How to Achieve Your Care Home Green Strategy
Awareness of environmental, social and governance (ESG) continues to slowly increase, however, as reported by Jade Kent (Stephens Scown) at the LaingBuisson Social Care Conference 2023 “if you are doing ESG as a tick box stop now.” Jade continues: “You need to measure your ESG before you can figure out what you can do.”
Ownacarehome considers ‘Is your care home sustainability data readily available?’
Data capture is essential to measure your care home sustainability reporting and benchmark business performance with a call to action in order to work towards your green strategy.
Data needs to be accessible and provide the ability to be analysed so that you can measure the success of your sustainability measurements for your care home business.
Interview with Liam Geach of English Oak Care Homes
Ownacarehome asked Liam Geach (Finance Director at English Oak Care Homes) how the family run care home group has achieved their Green Energy goal across all their care homes in Hampshire asking Liam:
‘Could you describe your role at English Oak Care Homes?’
“My current role is varied combining the responsibility of Finance Director with that of Operations which includes involving the team in innovation in the care home sector keeping boots on the floor!”
“There is a lot of time spent visiting the care homes, usually twice a week, obtaining feedback on what is working and where improvement is needed – you can always do more as they say.”
“This is followed by an action plan which is then re-visited on a regular basis as a success measure, adapting as challenges and situations change, all part of running a care home business and staying involved and innovative.”
“Innovation is key within the care home group at English Oak always with our staff and residents at the front of our minds. We have a very exciting project near completion to be unveiled soon so watch this space!”
Image of English Oak’s indoor train at Hunters Lodge
Image of one of English Oak Care Homes outdoor spaces
‘How did English Oak Care Homes start their Green Energy journey?’
“At English Oak part of our vision and mission is to be innovative and stay ahead to achieve best outcomes in the care sector, this is one of the areas that makes the care home group unique. As a residential dementia care home specialist, we are always looking to improve the lives of those we look after as well as all our staff who are involved in the entirety of the care service.”
“When geo politics started to talk about the planet and climate change we decided as a team to be one of the leaders in the care sector making the planet better for next generations.”
‘What was your Green Energy strategy across all your care homes?’
“We started with the obvious green wins looking at energy.”
“We researched into Air Source pumps to remove part of the care group’s reliance on gas.”
“That’s not to say that the process is without its issues! We have a back up if the system does not work and we have had to source parts from abroad! The latest system in Oak View went more smoothly. If there are operational issues we liaise with the supplier to find a solution, it’s all about working together to find a solution.”
“Our care home group infrastructure is continuously evolving and forms part of the operational and CAPEX budget to ensure that our financials are within reporting measures and sustainable. As a care home provider, it is important to invest in your care business as well as ensuring operational sustainability. We are caring for vulnerable people and we have to ensure that we are always doing our best by them.”
“By improving the care home operationally and demonstrating our commitment to looking after the whole well being of all who use and work in our care service we are able to ensure a viable level of residential fees with the Local Authority funding as well as private funding. This is vital to ensure the longevity of a care home service offering.”
“For electricity and gas we outsource to carbon neutral companies”
"We pace ourselves regarding re-investment to make the cross over to renewable energy affordable and we are continuing across the care group with our solar panel investment.”
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“Moving to renewable energy is a long term return which demonstrates the ethos of the care home group at English Oak.”
“We have adopted electronic care planning and moving to digital archiving with a paperless strategy.”
“We monitor legislation from its consultation stages so that we become early adopters of change and innovation always working with our teams to ensure that we have feedback and acceptance of change.”
“As an example, we created a paperless sign in and out IT system pre covid recognising that this was a more efficient process with added value such as obtaining real time visitor feedback as well as an acceptable practice for GDPR.”
“We are providing electric vehicle charge points across the care group where electricity is provided at no extra cost to our visitors and staff.”
“We look at our supply chain to work with ESG conscious suppliers.”
“Over the care home group we are carbon neutral.”
‘Who led the Green Energy process?’
‘Ownacarehome understand that yourself with senior management working with the carehome team turned the green strategy into a successful operation. The green care home strategy has been Board led demonstrating good Governance."
Liam commented: “It is important to provide appropriate resources for a successful strategy and this goes beyond green power covering all aspects of an innovative care service.”
“Acquiring sufficient knowledge before a care home starts its green energy conversion is essential and requires team commitment as well as a well thought out budget. Keeping up to date with green energy innovation is ongoing and supports a care home business to be resilient and sustainable.”
‘How did you address any funding challenges for your green strategy?’
“As an experienced care home provider we are always looking at our offering to see how we can add value. For example, where we could see that a particular care home site could increase its bedroom offering, we obtained planning permission for an extension increasing the capital base and thus EBITDA of the care home once the rooms had received CQC registration.”
“The capital asset improvement could then be used for in an equity release commercial loan application which in turn can help finance the green strategy of the care home alongside the increased income generation. The green strategy has enhanced the care service offering within the community and we have waiting lists for our care homes across the group with a strong average weekly fee base."
‘What next?’ Ownacarehome ask Liam Geach of English Oak?
“The Green Energy is the start of the sustainable journey for the care home group at English Oak. Our sustainability strategy is now entrenched within the care home business.
The benefits of the green journey to the care home business are clear to see:
Brand value as care seekers, their families looking for a sustainable green care home to live in
An environmentally friendly care home improving our residents lives and enhancing the environment for our staff
Potential to increase revenue in discussions with the Local Authority demonstrating our climate friendly investments, enhancing the local community and adding value to all who use and work in the care service
Reduction in operating costs
Increased EBITDA
Increased care home valuation
Reduced supply chain risks”
“We are now looking at our next major project seeking planning permission to develop an integrated retirement community enhancing English Oak’s care service and commitment to the ageing community whilst honouring our green pledge.”
It is clear after Ownacarehome talked about the move to Green Energy with Liam Geach of English Oak that the benefits of the conversion to green energy and their green strategy has been a successful endeavour.
Communicating a care home business strategy across all stakeholders strengthens a care business brand and sustainability for the long term whether you are a new entrant to the care home sector, growing your care home portfolio into a multi site operation or considering your succession and exit planning.
English Oak continues to address its care home green sustainability strategy to make sure that it continues to be the right approach for its care business now and for the long term.
Funding the green care home journey
Funding a care home’s green strategy forms a longer term ‘Return on Investment’ (ROI) and the independent specialist care sector brokers at Chandler & Co. are on hand to assist with lending applications for care home acquisitions, developments, extensions and refurbishment projects with green commitments, which are anticipated to increase over the next few years as care businesses start to adopt their ESG journey.
CQC and the impact of environmental sustainability
The CQC recently announced that: “Based on a new single assessment framework, the framework includes a quality statement on environmental sustainability. The environmental sustainability quality statement, under well-led, will look at any negative impact of providers activities on the environment, how they are acting to reduce it and support people to do the same.” The CQC will be looking at the carbon footprint of both “services or product.”
Good Governance under Regulation 17 will continue to be a key aspect of well-led and the adoption of ESG principles will be part of a care home’s green strategy.
The CQC continues: “Climate change adaption will be assessed in the quality statement ‘safe environments’ and within ‘Governance, management and sustainability.’ Within these quality statements steps taken to adapt to the effects of climate change will be looked at e.g. adverse weather plans.”
AUTUMNA LATEST GO GREEN PROJECT
Ownacarehome spoke to Debbie Harris, Founder of Autumna, about the new
‘Go Green’pledge for care home providers to sign up to within their profiles in the Autumna care directory:
Debbie said: “Care seekers have been telling us for some time that environmental credentials are influencing their decision making when looking for a care home.”
“So, we are pleased to announce Go Green, a sustainability project designed to evidence and guide the care sector in ESG and sustainability practices.”
Go Green has been created to support care seekers in their decision-making process and enable providers to demonstrate, directly to their potential clients, what measures they are taking.”
What is Go Green?
Debbie commented: “Go Green is an extension of your care home profile on the Autumna UK Director site, giving you the ability to showcase all of your sustainability and green initiatives. In addition to demonstrating what you’re presently doing, Go Green is also a roadmap to guide you on your care home’s sustainability journey.”
Ownacarehome concludes that the care sector still has a long way to go in its adoption of a green strategy, however, with the CQC regulator including the adoption of environmental sustainability and good governance within its quality statements, we can expect the ESG journey to start to take place at a faster pace.
