New York is launching a voluntary climate action pilot program for hospitals, focused on improving worker health and safety while addressing the impacts of climate change on the environment. According to the Governor’s Office, the program provides premium credits of up to $1 million to New York State Insurance Fund-insured hospitals that pledge to achieve net zero greenhouse gas emissions by 2050 and enhance their resilience to extreme weather events, helping mitigate the climate-related hazards that contribute to steep increases in workplace injuries and illnesses.
“New York is taking action to maintain our status as a global leader in the fight against climate change,” Governor Hochul said. “This pilot program will incentivize hospitals to reduce their environmental impact and create a safer and healthier New York. From leveraging our insurance policies to transformative investments in this year’s budget, we are using every tool at our disposal to build a greener, more sustainable future for all New Yorkers.”
The U.S. health care industry is the leading emitter of GHGs, accounting for 8.5 percent of all national emissions and approximately a quarter of healthcare emissions globally. Hospitals are the most significant GHG contributors within health care, with most of their emissions produced indirectly in the supply chain, such as through purchased energy, anesthetics, pharmaceuticals, food and single-use plastic medical and surgical supplies.
The pilot provides NYSIF’s hospital policyholders an upfront credit of 5 percent on their workers’ compensation premium, up to $1 million per policy, when they pledge to develop a climate action plan to monitor, report, and reduce their greenhouse gas emissions and enhance their resilience to climate-related disruptions. The upfront credit will free up crucial funds immediately for hospitals to develop their action plans, laying the foundation for their future emissions reduction and resilience strategies. An ongoing premium credit of 5 percent, up to $1 million per policy, will be available to hospitals each year they progress toward their planned milestones. Over time, hospitals may channel the ongoing credit – and any savings from reduced emissions – into direct patient care and further enhancing their resilience to climate-related disruptions.
To receive the premium credits, hospital climate action plans must identify long-term strategies to reduce both direct and indirect emissions, including those produced in the supply chain for anesthetics, pharmaceuticals, food, and single-use plastics and medical supplies. The plans must also detail supply chain vulnerabilities and contingencies and outline the hospital’s procurement approach to encouraging hospital suppliers and vendors to account for and report their own emissions information over time. Plans must also incorporate safeguards to ensure positive impacts to employees and the hospital’s surrounding community.
Beyond the premium credits, the pilot also offers access to NYSIF’s risk control services, including consultation, resources, and training, focused on strategies to confront climate-related challenges. The services will help participating hospitals, particularly smaller and rural hospitals, implement strategies to mitigate climate hazards and promote worker well-being. NYSIF will also create a forum for hospitals to learn from each other’s experiences as they carry out efforts to reduce emissions and seek to become more resilient.
The initiative will apply to NYSIF’s current and prospective workers’ compensation policyholders, with premium credits available for the duration of a hospital’s demonstrated commitment to work towards the goal of achieving net zero GHG emissions by 2050. The pilot has the potential to generate hundreds of millions in cumulative premium credits and cost savings for participating hospitals, which they may invest to further strengthen patient care and health outcomes.
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