Episode 083 | January 13, 2025 | 16:30
Guest: —
Published: January 13, 2025
Duration: 16:30
Description
In this episode, Frederik explores the role of public procurement in decarbonizing the healthcare sector.
He talks about the need for standardized sustainability requirements and shares insights from a survey with buyers across Europe. He also delves into the progress of the pharmaceutical industry and the importance of weighted tender scoring criteria.
Tune in to learn more about the importance of sustainability in healthcare procurement and the need for greater alignment between ambitions an
Full transcript
About this transcript
This transcript was automatically generated and may contain inaccuracies, typos, or mistranslations. Episodes recorded before 2024 were transcribed by an on-site model and may have a higher error rate. The content reflects the original conversation to the best of our ability. For the authoritative version, please listen to the audio episode.
Episode 083: Sustainability Requirements in Public Procurement
The Sustainable Healthcare Podcast — Transcript
083 – Sustainability requirements in public procurement
Hello, and welcome to The Sustainable Healthcare Podcast. My name is Frederik van Deurs. I’m your host today in this episode where we’ll be discussing sustainability requirements in public procurement in healthcare. I recently gave this talk at a conference in Oslo for a group of procurement professionals that were gathered there for a master class, and this is generally one of the key motors for decarbonizing the healthcare sector. So development and expectations for sustainability in healthcare procurements. This basically sprung off of us running a survey with buyers across Europe. So I’m presenting a bunch of data that we gathered in connection to that and also providing a little bit of context. We’re Green Innovation Group, a management consultancy that helps market leaders reach decarbonization faster by operationalizing the strategy and turning strategy and ambitions into actions and structures. The reason why this is important is, of course, to set the stage for the climate disaster. If decision-makers are not taking transformative action on climate change, a 2.5 to 2.9 degree Celsius temperature rise will be our reality, and we have known this for a very long time. The first IPCC report came out in 1990. We see that healthcare providers are increasing sustainability requirements in their procurement, and they’re doing it quite fast. In 2024 strategies should translate to action in the UK through the NHS, which has made some very ambitious carbon reduction plans and is striving to be net zero by 2040, including an 80% reduction by 2028 or 2032 at the latest. In January 2024, the Norwegian Sykehusinnkjøp, the group purchase organization for Norway, introduced a 30% weight to sustainability requirements in pharma procurement. We’re seeing that the buyers have a notion that their countries are somewhat ambitious on sustainability requirements in procurement, but there’s also an agreement that sustainability requirements in tenders should be harder. Only a minority of the buyers are convinced that their own organizations have the capability to handle sustainability problems. Only 56% of the committed top 20 pharmaceutical companies are on track to achieve their reduction goals by 2030. We see AstraZeneca, GSK, and Novo Nordisk really being ahead of the pack. The most effective tool in the toolbox in order to enhance sustainability performance is of course to apply weighted tender scoring criteria in public tenders. There’s very low optimism from the buyers for more strict sustainability requirements in the next 12 months, but on a two to three-year timeline, buyers are more aligned that we will see more strict sustainability requirements in tenders. Thanks for listening to the Sustainable Healthcare Podcast. Cheers.