The Carbon Cost of Care:
Why Decarbonising Healthcare Can’t Wait.
Australia’s healthcare system is essential, but it’s also a significant contributor to climate change. According to The Lancet Planetary Health, the sector accounts for approximately 7% of Australia’s total carbon emissions, spanning hospitals, transport, manufacturing, and waste.
As the country targets net zero by 2050, and legislates interim emissions cuts of 43% by 2030 (Prime Minister’s Office), the health industry is under growing pressure, from governments, investors, and patients, to decarbonise rapidly and credibly.
A Turning Point for Healthcare
In 2023, Australia launched its National Health and Climate Strategy, officially recognising climate change as both a public health threat and a healthcare sector responsibility. The strategy calls for action across climate resilience, emissions reduction, and sustainable procurement.
States and territories have followed suit with hospital infrastructure upgrades, EV trials, and energy audits. Internationally, initiatives like the NHS and U.S. Department of Health and Human Services have introduced supply chain carbon reporting, potentially foreshadowing similar compliance in Australia (World Economic Forum).
Where Emissions Are Hiding
Most healthcare emissions come not from hospital electricity, but from the supply chain.
Research in the Medical Journal of Australia estimates that 50% to 75% of emissions are Scope 3, indirect emissions from medical devices, pharmaceuticals, logistics, packaging, and capital works.
Key drivers include:
- Production and disposal of medical devices and consumables
- Pharmaceutical manufacturing and distribution
- Cold-chain shipping and single-use packaging
- Patient and staff travel
- Freight and logistics
- Capital projects and infrastructure
The intersection of high clinical standards and material intensity presents a tough challenge, but also an opportunity for leadership.
What’s Holding Us Back?
Despite increasing focus on sustainability, major barriers persist:
- Fragmented data and accountability
- Procurement focused on short-term cost, not environmental impact
- Sustainability not embedded in clinical governance
- Lack of national benchmarks and KPIs
The awareness is there. What’s missing is system-wide implementation.
Solutions Emerging from Within
The good news? Progress is being made across the industry.
In 2023, the Australian Healthcare & Hospitals Association (AHHA) launched the Sustainability Accelerator Tool (SAT) to help health organisations move from intention to action.
“Healthcare systems are impacted by climate change, and hospitals significantly contribute to emissions. SAT offers tailored support to leaders of hospitals and healthcare services, to facilitate implementation of the national strategy,” said AHHA Chief Executive Ms Kylie Woolcock.
Logistics as a Leverage Point
Healthcare logistics is increasingly a lever for decarbonisation, with leaders investing in carbon transparency, reusables, and data-driven emissions tracking.
“At Smartways Logistics, we recognise that sustainability in healthcare isn’t just a corporate responsibility, it’s a global imperative. That’s why we’ve embedded carbon transparency into every delivery we make. By providing real-time emissions data and regular collated reporting, we empower procurement teams to consider environmental impact alongside cost and urgency, helping them meet both compliance obligations and climate commitments without compromising on delivery accuracy,” says Joe Taylor, CEO, Smartways Logistics.
“While we are empowering our customers with deep data on their supply chain emissions, we also offset 100% of the output, at no pass on to our clients, eliminating the argument of sustainability versus affordability,” Mr Taylor went on to say.
Industry Collaborations Creating Impact
Suppliers and manufacturers are also stepping up.
“Boston Scientific is advancing its 2030 carbon neutrality goal through a strategy focused on cutting energy use, converting to renewables and compensating for remaining emissions,” says Joseph Montgomery, Associate Supply Chain Director ANZ at Boston Scientific.
“In 2024, Boston achieved 100% renewable electricity at key manufacturing and distribution sites, recycled 75% of solid and non-hazardous waste at key manufacturing and distribution sites and had 72% of our real estate independently certified for energy efficiency,” Mr Montgomery added.
Jonathon Haydn-Evans, VP Regional Sales APAC at healthcare specific packaging group, Envirotainer noted. “At Envirotainer, our mission is ‘Enabling global access to pharmaceuticals.’ As part of that mission, we are committed to building a sustainable and resilient cold chain ecosystem in close collaboration with our customers. By continuously innovating our reusable, temperature-controlled solutions and expanding our global circular network, we help healthcare providers reduce waste and emissions, without compromising patient safety.”
The Role of Accreditation
To support this transformation, programs like Climate Active, the Australian Government’s carbon-neutral certification scheme, provide a verified path to climate leadership.
Several healthcare organisations and supply partners have achieved certification, demonstrating that measurable, auditable emissions reductions are not only possible, but commercially viable.
From Intention to Action
If healthcare is to meet its moral and environmental responsibilities, sustainability must be embedded across governance, clinical care, procurement, and operations.
Key actions include:
- Choosing certified, low-carbon suppliers
- Building circular product models and reuse systems
- Embedding emissions data in RFPs and procurement
- Reducing reliance on single-use packaging
- Including Scope 3 emissions in net zero planning
- Aligning environmental metrics with clinical safety and quality
The tools exist. The leadership is emerging. What’s needed now is sector-wide coordination and commitment.
Join the Conversation
This article was developed with contributions from organisations across the Australian healthcare ecosystem, including logistics, manufacturing, packaging, and accreditation partners.
If your organisation is working to reduce emissions or improve supply chain sustainability, we’d love to collaborate or hear your story.
Steve Cheetham
Marketing Director | Smartways Logistics
[email protected]
