Government joins forces with US and UK to decarbonise supply chains in pharmaceuticals and medical technologies

ESG: The Albanese Government signed a public statement of collaboration with the United States and United Kingdom to decarbonise healthcare supply chains.

The health system is currently responsible for around 5% of Australia’s carbon emissions. Many medicines and health technologies used in Australia are imported from overseas. It is estimated that these global supply chains account for around 75% of the Australian health sector’s carbon footprint.

Following the release of the National Health and Climate Strategy at the 28^th United Nations Climate Conference (COP28) in Dubai in 2023, Australia has signed a public statement of collaboration to align healthcare procurement requirements and accelerate the decarbonisation of global healthcare supply chains.

Assistant Minister for Health and Aged Care, Ged Kearney MP, said “Australia needs a health system that is prepared for these challenges. Addressing the health impacts of climate change requires everyone onboard, it requires international collaboration. Australia is stepping up and joining the UK and US in accelerating the decarbonation of our health systems and supply chains.

“Reducing carbon emissions from the production and supply of healthcare goods and services is a very effective way to make healthcare greener.”

The public statement is an initiative led by the National Health Service in England and the United States Department of Health and Human Services, and other countries that have signed include Ireland and Norway.

The collaboration will see Australia participate in discussions about green procurement and, in particular, on two main areas: getting suppliers to disclose their carbon emissions and setting targets for reducing emissions.

Director of the Office of Climate Change and Health Equity, United States Department of Health and Human Services, John Balbus, said “This type of cooperation is critical to accelerating our efforts to reduce the significant emissions associated with the health sector’s global supply chain.”

Chief Sustainability Officer, National Health Service England, Chris Gormley, stated “The NHS net-zero supplier roadmap outlines the changes we’re introducing to help suppliers align with our net-zero ambition, and we welcome work with colleagues in the USA, Australia and other countries to consider their own engagement with suppliers on this important issue.”

There is strong support from the health workforce for reducing health system emissions, with the government working with states and territories to develop or strengthen green healthcare procurement policies.

The announcement contributes to two of the National Health and Climate Strategy’s objectives, including building a sustainable, high-quality, net zero health system, as well as collaborating internationally.

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