Climate governance & reporting trends of the ASX50 in 2024: Healthcare

Reporting on emissions

Healthcare entities reported that they were taking steps to limit their greenhouse gas emissions, with some setting long term targets to achieve net zero emissions. For example:

• one biotechnology entity reported a target to reduce 40% of its scope 1 and 2 emissions by 2030, against a baseline of its average annual emissions across fiscal years 2019-2021;
• one medical device entity reported that it was aiming to have net-zero carbon emissions in its operations by 2030 and across its value chain by 2050;
• one multinational provider of hospital and healthcare services reported that it was aiming to reduce its scope 1 and 2 emissions by 42% by 2030, against a 2020 baseline, and achieve net zero greenhouse gas emissions across its value chain by 2040; and
• one medical diagnostic services provider reported that it was aiming to reduce its scope 1 and 2 greenhouse gas emissions by 43% by 30 June 2030 and achieve net zero by 30 June 2050.

The sustainability reports from these healthcare entities also reveal that they are generally on track to reach their long-term emissions targets. For example, one entity has reduced its scope 1 and 2 emissions by 70% from its 2019 baseline, primarily through the increased use of renewable energy at its manufacturing sites.

Others have similarly reported a decrease in greenhouse gas emissions against their baselines. Only one of the healthcare entities reviewed reported an increase in its scope 1 and scope 2 emissions for 2023/24 - this was due to a change in methodology which meant that more accurate data was available.

Reducing emissions

Steps that healthcare entities disclosed they were taking to reduce their greenhouse gas emissions included:

• transitioning manufacturing sites to renewable energy;
• reducing the number of flights taken per employee;
• using environmentally friendly anaesthetic gases;  
• including sustainability criteria in all new procurement contracts;
• investing in energy efficiency projects, such as lower energy lighting and heating and cooling upgrades;
• investing in onsite renewable energy and storage;
• converting global fleet to hybrid and zero-emission vehicles;
• reducing, recycling and reusing waste from operations; and
• focusing on understanding, measuring and managing material scope 3 emissions, recognising that these are often the largest source of greenhouse gas emissions for organisations (with one entity reporting that more than 75% of their total emissions in 2024 were attributable to scope 3).

Global developments

In 2024, Australia, the United States and the United Kingdom jointly signed a public statement committing to collaborate on healthcare procurement requirements and the decarbonisation of global healthcare supply chains.^[3] Much of these carbon emissions may be attributed to manufacturing operations and supply chains. However, it is also recognised that this sector generates significant amounts of unrecycled waste through single-use disposal products and packaging.

As a result, healthcare entities and their key stakeholders globally are also focussed on their ESG commitments, with particular attention being paid to reducing carbon emissions and waste. Initiatives such as the Collective Healthcare Action to Reduce MedTech Emissions (CHARME) project aim to decarbonise the healthcare supply chain by bringing together leading organisations in a coordinated effort to mitigate the environmental footprint of this sector.^[4] Meanwhile, a number of major global entities in this sector have adopted and published climate-related targets, including Medtronic which has committed to achieving net zero by 2045.^[5]