In June 2019 the Newcastle upon Tyne Hospitals NHS Foundation Trust became the first healthcare organisation in the world to declare a Climate Emergency, recognising that a climate emergency is a health emergency and committing to becoming a net-zero carbon organisation by 2040.
It followed up that commitment with a Climate Emergency Strategy that drove carbon reduction actions across its operational areas, producing an annual report on its progress.
The following year, NHSEI released its Net Zero Plan which included a statement that from 2030 onwards the NHS would no longer purchase goods and services from suppliers that had not published their own Net Zero goal, which must align to the NHS’s ambition.
After a rigorous review of carbon measurement tools, the Trust elected to use the SmartCarbon Calculator to measure and monitor the emissions from its operations. But in order to gain an accurate measure of its total carbon footprint, there was a need to include the carbon emissions from its supply chain that were related to delivering products and services (Scope 3 emissions) and the Trust partnered with SmartCarbon to develop a solution.
The challenge
Supply chain activities were estimated to account for at least 65% of the Trust’s emissions. This existing method involves estimating emissions based on eclass spend codes.
This approach is problematic as the factors are many years old and do not reflect any efforts by individual suppliers to reduce emissions. The approach also makes it difficult to track progress towards Net Zero as the results are dependent on overall spend (which may, in fact, increase).
To make meaningful progress, suppliers needed to be engaged and empowered to take real steps to measure, monitor and reduce their carbon. Supply chain relationships needed to be maintained and cost barriers tackled.
The solution needed to provide a seamless link that would enable the Trust to efficiently monitor progress towards Net Zero.
A truly collaborative approach between SmartCarbon and the Trust was taken. There were three key themes that were the focus of the solution development:
- It needed to be accessible in terms of technology and pricing to the entire supply chain
- Suppliers needed to be fully engaged in the approach taken
- The Trust needed to communicate to its suppliers its plans and motivations
The result was a five-step process that used the technology of the SmartCarbon platform and an engagement strategy that encouraged adoption and involvement in the solution.
The five steps consisted of:
Step 1:
The Trust listened to supplier views via a questionnaire and were encouraged by the high response rate and the fact that 98% of respondents supported the Net Zero goal.
Step 2:
The Procurement and Sustainability teams at the Trust delivered webinars to raise awareness, inform and engage suppliers about action plans and Carbon Footprint Plus reporting. This included case studies and sharing best practice.
Step 3:
Suppliers were invited to report their carbon footprint performance, and Net Zero targets, to the Trust via a free reporting page on the SmartCarbon platform.
Step 4:
Suppliers were required to commit and publish Net Zero targets by 2030. These must be aligned with Newcastle Hospital’s Net Zero by 2040 ambition.
Step 5:
Suppliers were encouraged to act and reduce their footprints to the greatest possible extent and then consider offsets for the remaining emissions.
The Carbon Footprint and Carbon Footprint Plus (i.e., Scope 1, 2 and 3) emissions were all calculated using the SmartCarbon Calculator platform, which provides access to all 6500 UK Government emissions factors, as well as additional bespoke options, such as Working From Home (WFH) and new healthcare sector-specific factors (e.g. anaesthetic gases and inhalers).
The platform outputs include graphs and reports, that are aligned to the requirements of the NHS Net Zero Plan, the Greenhouse Gas Protocol and the Streamlined Energy and Carbon Reporting (SECR) Regulations. Supplier emissions are presented in a hybrid fashion, with supplier-reported results shown alongside e-class spend codes (where real results are not yet available).
The optional supplier dashboard has been developed to calculate supply chain emissions, using a combination of both spend code factors together with more detailed reporting through engagement with the NHS Trust’s direct supply chain. This approach was developed to complement the emerging NHS Evergreen Supplier Framework, as well as other procurement initiatives.
A free reporting portal was added to the SmartCarbon platform, to enable suppliers to report their performance to one or multiple Trusts. Emissions are then apportioned based on value of spend versus turnover. There is also an option for suppliers to upgrade to a full account, for a supplier-discounted rate.
The Results
The success of SmartCarbon’s pilot scheme in conjunction with Newcastle upon Tyne Hospitals NHS Foundation Trust enabled them to more accurately report their tCO2e (carbon emissions) and identify hotspots to focus their carbon reduction efforts. The pilot scheme also led to an extended supply chain model for SmartCarbon, which has not only been of huge benefit to the healthcare sector, but can also be replicated for other sectors, e.g. local authorities, universities and the construction industry. The project was shortlisted for a healthcare Sustainable Procurement Award.
With regards to engaging the supply chain, Newcastle Hospitals achieved the following:
- 489 suppliers responded to the initial survey.
- 98% of suppliers pledged support to help Newcastle Hospitals achieve their Net Zero Carbon goals.
- 64% of suppliers already have a carbon reduction plan
- 68% of suppliers already measure and report on their carbon footprint
- 57% of suppliers were interested in attending an online workshop.