Environment

Overview

Netcare is committed to conduct all of our operations in a manner which will sustain environmental resources. Our goal is to conserve and protect environmental resources across our operations, services and supply chain and to minimise our environmental footprint. Environmental optimisation is an important contributor to our quality improvement efforts and supports the Quadruple Aim framework adopted by the Group.

Our Group subscribes to the Kyoto Protocol and COP21 goals to limit global warming targets to below 2ºC and greenhouse gasses due to human activity, to such a point that trees, soil and oceans can absorb this naturally, between 2050 and 2100. We also participate in the Carbon Disclosure Project as well as the Global Reporting Initiative (GRI) and are included in the FTSE/JSE Responsible Investment Index Series.

Global Carbon Exchange SA (Pty) Ltd (GCX) independently assured the results published in our annual report for the purpose of reporting to the Carbon Disclosure Project (CDP). The verification was performed at a limited level of assurance and in accordance with the principles of the WBCSD/WRI Greenhouse Gas Protocol Corporate Accounting Standard, 2nd Edition, 2004. The verification was carried out in accordance with the International Standard ISO14064-3 (2006) ‘Specification with guidance for the validation and verification of greenhouse gas assertions’.

Our hospital, primary care, renal dialysis, cancer care and emergency medical services operations as well as our head office are focused on continuously improving their environmental performance through effective use of all resources and efficient management to minimise any adverse impact on the environment. Our Group's focus areas include energy and fuel consumption, emissions, water usage, general and healthcare waste, as well as green procurement processes and using green design principles in all new construction projects.

The security of electricity and water supply required for Netcare's high-acuity operations is critical in delivering the best clinical outcomes and patient experience. By adopting environmental best practices and limiting exposure to failure of consistent supply of services and future utility cost increases, Netcare is also focusing on ensuring the environmental sustainability of all its operations.

In 2013, Netcare embarked on developing a comprehensive environmental sustainability strategy for implementation throughout the Group, with energy, water and waste management as the initial key focus areas. This commitment to environmental sustainability, together with considerable investment in identified initiatives, has already yielded substantial reductions in energy consumption and related costs.

Our stakeholders

We engage regularly with our stakeholders on our environmental sustainability initiatives to integrate these projects into all areas of our business and maximise our successes. Our environmental policy is publically available and can be accessed by clicking here.

Energy projects

PV roof installation at Netcare Olivedale Hospital

The strategy to substantially reduce Netcare's reliance on energy supplied from the national grid was initiated with the commissioning of a number of enabling projects and determining accurate baselines for measuring future reductions in consumption.  A set of tangible interventions offering potential energy reduction benefits were then identified, and specific projects for individual facilities were thereafter initiated. Rigorous post implementation reviews are conducted a year after the completion of projects to measure their performance.

The introduction of check meters on the main electricity supply lines into its facilities enabled Netcare to select the most optimal tariff structures, which resulted in a substantial reduction in energy costs. Projections indicate that Netcare will reach its initial target of an 18 to 26% reduction in intensity by the end of 2018, which marks the first five years of its energy management programme, with the aim of reaching an energy intensity reduction of 35% by the end of the 10 year strategy.

Solar photo voltaic roof panel installations

PV roof panel installation at Netcare Pretoria East Hospital

During 2017 we installed 11 additional solar photo voltaic (PV) systems in the Hospital division and one in the Primary Care division, bringing the total network of installations to 38. Together these systems will generate 14 GWh of energy and provide an annual electricity saving of around R18 million. Netcare will continue the completion of current solar PV phases to accomplish a goal of 10MWpeak grid tied installations by the end of 2018.

Netcare is realising substantial benefits from its focused environmental sustainability initiatives

Lighting conversion

Converting interior lighting in its hospital facilities from CFL lights to 9W LED down lights is one of the projects that have been undertaken by Netcare. We completed the national lighting upgrade in the Hospital and Primary Care divisions, replacing over 129 000 luminaires with more efficient units across a number of hospitals and Medicross facilities. The annual energy reduction is estimated at over 15 GWh for the Hospital division and 900 000 kWh for Primary Care, with a combined financial impact of around R20 million.

The before (left) and after (right) photos clearly shows the significant improvement in the quality of lighting, with less glare and strain on the eye due to varying levels of lighting. The project will ensure more cost-effective lighting and also help to reduce Netcare’s environmental footprint.

Before

After

Waste management

Netcare has, for several years, implemented systems which ensure that healthcare risk waste (HCRW) is managed according to the applicable legislative requirements so as to protect staff members and the public from any form of risk. In 2016, Netcare initiated a national project to segregate waste more effectively and to reduce the HCRW produced by its operations. A baseline data set was established and a steady improvement has since been recorded, especially across sites with higher HCRW volumes.

Netcare’s goal is to integrate all waste streams into an integrated waste management solution and to convert waste streams to value streams by diverting waste that can be recycled and re-used from landfill sites, as well as by implementing waste to fuel, energy or fertiliser conversions on the basis of investment in enterprise development projects. The complete solution is expected to take three to five years to implement, and could potentially reduce Netcare’s spend on waste by as much as 38%.

We have a focused drive to improve awareness and management of waste segregation to reduce the environmental impact of medical waste, which includes waste dashboards to communicate with facilities on their performance against set targets. The dashboards give facilities the opportunity to benchmark themselves against other facilities in the network, and shared solutions to improve performance are managed centrally. Pleasingly, the initial results indicate an 11% reduction in HCRW.

Our environmentally-friendly new hospitals

All new Netcare facilities are being developed using environmentally sustainable principles as an integral part of their design.

The new Netcare Christiaan Barnard Memorial Hospital, which opened in December 2016, has numerous green and sustainable concepts incorporated in its design. These include grey water harvesting; an intelligent façade assisting in insulating the inside from the outside to lower heating, air conditioning and ventilation requirements and costs; efficient lighting; regenerating lifts; and harvesting waste heat from the chillers.

The areas of success in our new building projects are incorporated as standard design protocols and will be included with further technological advances in future new-builds and renovation or expansion projects.

External recognition for environmental programmes

In 2018, Netcare received four Climate Championship Awards – two gold and two silver awards – stemming from our participation in the international 2020 Health Care Climate Challenge organised by Global Green Healthy Hospitals (GGHH). Globally, this achievement has only been equalled by one other organisation, namely Dignity Health based in the United States.

The 2020 Health Climate Challenge was launched at the Paris Climate Conference in 2015, and Netcare was one of five founding participants in Africa. There are currently 163 member participants in the 2020 Challenge, representing the interests of more than 14 000 hospitals and health centres in 24 countries.