What does this mean for suppliers?
The NHS has recently published a report on their progress since setting their net zero target back in 2020. We highly recommend that anyone working in the healthcare industry in a sustainability dimension give the report a thorough read.
Still, we’ve found some key takeaways that we thought are critical for NHS suppliers to know.
First, a quick reminder of what the NHS’ targets are exactly:
- Net zero by 2040 for the emissions the NHS controls directly (the NHS Carbon Footprint), with an 80% reduction by 2028 to 2032.
- Net zero by 2045 for the emissions the NHS can influence (the NHS Carbon Footprint Plus), with an ambition to reach an 80% reduction by 2036 to 2039.
Importantly, the terms ‘NHS Carbon Footprint’ and ‘NHS Carbon Footprint Plus’ are a bit unique in their boundary setting and do not perfectly align with Scopes 1, 2, and 3.
NHS Carbon Footprint (CF) is Scopes 1 and 2, and a subset of Scope 3, which we won’t list out here. Confusingly though, this is not the same subset of Scope 3 the NHS has been requiring suppliers to provide as part of the procurement process (up until April 2027, where all Scope 3 categories must be considered). On the other hand, the NHS Carbon Footprint Plus (CF+) refers to the full Scopes 1, 2 and 3 footprint.
Now, onto what matters most to suppliers…
Supply chain emissions make up the bulk of the NHS Carbon Footprint Plus (CF+)
All in all, 71% of the NHS’ emissions can be attributed to suppliers. This can be further broken down into:
- 18% attributed to medical supply chain (made up of clinical consumables and equipment)
- 27% attributed to ‘other’ supply chain (which includes physical and digital infrastructure, food, and administrative services)
- 17% attributed to the manufacture of supply of medicines
- 9% attributed non-NHS commissioned services
All things considered, the Net Zero Supplier Roadmap published in 2021 seems to be progressing successfully
The NHS have reported that there is a near 100% pass rate for Carbon Reduction Plan (CRP) requirements across NHS Supply Chain frameworks and NHS England medicines’ tenders. In addition to this, over 2,000 suppliers have signed up to the Evergreen Sustainable Supplier Assessment, although the maturity level that these suppliers have achieved has not been disclosed.
The NHS is moving towards a circular economy
In partnership with DHSC, the NHS is currently implementing the Design for Life roadmap. This would mean transitioning away from all avoidable single-use medical technology products by 2045. This includes a commitment to reduce single-use glove and gown use by 25% by 2030.
Product-level requirements may soon be arriving
The report hints to the consideration of product-level requirements from 2028. While the details of this remain hidden, the NHS states that its approach is being codeveloped alongside supply chain partners and will align with international standards and government initiatives.
What this all means for you as an NHS Supplier:
- Considering the large amount of emission attributed to their supply chain, the NHS is likely to double down on their supply chain engagement efforts such as their supplier net zero requirements and Evergreen assessment.
- All signs point to the April 2027 milestone going ahead, meaning that all NHS suppliers will be required to publicly report targets, emissions, and a plan to reduce them for all relevant Scope 1, 2, and 3 emissions.
- If you are a producer of single-use items supplied to the NHS, it may be critical that you look at your business model and consider how you can adapt for the circular system the NHS envisions.
- While the NHS has stated that a life cycle assessment will not be required for every product under the 2028 product-level requirements, we recommend revisiting the data you currently collect, what data your own suppliers are providing you with, and what data you are missing. From this, test if you are in good position to report product-level data in a few years time.
For the full NHS report, click here.
