MedTech's sustainability mission

MedTech, not unlike other industries, hurts the environment and must find ways to mitigate this harm. Several leading top medtech companies have announced environmental, social, and governance (ESG) goals. What steps are medtech companies taking to improve sustainability and how much further do they need to go to make a dent in carbon emissions? Let's dig deeper.

- Ayesha Siddiqui

Health care accounts for 5 per cent of total global carbon emissions, and medical devices and technology are responsible for a large portion of that, according to Boston Consulting Groups (BCG). Much of this comes from the manufacturing operations and supply chains of medtech companies and their suppliers. At the provider level, MedTech generates tonnes of unrecycled waste through single-use disposable products and packaging.

Stringent regulations

Regulators worldwide are also establishing rules requiring companies to publish standardised ESG information. In Europe, regulations are already in place. In the US, proposed new disclosure requirements for public companies focus on climate-related risks and relevant risk management processes. Another key ESG trend is the mandatory sustainability reporting obligations imposed on companies globally. In the Asia-Pacific region, ESG regulation is accelerating due to the urgent need for greater transparency and tightened definitions for sustainable investment products. The twofold increase in the number of ESG policies in the region over the past five years has led to increased corporate ESG disclosure across most APAC markets, which now align with or exceed those in the US, says Goldman Sachs report.

The Australian government plans to introduce mandatory climate-related financial disclosure requirements, encouraging companies to adopt more environmentally responsible practices. Moreover, stringent waste disposal regulations are on the horizon, with Japan aiming to cut plastic waste by 25 per cent and South Korea by 50 per cent, both by 2030. In light of all this, the medtech industry and the broader healthcare sector are increasingly committing to environmental stewardship.

Cutting carbon footprints