In Asia-Pacific’s dynamic healthcare landscape, where priorities often lie in driving innovative patient solutions and improving treatment accessibility, it can be difficult to integrate sustainable practices.
However, with climate-related hazards sounding global alarm bells, the facts are clear: climate change and human health are closely interlinked. The global health sector is responsible for nearly five percent of greenhouse gases, roughly equivalent to the annual emission from 514 coal-fired power plants. In South-east Asia, the healthcare sector across the region’s six countries alone contributes over 63 million metric tons to global carbon emissions each year.
Meanwhile, projections suggest a staggering $12.5 trillion in economic damage due to climate change’s impact on health by 2050. Catering to two-thirds of the global population, APAC’s healthcare landscape faces a myriad of challenges, including glaring variances in fundamental factors, such as access, quality, and manpower, with some areas experiencing acute deficits in these components. These issues are compounded by its diverse inhabitants and steadily growing ageing population.
With more frequently expected extreme weather events, healthcare systems are also projected to face an additional US$1.1 trillion (S$1.47 trillion) burden. Given these complexities, the challenge is to balance patient care and environmental stewardship, while ensuring businesses continue to thrive in a highly competitive environment.
The global healthcare industry’s significant carbon footprint is shaped by a few factors. The bulk of emissions are driven by the sector’s carbon-intensive supply chain, accounting for 71 percent.
The extensive network of resources required to produce medical equipment, pharmaceuticals, and other essential supplies involves energy-intensive processes, including sourcing raw materials, manufacturing, packaging, and distribution.
Energy consumption within facilities is another major reason behind the emissions.
These require vast amounts of energy to operate effectively, including electricity for lighting, heating, cooling, and powering medical equipment. The reliance on fossil fuels for energy generation doesn’t help.
Lastly, healthcare facilities generate vast amounts of waste. This has been exacerbated by the pandemic, which led to a regional increase in medical and hazardous waste materials, single-use materials, and the wastage of personal protective equipment. According to WHO, over 140 million Covid-19 test kits have been shipped worldwide, creating an estimated 731,000 litres of chemical waste.
While there lies a greater need for proper waste management practices in healthcare, balancing sustainable options for medical waste is often challenging in the face of stringent regulations and compliance liabilities. In parallel, balancing patient care with environmental stewardship poses a multifaceted challenge for businesses.
This is especially so in APAC, where basic healthcare is often overlooked. An astounding 1.6 billion people lack access to social health protection, according to the International Labour Organization.
While prioritising patient care is paramount, we are already seeing Asia-centric threats because of climate change, with potentially 250,000 additional deaths per year due to climate hazards between 2030 and 2050.
Private institutions and governments must begin adddressing key concerns. How will climate-linked economic costs be covered, and are healthcare facilities prepared for the influx of patients? The onus of patient health extends beyond advancing medical breakthroughs. It also involves driving sustainable initiatives to enhance patient well-being and mitigate fatalities.
For instance, air pollution is already an urgent issue. Four billion people in Asia experience levels of air pollution with high risks to their health, and four million deaths are expected each year due to linked diseases, such as asthma, cancer, pulmonary disease, and heart disease. The healthcare industry can play a crucial role in reducing this.
There are strategies that businesses can use to create a more sustainable healthcare landscape. The biggest challenge for sustainability lies in managing supply chain carbon emissions. To overcome this, companies can form partnerships through the value chain and across the entire healthcare ecosystem.
One way is to tap on alternative service providers to reduce environmental risk factors. For example, to ensure our outbound deliveries are handled responsibly, we work with transport service providers selected largely based on quality and fuel efficiency. DKSH Healthcare’s outsourced fleet is 97 percent diesel-powered to reduce fuel consumption, while in Thailand, electric vehicles have been introduced in our distribution centres.
Sustainable materials and automation technology hold tremendous potential for reducing the healthcare sector’s carbon footprint. For instance, eco-friendly packaging solutions like our D-pack delivery cube have reduced the need for extra plastic filler air pouches by optimising void space within packaging. It also increases transport load utilisation and minimises vehicle emissions through innovation.
Automation technology also plays a crucial role in enhancing efficiency and sustainability in healthcare distribution centres. Systems for inventory management, order processing, and logistics optimisation can improve overall operations while reducing waste and energy consumption.
Additionally, digitalisation can reduce paper usage at every level, which is often used extensively at medical institutions for regulatory purposes. Renewable energy sources like solar panels and LED lighting are another choice to help meet carbon neutrality targets. As part of our goal to become climate-neutral in our operations by 2030, we currently have 10 DKSH locations equipped with solar panels to feed green energy into local grids.
Today, adherence to stricter sustainability regulations is no longer an option, but a necessity. In Singapore alone, the carbon tax level has increased fivefold from last year to $25/tCO2e (tonnes of carbon dioxide equivalent) and is expected to reach between $50 and $80/tCO2e by 2030.
Embracing sustainability can yield financial benefits for businesses, particularly with the implementation of stricter taxed environmental regulations. Investing in improving patient care can create a symbiotic relationship between environmental stewardship and high-quality healthcare.
With the climate crisis already jeopardising the health of millions, from rising temperatures to pervasive air pollution and frequent natural disasters, the urgency of addressing sustainability in APAC’s healthcare industry cannot be overstated. Climate change is no longer a distant threat, and safeguarding the future has transitioned into preserving the present.
We require the collective support and collaboration of all stakeholders—from governments and private sectors to individuals—to enact meaningful change.
It’s not just about taking small steps. It’s about bold, collaborative action that transcends industry competitors to create a unified impact.
The time to act is now. Together, we can make a difference that resonates far beyond our industry.
