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Arrow Corporate governance report
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Arrow Risk report
  Arrow Introduction
  Arrow Risk management process
  Arrow Key risks
Arrow Sustainability report
  Arrow Introduction
  Arrow Highlights
  Arrow Overview
  Arrow Letter from the CEO
  Arrow Value added statement
  Arrow Sustainability at a glance
  Arrow Key issues and engagement channels
  Arrow Our response to stakeholder issues
  Arrow Human capital
  Arrow Black economic empowerment
  Arrow Corporate social investment
    Arrow Corporate social investment – SA
    Arrow Corporate social investment – UK
  Arrow Environment
    Arrow Environment – SA
    Arrow Environment – UK
   
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Environment – UK Environment – UK

During the year, the United Kingdom (UK) continued to expand on its efforts to managing the direct and indirect impact of the business on the environment. EcoNomics, a carbon management programme, was launched. It involves reducing our environmental impact by engaging staff, and changing business practices across hospitals and offices.

The initial focus has been on energy, but the full programme will be expanded to comprise:

  • Energy;
  • Waste;
  • Water;
  • Purchasing and logistics; and
  • Asset management and capital investment.

The Carbon Trust, commissioned last year to review General Healthcare Group’s (GHG) carbon emissions, estimated the total carbon footprint at 42 419 tons per year. This is primarily attributed to the energy used by our hospitals. This measurement provided a clear short-term focus to reduce energy consumption through “The Big Turn Off” initiative, our main environmental activity undertaken during the year. We continue with planning and research to shape a broader strategy for next year and beyond.

Energy usage

In December 2008, a conference was held in London for engineering managers from all our hospitals. The engineering managers generated a list of ideas to reduce our carbon footprint that were used to produce a workplan. The plan is being implemented by local teams on all our estates.

The conference has provided the momentum to drive essential changes in attitude, behaviour and practice to reduce energy consumption. To raise awareness about the carbon management programme, a campaign was adopted to support the implementation of the workplan at each site.

“The Big Turn Off” was launched in February 2009. To date, all sites have established Green Teams that are led by Green Champions and comprise staff from engineering, housekeeping, catering and theatres. The teams meet each month to assess progress against the work plan. A project board was also established to monitor progress in addition to monitoring local governance, and the board will actively provide support throughout the campaign.

Measuring and reporting is an established and effective approach in reducing energy use. Every week the Green Champion at each site receives a “dashboard” report displaying day-on-day and weekly usage which highlights progress and helps teams to focus on where they can further reduce consumption. Results are communicated monthly by email showing changes in consumption over time, and highlighting trends and year-on-year movement.

The results are also presented in a “league table” format to encourage competition between the sites. Progress has been encouraging; by May 2009, 17 hospitals had reduced year-on-year consumption by between 7% and 20%.

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Looking ahead

Although GHG has focused on reducing energy consumption over the past year, we recognise that part of our carbon footprint is also attributed to other activities. Over the course of next year and beyond we aim to implement a broader programme of work in waste, water, purchasing and logistics, and asset management and capital investment. We will be promoting the concept that small changes in our day-to-day activities can make a big difference to our impact on the environment.

Waste

After energy consumption, waste management (whether sending waste to an incinerator or a landfill) represents the highest carbon emitting activity for the business. Waste management is a highly visible area for all our staff and we will be engaging their help in changing how waste is managed at our facilities. Our focus for next year will be on:

  • Reducing the amount of waste that is currently incinerated or sent to landfills;
  • Increasing recycling at offices and hospitals;
  • Providing clearer guidance and management of segregated waste streams to ensure compliance; and
  • Providing guidance for contractors on disposal of building waste.

Water

Water usage is a relatively small contributor to GHG’s carbon emissions but water scarcity remains a major concern in the face of climate change. To further improve managing this scarce resource, our programme will address:

  • Water saving shower fittings;
  • Water saving toilet flush fittings;
  • Rainwater collection systems; and
  • Leak detection.

Purchasing and logistics

Business travel only accounts for 3% of GHG’s known carbon emissions. However, this measurement is based on a narrow assessment of the BMI logistics fleet (based at Heston) and the use of company cars. In addition, carbon emissions are not measured for the supply chain that delivers directly to hospitals in the same way that, for example, food miles are derived. More work is required in this key area to assess its impact on our indirect carbon footprint.

We will be considering the following initiatives over the next year:

  • “Series” or distributed delivery, where stock is moved from hospital to hospital rather than through central distribution;
  • Use of dual fuel, liquid petroleum gas, diesel and compressed natural gas powered vehicles;
  • Reduction in suppliers’ delivery schedules;
  • Freight best practice guidance;
  • Supplier rationalisation to reduce the number of site deliveries;
  • Specification of goods and services to reflect our environmental policies, such as reusable drapes and gowns for theatres; and
  • Decreasing business travel through the use of video and web conferencing.

Corporate asset management and capital investment strategy

The maintenance standards for GHG’s properties needs to be upgraded to include carbon management, specifically regarding energy and water usage. We are reviewing the operation of heating and cooling systems as part of a long-term strategy to progressively replace them with more energy efficient systems and renewable energy sources.

The overarching intention is to incorporate carbon reduction measures into corporate asset management and capital strategy. The key objectives are to:

  • Develop a capital replacement programme to support the objectives of the carbon management programme;
  • Build carbon assessment into the lifecycle costs for the acquisition or replacement of plant or equipment;
  • Ensure buildings operate to at least the minimum standards in carbon efficiency;
  • Ensure buildings meet current environmental legislative requirements;
  • Ensure new buildings and refurbishments are carried out according to BREEAM1 ‘excellent’ criteria tominimise carbon impact; and
  • Provide sufficient funding for specific investments in technology that support the carbon management programme under the control of the Project Manager for Green Policy.

“The Big Turn Off” has provided initial focus and encouraged action across our facilities. To meet targets and future legislation, and significantly reduce our impact on the environment, our focus for this year will be on delivering on the broader strategy. Positive change in the behaviour of all staff will continue to be fundamental to the success of the carbon management programme.

1 BREEAM (BRE Environmental Assessment Method) is the leading and most widely used environmental assessment method for buildings. It sets the standard for best practice in    sustainable design and has become the de facto method for measuring a building’s environmental performance.

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