Why it matters : In the U . S ., health care organizations have been asked to commit to reducing their emissions at least 50 % by 2030 , and reach net zero by 2050 , as part of a voluntary pledge .

In Europe , large contracts and tenders for equipment and services already incorporate carbon-emission reduction targets . Spending on health care in developed markets is also on the rise , reaching 9.6 % of GDP in 2021 versus 8.8 % in 2019 , according to Organization for Economic Cooperation and Development ( OECD ) estimates .

What we think and why : Pressure on health care budgets and requirements to reduce the sector ' s greenhouse gas emissions will only increase in the long term . Therefore , the ability to innovate and invest in research and development to deliver on these decarbonization targets will increasingly become a differentiating factor in the business performance of rated healthcare sector vendors .

Why decarbonisation matters in health care

A large amount of time , money , and materials spent on health care can be classified as system waste , or expenditure without a useful outcome . This is according to the Journal of the American Medical Association ( JAMA ), which estimates that close to 30 % of health care spending in the U . S . is wasted each year . The U . N . Environment Program defines health care waste as all waste generated by health care facilities , medical laboratories , biomedical research , and various other sources . Moreover , a 2017 report from the OECD suggests that up to 20 % of health care spending could be put to " better use " in its 38 member countries .

Health care spending is rising throughout developed economies . In our view , the objectives of managing costs and greenhouse gas emissions

20 www . intelligenthealth . tech