supply chain sustainability initiatives for health care

Loop Initiatives Inc. – a carbon neutral company210 Gladstone Ave. Suite 3001 Ottawa, ON K2P 0Y6 t. 613.237.1480

2300 Yonge St. Suite 2300 Toronto, ON M4P 1E4 t. 416.640.7760e. info@loopinitiatives.com w. loopinitiatives.com

Supply Chain Sustainability Initiatives

for Health CarePresented by:Nick Pairaudeau, Energy Coach, Toronto Central LHIN and Francisca Quinn, Sustainability Practice Leader, Loop Initiatives

May 17, 2010

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

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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.

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Agenda

• Sustainability in Supply Chain• Industry Initiatives and

Disclosure• Health Care Opportunities and

Initiatives

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Sustainability in Supply Chain

What is Sustainability?

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• Capacity to endure• Living and working in ways that meet and

integrate existing environmental, economic and social needs without compromising the well-being 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

CSR

CR

Green

TBL

3Ps

ESG

3Es

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Supply Chain

Facility

Value Chain

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Supply Chain

End UseFacility

Value Chain

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Supply Chain

End UseSupply Chain Facility

Value Chain

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Supply Chain

• Raw Materials• Packaging• Manufacturing• Distribution• Warehousing• And much more

Supply Chain

Why engage the Supply Chain?

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Tiffany & CoMarks & Spencer/Tesco

Capture EfficienciesCreate Leadership Raise Awareness

Walmart

Industry Initiatives and Disclosure

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Sustainable Supply Chain Initiatives and Disclosure

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Walmart Packaging Sustainability Disclosure

Sustainable Supply Chain Initiatives

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Goal: Reduce Packaging in Supply Chain by 5% by 2013

Benefits• Reduce GHGs from materials,

energy and transportation• Substitute materials with more

sustainable options Choices• Decrease chemical use

Packaging

Walmart Packaging Scorecard

Sustainability Disclosure

Sustainable Supply Disclosure

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Walmart Sustainability Index

Benefits• Know where suppliers are at• Provide data for analysis• Help customers make better

choices

Sustainable Supply Chain Disclosure

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Carbon Disclosure Project 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

CDP Supply Chain Program

Sustainable Supply Chain Initiatives

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Produce Carbon Life Cycle Assessment

Raw materials Manufacture Distribution Use Disposal

Sustainable Supply Chain Initiatives

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Envirowise Supply Chain Partnership

Benefits• Independent, impartial forum• Provides suppliers with

knowledge to take action• Equips host and supplier to

work together• Continuous support

Health Care Opportunities and

Initiatives

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What Makes Up The Health Care Supply Chain?

20Note: Procured services are excluded.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

• Raw materials• Manufacturing• Packaging• Transportation• Waste

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Collect Data

Analyse Data &

Compare

Research Options for Improveme

nts

Work with Suppliers to Implement

Improvements • Identify

opportunities • Identify

inefficiencies

• Technologies for energy, water and waste savings

• Fuel efficient fleets

• Non toxic chemicals and ingredients

•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

Introduce Green

Procurement

Collect WasteData

Measure Costs Reduction

and GHG

Case Study NHS

• Review procurement of medical equipment

• Maximising procurement efficiencies

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• Reduce carbon emissions 34% by 2020 vs. 1990 baseline

• Current emissions:– 59% procurement– 24% building

energy– 17% travel

• Estimated to save at least £180 million per year

Results Situation Strategy

Case Study NHS

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Procuring for Carbon Reduction

Current Initiatives

• ‘Green’ as part of the … RFP process

• Green Sustainability Committee

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Discussion & Questions?

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Thank You

Nick Pairaudeau npairaudeau@mtsinai.on.ca416.586.4800 ext. 4174

Francisca Quinn fquinn@loopinitiatives.com416.644.0625

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