Why Kaiser Permanente Is Integrating Sustainability into Health Care Operations
Harvard Business Review Blog Network
Excerpt from the article:
Kaiser Permanente (KP), one of the largest health care providers in America, has a clear mission: improve health. In a surprising and welcome twist, KP is publicly recognizing that climate change threatens that mission. This health care leader is showing how an authentic, mission-driven connection to global issues can drive change.
There's credible evidence of significant climate change that will impact our ability to provide quality health care.
— Kathy Gerwig
Kaiser Permanente
Environmental Stewardship Officer
The topic of climate change has become so politicized, it's rare to hear company representatives and CEOs admit that they're taking a course of action specifically in response to a climate-related threat. But that's starting to change, even in sectors you might not think have a direct stake in climate change.
KP is not a minor player in a health care industry that accounts for 16% of U.S. GDP and 8% of greenhouse gas emissions. With $44 billion in revenues, KP runs hospitals, clinics and health plans, serving more than 9 million members in nine states (and Washington, DC). The "company" is technically a not-for-profit, but in my experience that matters little to medical device and pharma companies that experience KP as a very, very large customer with large demands.
The company has made increasing commitments to renewable energy as part of its aggressive greenhouse gas (GHG) reduction goals (30% by 2020). KP is buying both carbon offsets and significant onsite energy — 11 megawatts of solar and 4 megawatts of fuel cell generation, for example.
All of this is surprising since the health care sustainability agenda has mostly focused on supply chain issues, reducing exposure of patients and workers to toxic chemicals, green building, and general eco-efficiency. Why are they doing so much on renewable energy?
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