that raw materials are sourced from sustainable sources, especially for medicines derived from natural resources. The future is already shaping up, with industry leaders like GlaxoSmithKline leading the charge. The company is currently evaluating its supply chain to develop a mitigation plan as a participant in a Science-Based Targets for Nature trial run by the Science-Based Targets Network (SBTN). As part of the pilot, GSK has developed sustainable sourcing standards for substances such as lactose, gelatin, palm oil, paper and sugar, used in the company's medicines and inhalers, or as “adjuvants” in vaccines to help create a stronger immune response in vaccines. People receiving the vaccine. Many other products are used for packaging or in drug testing.
The future of sustainable healthcare is promising. Consumers are increasingly realizing that there is a huge demand for sustainable healthcare products, making it not only an environmental necessity but a competitive necessity, something companies must keep in mind if they want to be part of the sustainable lifestyle of these consumers in the future. They prepare themselves for.
Wastewater management
Growing concerns surrounding waste management in healthcare, especially in the GCC countries with increasing pharmaceutical manufacturing facilities, are taking center stage. Medical waste, from used needles to expired medications, when mishandled, can cause serious health risks. Non-infectious waste accumulates in large quantities, which may lead to soil and water contamination. Improper disposal of medications can result in them entering water systems, posing a threat to aquatic life, humans and the wider ecosystem for prolonged periods. Hospitals and clinics consume huge amounts of water for sanitation and patient care, depleting local water sources. This is particularly worrisome in regions such as the Gulf Cooperation Council countries where fresh water is scarce and reliance on desalinated water is high. Between 30% and 90% of certain oral medications end up in our rivers and soil, Euronews reports. The call to action at COP28 was clear: adopt sustainable practices to protect our environment and public health.
Companies can address wastewater management sustainably by incorporating innovative technologies, best practices, and proactive strategies. One approach is source reduction, refining manufacturing processes to reduce waste generation and adopting green chemistry principles. Advanced treatment techniques have also emerged as effective solutions. Membrane bioreactors (MBRs), which combine conventional activated sludge treatment with liquid-solid membrane separation, ensure efficient removal of contaminants. Another reliable method is to use activated carbon adsorption, which is known to effectively remove organic compounds from wastewater. Investing in on-site wastewater treatment plants gives companies more control over water quality and ensures compliance with regulatory standards. Ultimately, adopting a spirit of continuous improvement and staying up to date with the latest technologies and practices will put companies at the forefront of sustainable wastewater management.
Conclusion
After COP28, we have a lot to consider in the healthcare sector. Steps are being taken, but are they fast enough? Strong enough? Impressive enough? Or are concerted efforts toward sustainable health care simply superficial due to opposition from economic, financial, and regulatory stakeholders? Is innovation too slow, or too fast, limiting this slow-moving industry's attempts to ramp up climate-friendly initiatives?
The goal of COP28 Health Day was to build consensus on priority policies, investment in health systems, and obtain commitments from health and climate funders for the first tranche of funds for implementation. The industry is on the cusp of a sustainable future, and we look forward to strong, impactful decisions from this event and beyond, for patients, healthcare workers, pharmaceutical manufacturers and others.
