Page 159 - GHES-3-3

Global Health Economics and
Sustainability
Sustainable procurement in healthcare to address value chain

1. Introduction 1.1. Key principles of sustainable procurement in
hospitals
Sustainable procurement in hospitals refers to the
practice of purchasing goods and services in a way that 1.1.1. Environmental impacts of sustainable
minimizes environmental impacts, supports social procurement
responsibility, and promotes economic well-being To achieve sustainable procurement, a comprehensive
without compromising patient care or safety (Wahab strategy is to mitigate environmental harm in various areas
& Nor, 2023). It extends beyond cost considerations, (Brammer & Walker, 2011). This includes consciously
taking into account the entire lifecycle of a product or choosing recycled or sustainable materials, promoting
service – from raw materials to disposal. Sustainable energy efficiency, and minimizing water consumption
procurement incorporates environmental, social, and and waste generation. Furthermore, there is a concerted
governance (ESG) elements into the procurement process effort to reduce pollution by selecting goods with lower
to minimize ESG risks and environmental impact and carbon emissions, avoiding hazardous substances, and
achieve positive social outcomes (Mehra & Sharma, implementing responsible waste management. Moreover,
2021; Wilburn et al., 2021). This initiative surpasses this commitment should extend to partnering with
current quality and financial considerations to improve environmentally conscious suppliers, prioritizing those with
institutions, the environment, and society. In today’s era a strong track record of sustainability (Laryea et al., 2013).
of sustainability, consumers seek transparency, while
organizations aspire to attain leadership in sustainable 1.1.2. Social impacts of sustainable procurement
stewardship. In addition, businesses are recognizing the Our commitment to social responsibility should go beyond
importance of sustainable procurement as a means of sustainable procurement and the mere acquisition of goods
mitigating environmental risks, enhancing their social and services. It should actively promote ethical sourcing
reputation, and improving resource efficiency, ultimately and fair labor practices by partnering with suppliers who
contributing to long-term business success along the uphold strict human rights standards and prioritize worker
value chain (Okonta, 2023). Contrary to common health and safety regulations. In addition, we should also
misconceptions, ESG initiatives create shared value for strive to promote diversity and inclusion within the supply
all stakeholders and do not hinder cost reduction goals. chain. The approach of encouraging supplier diversity
Instead, they provide a balanced approach to achieving and supporting under-represented businesses should
financial prudence while maintaining sustainability foster a more inclusive and equitable marketplace. In fact,
and improving medical outcomes (Advisory Board the strategy to prioritize local suppliers contributes to
Sustainability, 2024). Sustainable procurement serves community development by creating job opportunities and
as a form of preventative medicine that fosters a bolstering the local economy (Chiarini & Vagnoni, 2016).
high-performance healing environment, attracts Moreover, organizations should strongly emphasize
new opportunities, exemplifies leadership values to promoting fair labor practices, providing decent working
communities, patients, and employees, and ultimately conditions and fair wages, and upholding ethical labor
reduces organizational costs (Health Care Without Harm, standards within the entire supply chain. Furthermore,
2025). Sustainable procurement practices integrate these organizations should also commit to contributing
requirements, specifications, and criteria that prioritize to the development of local communities by supporting
environmental protection, social progress, and economic small businesses and suppliers, prioritizing diversity in
development. This is achieved by maximizing resource procurement, and implementing sustainable practices
efficiency, enhancing the quality of products and services, within the community (Richie, 2020). In addition, their
and optimizing costs (WHO procurement report, 2023). dedication to public health and safety will be reflected in
Sustainable procurement enables hospitals to showcase their avoidance of harmful chemicals and the prioritization
their dedication to sustainable practices across their supply of products that promote the well-being of both patients
chain (Wilburn et al., 2021). These practices are based on and staff (Loeppke et al., 2017).
the triple bottom principle. Moreover, it enables financial
savings through resource efficiency initiatives by reducing 1.1.3. Governance and economic advantages of
energy footprint, waste generation, and water footprint, sustainable procurement
thereby resulting in lower operational costs. Such resource While some people may think of sustainability as an
optimization practices can enhance the financial viability expensive and complicated venture, research findings
of the healthcare sector, ultimately reducing the cost suggest otherwise. According to the World Economic
burden on patients. Forum’s Beyond Supply Chains report, companies that

Volume 3 Issue 3 (2025) 151 https://doi.org/10.36922/ghes.5663