Sustainability, energy, and climate issues are poised to reshape the 21st century. Every organization will need new approaches to seize opportunities, manage risk, and continue to deliver on their core mission. This is particularly true for healthcare organizations where community health expectations heighten the importance of sustainability and climate performance.
Healthcare’s Environmental Value Proposition
Today, air and water quality are considered social determinants of health. Poor air quality can trigger new cases of respiratory illness, from asthma to chronic obstructive pulmonary disease to emphysema, and worsen symptoms of asthma, as well as emphysema and other lung disorders. Meanwhile, exposure to water pollution has the potential to induce gastrointestinal, neurological, and respiratory issues. It also can pose risk to reproductive or developmental health.
For healthcare organizations, taking action to create a more sustainable approach to energy use is not only a matter of social responsibility. In the eyes of government officials and the American public, it is quickly becoming a way of demonstrating an organization’s commitment to community health — and expectations that healthcare leaders act with intention are high.
Developing a more sustainable approach to energy consumption in hospitals and health systems also strengthens an organization’s financial health—and its resilience. As healthcare volumes struggle to return to baseline levels, investing in more energy-efficient approaches to heating, cooling, ventilation, and lighting could save millions of dollars.
Consider Robert Wood Johnson University Hospital Somerset, in Somerville, N.J., where a $5.7 million investment in energy efficiency improvements will save the hospital more than $600,000 annually in energy costs. The improvements include a major upgrade to the hospital’s air conditioning chiller plant, installation of energy-efficient lighting fixtures and controls, and replacement of motors, fans, and pumps with more energy-efficient models.
Approaches like this decrease both organizational risk and redundancy. And they enhance the health of the hospital or health system’s community, including its employee population and their dependents.
Beginning the Journey to Sustainability
Developing a robust plan for energy efficiency and sustainability makes good business sense for hospitals and health systems. It’s also the right thing to do. However, this type of work is complex and requires long-term investments and commitment to change energy consumption patterns, improve energy efficiency, and upgrade fleets and buildings. Further, supply chains — a major source of emissions — are deep, tiered, and dispersed, involving thousands of vendors and suppliers, each with their own economic pressures and business priorities.
The key to creating a foundation for demonstrable change is a clear, five-step plan — one informed by data, backed by science, and tailored to the organization’s specific goals and ambitions.
The rising tide of incentives for environmental sustainability initiatives can make this transition financially feasible. With leadership and buy-in from across the organization, hospitals and health systems can drive momentum and excitement for a more sustainable future.
An action plan for environmental sustainability relies heavily on technical planning and an understanding of the organization’s norms and systems, as well as the needs and concerns of stakeholders – here are five key steps to take.
Step 1: Establish baseline performance.
Before planning can begin, organizations must take stock of their environmental activities, pressures, and impacts. This includes understanding environmental, social, and corporate governance (ESG) pressures, measuring the organization’s existing greenhouse gas footprint, and assessing current activities and organizational structures related to energy consumption. By engaging stakeholders and executing data analysis — including benchmarking peer activities — the team can better understand where the organization stands and where opportunities for improvement exist.
Step 2: Use the data to develop a strategy for energy efficiency.
With good data in hand, leaders can prioritize key ESG initiatives and develop a road map for future endeavors. This strategy could include a bold climate reduction target, which should be underpinned by solid forecasting and planning.
Step 3: Undertake abatement and execution planning.
This step involves identifying the specific initiatives and action plans for achieving the organization’s unique climate-action goals. Key considerations typically include the types of technology and efficiency solutions needed, as well as steps toward securing organizational buy-in and necessary funding.
Step 4: Develop a plan for implementation.
After the steps above have been completed, it’s time to launch the initiative. Developing a targeted communications campaign can keep the momentum going and help stakeholders stay engaged as the organization begins to deliver on its climate-related activities.
Step 5: Create a robust reporting mechanism.
As implementation begins, the team should make sure it has the processes and tools in place to capture and analyze data, track emissions, and measure the organization’s progress. Reporting on the strategy and performance of actions and improvements is an essential part of the journey to keep teams accountable and motivated and to ensure stakeholders remain informed.
Resilience by Design
Guidehouse has helped some of the world’s best-known brands navigate these challenges, shape industry expectations, and guide more than $100 trillion in capital on sustainability topics. Preparing for the sustainability and climate transition will help your organization control costs and address emerging regulatory requirements while solidifying trust from the communities and patients you serve. Contact Guidehouse to accelerate your journey to environmental sustainability.