ESA Launches New Program to Support Healthcare Decarbonization and Sustainability Transition

The Initiative Aims to Help Healthcare Achieve 2025 and 2030 Decarbonization Goals with Expert Consulting

Orlando, FL, Oct. 17th, 2023 – ESA, a leader in clean energy development across commercial, utility scale, battery energy storage systems (BESS), and community solar sectors, is announcing a new initiative tailored to assist healthcare institutions in achieving their decarbonization commitments.

Climate change presents considerable health challenges globally, and the healthcare sector faces unique hurdles in reducing its carbon footprint, especially given its intense energy needs and regulatory requirements. ESA's new initiative offers strategic insights and technological solutions to these challenges.

The healthcare sector is responsible for around 4.5% of global greenhouse gas emissions and a substantial 8% of the total energy consumption in the United States. This is due to a number of factors, including the high energy consumption of hospitals and other healthcare facilities, the use of energy-intensive medical equipment, and the transportation of patients and staff.

The sector faces unique challenges in reducing its carbon footprint. Hospitals must operate 24/7, even during power outages, and due to the healthcare sector is heavily regulated, it can be difficult to adopt new technologies and practices.

ESA has identified five key factors that are currently characterizing the competitive landscape in healthcare:

1. Economies of scale
   Hospitals are pursuing acquisitions to create economies of scale, lower costs, and gain negotiating power.
2. Fragmented market
   No more than 5% of the market is controlled by any one player, and the landscape is quite even.
3. For-profit leadership
   For-profit organizations are the leaders in the industry, with higher margins than non-profit organizations.
4. Market consolidation
   There has been an uptick in mergers and acquisitions in the market.
5. Sustainability initiatives
   Facilities that incorporate sustainability initiatives onsite may be more favorable to patients and employees.

Healthcare systems are facing increasing pressure from patients, employees, investors, and governments to meet decarbonization goals by reducing Scope 1, 2, and 3 emissions.

• Scope 1 emissions are direct emissions from activities that are owned or controlled by the healthcare system, such as the combustion of fossil fuels for heating and cooling buildings.
• Scope 2 emissions are indirect emissions from the purchase of electricity, heat, or steam.
• Scope 3 emissions are indirect emissions from the value chain of the healthcare system, such as the emissions associated with the transportation of patients and staff, the production of medical supplies, and the disposal of waste.

"We recognize the healthcare industry's urgency to meet impending 2025 and 2030 climate goals. After working with several organizations, we found a gap in building actual roadmaps to decarbonization. ESA is now moving to develop paths to on-site and off-site energy generation for healthcare institutions. With our extensive experience in solar development, ESA is poised to guide these organizations through the complexity of transitioning to renewable energy," states Morgan Brawner, Chief Revenue Officer at ESA.

Announcing our new initiative to help the healthcare sector decarbonize

ESA's new initiative is aligned with the Biden administration's Health Sector Climate Pledge, a voluntary commitment to reduce greenhouse gas emissions by 50% by 2030 and achieve net zero emissions by 2050. Over 100 healthcare organizations have already signed the pledge, including hospitals, health centers, suppliers, insurance companies, and pharmaceutical companies.

ESA's initiative will help healthcare organizations to meet their commitments by providing them with the tools and resources they need to decarbonize, including assessing their energy consumption, identifying opportunities for efficiency gains, and adopting renewable energy sources and energy-saving technologies.

ESA's consulting approach addresses three pivotal areas:

Operating Expenses

ESA's solar solutions can help healthcare organizations stabilize operating expenses by providing a predictable and affordable source of energy. Power Purchase Agreements (PPAs) are a popular option for healthcare organizations because they allow them to lock in a fixed price for electricity for a period of 15-20 years. This can help to offset rising utility costs and protect healthcare organizations from volatile energy markets.

ESA can help healthcare organizations analyze their facilities and identify the ones with the highest energy expenditure. This can be done by using a variety of tools and techniques, such as energy audits and data analytics. Once ESA has identified the facilities with the highest energy expenditure, it can develop a plan to reduce energy consumption and costs. This plan may include measures such as:

• Energy efficiency upgrades
• Onsite energy generation
• Offsite energy generation

Scope 2 Emissions

ESA aids healthcare institutions in reducing their Scope 2 emissions, enhancing their ESG performance, and meeting their Climate Pledge commitments for 2050. Solar energy is a clean and renewable energy source that can help healthcare organizations to reduce their carbon footprint and improve their ESG performance.

Healthcare systems can reduce their Scope 1 and 2 emissions by adopting renewable energy sources, improving energy efficiency, and electrifying their vehicle fleets. They can reduce their Scope 3 emissions by working with their suppliers - such as cold storage and logistics - to reduce emissions and by developing sustainable procurement practices.

Energy Resilience

For healthcare organizations, reliable power is essential. ESA ensures there are no service interruptions, especially vital for areas like cold storage pharmaceuticals. The healthcare sector's growth is accompanied by challenges such as managing operating costs and meeting ESG targets, exacerbated by the aftermath of the COVID-19 pandemic.

Energy storage and backup power can play a vital role in enhancing the resilience of healthcare organizations. Even a brief power outage can have serious consequences for patient safety. By storing excess energy generated from solar panels or other renewable energy sources, healthcare organizations can ensure that they have access to power even during grid outages. Energy storage can also help healthcare organizations to reduce their reliance on fossil fuel-powered generators.

"Our tailored consulting addresses these challenges, making healthcare facilities more sustainable and attractive for potential M&A activities," Morgan Brawner notes. "ESA is here to be your trusted partner in this essential transition. We offer financial benefits and tangible opportunities to reduce your carbon footprint significantly. The deadlines are nearing, and we urge healthcare leaders to collaborate with us, ensuring a sustainable future for the industry."