Healthcare without Harm - Diagnosing the Carbon Footprint of Healthcare

Sowmya Rajagopalan, Programme Manager

Healthcare

February 2011

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Functional Expertise� Experience in market research, consulting, Issue based deliverables and analyst briefings for Frost & Sullivan

projects on a global scale.

� Market Research in cardiology, orthopaedic, wound care and infection control sector in medical device

� Consults for leading medical device participants such as Intel, B.Braun, Cardinal Health and LMA in market sizing, competitor profiling, strategic recommendations

� Best Practices and Award Research Methodology

Industry Expertise� Experience base covering broad range of sectors in device industry

� Leveraging of long standing working relationships with leading industry participants’ senior executives

� Interactions include medical device industries, healthcare practices (hospitals), universities, and investors

What I bring to the Team� Technical expertise and in-depth understanding of the Medical Device Sector

� Ability to understand client requirements and facilitate new business development

� Fast-paced, fact-based & pragmatic delivery of high impact business recommendations

� Managing medical devices research team, providing personnel and technical support to team members

Career Highlights� Over 5 years of industry expertise in the field of Medical device research and consulting

� Quoted and published in several industry recognised international journals and magazines

� Showcasing industry expertise and Frost & Sullivan at international medical device conferences

� Awarded the Frost & Sullivan President's Research Recognition award in 2008

� First hand hospital environment experience, in studying patients, doctors and hospital staff working and interactions.

Education� Masters in Biological Sciences from Birla Institute of Technology and Science (BITS), Pilani (India)

� Research Study on” Factors Influencing Patient choice of Healthcare Providers in India” at Institute of Cardiovascular diseases, MMM, Chennai.

� Nationality: Indian

Sowmya Rajagopalan Program Manager

Healthcare,

Medical Devices

Frost & Sullivan

Europe, Israel, Africa,

Chennai, India

Sowmya Rajagopalan

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Focus Points

� Carbon Emission- An Overview

� Hospital and Carbon Emission

� Energy Consumption

� Material Consumption

� Medical Wastes

� Why look at Carbon Footprint of Healthcare

� Healthcare System’s Response to Carbon Emission Reduction

� Business Opportunities

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Carbon Emission – An Overview

� Climate change is the biggest global health threat of the 21st century.

� The World Health Organisation (WHO) estimates that climate change already

contributes to 150,000 deaths every year.

� Continued GHG [greenhouse gas] emissions at or above current rates would cause

further global warming

� Recent data suggest that to keep global warming below the dangerous 2°C threshold, we

must cut greenhouse gas production by at least 40% below 1990 levels by 2020.

� The EU has pledged to slash its own emissions by 20% below 1990 levels by 2020,

and would cut emissions by up to 30% by the same deadline if other developed

countries commit themselves to similar reductions under a global agreement.

� The health care industry has a critical role to play in climate change mitigation. Energy

usage in medical facilities is highly intensive. In fact, hospitals expend about twice as

much total energy per square foot as traditional office space

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Healthcare’s Role in Environment

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Hospitals Role in Harm to the Environment

� Health care facility activities have been estimated to represent 3–8% of the climate change footprint in developed-

country settings.

� The hospitals are the key source of carbon emission in the healthcare set up.

� The carbon emission is accounted by:

� Energy Consumption

� Toxic Emissions

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Energy Consumption

� The NHS spends around 400 million Pounds for use of energy, mainly in he form of electricity

and natural gas across their healthcare facilities

� In Brazil hospitals account for 10.6% of the country’s total commercial energy

consumption.

� In the United States of America, health-care buildings are the second most energy-intensive

commercial sector buildings; the health sector spends US$ 8.5 billion on energy every year.

Hospital Energy Consumption By Major Applications

Energy Consumption for Hospitals

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Material Consumption

� The natural resources depletion has been accelerated further by the healthcare Sector.

� In 2004 alone, the U.S healthcare sector consumed $23 billion worth of durable medical equipment and

$32 billion worth of nondurable medical equipment, while investing another $86 billion in structures and

medical equipment.

� The depletion increases further, when the use of disposables is high.

Consumption of Water per Bed/Day in European Hospitals

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Medical Wastes

� Health care facilities are second only to the in contributing to waste products in the United States,

producing more than 6,600 tons per day and more than 4 billion pounds annually

� Operating rooms and labor-and-delivery suites make up 70 percent of total hospital waste.

� In the United Kingdom, the NHS generates one in every 100 tonnes of domestic waste, and most of it

ends up in landfills.

� In a survey around 62% of the surveyed hospitals claimed to segregate the hospital wastes at source.

However, observations revealed only 30% of the hospitals practice some kind of segregation.

� Alarmingly 62% of what gets buried is recyclable or compostable

Types of Hospital WastesWastes of Resources from Budget to Patients

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Why look at Carbon Footprint of Healthcare

NHS Scenario

• The carbon footprint of NHS was around 18.6 MtCO2. The split for the was as

• The Carbon emission split across various division of procurement is as below:

Only 1% of products are durable enough to still be in use 6 months and later. Hence optimisationprocurement reduces unwanted expenditure.

Waste Management is a key to reducing carbon emission.Paper – recycling 1 ton of paper saves 17-24 trees and 7,000 gallons of water. It reduces air

pollution by 74% and water pollution by 35%.

Energy Efficiency is the key to Reduce Carbon Foot PrintMost hospitals have old systems in need of renovation. Studies show thatsavings of 25 to 40 percent are realistic after renovation measures.

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Healthcare System’s Response to Reducing Carbon Emission

• Kaiser Permanente (the largest nonprofit health maintenance organisation in the United States), the 8.5 million member organisation with 145,000 employees and $31.1 billion in annual revenues hasbecome a national environmental leader in the healthcare sector.

The NHS has been urging to reduce Carbon emissions across healthcare.

The NHS has agreed to reduce it by10%, the 2007 levels by 2015.

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Carbon Emission Breakdown by Production Layer

Public Services

Business Services

Transport and CommunicationWhole sale and Retail Trade

Construction

Electricity Gas and Water

Equipment

Minerals

Metals

Chemicals

FuelsWood and Paper

Textiles

FoodMining

Fishing

Forestry

Agriculture

Layer 1: NHS procurement of medical equipmentLayer 2: Medical equipment industry i.e. equipment factoriesLayer 3: Suppliers to medical equipment industryLayer 4: Suppliers to suppliers of the medical equipment industryLayer 5+: Suppliers to suppliers

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Analysis of Company’s Carbon Emission

CO2- Emissions (Co2 Emission per category in %)

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Business Opportunities

� Hospital Renovation

� Replacement of older devices, equipments, goods, to improve

efficiency of electrical use

� Higher adoption of new technologies

� Procurement Optimisation Technologies and Systems

� Medical Waste Management

� In-House/ Centralised Renewable Energy Plants

� In-House/ Centralised Recycling Plants

� Outsourcing of Non-Core Hospital Activities

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Next Steps

� Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com)

� Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011

(www.gil-global.com)

� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities (www.frost.com/news)

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For Additional Information

Sowmya Rajagopalan

Programme Manager

Healthcare

Sowmya.rajagopalan@frost.com

Katja Feick

Corporate Communications

Healthcare

0049 (0) 69 7703343

katja.feick@frost.com

Noel Anderson

European Vice President

New Business Development

+44 (0)207 343 8389

noel.anderson@frost.com