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Jul 26 2024
Data Analytics

How IT Leaders in Healthcare Can Strategically Tap ESG Data

Healthcare organizations are increasingly adopting sustainability initiatives, and measuring the effectiveness of those strategies helps drive value.

The healthcare industry is responsible for 8.5% of greenhouse gas emissions nationwide, according to the Department of Health and Human Services, and groups including the National Institutes of Health emphasize that the effects of climate change can negatively impact human health. To combat this, healthcare organizations are increasingly adopting sustainability initiatives aimed at reducing their carbon footprint. 

Experts say IT departments can play a significant role in reducing a health system’s environmental impact, especially through energy efficiency and waste reduction strategies. However, it’s also important to be able to measure the effectiveness of those plans. That’s where environmental, social and governance data is a valuable resource.

IT leaders can use ESG data to drive changes that benefit the entire organization while also making their local communities cleaner and healthier places to live.

“It costs money to decarbonize and become more energy-efficient and less greenhouse gas-intensive,” acknowledges Ian Hughes, the director of environmental sustainability at Rush University Medical Center in Chicago. “But it’s an investment in our future.”

EXPLORE: Collaborate with technology partners to work smarter toward sustainability.

What Are Common Sustainability Strategies in Healthcare?

Hughes and his team consistently track electricity and natural gas usage, water consumption, and electronic waste, and Rush has composting and recycling initiatives

“We’re scrappy about finding low- and no-cost opportunities for energy efficiency, because the cheapest kilowatt-hour is the kilowatt-hour that you don’t use,” Hughes explains. 

“It can be as simple as working with our IT department to ensure that computers go into sleep mode, making duplex printing the default and reminding people to turn off their lights. We also take advantage of incentive programs with local utility companies to make our HVAC systems more efficient,” he says.

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Another common sustainability strategy centers on finding more efficient data storage solutions. Nearly all acute care centers now use electronic health records systems, and it’s estimated that the average hospital produces about 50 petabytes of data each year.

Priscilla Sandberg, senior healthcare strategic alliances manager at Pure Storage, describes working with a major healthcare company that had been using several dozen storage arrays before switching to an alternative system that required fewer than 10 to host the same amount of data.

“IT departments can look at their existing suite of hardware and analyze the power, cooling and space required for them,” Sandberg says, “and consider partnering with vendors that can reduce that spend and physical footprint, which reduces environmental impact.”

How Does ESG Data Play a Role in Healthcare Sustainability?

ESG data enables healthcare organizations to measure their sustainability performance across sectors and identify areas for improvement. 

“Health systems can use the data collected in a storage array to do analytics on electrical consumption across the enterprise and define where they can ratchet it down,” Sandberg explains. 

“Data is everything,” Hughes agrees. “For example, we measure the energy consumed per square foot in our 20-plus buildings. This helps us understand which buildings are the most efficient and how we can replicate that performance.” He says Rush uses the free ENERGY STAR Portfolio Manager tool to track its energy usage. 

Sandberg adds that ESG data can help provide insights on how best to utilize hospital staff, citing medical coding teams as an example.

“Let’s say you ran a study that looked at how much energy usage could be reduced if coders, which is a perfectly acceptable remote position, worked from home,” she says. “Your coders driving back and forth and working in an office has environmental impact.”

READ MORE: Find out how CDW is approaching sustainability.

Why Is ESG Data Important for Sustainability?

One reason ESG data is consequential is that it can help draw patients and new hires. 

“It’s important for the community to see what we’re doing because it might be a factor in them choosing Rush for their medical care versus a competitor. They may like that we’re paying attention to our environmental impact,” Hughes says.

ESG data also informs critical business decisions, such as whether a medical center should transition to renewable energy sources. “That has to do with operational expenses and long-term contracts with renewable energy developers,” Hughes explains. “When talking to C-suite executives, they don’t want a fluffy story about sustainability. They’re looking for the high-level evidence, and that’s where ESG data is informative.”

“You can’t just say you’re being sustainable and that it’s beneficial,” Sandberg echoes. “You have to prove where and how your initiatives are having a positive impact.”

She adds that ESG data also plays a role in mitigating concerns about risks to quality. “So, you switched to a more energy-efficient storage array. Does the new system compromise the applications that are running? You have to prove to your shareholders and your staff that your changes are not going to cause risks to patients,” Sandberg says.

What Are Some Healthcare ESG Trends?

Hughes says one emerging trend is a focus on how artificial intelligence will affect sustainability goals. AI is expected to drive a 160% increase in data center power demand by 2030, according to Goldman Sachs Research

“It will be fascinating to see how the mass integration of AI impacts energy consumption and decarbonization goals. I wonder if IT folks can prescribe specific AI tools to minimize its environmental impact, rather than blanket our operations and processes with it across the board,” Hughes says.

In addition, he has noticed a focus on addressing greenhouse gas emissions in the healthcare space. “It’s been interesting to see sustainability programs transition from just focusing on waste reduction, which was the low-hanging fruit, and now start to align and rally around curbing emissions and using ESG data to determine how best to do that,” Hughes says.

There is also a growing acknowledgment that ESG in healthcare is a positive business strategy, Sandberg says. “Investors and healthcare payers care about sustainability. If you use ESG data to drive business, that’s a win-win for the organization and the environment.”

She continues, “I think as we continue to have energy crises and environmental disasters, there’s going to be a huge recognition globally that we all need to contribute to the solution.”

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