Climate Goals vs Reality: Healthcare's Sustainability Gap

A survey of 110 healthcare Chief Executives worldwide has examined how industry leaders plan to address environmental goals whilst managing operational demands. According to KPMG's 2025 Healthcare CEO Outlook, the sector faces a gap between stated climate ambitions and actual implementation.

The research examines how healthcare organisations are approaching decarbonisation targets, supply chain complexity and the integration of sustainability metrics into investment decisions. KPMG has presented data showing that environmental commitments remain hindered by skills shortages and infrastructure challenges. The consultancy's findings highlight the tension between immediate operational pressures and long-term sustainability planning across both public and private healthcare systems.

Environmental targets and investment gaps

According to the KPMG 2025 Healthcare CEO Outlook, only 30% of healthcare leaders comprehensively calculate and integrate sustainability costs and potential return on investment into their major capital decisions. The report indicates that 12% of Chief Executives are highly confident their organisations will meet net zero goals by 2030.

KPMG notes that a lack of internal skills and the complexities involved in decarbonising healthcare supply chains are the primary obstacles. Beccy Fenton, Global Head of Healthcare at KPMG International and Head of Infrastructure, Government and Healthcare at KPMG UK, says in the report: "growing workforce shortages, rising demand, stretched budgets and concerns about cyber-attacks and the next pandemic should loom large on CEOs' minds."

The consultancy firm reports that 84% of healthcare respondents feel increasingly compelled to address the impacts of climate change and geopolitical conflict on their local communities. According to KPMG, this could mean organisations need to work more closely with governments and stakeholders to build resilience infrastructure.

Beccy says: "Rising demand is usually good news for business, but healthcare is different." She adds: "when public services face surging demand, governments are forced into tough trade offs between areas such as health, education and defence."

The report states that productivity has become essential for survival across public and private healthcare organisations. According to KPMG, sector Chief Executives are seeking to address communities' most urgent ESG challenges through new partnerships, innovation and investment. The consultancy suggests that financial constraints are forcing leaders to prioritise immediate operational needs over longer-term environmental initiatives.

Decarbonising complex supply chains

According to the KPMG 2025 Healthcare CEO Outlook, supply chain resilience is a top-tier pressure for healthcare Chief Executives. The consultancy warns that decarbonising these supply chains is a major hurdle in achieving long-term climate goals.

KPMG reports that regulatory pressures and supply chain resilience remain among the most significant challenges competing for leadership attention within the healthcare sector. Sarah Abbott, Partner, Health, Ageing & Human Services at KPMG Australia, says in the report: "Many health systems are focusing on how to encourage their workforces to operate more effectively in multi-disciplinary teams across organisations and AI and technology will play a key role in achieving that."

The research indicates that the complexity of healthcare supply chains extends beyond immediate operational risks. According to KPMG, organisations must secure data and systems with appropriate investment whilst simultaneously building more stable and transparent supply chains.

KPMG advises healthcare executives to foster deeper partnerships across the global healthcare ecosystem. The consultancy states that this approach could help mitigate the multifaceted risks associated with climate commitments and operational demands.

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Technology adoption and sustainability

According to KPMG, 87% of healthcare organisations plan to invest more than 10% of their budgets into AI solutions in the upcoming year. The consultancy reports that 83% expect a return within three years.

Dr Jaz Dhaliwal, Global Digital Healthcare Lead at KPMG International and Partner at KPMG in the UK, says in the report: "There is no question that digitalisation will serve as a pivotal catalyst in shaping the future of care delivery models." However, KPMG warns that 55% of healthcare chief executives cite data readiness as a barrier to implementation.

The research indicates that 72% of leaders believe their organisations are successfully keeping pace with AI development. According to KPMG, technology investments must be accompanied by robust foundations such as electronic health records, integrated data platforms and smart hospital technologies.

KPMG stresses that without adequate change management support to address generational skills gaps and employee adoption, technological investments in healthcare could fail to deliver expected operational improvements.

The consultancy states that this could affect organisations' ability to meet both productivity and environmental targets.