Report on Sustainable Public Procurement in the Life Sciences Sector

Introduction

This week, government ministers, along with finance, procurement, and environmental leaders, convened at the OECD Global Public Procurement Forum to discuss leveraging public procurement to unlock social, environmental, and economic benefits. This forum is particularly significant for the life sciences sector, which has accelerated initiatives aimed at achieving ambitious environmental targets while emphasizing the importance of resilient supply chains to ensure access to medicines and vaccines.

Context and Importance of Sustainable Procurement in Healthcare

Health systems worldwide are increasingly adopting public procurement practices as a strategic lever to meet sustainability goals. The primary focus remains on driving optimal health outcomes, balancing environmental, financial, and social objectives alongside the need to strengthen supply chains and guarantee patient access to essential medicines and vaccines.

The Challenge: Advancing Sustainability Without Compromising Access

1. Environmental Impact of the Health Sector
   • According to OECD data, the health sector accounted for 4.4% of total greenhouse gas emissions in OECD countries in 2018.
   • Emissions from supply chains represented approximately 79% of health sector emissions.
   • Countries such as Austria, France, the Netherlands, and the UK are integrating procurement criteria targeting health sector emissions.
2. Industry Initiatives
   • Life sciences companies are actively reducing their environmental footprint through decarbonizing manufacturing, optimizing supply chains, and improving product packaging.
   • This transformation requires long-term investments, innovation in product design, and regulatory shifts within a dynamic policy environment.
3. Balancing Regulation and Sustainability
   • The highly regulated nature of the life sciences sector necessitates careful integration of environmental criteria into procurement to maintain patient access, safety, and innovation.

The Opportunity: Pursuing a Shared Agenda for Sustainable Procurement

Sustainable procurement presents an opportunity for collaboration between healthcare systems and industry to balance environmental goals with patient access and supply chain resilience. However, successful implementation requires careful policy design to avoid unintended consequences such as supply disruptions or innovation delays.

Core Principles for Sustainable Procurement Policy Design

• Collaborate Early and Continuously: Engage all stakeholders, including pharmaceutical companies, from the outset to co-design criteria and roadmaps that align sustainability objectives with feasibility and ensure coherence across healthcare systems. Research from ISPOR recommends integrating green criteria during procurement rather than reimbursement decisions.
• Maintain Flexibility and Continuity of Access: Implement phased approaches that incentivize sustainability without compromising patient access or excluding suppliers adapting to new norms, particularly smaller or local manufacturers.
• Pilot New Policies and Monitor Progress: Test innovative policy solutions through pilots before full-scale rollout to ensure effectiveness and minimize risks.
• Align Criteria and Support Transition: Develop supplier-level criteria aligned with broader sustainability goals, establish clear timelines, and provide support for companies to meet evolving requirements. Product-level assessments, such as the Product Life Cycle Assessment (LCA) methodology under development by the Sustainable Markets Initiative and British Standard Institute, should be piloted carefully to avoid access delays.
• Establish a Clear and Balanced Sustainability Framework: Create predictable frameworks and implementation roadmaps with tailored data requests relevant to sustainability objectives within the full healthcare pathway context.

Procurement as a Driver of Resilient Supply Chains

Achieving environmental sustainability, supply security, and patient access to medicines are complementary goals. Pragmatic procurement systems that recognize the unique characteristics of the life sciences sector and allow flexibility in implementation are essential.

The OECD’s Public Procurement Forum serves as a vital platform for governments, procurers, and industry to co-create procurement frameworks that support both health and environmental objectives without compromising patient outcomes or system resilience.

Alignment with Sustainable Development Goals (SDGs)

• SDG 3 – Good Health and Well-being: Ensuring access to essential medicines and vaccines while maintaining high-quality healthcare outcomes.
• SDG 9 – Industry, Innovation, and Infrastructure: Promoting innovation in sustainable product design and manufacturing processes.
• SDG 12 – Responsible Consumption and Production: Encouraging sustainable procurement practices and reducing environmental footprints.
• SDG 13 – Climate Action: Reducing greenhouse gas emissions within the health sector and supply chains.
• SDG 17 – Partnerships for the Goals: Fostering collaboration among governments, industry, and stakeholders for sustainable development.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 3: Good Health and Well-being
   • The article emphasizes improving health outcomes, ensuring access to medicines and vaccines, and strengthening health systems.
2. SDG 12: Responsible Consumption and Production
   • Focus on sustainable procurement practices, reducing environmental footprints, and integrating environmental criteria in procurement.
3. SDG 13: Climate Action
   • Addressing greenhouse gas emissions linked to the health sector and supply chains, and decarbonizing manufacturing sites.
4. SDG 17: Partnerships for the Goals
   • Collaboration between governments, industry, and stakeholders to design sustainable procurement policies and frameworks.

2. Specific Targets Under Those SDGs Identified

1. SDG 3: Good Health and Well-being
   • Target 3.8: Achieve universal health coverage, including access to quality essential medicines and vaccines.
   • Target 3.b: Support research and development of vaccines and medicines for communicable and non-communicable diseases.
2. SDG 12: Responsible Consumption and Production
   • Target 12.7: Promote public procurement practices that are sustainable, in accordance with national policies and priorities.
   • Target 12.2: Achieve sustainable management and efficient use of natural resources.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
4. SDG 17: Partnerships for the Goals
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. Greenhouse Gas Emissions from Health Sector
   • Indicator: Percentage of total greenhouse gas emissions attributed to the health sector and its supply chains (e.g., 4.4% of overall emissions in OECD countries in 2018; 79% from supply chains).
2. Implementation of Sustainable Procurement Criteria
   • Indicator: Number or proportion of countries integrating environmental criteria into health sector procurement policies.
   • Indicator: Adoption and piloting of sustainable procurement initiatives and policies.
3. Access to Medicines and Vaccines
   • Indicator: Continuity and availability of medicines and vaccines despite changes in procurement policies.
4. Stakeholder Collaboration and Policy Design
   • Indicator: Degree of stakeholder engagement and co-design in procurement policy development.
5. Product Life Cycle Assessment (LCA) Development
   • Indicator: Progress in developing and implementing LCA methodologies for health products (e.g., launch scheduled by end of 2025).

4. Table: SDGs, Targets and Indicators

Source: ifpma.org