Businesses worldwide are rapidly changing direction to achieve a significant reduction in their carbon emissions, largely because of the urgent need to address climate change. By 2021, more than 2,000 companies globally had pledged to lower their carbon footprint, which accounts for trillions of dollars in revenue. These forward-thinking companies, operating in various industries, from technology to manufacturing, have committed around $4.5 trillion to investments in sustainability. This demonstrates a major shift toward more environmentally friendly practices.
These industries, aware of their role, aren’t just reducing their impact on the environment; they’re actively restructuring how they operate, their policies, and where they invest to create a sustainable future. This change highlights a mindset focused on progress, where economic success aligns with preserving the environment. As these changes speed up, the possibility of achieving a future with minimal net carbon emissions becomes more realistic, offering hope for a healthy planet for future generations.
The impact of the environment on health outcomes is substantial, and reducing carbon emissions can help alleviate this effect. Currently, top life sciences companies view sustainability as more than just meeting regulations—it’s seen as a means of creating value for patients, their organisations, and the planet. This added value could set these companies apart by increasing their output, streamlining operations, and managing material costs affected by supply and demand imbalances before eco-friendly costs rise.
One key aspect of sustainability is achieving net-zero emissions, aiming to balance the production and elimination of greenhouse gases (GHGs). McKinsey’s research shows a sharp rise, from seven to 104, in life sciences companies committing to or establishing Science Based Targets initiative (SBTi) emission-reduction goals from 2019 to 2022.
In many developed nations, healthcare systems contribute nearly 10% of national GHG emissions, surpassing even the aviation and shipping industries in proportion. If the global healthcare sector were its own country, it would rank as the fifth-largest GHG emitter, generating two gigatons of CO2 equivalent annually. McKinsey’s analysis reveals that within the healthcare sector, life sciences companies produce two to three times more emissions per million dollars of revenue compared to healthcare delivery organisations.
