Carbon Accounting at Kaiser Permanente

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1 Environmental Stewardship Carbon Accounting at Kaiser Permanente Joe Bialowitz, MS, HEM Senior Environmental Stewardship Consultant, Kaiser Permanente kp.org/communitybenefit

2 Kaiser Permanente s reach The largest non-profit health care system in the US $48bn operating revenue $14bn spend 9 million members 17,000 physicians 173,000 employees Page 2 kp.org/communitybenefit 37 hospitals 611 medical offices 607 other facilities 1,300 fleet vehicles

3 Kaiser Permanente s greenhouse gas emissions KP will reduce its GHG emissions by 30% by 2020 (against 2008 baseline) GHG emissions by Kaiser Permanente in 2011 Medical gases and halogenated anesthetic agents 5% Refrigerants 2% Mobile combustion by fleet vehicles 2% Stationary combustion for heating and emergency power 25% Purchased electricity 66% Page 3 kp.org/communitybenefit

4 National Health Service of England: 2004 GHG emissions Travel 18% Procurement (not including pharmaceuticals) 39% Building energy use 22% Pharmaceuticals 21% Page 4 kp.org/communitybenefit

5 Rx carbon accounting begins to take shape Page 5 kp.org/communitybenefit

6 Kaiser Permanente s carbon accounting team 1. Executive-level sponsor 2. Project manager from EH&S or sustainability office 3. Graduate-level summer intern (10 weeks full-time) from UC- Santa Barbara Bren School of Environmental Management 4. Utility bill payment manager 5. Real estate portfolio database manager 6. Fleet managers 7. Pharmaceutical contracting director (purchasing reports for anesthetic agents) 8. Specialty gas suppliers (purchasing reports for medical gases) 9. Member services manager from The Climate Registry (technical assistance) 10. Third-party verifier Page 6 kp.org/communitybenefit

7 Kaiser Permanente s GHG emissions sources (* = yet to be quantified) Scope 1 Scope 2 Scope 3 Stationary combustion - Natural gas use in owned or leased (as lessor) properties Stationary combustion Diesel for emergency power Mobile combustion Fleet vehicles Process emissions Medical gases (N2O, CO2, SF6) Process emissions Halogenated anesthetic agents (desflurane, isoflurane, sevoflurane) Fugitive emissions HFC refrigerants in owned properties Purchased electricity for owned or leased (as lessee) properties Stationary combustion Natural gas use in leased properties (as lessee) Purchased electricity as lessor to our tenants (gift shops, cafeterias, etc.) *Mobile combustion Employee commuting *Mobile combustion Business travel *Mobile combustion Visits by patients and families *Purchased electricity and stationary combustion Employee home offices *Embodied emissions in purchased products and services *End-of-life emissions from outsourced waste management

8 Youthful versus mature carbon accounting Youthful Building energy use only Single facility Financial control criteria for organizational boundaries Kyoto gases only Mature All GHG emissions sources Entire organization (by facility or by aggregate) Operational control criteria for organizational boundaries All GHG emissions Scopes 1, 2 Scopes 1, 2, 3 Emissions only One-time Self-declared accuracy Limited assurance Internal reporting Spreadsheets Emissions & reductions (esp. REC attributes) Annually Third-party verified Reasonable assurance External reporting Audit-grade carbon accounting software with automatic data entry based on integration with enterprise systems; dynamic factor substitution; press-of-a-button reports; and scenario modeling

9 Thank you Our verified 2010 GHG emissions inventory is publicly available at: Page 9 kp.org/communitybenefit