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Key Performance Indicators:Energy Efficiency and GHG Performance

Graham Takata

July 8, 2009

+Objective

Using some established benchmarks, practices or standards, make a recommendation of a set of common indicators that could be used to report hospitals Energy and Green House Gases performance.

Bluewater Health, Sarnia (LEED) under construction

+Scope

Be Green

Build Green

Buy Green

• Energy Use, GHGs, and Efficiency

• GHG Protocol

• LEED Design Standards

• Green Guide for Healthcare

• Green Procurement• Global Health and

Safety Initiative

This Presentation focuses on KPIs related to Energy and GHG Emissions, which form part of the overall sustainability package.

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1.6

9

23

0.2

66

Fleet Vehicles

Medical Gases

Natural Gas

Emergency Generation

Electricity

Kaiser Permanente (2007)

Hospital Emissions

Hospitals have 2.5 x the GHG emissions as commercial use buildings

In the US, the CO2e/sqft has been estimated to be 13.5 kg CO2e/sqft

Hospitals have a significant capacity and opportunity to reduce emissions and reduce operating costs

Kingston General’s Energy Audit: Capital Investment $1,000,000 Annual Savings $200,000 Expected Payback: < 5 years

Hospitals and GHG Emissions Greenhouse Gas Emissions

U.S. Hospital Energy Alliance (HEA)NRCan Office of Energy Efficiency

(OEE)

Why Focus on Energy and Greenhouse Gases?

+Energy and GHG Metrics

The Standard Methodology for Benchmarking Energy and Greenhouse Gas Performance is the GHG Protocol:

WBCSD/WRI Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (2004).

It is an internationally recognized, transparent methodology to quantify the environmental footprint of an organizations: Scope 1: Fuel use for Heating and Transportation Scope 2: Electricity & Steam Scope 3: Waste, Water Consumption, Contracted Services

Industry Standard for Measurement

+Key Performance Indicators

KPIs should be: Quantitative and Measureable Align with the Outcome we are striving to achieve Impartial, Transparent, and Reproducible

They should: Inform us on where we stand Indicate how we compare with others Provide a metric to assess progress to date Align with relevant internal or Industry-wide Initiatives

KPIs should not only inform us of where we are, but where we need to go.

Meaningful Indicators

+Key Performance Indicators

EnergyOp

IntelKPI

Environmental Metrics + Operational Intelligence

Capital Costs Operating Costs Beds Building Age, Sqft Admissions Staff

Carbon Footprint per:

Dollar Spent Patient Served Sqft of Space Functional Unit

kWh M3 gas BTU GJ Water Steam

+Key Performance Indicators

Collect Data

Analyze KPI

Balanced Scorecard

Energy and GHG data Electricity (kWh, $) Heat (NG, Steam, m3/BTU, $) Other fuels – Fleet, Diesel

backups, etc. Water Consumption (m3) Waste Generation (%, tonnes)

Financial Data Expenditures for Facility

Management

Operational Data Sqft, Operating Hours, Staff Outpatient volumes Direct Admissions Functional Units Allows classification of hospitals

Data Collection

+Key Performance Indicators

Collect Data

Analyze KPI

Balanced Scorecard

Efficiency: GJ Electricity / sqft GJ Heat / sqft m3 Water / sqft Per admission, per bed, per

operating hour

Economy: Expenditures for Operations

and Maintenance Capital Investment for Green

Retrofits

Emissions: Total CO2e / sqft Includes Water, Waste,

Overall Footprint

Energy and GHG KPIs

+Key Performance Indicators

Collect Data

Analyze KPI

Balanced

Scorecard

A Balanced Scorecard:

Efficiency, Economy, and Total Emissions KPIs are weighted

Participating Hospitals are ranked based on their energy efficiency and GHG emissions

In addition to setting a standard for benchmarking participating hospitals, rating EE/GHG can form part of a larger Green Hospital Evaluation that includes other Green KPIs.

Examples: Green Operational Practices Green Building Standards Green Procurement

Evaluate, Plan, and Improve

+Outcomes

KPIs provide the basis for Strategic Planning:

A fair and transparent evaluation of participating hospitals green performance and progress

A benchmark to compare relative performance among OHA’s member Hospitals, the country, and the world

Identification of opportunities for Green Investment – a “green ROI” through energy savings

Identification of potential high impact and priority areas

A method to measure and monitor the effectiveness of Green Hospital Champion Fund’s investments

Developing a Strategy from KPIs

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Thank You!Graham Takata

gtakata@greentactics.ca

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AppendixKey Performance Indicators: Energy Efficiency and GHG Performance

+Appendix

In accordance with the GHG Protocol, emissions are divided into three categories: scope 1, scope 2, and scope 3.

Scope 1 emissions are direct emissions that occur from sources owned or controlled by the company, such as natural gas used to heat company buildings or emissions due to company owned fleet vehicles.

Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.

Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services (such as paper use or shipping services).

GHG Protocol: Emissions Classifications

+Appendix

Be Green

Build Green

Buy Green

• Energy Use, GHGs, and Efficiency

• GHG Protocol

• LEED Design Standards

• Green Guide for Healthcare

• Green Procurement• Global Health and

Safety Initiative

Sustainability Operations, Infrastructure, and Management

+Appendix

Global Health and Safety InitiativeA sector-wide collaboration to transform the way that healthcare designs, builds and operates its facilities as well as the products healthcare uses within those facilities.

Author of: Eco-Health Footprint Guide: Measuring your Organization's Impact on Public Health and the Environment

Health Care Without HarmAn international coalition of hospitals and health care systems, medical professionals, community groups, health-affected constituencies, labor unions, environmental and environmental health organizations and religious groups.

Author of: Healthy Hospitals, Healthy Planet, Healthy People - Addressing Climate Change in Health Care Settings

Green Guide for Health CareA best practices guide for healthy and sustainable building design, construction, and operations for the healthcare industry.

The Green Guide for Health Care applies LEED design principles to Hospitals and their operation.

Industry Initiatives