3 lessons from partnering to reduce scope 3 emissions in healthcare

In a world increasingly impacted by climate change – and with 2023 the hottest year on record – we all have a responsibility to urgently step up and help create low-carbon, circular and resource-efficient economies and societies.

The key question is: How can we scale climate action fast enough? It seems everyone is struggling with scope 3 emissions, those not produced by the assets a company owns or controls but that they indirectly affect through their value chain. In the case of hospitals, for example, that might mean emissions from the medicine, food, equipment, and waste treatment services they use.

Scope 3 emissions from global supply chains and the use phase of products typically represent the lion’s share of total value chain emissions. On the upside, it may also be an indication that more and more companies are aware of their scope 3 impact, and are stepping up efforts to reduce them.

Healthcare systems globally suffer from climate change, but at the same time account for 4.4% of net global CO₂ emissions. That’s more than aviation or the shipping industry. Of these emissions, 71% of them are in scope 3 of care providers.

At Philips, a global health technology company, we work with care providers, practitioners, knowledge partners and suppliers to drive and scale sustainable practices and reduce our shared carbon footprint.

Recognizing the role of large corporations in leading the transition to a low-carbon economy, we have been rethinking our business models for many years, decoupling economic growth from environmental impact across the value chain. Indeed, our operations have been carbon neutral since 2020, and we have strict practices in place to ensure zero waste to landfill. We also continue to team up with partners to drive the production of renewable electricity across Europe and secure renewable electricity supply for our own operations.

But reducing scope 3 emissions will be the key to keeping global warming within bearable limits. That’s because shifting our focus to these emissions will have an expected impact that is seven times greater than simply lowering CO₂ emissions from our own operations. Here are three partnerships where we’ve worked on lowering scope 3 emissions, along with some lessons we learned throughout the process.

While these initiatives showcase exemplary results, companies must elevate their climate action beyond the operational level to a strategic focus – from the outset – on innovation and the development of scalable, low-carbon solutions, including low-carbon supply chains.

We also believe that buyers of health technology have a major role to play in driving green purchasing reforms and raising minimum standards, thereby increasing recognition of the value of supplier sustainability commitments.

And finally, we need to pay continued and urgent attention to harmonizing ESG reporting standards, while keeping things practical, meaningful and actionable.

No single party has all the answers or can do it on their own. We urgently need to explore new and complementary partnerships across value chains to decarbonize industries like healthcare for the generations to come. With increasing customer demand and stringent environmental legislation on the way in many countries, it makes good business sense to stay ahead of the curve.