Why healthcare needs to address the “E” in ESG
The recent climate accord in Glasgow, Scotland, brought world leaders together to discuss the serious impact of climate change. Greenhouse gas (GHG) emissions are a large contributor to climate change which is why the U.S. is on the path to cut its GHG emissions by between 50% and 52% from 2005 levels by 2030.
J.P. Morgan Chase spotlighted the huge impact that healthcare has on GHG emissions. “The healthcare sector uses enough energy that even a modest reduction in greenhouse gas emissions will play a significant part in the global effort to reduce emissions.”
The article notes that two recent academic studies estimated that the U.S. healthcare industry accounts for 8.5% of the country’s GHG emissions, while the global health sector is responsible for about 4.6% of total GHG emissions, and roughly 25% of that is from the U.S.
The term “ESG” which highlights issues that are environmental- social- or governance-related, has become widely used to define corporate values. Focusing on the environmental component, companies like MedSpeed, where transportation is our primary business, must do our part to reduce our carbon footprint. This is something we are putting intention towards, and I am pleased to share we are making progress. By virtue of the way we construct our optimized routing networks, we disintermediate redundant transportation and reduce miles driven by an average of 25%, significantly reducing emissions.
Beyond that, we apply the most fuel-efficient vehicles to each route, including hybrid vehicles. Our first electric vehicles will be hitting the streets in the coming months.
The Chase article also brings attention to the importance of framing sustainability as a public-health issue. By partnering with our healthcare customers to actively reduce our carbon footprint, we stay true to our mission of delivering health to our communities. While we have made strides, I look forward to continuing the dialogue with our customers to seek new ways to align our organizations to this vital aim.