Loop Initiatives Inc. – a carbon neutral company 210 Gladstone Ave. Suite 3001  Ottawa, ON K2P 0Y6  t Yonge St. Suite 2300  Toronto, ON M4P 1E4  t e. w. loopinitiatives.com Supply Chain Sustainability Initiatives for Health Care Presented by: Nick Pairaudeau, Energy Coach, Toronto Central LHIN and Francisca Quinn, Sustainability Practice Leader, Loop Initiatives May 17, 2010

Nick Pairaudeau Energy Coach for the Toronto Central Local Health Integrated Network Improving Energy Efficiency-TC LHIN –30 million sq ft of real-estate space – million spent on energy per year –Hospitals, Long-Term Care facilities, CHC, CCAC Developing the HSCN Green Supply Chain Committee 2

Francisca Quinn Sustainability Practice Leader at Loop Initiatives – affiliated with Halsall Associates 12 years+ experience in organizational change and sustainability – 4 years with U.K.’s Carbon Trust –Integrating sustainability initiatives into day-to-day operations –Engaging senior management and line employees –Building greener service delivery Greening the supply chain - green procurement, supplier sustainability assessments, product carbon footprinting, etc. 3

4 Agenda Sustainability in Supply Chain Industry Initiatives and Disclosure Health Care Opportunities and Initiatives

5 Sustainability in Supply Chain

What is Sustainability? 6 Capacity to endure Living and working in ways that meet and integrate existing environmental, economic and social needs without compromising the well- being of future generations New corporate paradigm – complement traditional growth and profit-maximization model Supply chain – focusing on resource efficiency and fair treatment of labour and ecology CSR CR Green TBL 3Ps ESG 3Es

7 Supply Chain Facility Value Chain

8 Supply Chain End UseFacility Value Chain

9 Supply Chain End UseSupply ChainFacility Value Chain

10 Supply Chain Raw Materials Packaging Manufacturing Distribution Warehousing And much more Supply Chain

Why engage the Supply Chain? 11 Tiffany & CoMarks & Spencer/Tesco Capture EfficienciesCreate LeadershipRaise Awareness Walmart

Industry Initiatives and Disclosure 12

Sustainable Supply Chain Initiatives and Disclosure 13 Walmart PackagingSustainability Disclosure

Sustainable Supply Chain Initiatives 14 Goal: Reduce Packaging in Supply Chain by 5% by 2013 Benefits Reduce GHGs from materials, energy and transportation Substitute materials with more sustainable options Choices Decrease chemical use Packaging Walmart Packaging Scorecard

Sustainability Disclosure Sustainable Supply Disclosure 15 Walmart Sustainability Index Benefits Know where suppliers are at Provide data for analysis Help customers make better choices

Sustainable Supply Chain Disclosure 16 Carbon Disclosure Project Supply Chain Program Objectives Determine how companies are driving supply chain with suppliers Determine how suppliers are currently performing Identify how both can work to drive improvements CDP Supply Chain Program

Sustainable Supply Chain Initiatives 17 Produce Carbon Life Cycle Assessment Raw materials ManufactureDistributionUseDisposal

Sustainable Supply Chain Initiatives 18 Envirowise Supply Chain Partnership Benefits Independent, impartial forum Provides suppliers with knowledge to take action Equips host and supplier to work together Continuous support

Health Care Opportunities and Initiatives 19

What Makes Up The Health Care Supply Chain? 20 Note: Procured services are excluded. Source: “Ideas and Opportunities for Bending the Health Care Cost Curve: Advice for the Government of Ontario”, The Ontario Hospital Association, April 2010.

Steps to Incorporate Sustainability into the Supply Chain Raw materials Manufacturing Packaging Transportation Waste 21 Collect Data Analyse Data & Compare Research Options for Improvements Work with Suppliers to Implement Improvements Identify opportunities Identify inefficiencies Technologies for energy, water and waste savings Fuel efficient fleets Non toxic chemicals and ingredients Provide knowledge and support Provide necessary training Set targets for improvements

Waste and the Supply Chain Piloting a comprehensive waste data collection process –Quantity by types of waste –Benchmark costs –Calculate GHG Introduce Green Procurement Collect Waste Data Measure Costs Reduction and GHG

Case Study NHS Review procurement of medical equipment Maximising procurement efficiencies 23 Reduce carbon emissions 34% by 2020 vs baseline Current emissions: –59% procurement –24% building energy –17% travel Estimated to save at least £180 million per year ResultsSituationStrategy

Case Study NHS 24 Procuring for Carbon Reduction

Current Initiatives ‘Green’ as part of the … RFP process Green Sustainability Committee 25

Discussion & Questions? 26

Thank You Nick ext Francisca