Slide 1: Netcare's Sustainability Journey
Netcare’s Sustainability Journey By Lynelle Bagwandeen
Slide 2: Section 1: Governance
Section 1 Governance CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 2
Slide 3: Sustainability is a key strategic imperative of Netcare
Sustainability is a key strategic imperative of Netcare and is embedded in: • Governance structures • Ownership by senior management • Dedicated team • Integration • 5 year strategy and plan • Financial evaluation / Business Case • Measurement and Verification • Awareness Campaigns CARE • DIGNITY •
Slide 4: Governance Framework
GOVERNANCE FRAMEWORK Note: The Sustainability Committee is chaired by the CEO to demonstrate the importance to the rest of the business. CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 4
Slide 5: Execution under Committee Oversight
EXECUTION UNDER COMMITTEE OVERSIGHT -Netcare CEO, Divisional CEO’s, E-Team SUSTAINABILITY - Sits every 4- 6 weeks COMMITTEE - Reviews progress, define strategy - Approves capital -NH Dip Elec, Certified Energy Manager Johan Durand - (International accreditation), PrTech Eng Netcare Environmental +25
Slide 6: Implementation Tools
IMPLEMENTATION TOOLS Known industry standards PAS 55 / ISO 55000 – Asset management system ISO 14001 – Environmental management system ISO 50001 – Energy management system Environmental policy drafted in accordance with best practice The Process: Plan: Conduct the energy review and establish
Slide 7: Voluntary Reporting
VOLUNTARY REPORTING Netcare voluntarily participates in the following environmental and sustainability associated reporting structures: • Carbon Disclosure Project (Carbon as well as water disclosure) • JSE-SRI • Dow Jones SI • UN – Global • Environmental Policy which outlines commitment to public r
Slide 8: What do we expect from the environmental sustainability initiative in Netcare?
WHAT DO WE EXPECT FROM THE ENVIRONMENTAL SUSTAINABILITY INITIATIVE IN NETCARE? CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 8
Slide 9: Section 2: Operations
Section 2 Operations CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 9
Slide 10: What is influenced by our optimisation – the simplified view
WHAT IS INFLUENCED BY OUR OPTIMISATION – THE SIMPLIFIED VIEW CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 10
Slide 11: Environmental Management System
ENVIRONMENTAL MANAGEMENT SYSTEM: The Policies to govern and guide operations and initiative implementation Subject Specific Policies Environmental Policy and Compliance initiatives CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 11
Slide 12: Main Drivers
MAIN DRIVERS (1st priority is to adhere to statutory compliance) The following list is not exhaustive, but merely an indication of main drivers: • WASTE STRATEGY: › Healthcare Risk Waste › General Landfill Waste › Recycling › Segregate • ENERGY STRATEGY: Key targets for 2015 › Fossil fuels › Electri
Slide 13: Main Drivers cont.
MAIN DRIVERS cont. (1st priority is to adhere to statutory compliance) • WATER STRATEGY: Focus on reduce, re-use and what is the impact of our effluent to water bodies. › Harvesting of rain water › Re-use suitable used water in grey water systems and applications • EMISSIONS STRATEGY : GHG Protocol
Slide 14: Enterprise Sustainability Platform
ENTERPRISE SUSTAINABILITY PLATFORM • Netcare strategically engaged Energy Partners to assist and contribute to the in-house sustainability team • The Enterprise Sustainability Platform was developed in 2013 to enable the following: › A database to collect data for reporting purposes › Provide daily
Slide 15: Enterprise Sustainability Platform
ENTERPRISE SUSTAINABILITY PLATFORM Enterprise Sustainability Platform CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 15
Slide 16: Dashboard at Facility Level
DASHBOARD AT FACILITY LEVEL WHAT YOU CANNOT MEASURE YOU CANNOT MANAGE! CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 16
Slide 17: Technologies and Main Solution Categories
TECHNOLOGIES AND MAIN SOLUTION CATEGORIES • Energy Partners assist in the following: › Developing and ongoing maintenance and development of the Enterprise Sustainability Platform › Auditing of our sites › Developing solutions and strategies › Project execution • The 8 strategies developed to the op
Slide 18: Section 3: Cost Management
Section 3 Cost Management CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 18
Slide 19: What did the team do in the first 18 months?
WHAT DID THE TEAM DO IN THE 1ST 18 MONTHS? • Build the Enterprise Sustainability Platform • Build a baseline • Identified targets • Audited >40% of the hospitals • Audited >25% of the Medicross facilities and other supporting facilities • Designed a strategy, a plan, and in the process, identified 9
Slide 20: What was facility costs in South Africa in 2002?
WHAT WAS FACILITY COSTS IN SOUTH AFRICA IN 2002? CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 20
Slide 21: What happened to facility costs in South Africa by 2012
WHAT HAPPENED TO FACILITY COSTS IN SOUTH AFRICA BY 2012 Key business disruptor which requires an innovative response CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 21
Slide 22: Where do hospitals find themselves?
WHERE DO HOSPITALS FIND THEMSELVES? The nature of Netcare’s business is highly dependent on water and electricity. Primecure MediCross Netcare 911 HRSSC & MX1% 4% H/O 0% 0% Head Office 1% Electricity Usage Hospitals 94% Waste Carbon Petrol incineration Nitrous Dioxide Primecure Oxide 0% Head Office
Slide 23: Changes found and results of the previous years
CHANGES FOUND AND RESULTS OF THE PREVIOUS 5 YEARS FY2013 compared to base year 2008 300000 40 Total CO2e Total Tonnes of CO2e 250000 Total Tonnes of CO2e per bed 30 200000 Total Tonnes of CO2e per Rm 150000 20 revenue 100000 10 50000 26.86 32.14 17.8 29.8 0 0 2008 2013 Years in comparison Electricit
Slide 24: What happened the last 5 years and what is in the future?
WHAT HAPPENED THE LAST 5 YEARS AND WHAT IS IN THE FUTURE? R3x R2x reduced based on savings (R) R2x Next Five years After Savings next Five years R1X 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 24
Slide 25: What does this mean in savings for this year?
WHAT DOES THIS MEAN IN SAVINGS FOR THIS YEAR? SAVINGS ENVISAGED FOR THE NEXT 5 YEARS THROUGH ENERGY INITIATIVES CASH FLOW AND SUMMARY OF THE IMPACT CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 25
Slide 26: The 10 year plan - the benefit is exceeding the cost
THE 10 YEAR PLAN - THE BENEFIT IS EXCEEDING THE COST 30% saving as target (R) Capital Planned This area is tapering down Savings Expected due to lower saving incline, only reaching 42% and therefore less capital spend annually, but maintaining the savings FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2
Slide 27: Section 4: Project Examples and Successes
Section 4 Project Examples and Successes CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 27
Slide 28: Some Historical Successes
SOME HISTORICAL SUCCESSES 2013 use vs Baseline 1400000 100% 1200000 80% CBMH 1000000 800000 Percentage Saving kWh 51% 60% 600000 45% 48% 47% 47% 2007 - 2009 Baseline 41% 40% 40% 40% 400000 31% 34% 38% 40% 2013 200000 0 20% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CARE • DIGNITY • TRUTH • PART
Slide 29: Latest project commissioned and some initiatives or special learnings
LATEST PROJECT COMMISSIONED AND SOME INITIATIVES OR SPECIAL LEARNINGS Commissioning of DHW System CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION 29
Slide 30: Latest project commissioned and special learnings cont.
LATEST PROJECT COMMISSIONED AND SOME INITIATIVES OR SPECIAL LEARNINGS cont. • Theatres can consume between 40k and 120k of kWh/a depending on the HVAC system installed. • Old non-inverter Split Unit air conditioning can also be upgraded and its load can be reduced by 30%. • Lighting sensors in offic
Slide 31: In Conclusion
IN CONCLUSION Appropriate governance structure Follow known and tested processes and avoiding a blanket approach Business case Consistent Monitoring Measure and Verification THANK YOU