Bottom line:  It is prudent and easy for hospital “legal eagles” to be aware of sustainably, energy reduction and carbon emissions reduction requirements in their markets.  Sustainability and carbon emissions reduction is international policy that has been around for decades.  Like other policies, it ebbs and flows on a continuum of liberal to conservative actions based on the elected administrations in each country and local jurisdiction.   If your hospital is in a purple or blue market, there is likely something happening.

Quick takeaways:

1. Be aware of your local and state regulations for energy use and carbon emissions.  Check out the map at Institute for Market Transformation.org (posted above), many city and state regulations are available with a simple internet search.  Feel free to contact us for a free overview of your market(s).

2. Don’t assume anyone in the organization is paying attention to this.  As you know, all hospital departments are focused on managing personnel turnover and operations.  Facility teams are busy with turnover and maintaining the building for quality audits. The CFO is likely not paying attention to utility contracting, budgeting and energy saving incentives (but we are!).  Up to 1.5% of a hospitals operational expense can be spent on energy.

3. According to Commonwealth Fund 80% of hospital employees want their leadership to have a sustainability plan.  This is particularly true for staff under 40 years old and residents.

4.  A comprehensive business case needs a CXO level champion to drive ROI across many departments like facilities, supply chain, energy contracts, Rx, OR, ICU, quality, vehicles, HR, and nurse and physician engagement.

5. Carbon emission reduction plans can be part of diligence in a bond issuance as some large banks have European sustainability requirements.

6. Many physicians and medical societies have dedicated workgroups on specialty focused activities.

7. Sustainability may be lower on hospital’s do to list, but that may be because it doesn’t have the right frame.  Carbon emissions reduction and sustainability is not going away.  Offensively, competitive advantages are possible. Defensively, a senior level discussion is a prudent way to manage risk and be ready.

We can help with a short email or call.  [email protected].

Published On: March 30, 2025Categories: Health system carbon reduction, ROI, Energy reduction

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