HHS Invites Health Care Industry to Make Climate Pledge | Akin Gump Strauss Hauer & Feld LLP

Key Point:

• Stakeholders in US hospitals, healthcare systems, suppliers, pharmaceutical companies, and other industries are required to submit voluntary pledges to reduce greenhouse gas emissions and improve climate resilience. I am.
• The pledge will expire by June 3, 2022, and the White House will host a conference in June to highlight advances in the medical sector in promoting climate change measures.
• Organizations interested in signing pledges develop policies and procedures to support commitments, identify tools to help track emissions, designate individuals within the institution responsible for each initiative, and ESGs. You need to update your strategy.

On Friday, April 22, the Biden administration called on the medical industry to step up efforts to combat the climate crisis. The healthcare sector is said to account for 4.6% of the world’s total greenhouse gas (GHG) emissions and 8.5% in the United States.¹ Among the participants in the healthcare sector, hospitals have the highest carbon dioxide emissions, followed by physicians, clinical services and pharmaceutical companies.²

By signing the pledge, the medical institution promises that:

1. Reduce organizational emissions (50% by 2030, net zero by 2050) and publicly report progress.
2. Nominate executive-level leads for your organization’s emission reduction efforts.
3. Complete an inventory of Scope 3 (Supply Chain) emissions.
4. Develop a climate resilience plan for the facility or community.

The White House recognizes those who have signed the pledge at the event in June.

A link to the pledge can be found here. The completed form must be emailed to OCCHE@hhs.gov by June 3, 2022.

HHS continues to develop robust climate change and health equity initiatives

This pledge follows a series of recent policy developments initiated by the U.S. Department of Health and Human Services (HHS) to address the U.S. Department of Health and Human Services’ efforts to address the crossroads between climate change and public health hazards. is showing.

For example, the HHS Climate Change and Health Disparity Authority (OCCHE), established in August 2021, plays an active role in communicating information about pledge opportunities, accepting signed pledges, and answering questions. .. Stakeholders interested in the opportunity to pledge can register here for an information webinar hosted by HHSOCCHE from 1:00 pm to 1:45 pm on May 5, 2022.

What are the potential implications of signing a pledge?

The pledge is completely voluntary and signing the pledge does not in itself legally bind the organization to comply with its terms. However, organizations that sign pledges are expected to work towards these commitments and actively share their progress with the general public.

Public transparency has been a consistent theme in the Biden administration’s government-wide approach to combating the climate crisis. For example, the Securities and Exchange Commission (SEC) recently proposed an amendment requiring public companies to disclose specific environmental and climate-related issues.

By making a commitment, the signer of the pledge may experience increased public oversight or pressure from activist shareholders who are trying to hold the organization accountable.

What should an organization do to carry out its pledge?

To fulfill the promise of the pledge, the organization wants to:

• Create and update internal policies and procedures related to emission tracking and reporting as needed. Signers of the pledge may find that federal tools such as the Environmental Protection Agency’s (EPA) ENERGY STAR Portfolio Manager Platform help meet these emission-related commitments.
• Determines the base year used for emission reduction commitments. The HHS proposes, but is not required, to use 2008 as the base year for organizations to meet the requirements of the federal health system.
• Identify individuals within your organization who support various commitments under the direction of a designated executive-level leader.
• As needed, we evaluate and update our environmental, social and governance (ESG) strategies to support the evaluation and development of climate resilience programs that highlight the experiences and needs of marginalized communities.

Organizations should also monitor HHS announcements for additional climate response resources and technical assistance support that government agencies will make available in the coming months.

¹https://www.commonwealthfund.org/publications/explainer/2022/apr/how-us-health-care-system-contributes-climate-change.

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