Page 167 - GHES-3-3

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

(xvii) Cost optimization: Optimizing resource use, 4. Discussion
reducing waste, and achieving economies of scale
can lead to significant cost savings Sustainable procurement is not just a necessity but a
(xviii) Economic value creation: Considering the full beacon of hope for the healthcare industry. Our findings
revealed that the CAHO-initiated masterclass program
lifecycle costs and benefits of products and has significantly increased awareness and fostered a
services can lead to more effective and sustainable progressive mindset toward incorporating sustainable
procurement decisions. procurement practices among healthcare professionals.
3.7. Challenges in sustainable procurement The diverse backgrounds of participants in this study
implementation signify a widespread interest in sustainability across
various sectors within the healthcare industry. Moreover,
The primary challenges in effectively implementing while a vast majority acknowledge the significance of
sustainable procurement are described as follows: including ESG factors in sustainability practices, a notable
(i) Regulatory compliance: Awareness and compliance proportion of participants also recognize the value of
with regulations are necessary for staying up-to-date considering practical procurement factors (Ruparathna &
and ensuring compliance with environmental and Hewage, 2015).
social requirements
In addition, participants in the masterclass program
(ii) Financial limitations and budget constraints: Cost- have acknowledged the advantages of sustainable
benefit analyses can help demonstrate the long-term procurement, including reducing environmental impact,
financial benefits of sustainable procurement, enabling promoting social outcomes, and enhancing governance
organizations to prioritize investments in this area practices. The emphasis on responsible business practices,
(iii) Resistance to change and associated organizational decarbonization, resource conservation, and social and
culture: Changing management strategies, such ethical practices with stakeholder engagement highlights
as education, communication, and stakeholder a comprehensive approach to sustainable procurement.
engagement, can create a sustainable culture within Commonly followed strategies to assert these practices
organizations in hospitals include developing sustainable procurement
(iv) Limited availability of sustainable products and policies, comparing products based on life cycle impacts,
services: Engaging with suppliers and advocating for involving suppliers and stakeholders, forming cross-
sustainable alternatives, in collaboration with other functional teams, and conducting external audits.
industry partners, can help expand the availability of
sustainable options. Despite the positive feedback toward sustainable
procurement, our study also identified several challenges
In the view of healthcare professionals (and others), that healthcare professionals will face when implementing
it is essential to assess the sustainability readiness within sustainable procurement, such as regulatory compliance,
the supply chain; if suppliers are independently evaluated, financial constraints, resistance to change, and limited
it provides a better reflection of their performance availability of sustainable products and services. Addressing
and independence of assessment. Platforms, such as these barriers will require proactive measures, such as
EcoVadis and Sedex, offer assessments that consider conducting cost-benefit analyses, implementing change
environmental, human rights, ethical, and sustainable management strategies, and advocating for sustainable
procurement practices. While EcoVadis operates as an alternatives (Meehan & Bryde, 2015; Elkington, 1994).
online assessment tool, Sedex conducts on-site audits. Therefore, our findings underscore the increasing
Originating from Europe, both platforms are utilized significance of sustainable procurement in the healthcare
globally, adjusting their evaluations to accommodate sector and its role in minimizing environmental
regional and sector-specific risks and organization sizes. impact and promoting governance practices within the
Securities and Exchange Board of India has defined industry. Collaboration among healthcare professionals,
Business Responsibility and Sustainability Reporting policymakers, and industry stakeholders is key to promoting
(BRSR) in India as a critical tool for driving sustainability the long-term implementation of sustainable procurement
across the value chain, with timelines set for listed and ensuring efficient and ethical procurement practices.
companies to adhere to the reporting on the principles of The ISO 20400 framework involved participation from
BRSR and the monitoring of performance of BRSR core 38 out of the 52 countries, with 12 countries acting as
across value chain. ISO 20400 serves as an instrumental observers. The ISO projects that ISO 20400 will influence
framework for adopting sustainable procurement in the 65% of the global population, 85% of gross domestic
healthcare value chain. product, and 73% of global carbon emissions. Sustainable

Volume 3 Issue 3 (2025) 159 https://doi.org/10.36922/ghes.5663