How the Healthcare Industry Is Contributing to Climate Change

Can Healthcare Become Sustainable? The Reality Behind Climate Promises

The Healthcare Industry’s Growing Carbon Footprint

Healthcare systems worldwide consume enormous amounts of energy and resources every day. Hospitals operate around the clock, requiring electricity for lighting, heating, cooling, life-support systems, surgical equipment, laboratories, and data centres. This constant demand contributes significantly to greenhouse gas emissions.

According to global environmental studies, healthcare contributes nearly 4.5% to 5% of worldwide carbon emissions. If the healthcare sector were considered a country, it would rank among the world’s top greenhouse gas emitters.

Countries with advanced healthcare systems, including the United States, China, the United Kingdom, and parts of Europe, generate particularly high emissions due to extensive medical infrastructure and pharmaceutical production.

Hospitals are among the most energy-intensive commercial buildings globally. Intensive care units, operating theatres, imaging systems such as MRI and CT scanners, and cold storage for medicines require uninterrupted power supply. In many regions, healthcare infrastructure still relies heavily on fossil-fuel-generated electricity, increasing emissions further.

The healthcare sector also indirectly contributes to climate change through procurement networks, transportation systems, pharmaceutical manufacturing, and medical waste disposal. This broad environmental impact is often referred to as healthcare’s “Scope 3 emissions,” which account for the majority of the sector’s total carbon footprint.

Climate Goals vs Operational Reality in Healthcare

Healthcare organisations are increasingly announcing sustainability targets and net-zero ambitions. However, turning these commitments into measurable action remains a major challenge.

According to the KPMG 2025 Healthcare CEO Outlook, only 30% of healthcare leaders fully calculate and integrate sustainability costs and return on investment into major capital decisions. Furthermore, only 12% of healthcare Chief Executives expressed high confidence that their organisations would meet net-zero goals by 2030.

This gap between climate ambitions and operational reality highlights the complexity of transforming healthcare systems.

Healthcare leaders are currently balancing multiple pressures simultaneously:

• Growing patient demand
• Workforce shortages
• Rising treatment costs
• Ageing populations
• Cybersecurity risks
• Pandemic preparedness
• Financial constraints

As Beccy Fenton, Global Head of Healthcare at KPMG International, stated: “growing workforce shortages, rising demand, stretched budgets and concerns about cyber-attacks and the next pandemic should loom large on CEOs' minds."

Unlike many industries, healthcare cannot simply reduce operations to cut emissions. Hospitals must remain operational during emergencies, heatwaves, pandemics, and disasters. This makes sustainability transitions slower and more complicated compared to other sectors.

Also Read: Top 10 Sustainability Leaders in the World for 2026

The Environmental Impact of Healthcare Supply Chains

One of the largest contributors to healthcare-related emissions is the medical supply chain.

Healthcare supply chains involve:

• Pharmaceutical manufacturing
• Medical devices
• Surgical equipment
• Disposable products
• Protective gear
• Laboratory supplies
• Global transportation and logistics

These supply chains are highly complex, international, and resource-intensive.

The COVID-19 pandemic exposed how dependent healthcare systems are on global manufacturing networks. Increased production of personal protective equipment (PPE), syringes, ventilators, and testing kits led to massive increases in plastic waste and transportation emissions.

According to KPMG, healthcare executives consider supply chain resilience one of their biggest operational concerns. Decarbonising these supply chains remains extremely difficult due to regulatory requirements, safety standards, and the need for uninterrupted medical availability.

Medical supply chains often prioritise sterility, speed, and reliability over sustainability. Single-use plastic items dominate hospitals because they reduce infection risks. However, they also generate enormous waste volumes.

Examples include:

• Disposable gloves
• Syringes
• IV bags
• Face masks
• Surgical gowns
• Packaging materials

Many of these products are incinerated after use, releasing harmful emissions into the atmosphere.

Pharmaceutical Manufacturing and Environmental Pollution

The pharmaceutical industry plays a major role in healthcare emissions and environmental degradation.

Drug manufacturing requires:

• Large amounts of water
• Chemical processing
• Energy-intensive production
• Complex packaging systems
• Refrigerated transportation

Pharmaceutical factories often produce wastewater containing chemical residues and antibiotics. Inadequate disposal can contaminate rivers, groundwater, and ecosystems.

Research has shown that pharmaceutical pollution contributes to antimicrobial resistance (AMR), one of the world’s biggest emerging health threats. Antibiotic residues entering water systems encourage bacteria to evolve resistance, reducing the effectiveness of life-saving drugs.

The production of inhalers also contributes significantly to healthcare emissions. Many asthma inhalers contain hydrofluorocarbon propellants, which are potent greenhouse gases. Several countries are now encouraging the transition to lower-carbon inhaler alternatives.

Medical Waste and Plastic Pollution

Healthcare generates enormous amounts of waste every year, much of which is hazardous or non-recyclable.

Medical waste includes:

• Infectious waste
• Sharps and needles
• Plastic packaging
• Chemical waste
• Expired medicines
• Electronic waste
• Radioactive materials

According to the World Health Organization (WHO), healthcare waste increased dramatically during the COVID-19 pandemic. Billions of disposable masks, gloves, test kits, and vaccine syringes added pressure to already struggling waste management systems.

Improper disposal methods can release toxic pollutants into the environment. Incineration, while commonly used for infection control, produces carbon emissions and potentially harmful air pollutants.

Plastic waste is another major issue. Hospitals rely heavily on disposable plastics because of hygiene and safety requirements. However, recycling medical plastics is difficult due to contamination risks.

Many healthcare institutions are now exploring reusable medical products, sustainable procurement systems, and waste segregation technologies to reduce environmental impact.

Hospitals and Energy Consumption

Hospitals consume significantly more energy per square foot than most commercial buildings.

Key drivers of energy usage include:

• Air conditioning and heating
• Ventilation systems
• Sterilisation equipment
• Lighting
• Medical imaging machines
• Data storage systems
• Emergency backup power systems

Climate change itself is increasing healthcare energy demands. Rising temperatures are forcing hospitals to depend more heavily on cooling systems, particularly during heatwaves.

At the same time, extreme weather events threaten hospital infrastructure. Flooding, storms, and power outages can disrupt critical healthcare services.

Many hospitals are now investing in:

• Solar energy
• Smart energy systems
• Green building design
• Water conservation technologies
• Energy-efficient lighting

However, infrastructure upgrades often require large capital investments that many healthcare systems struggle to afford.

Digital Healthcare and AI: Sustainability Opportunity or New Challenge?

Technology is becoming central to modern healthcare systems. Artificial intelligence, electronic health records, telemedicine, and smart hospital systems are transforming patient care.

According to KPMG, 87% of healthcare organisations plan to invest more than 10% of their budgets into AI solutions, while 83% expect returns within three years.

Digital healthcare can support sustainability by:

• Reducing unnecessary travel
• Improving operational efficiency
• Optimising energy use
• Supporting predictive healthcare models
• Reducing paper consumption

Telemedicine, for example, reduces transportation emissions by allowing remote consultations.

However, digital transformation also creates new environmental challenges.

AI systems and healthcare data centres require massive computational power and electricity. Cloud computing infrastructure, large-scale data storage, and advanced medical technologies increase energy demand significantly.

Dr Jaz Dhaliwal of KPMG noted: “There is no question that digitalisation will serve as a pivotal catalyst in shaping the future of care delivery models."

Yet, the report warns that 55% of healthcare leaders see data readiness as a barrier to implementation.

Without sustainable digital infrastructure, healthcare technology expansion could unintentionally increase carbon emissions.

Climate Change Is Also Increasing Healthcare Demand

Ironically, climate change itself is placing additional pressure on healthcare systems worldwide.

Extreme weather events and environmental degradation are increasing cases of:

• Heat-related illnesses
• Respiratory diseases
• Vector-borne diseases
• Waterborne infections
• Mental health disorders
• Malnutrition

Air pollution alone contributes to millions of premature deaths annually.

Heatwaves are overwhelming hospitals with rising emergency admissions. Wildfires, floods, and storms are disrupting healthcare infrastructure and supply chains.

Healthcare systems are therefore caught in a dangerous cycle:

Climate change increases healthcare demand, while healthcare operations themselves contribute to emissions.

Financial Pressures Slowing Sustainability Progress

One of the biggest barriers to healthcare sustainability is funding.

Many hospitals and healthcare providers operate under tight financial constraints. Public healthcare systems in particular face budget pressures due to rising treatment costs and ageing populations.

Healthcare executives are often forced to prioritise:

• Staffing shortages
• Emergency care
• Equipment upgrades
• Patient access
• Operational continuity

Long-term environmental investments may appear less urgent compared to immediate patient care needs.

According to KPMG, many organisations are prioritising short-term operational survival over climate initiatives.

This creates a sustainability gap where climate goals exist publicly, but implementation remains slow.

The Need for Sustainable Healthcare Leadership

Experts increasingly argue that healthcare leaders must treat sustainability as a core operational priority rather than a secondary corporate responsibility initiative.

Sustainable healthcare leadership includes:

• Integrating climate risks into strategy
• Measuring carbon footprints accurately
• Building greener supply chains
• Investing in renewable energy
• Reducing medical waste
• Supporting circular economy practices
• Encouraging sustainable procurement

Healthcare systems must also collaborate more closely with governments, technology firms, and environmental experts.

KPMG advises healthcare organisations to develop stronger partnerships across the healthcare ecosystem to improve resilience and sustainability outcomes.

What the Future of Sustainable Healthcare Could Look Like

The future of healthcare sustainability will likely depend on innovation, regulation, and behavioural change.

Key future trends may include:

• Carbon-neutral hospitals
• AI-driven energy management systems
• Sustainable pharmaceutical manufacturing
• Eco-friendly medical packaging
• Reusable medical equipment
• Green healthcare procurement policies
• Climate-resilient hospital infrastructure

Governments worldwide are also beginning to include healthcare emissions within national climate policies.

In the coming years, sustainability may become a competitive and regulatory requirement rather than an optional initiative.

Conclusion

The healthcare industry stands at a critical crossroads in the global fight against climate change. While healthcare systems exist to protect human health, their growing environmental footprint is contributing significantly to the very crisis threatening global well-being. From energy-intensive hospitals and pharmaceutical manufacturing to waste-heavy supply chains and expanding digital infrastructure, the sector faces enormous sustainability challenges.

The KPMG 2025 Healthcare CEO Outlook reveals a widening gap between climate ambitions and practical implementation. Financial constraints, workforce shortages, operational pressures, and infrastructure limitations continue to slow progress toward net-zero goals. Yet, the risks of inaction are becoming impossible to ignore.

As climate change increasingly drives disease outbreaks, heatwaves, pollution, and healthcare emergencies, sustainable transformation is no longer optional for the healthcare sector. The future of healthcare will depend not only on medical innovation but also on the industry’s ability to reduce emissions, build resilient systems, and balance patient care with environmental responsibility.

Only through coordinated global action, long-term investment, technological innovation, and sustainable leadership can healthcare truly align its mission of saving lives with protecting the planet itself.