A collaborative report by EY and CII highlights the strides made by Indian healthcare firms towards sustainability. Over half have embraced zero liquid discharge and sustainable sourcing. The sector demonstrates a growing commitment to renewable energy adoption and responsible procurement practices. Diversity and inclusion initiatives are evident, alongside governance structures supporting sustainability efforts. Investments in environmental and social initiatives underscore a collective focus on driving meaningful change. The report emphasizes the imperative of transitioning to renewables and establishing net-zero plans for a sustainable future in healthcare.
The healthcare landscape in India is undergoing a profound shift towards sustainability, driven by initiatives spearheaded by EY and the Confederation of Indian Industry (CII). With over half of healthcare firms embracing zero liquid discharge and sustainable sourcing, the sector is poised for transformative change. Renewed emphasis on renewable energy adoption and governance structures reflective of ESG commitments signal a progressive mindset. As the industry reevaluates its practices through a sustainability lens, a collaborative approach is essential in driving meaningful impact and securing a sustainable future for Indian healthcare.
Embracing Zero Liquid Discharge: A Sustainable Shift
A collaborative effort between EY and the Confederation of Indian Industry (CII) sheds light on the progressive sustainability initiatives undertaken by Indian healthcare firms. Over half of these entities have adopted zero liquid discharge (ZLD) strategies, alongside implementing sustainable sourcing practices. This strategic alignment with environmental, social, and governance (ESG) commitments underscores a proactive stance towards mitigating environmental impact.
The Rise of Renewable Energy and Sustainable Sourcing
Highlighting a notable trend, the report reveals that 18% of the energy utilized by healthcare providers is sourced from renewable sources, signaling a tangible shift towards renewable energy adoption. Furthermore, 61% of inputs utilized by these companies are sustainably sourced, emphasizing responsible procurement practices. The significant uptake of ZLD by 53% of companies reflects a collective effort towards environmental stewardship.
Heightened Awareness and Action
The report underscores a growing awareness of environmental impact within the Indian healthcare sector. Nitesh Mehrotra, Partner at EY India, emphasizes the imperative nature of transitioning to renewables, embracing circularity, and establishing net-zero transition plans to drive sustainable progress. With a focus on reducing carbon waste, enhancing sustainable care delivery, and optimizing supply chain efficiency, healthcare providers are poised to catalyze meaningful change.
Diversity, Inclusion, and Governance
The healthcare sector demonstrates a commitment to diversity and inclusion, with 41% female employees and 22% female representation on company boards. Additionally, 67% of companies have established ESG committees, indicating a concerted focus on governance and sustainability initiatives. Kaivaan Movdawalla, Partner and Healthcare Leader at EY Parthenon India emphasizes the importance of lean staffing strategies and the maximization of green energy sources to streamline consumption needs.
Rethinking Packaging and Waste Management
Efforts towards sustainability extend beyond energy and sourcing practices. Movdawalla underscores the significance of rethinking packaging designs to align with green packaging principles, ensuring optimal environmental outcomes. Effective waste disposal methods are deemed essential for long-term sustainability and the mitigation of environmental impact.
Investments in Environmental and Social Initiatives
The report highlights increasing allocations towards environmental and social initiatives within healthcare research and development (R&D) and capital expenditure (capex). Approximately 21% of spending is directed towards environmental and social activities in R&D, while 13% is allocated to similar initiatives within capex. This underscores a strategic focus on infrastructure enhancements and operational optimizations aimed at bolstering sustainability performance.
A Call to Action for Sustainable Healthcare
Dharminder Nagar, Chairman of the CII Northern Region Committee on Healthcare, emphasizes the critical intersection of healthcare, sustainability, and ESG principles. With healthcare contributing around 5% of hazardous waste, a comprehensive transition plan encompassing decarbonization and climate risk response is imperative. Aligning short- and medium-term goals with broader economic transition objectives will pave the way for a sustainable healthcare ecosystem.
The collaborative efforts of EY and CII underscore the pivotal role of sustainability in shaping the future of Indian healthcare. With a significant uptake in zero liquid discharge and sustainable sourcing practices, healthcare firms are laying the groundwork for a more environmentally conscious ecosystem. The emphasis on renewable energy adoption, diversity, and governance structures reflective of ESG principles reflects a holistic approach toward sustainability. As the sector navigates towards a greener future, investments in environmental and social initiatives emerge as catalysts for transformative change. Through concerted action and collaboration, Indian healthcare is poised to lead the charge toward a sustainable and resilient future.
