Healthcare providers must find new drive for sustainability transformation

Healthcare providers are vital for human health, but their environmental footprint is massive—accounting for 4.4% of global emissions according to Health Care Without Harm (HCWH)—making sustainability a financial and operational priority. This means that if the world’s healthcare systems were a country, it would be the fifth-largest emitter on the planet. This creates an environmental risk and a financial and operational burden for healthcare enterprises. Healthcare leaders must align their strategies with the United Nations Sustainable Development Goals (SDGs) to build a sustainable, resilient, and cost-effective future. Sustainability is also linked to cost control, financial margins, and operational efficiency, which impact the healthcare provider and payer.

For IT service providers, this is a chance to help healthcare clients achieve sustainability while enhancing efficiency, cutting costs, and driving digital transformation.

Sustainability in healthcare is a business imperative as well as a human and environmental one

The World Health Organization (WHO) describes an environmentally sustainable healthcare system as one that enhances, preserves, or restores health while minimizing negative environmental impacts. It also aims to create opportunities to restore and improve the environment, benefiting the health and well-being of current and future generations.

The financial risk of ignoring sustainability affects several important KPIs for the provider and payer. Exhibit 1 highlights how sustainability is no longer a ‘nice-to-have’; but is directly tied to financial and operational success.

Exhibit 1: The cost of ignoring sustainability in healthcare is higher than what we can expect

Source: HFS Research, 2025

Sustainability determines healthcare’s relevance and resilience

Healthcare systems (payers and providers) directly or indirectly influence all 17 SDGs through three key dimensions: social, environmental, and economic contributions. Their impact extends beyond improving health outcomes to fostering sustainable communities, reducing environmental footprints, and supporting equitable access to care. IT service providers are uniquely positioned to drive significant improvement and amplify the positive influence.

• Social Impact: Addressing access to care, education, and gender equality can reduce health inequities. IT service providers can enable fair healthcare access through digital transformation and connected care solutions. Deploying telehealth and virtual care platforms can directly affect SDGs.
• Environmental Impact: Minimizing carbon footprints through green infrastructure, waste management, and energy-efficient practices is essential. IT firms can drive impact through energy-efficient cloud migration, sustainable data centers, and smart hospital solutions that cut energy and water waste.
• Economic Impact: Strengthening healthcare’s role in job creation and economic growth, particularly in underserved regions, through automation and investing in local talent and training programs.

Exhibit 2 highlights the various SDG goals impacted by the healthcare sector.

Exhibit 2: Healthcare payers and providers address all 17 SDGs

Source: HFS Research, 2025

While healthcare systems are essential for promoting sustainability in all 17 SDGs, they cannot achieve this alone. Strong technological support is needed to reach these ambitious goals, which is where IT service providers come into play. Exhibit 3 highlights the specific ways in which IT firms support healthcare enterprises in addressing SDGs.

Exhibit 3: IT service support to healthcare payers and providers plays a comprehensive role in the implementation of 17 SDGs

Source: HFS Research, 2025

The Bottom Line: Sustainability is no longer optional—it’s a business, human, and planetary imperative. Healthcare providers are critical in shaping a greener, more equitable industry while ensuring financial stability.

Integrating sustainability into core operations is no longer optional. Creating resilient healthcare systems is imperative, as the healthcare sector’s unique ability to influence all 17 Sustainable Development Goals (SDGs) positions it as a transformative force. The IT service providers can help healthcare enterprises build a sustainable, resilient future while securing long-term business growth. Enterprise healthcare leaders must act decisively by:

1. Building sustainable solutions
2. Collaborating strategically
3. Measuring and tracking impact
4. Enabling circular IT strategies
5. Investing in community projects

See our latest market analysis for more. HFS will continue to analyze the roles of the healthcare and life sciences industry toward sustainability over the coming year.