Sustainability: good for business, good for the planet

Pete Waddingham, Net Zero Lead for the Heath Innovation Network, discusses why it’s so important for innovators to embed net zero into their business and offers environmental sustainability advice and tips.

The Health Innovation Network is one of the 11 partners of the NHS Innovation Service established by NHS England to spread and adopt innovation at pace and scale across health and social care, and connects NHS and academic organisations, local authorities, the third sector and industry through its 15 local networks.

An ambitious target

Net zero refers to achieving a balance between the amount of greenhouse gases produced and the amount removed from the atmosphere. For businesses, this means cutting greenhouse gases to as close to zero as possible, with remaining emissions being offset, predominantly through natural carbon sinks such as oceans and forests.

The NHS is responsible for 4% of England’s total carbon footprint, to address this, the NHS has set itself an ambitious target of reducing its directly controlled carbon emissions by 80% by 2036 to 2039, and to be net zero by 2040, with the long-term goal of reaching net zero by 2045 for the emissions it can influence. This work is underpinned by the understanding that climate change undermines the core foundations of good health, contributing to cardiovascular disease, asthma, cancer, worsening long term health conditions and poor mental health[i].

No longer a nice to have

To support its net zero commitments, NHS England has outlined requirements for its suppliers in the Net Zero Supplier Roadmap. This includes requirements for Carbon Reduction Plans or Net Zero Commitments for suppliers. Innovators need to understand these requirements.

In addition, prospective employees are increasingly seeking businesses that have green credentials and people want to work with businesses that care about their impact on the environment. Becoming environmentally sustainable could mean you are more likely to attract better talent and retain your most talented.

Future-proofing your business

Aiming for net zero can make your business resilient against market or national disruptions. This is because sustainable businesses can adapt to changes in expectations and market fluctuations.

For example, investing in renewable energy sources such as solar or wind power can protect businesses from volatile fossil fuel prices and energy supply disruptions. For instance, the recent spike in gas prices highlighted the financial risks of relying on non-renewable energy sources. By shifting to renewable energy, businesses can stabilise their energy costs and reduce exposure to global energy market fluctuations.

Becoming net zero ensures your business is more efficient and effective, which could lead to financial savings and less waste.

Thinking about energy, travel, production and purchases needed for your business is likely to lead you down a path of reducing consumption and eliminating waste, which in turn can save money. ‘Just in time’ ordering, which is becoming more popular in the pharma industry, where businesses only produce what they sell is one example of this.

How to build a net zero strategy

There are five key pillars to help build a net zero strategy:

  1. Step 1
    Start with governance

    Decide who is responsible for your business becoming net zero and what your governance path for decisions is. For example, depending on the size of your business, you could appoint a lead or an advisory group.

  2. Step 2
    Calculate your carbon footprint

    The first step in developing a net zero strategy is to accurately map your carbon. Targets are meaningless without establishing a baseline.

  3. Step 3
    Agree vision and net zero targets

    Decide how ambitious your business is going to be in reaching net zero and set net zero targets for your emissions.

  4. Step 4
    Create a net zero roadmap

    A strong net zero strategy has clear interim targets, milestones and carbon reduction projects to ensure businesses are accountable to achieve their targets and stay on track.

  5. Step 5
    Understand climate risk

    Understand how climate change will impact your product and business operations, and how you can mitigate these risks. For example, extreme weather events like flooding and excess heat can severely disrupt transportation networks and manufacturing facilities, leading to supply chain shortages and additional expenses. Diversifying suppliers and implementing sustainability initiatives can help mitigate risk.

Thinking more sustainably

Helping your business to become more sustainable can start with small steps like switching to a renewable energy supplier to making large scale changes to your production, innovation or service. Every business has unique needs and should seek specialist advice, but here are some ideas to consider:

  1. Switch to a renewable energy supplier
  2. Become a digital first business and reduce paper, printing and postage, whilst considering the impact of digital technologies
  3. Use low/zero carbon vehicles for delivery or transport
  4. Source materials from and manufacture as locally as possible and understand your supply chain
  5. Reduce or remove single use plastics
  6. Aim for zero waste to landfill

To find out more about how to make your business more sustainable read this handy Net Zero guide for innovators and sign up to the NHS Innovation Service and complete your innovation record to start receiving support.

[i] Delivering a ‘Net Zero’ National Health Service July 2022

Published at September 5, 2024