Health Care Retail
Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.
This sub-sector includes companies that operate retail pharmacies and distribution centres supplying retail stores, which may be company-owned or franchised. Large companies source drugs and other merchandise through wholesalers and distributors. The majority of revenues are derived from consumer sales of prescription and over-the-counter pharmaceutical products. In addition, the sub-sector is expanding its health-focused services by offering clinics at various retail locations.
1. Powering facilities with low-GHG emissions energy1, 2, 3, 4, 8
- switch to zero-GHG emissions electricity (e.g., onsite projects, renewable energy certificates, or power-purchase agreements); and
- invest in and advocate for the decarbonisation of local and national energy systems.
2. Investment in low-GHG emissions buildings and infrastructure1, 2, 3, 4, 8
- plan, design, and refurbishment of facilities to ensure that space utilisation is maximised, and only absolutely necessary buildings are constructed;
- improve roofing and insulations across all buildings;
- upgrade lighting in across all buildings and real estate to LED lighting;
- reduce or remove all coal and oil heating systems; and
- investing in low-GHG emissions buildings and infrastructure.
3. Transitioning to zero emissions, sustainable travel and transport 1, 2, 3, 4, 8
- reduce air freight and shift to use of sea, road, and rail freights;
- reduce unnecessary journeys; and
- incentivise staff to use electric vehicles.
4. Implementing circular health care and sustainable health care waste management 3, 7, 8
- new material strategies such as materials being non-toxic, reusable, recycled and recyclable, durable, low-GHG emissions, and renewable;
- systematic redesign of supply chains and healthcare delivery. Such as redesigning business planning and shifting to a ‘product-as-a-service’ approach; and
- alternatives to incineration for health care waste treatment.
5.Incentivising low-GHG emissions pharmaceuticals, substituting high-emissions products with more sustainable alternatives3, 7, 8
- reduce the overall quantity of products manufactured and purchased; and
- develop a package-less solutions and segregation (for safe collection, sterilisation for reuse, and/or recycling.
- total energy consumption (GJ) by source (self-generated or purchased) and by fuel type;5
- percentage energy consumed that is supplied from grid electricity, calculated as purchased grid electricity consumption divided by total energy consumption;5
- percentage of energy consumed from renewable sources; and5
- total hazardous and non-hazardous waste disposal (Mt), by disposal method (incinerated, landfill and recycled).2,4
As retail is a heterogeneous sector, different emission intensity metrics are applicable to different activities of an entity,4 i.e.:
- buildings (gCO2/m2);
- logistics (gCO2e/tonne.km); and
- refrigerants (gCO2e leaked/kg refrigerant in cold equipment).
Relevant Scope 3 categories may include Category 1: Purchased goods and services; Category 4: Upstream transportation and distribution.3,7,9
Health Care Retail literature
- Action for Global Health, Health Inequalities and Climate Change: Action for Global Health Position Paper, 2021
- Arup & Health Care Without Harm, Health Care’s Climate Footprint: How the health sector contributes to the global climate crisis and opportunities for action (Green Paper Number One), 2019
- Arup & Health Care Without Harm, Global Road Map for Health Care Decarbonization: A navigational tool for achieving zero emissions with climate resilience and health equity (Green Paper Number Two), 2021
- Assessing Low Carbon Transition (ACT) Initiative, Retail methodology, 2019
- IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
- Science Based Targets initiative (SBTi), Chemicals Sector Overview, 2020
- Sustainable Markets Initiative, Decarbonising Healthcare Supply Chains: Recommendations on how to drive emissions reductions across healthcare supply chains, 2022
- The Health Policy Partnership, Decarbonising Healthcare: A discussion paper, 2022
The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.