Supply Chain Sustainability Initiatives for Health Care Presented by: Nick Pairaudeau, Energy Coach, Toronto Central LHIN and Francisca Quinn, Sustainability Practice Leader, Loop Initiatives May 17, 2010 Loop Initiatives Inc. – a carbon neutral company 210 Gladstone Ave. Suite 3001 Ottawa, ON K2P 0Y6 t. 613.237.1480 2300 Yonge St. Suite 2300 Toronto, ON M4P 1E4 t. 416.640.7760 e. info@loopinitiatives.com w. loopinitiatives.com Nick Pairaudeau • Energy Coach for the Toronto Central Local Health Integrated Network • Improving Energy Efficiency-TC LHIN – 30 million sq ft of real-estate space – 80 -100 million spent on energy per year – Hospitals, Long-Term Care facilities, CHC, CCAC • Developing the HSCN Green Supply Chain Committee 2 Francisca Quinn • Sustainability Practice Leader at Loop Initiatives – affiliated with Halsall Associates • 12 years+ experience in organizational change and sustainability – 4 years with U.K.’s Carbon Trust – Integrating sustainability initiatives into day-to-day operations – Engaging senior management and line employees – Building greener service delivery • Greening the supply chain - green procurement, supplier sustainability assessments, product carbon footprinting, etc. 3 Agenda • Sustainability in Supply Chain • Industry Initiatives and Disclosure • Health Care Opportunities and Initiatives 4 Sustainability in Supply Chain 5 What is Sustainability? 6 • Capacity to endure • Living and working in ways that meet and integrate existing environmental, economic and social needs without compromising the wellbeing of future generations • New corporate paradigm – complement traditional growth and profit-maximization model • Supply chain – focusing on resource efficiency and fair treatment of labour and ecology Supply Chain Facility Value Chain 7 Supply Chain Facility Value Chain 8 End Use Supply Chain Supply Chain Facility Value Chain 9 End Use Supply Chain Supply Chain • • • • • • 10 Raw Materials Packaging Manufacturing Distribution Warehousing And much more Why engage the Supply Chain? 11 Create Leadership Raise Awareness Capture Efficiencies Marks & Spencer/Tesco Tiffany & Co Walmart Industry Initiatives and Disclosure 12 Sustainable Supply Chain Initiatives and Disclosure Walmart Packaging 13 Sustainability Disclosure Sustainable Supply Chain Initiatives Walmart Packaging Scorecard Packaging Benefits • Reduce GHGs from materials, energy and transportation • Substitute materials with more sustainable options Choices • Decrease chemical use Goal: Reduce Packaging in Supply Chain by 5% by 2013 14 Sustainable Supply Disclosure Walmart Sustainability Index Sustainability Disclosure 15 Benefits • Know where suppliers are at • Provide data for analysis • Help customers make better choices Sustainable Supply Chain Disclosure Carbon Disclosure Project Supply Chain Program CDP Supply Chain Program Objectives • Determine how companies are driving supply chain with suppliers • Determine how suppliers are currently performing • Identify how both can work to drive improvements 16 Sustainable Supply Chain Initiatives Produce Carbon Life Cycle Assessment Raw materials 17 Manufacture Distribution Use Disposal Sustainable Supply Chain Initiatives Envirowise Supply Chain Partnership Benefits • Independent, impartial forum • Provides suppliers with knowledge to take action • Equips host and supplier to work together • Continuous support 18 Health Care Opportunities and Initiatives 19 What Makes Up The Health Care Supply Chain? Note: Procured services are excluded. 20 Source: “Ideas and Opportunities for Bending the Health Care Cost Curve: Advice for the Government of Ontario”, The Ontario Hospital Association, April 2010. Steps to Incorporate Sustainability into the Supply Chain Collect Data • • • • • 21 Raw materials Manufacturing Packaging Transportation Waste Analyse Data & Compare • Identify opportunities • Identify inefficiencies Research Options for Improvements • Technologies for energy, water and waste savings • Fuel efficient fleets • Non toxic chemicals and ingredients Work with Suppliers to Implement Improvements • Provide knowledge and support • Provide necessary training • Set targets for improvements Waste and the Supply Chain • Piloting a comprehensive waste data collection process – Quantity by types of waste – Benchmark costs – Calculate GHG Collect Waste Data Introduce Green Procurement Measure Costs Reduction and GHG Case Study NHS 23 Situation Strategy Results • Reduce carbon emissions 34% by 2020 vs. 1990 baseline • Current emissions: – 59% procurement – 24% building energy – 17% travel • Review procurement of medical equipment • Maximising procurement efficiencies • Estimated to save at least £180 million per year Case Study NHS Procuring for Carbon Reduction 24 Current Initiatives • ‘Green’ as part of the … RFP process • Green Sustainability Committee 25 Discussion & Questions? 26 Thank You Nick Pairaudeau npairaudeau@mtsinai.on.ca 416.586.4800 ext. 4174 Francisca Quinn fquinn@loopinitiatives.com 416.644.0625 27