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HFMA Sustainability Presentation

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An introductory presentation on sustainability issues that I gave to the Healthcare Financial Management Association (HFMA) in the South West

An introductory presentation on sustainability issues that I gave to the Healthcare Financial Management Association (HFMA) in the South West


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  • 1. Sustainability The implications for NHS finance 21st January 2010 KPMG LLP
  • 2. Agenda 10.00 Sustainability – what is it and why should we care? 10.15 What we need to know 10.30 The policy context 10.50 Everything carbon 11.10 Coffee 11.30 Implications for the finance function 12.00 It’s not all CO2 12.20 Measuring up 12.40 Help! © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 1 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 3. Sustainability What is it and why should we care? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 4. Question: What does sustainability mean? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 5. Sustainability vs. Sustainable Development © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 6. “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Gro Harlem Brundtland Our Common Future © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 7. The five principles of sustainable development Ensuring a strong, healthy and just Living within environmental limits society Achieving a sustainable Using sound science Promoting good economy responsibly governance UK Government © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 6 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 8. UK priorities for sustainable development Securing the future: The UK Government’s sustainable development strategy ● Sustainable consumption and production ● Natural resource protection and environment enhancement ● Sustainable communities ● Energy and climate change © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 7 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 9. YOU (AND 6 BILLION OTHER PEOPLE) ARE HERE © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 10. “If everyone in the world consumed natural resources and generated carbon dioxide at the rate we do in the UK, we’d need three planets – not just one − to support us.” WWF © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 11. What we need to know The issues, the facts and a (very) quick look at the science behind it all © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 12. The issues The greenhouse effect Greenhouse gases (GHGs) Carbon emissions The impacts of climate change © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 11 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 13. The greenhouse effect Kiehl, J. T. and Trenberth, K. E. (1997). © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 12 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 14. Greenhouse gases (GHGs) Water vapour Methane Carbon Dioxide © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 13 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 15. Carbon emissions Mak Thorpe © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 14 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 16. The impacts of climate change The climate is already changing… ● Rising temperatures ● Higher sea levels ● Extreme weather ● Plants and animals …and significant social and financial costs © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 15 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 17. The policy context Global aspirations, national aims and the NHS Carbon Reduction Strategy © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 18. A global climate agreement? “the lowest level of ambition you can imagine” Lumumba Di-Aping, chief negotiator for the G77 group of 130 developing countries “a death warrant for many of the world's poorest children” Lydia Baker, Save the Children “The city of Copenhagen is a crime scene tonight, with the guilty men and women fleeing to the airport.” John Sauven, executive director of Greenpeace UK © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 17 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 19. In the UK: The Climate Change Act 2008 ● An 80% cut in greenhouse gas emissions by 2050 * ● A 26% cut by 2020 * ● The creation of carbon budgets ● The Committee on Climate Change ● Powers to introduce emissions trading schemes * against a 1990 baseline © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 18 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 20. Carbon emissions in the NHS ● 18m tonnes of CO2 per year ● 3.2% of UK carbon emissions ● An increase in carbon emissions of 40% since 1990 ● The largest public sector contributor to UK carbon emissions © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 19 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 21. Question: Where do NHS carbon emissions occur? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 22. Carbon emissions in the NHS NHS Carbon Emissions: Carbon Footprint Study, 2008. © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 21 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 23. Carbon emissions in the NHS Pharmaceuticals 4.50 Medical instruments / equipment 4.00 Business services 3.50 Paper products CO2 Emissions / Mt CO2 3.00 NHS freight transport Other manufactured products 2.50 Manufactured fuels / chemicals / gases 2.00 Food and catering 1.50 Construction 1.00 Information and communication 0.50 Water and sanitation 0.00 Waste products and recycling Other produrement NHS Carbon Emissions: Carbon Footprint Study, 2008. © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 22 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 24. Saving carbon, improving health The NHS Carbon Reduction Strategy for England ● Reduce carbon emissions by 86% against 2007 levels by 2050 ● As a first interim target, reduce emissions by 10% by 2015 ● Start to act now © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 23 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 25. NHS Carbon reduction targets © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 24 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 26. What do you need to do? ● Carbon emissions are now a Board level issue ● Understand your carbon emissions and how you can reduce them ● Produce a sustainable development management plan – and monitor its implementation carefully ● Develop more use of renewable energy ● Make decisions based on whole life cycle costs ● Get everyone on board © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 25 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 27. Everything carbon Carbon footprinting, carbon management and the Carbon Reduction Commitment © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 28. Carbon footprints ● Boundaries ● Completeness ● Methodology ● Accuracy ● Audit ● Skills and expertise © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 27 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 29. Carbon management Understand Plan Do Monitor Report © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 28 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 30. The CRC Energy Efficiency Scheme ● Buy and surrender allowances ● 6,000MWh/pa ≈ £500k ● CO2 emissions £12/tonne + ● League tables ● Recycling of payments ● Starts in 2010/11, i.e. now! ● Pay from 2011/12 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 29 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 31. Question: What have you done so far to prepare for the CRC? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 32. Why is the CRC a risk? Finance may New not be Lack of involved oversight and review Skills may Requires not exist trading Data strategies systems Potentially may not be unaudited ready Requires cooperation …but it can be an opportunity, too. © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 31 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 33. Who needs to be involved? Marketing Board Estates You Finance Procurement Legal © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 32 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 34. Why is this an issue for the Board? ● Resources ● Cost ● Cash flow “Anyone who doesn’t get into carbon ● Reputation reduction is a mug” John Tanner ● Risk Oxford City Council ● Potential fines © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 33 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 35. Time for a short break… © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 36. Implications for the finance function The cost of carbon, accounting issues, investment appraisal and more © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 37. The impact of the CRC on finance ● You may need to purchase allowances ● This has an immediate cash flow impact ● You may get this money back… ● …or you may not ● Big forecasting headache ● Effective communication is vital © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 36 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 38. The issues so far… Strategy / policy / buy-in Reporting systems/controls Recording/reporting issues Early action metrics Identifying opportunities Investment / funding Trading strategies Other © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 37 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 39. …and some potential problem areas Boundaries 3rd party data Availability Conversion factors Technology Estimates/restatements Human error / typos © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 38 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 40. CO2 allowances Organisations need to buy allowances on a yearly basis for their estimated emissions. Unused allowances can be traded or banked for future use. ● Auction in April each year from 2011 ● No limit in three-year introductory phase ● In subsequent years, total number of allowances will be capped ● Can purchase on secondary market © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 39 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 41. Question: Have you developed a trading strategy yet? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 42. Potential trading strategies 1. Passive – Buy allowances at the end of the year 2. Opportunistic – Aim to buy allowances when cheap 3. Cautious – Overbuy allowances at start of year 4. Commercial trader – Buy and sell to try to make a profit 5. Balanced – Buy sufficient allowances at start of year but monitor regularly for opportunities © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 41 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 43. The cost of carbon There is a cost to carbon emissions… but what is it? ● Based on future energy usage ● Variable ● Unpredictable ● Affected by weather patterns, human behaviour, business cycles… ● Probably going to increase over time ● Likely to get expensive © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 42 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 44. The cost of carbon We need to include the cost of carbon in investment appraisals and decisions © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 43 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 45. Accounting for carbon This is a developing issue… …so no definitive guidance yet (sorry). (But let’s have a guess.) © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 44 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 46. Accounting for carbon When you purchase allowances (April?): ● Cash outflow ● Create an intangible asset © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 45 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 47. Accounting for carbon As you emit CO2: ● Expense to cover the cost of allowances to be surrendered ● £12 / tonne? ● Market price? ● Establish a liability © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 46 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 48. Accounting for carbon When you surrender allowances (in July of the following year): ● Derecognise intangible asset as appropriate ● Derecognise liability © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 47 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 49. The known unknowns Some complications: ● How to account for recycled payments ● Accounting for losses or gains ● Allowances carried over ● Impairment © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 48 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 50. This is a complicated area… …it will require time, resources and commitment. (And it will be audited.) © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 49 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 51. Before we move on… Any questions about carbon? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 52. It’s not all CO2 Consuming wisely, preserving natural resources and promoting social justice © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 53. UK priorities for sustainable development Securing the future: The UK Government’s sustainable development strategy ● Sustainable consumption and production ● Natural resource protection and environment enhancement ● Sustainable communities ● Energy and climate change © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 52 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 54. Sustainable consumption and production ● One planet living ● Doing more with less ● Consuming and producing responsibly Examples? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 53 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 55. Natural resource protection ● Water ● Biodiversity ● Land use Examples? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 54 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 56. Sustainable communities ● Active and inclusive ● Open and transparent ● Well designed and accessible … for staff, patients and the wider community Examples? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 55 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 57. Taking action on sustainability Understand Plan Do Monitor Report © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 56 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 58. Measuring up The need for good sustainability reporting © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 59. Question: What do you report at the moment in terms of sustainability? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 60. Why report? “As sustainability issues increasingly move towards the forefront of people’s minds, sustainability reporting becomes a key form of communication.” Mervyn King Chairman, Global Reporting Initiative © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 59 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 61. Why report? We need to What gets demonstrate measured (and accountability reported) gets done We can show our commitment and publicise our achievements It can help to Stakeholders will motivate staff and expect it partners … and you’ll probably have to © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 60 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 62. What to report? ● It depends on what your priorities are ● Show how sustainability fits into your overall strategy ● Try to understand what is important to your stakeholders ● Carbon emissions are likely to be the main focus ● Include financial and non-financial information ● Don’t just report the bare minimum © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 61 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 63. An example Organisation Sustainability Report for the Year ended 31 March 2011 © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 62 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 64. And another © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 63 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 65. Help! Some useful sources of guidance and support © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 66. Places to go for help ● Your colleagues ● The NHS Sustainable Development Unit ● HFMA, CIPFA, etc. ● Accounting for Sustainability ● DECC / Environment Agency (for the CRC) ● Sustainable development organisations ● Professional advisors and consultancies © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. 65 KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 67. Any questions? © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 68. Thank you! You’ve been a lovely audience © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
  • 69. Simon Perks KPMG LLP (UK) +44 (0) 7990 678 588 simon.perks@kpmg.co.uk www.kpmg.co.uk The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.