Sustainability in healthcare delivery; how being “green” benefits more than just the environment 21 April 2015
Overview of today’s session ► What is sustainability? ► The link between sustainability and healthcare delivery ► Business drivers influencing sustainability in healthcare ► Sustainability risk and opportunity universe ► Challenges in the healthcare sector ► Embedding sustainability ► Vision, mission and goals ► Execution ► Monitor and Measure ► Summary Page 2 Sustainable Health Care
What is sustainability? Sustainability is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. ► This definition was created in 1983 at the The “three pillars” World Commission on Environment and of sustainability Development (the Brundtland Commission). ► The definition balances social, economic and environment demands. Social ► Other names include corporate social responsibility (CSR) and environment, social and governance (ESG). Sustainable ► Companies will report on different metrics depending on what is material to them. Environmental Economic Financial analysts, reporting agencies (e.g., Bloomberg) and NASDAQ are now monitoring all three pillars. Page 3
The link between sustainability and healthcare delivery “Serving our present, caring for our future” - Cleveland Clinic The mission is to provide compassionate patient Kaiser Permanente is a community care with seamless coordination and to advance of 17,000 physicians committed to medicine through unrivaled education, research, providing excellent care today, which leads to healthier tomorrows. and outreach in the many diverse communities we serve Kaiser Permanete Mount Sinai Health System We're collaborating with leading healthcare insurers to better c oordinate care, reduce healthcare costs and improve the long-term health and well-being of communities through our accountable care and clinically integrated organizations Tenet “This year we are focused on building the foundations that will Working towards a help us integrate corporate responsibility deeper into our business and position us to address critical social and healthier world. environmental challenges in a way that will drive shareholder value .” – Pfizer – Dick Clark, Chairman and CEO, Merck Page 4
Drivers influencing sustainability in healthcare delivery Cost reduction Healthier hospital environment Opportunities Risks Opportunities Risks Operational and energy Rising energy and Enhanced patient Hospital environments efficiency improvement transportation costs outcomes and leading to worse patient experience and health outcomes Waste efficiency Cost of carbon Less toxic or harmful Clean-tech energy Value chain impacts chemicals generation Higher engagement Building efficiency and health of employees improvements Community expectations Government regulation Opportunities Risks Opportunities Risks New or enhanced Brand risk Business and tax Regulatory compliance stakeholder incentives Loss of shareholder Financial penalties relationships value Legal liability Higher rankings in Social license to operate Financial reporting sustainability indices Recruitment and retention Satisfaction and loyalty Page 5
Sustainability risk and opportunity universe ROI Business Management modeling in Gain/loss Supply chain battle for and tax dashboard market Employee (upstream/ capital incentives reporting Asset share engagement downstream) value erosion Risk Innovation disclosure Damage to (products, reporting infrastructure/ processes) assets Financial Operational Sustainability reporting Strategic Operational framework and energy efficiency Mergers, acquisitions and divestitures Stakeholder expectations Reputational Communications Compliance Environment and investor health and relations safety Community relations Renewable Mandatory energy regulations target Analyst Voluntary Brand value rankings/ Business schemes and indices standards commitments of conduct Page 6
What are the risks and opportunities in healthcare? Economic Environmental Social Cost pressures Climate related Lifestyle changes ► ► ► exposure Health care regulation Demographic changes ► ► reform Energy and water ► Quality care ► usage (natural Fraud and ► Patient privacy and ► resource depletion) unnecessary electronic health procedures Greenhouse gases ► records Pricing and billing Waste and toxicity ► ► Community ► transparency impacts investments Governance Packaging ► ► Human rights ► Resiliency ► Working conditions ► Creates opportunities and mitigates risk Page 7
Challenges seen in the healthcare sector ► Tone at the top / leadership commitment can be missing ► Bottom-up initiatives are common ► Funding for sustainability programs may be a challenge, especially in the government and nonprofit sectors, and deter successful program implementation ► Focus on solely operational efficiencies while ignoring the importance of engaging with the community and community benefit Page 8 Social responsibility & sustainable development framework at KFSH&RC - Kick-off meeting
Embedding sustainability A path to transformation Business drivers Revenue Cost reduction generation Establish baseline Governance Stakeholder Regulation E.g., Quantity key performance expectations metrics and set targets Vision, direction, Strategic Goals and Product direction objectives Market Continuous improvement goals and /Process Program management Leadership Innovation Risk Opportunity planning management assessment Enablers Technology Sustainability initiatives portfolio Product Supply chain and development procurement Execution Operations Finance Transactions Regulatory Tax and Marketing Facilities Information compliance and management technology communications Monitor and Internal Greenhouse gas Nonfinancial Third party measure management accounting reporting Assurance metrics and reporting
Embedding sustainability Vision, direction, goals and planning Develop a sustainability vision and supporting strategies – “materiality ► assessment” Establish governance for program and initiatives ► Determine the functions involved and their responsibilities ► Establish baseline measure (energy, water, waste, etc.) ► Determine KPIs (goals and metrics) that are: ► Specific ► Measureable ► Attainable ► Relevant ► Time-bound ► Sustainability often begins with bottom-up initiatives, however it is critical ► to take advantage of system-wide synergies
Embedding sustainability Vision, direction, goals and planning Materiality Assessing the material environment, social and governance (ESG) issues is ► critical to focusing program efforts and resources on the areas most important to stakeholders and operations Organizations should consider what is material at the healthcare delivery ► sector level as well as what is considered material to the to the organization. Guidance can be sought from healthcare sustainability initiative organizations, Sustainability Accounting Standards Board (SASB) Healthcare Delivery Accounting Standard, Global Reporting Initiative (GRI) or benchmarking with peer hospitals and facilities. More than a reporting exercise, materiality should be considered to design ► the program and ensure resources are aligned to the appropriate goals Once material issues are identified, goals, measurement systems and ► accountable parties can be put in place Most sustainability reporting standards or frameworks are moving towards ► reporting of material indicators
Embedding sustainability Vision, direction, goals and planning A selection of material sustainability issues in healthcare Patient Chemicals Waste Energy Water outcomes Provide patients with Substitute harmful Reduce, treat and Implement energy Reduce hospital quality care, including chemicals with safer safely dispose of efficiency and clean, water consumption access for low income alternatives healthcare waste renewable energy and supply potable patients generation water Pharmaceuticals Buildings Transportation Food Purchasing Improve transportation Purchase and serve Prescribe appropriately, Support green and Buy safer and more strategies for patients sustainably grown, safely manage and healthy hospital design sustainable products and and staff healthy food properly dispose of and construction materials pharmaceuticals Page 12
Recommend
More recommend
