Sustainability Risk Management in Care Homes: Are You Prepared?

Ownacarehome in discussion with Rondi Allan, Co Founder of Sustainable X talk care homes and sustainability.

Rondi comments: “Sustainability is becoming a critical concern for care homes, not just in terms of environmental responsibility but also as a major risk factor affecting regulatory compliance, financial planning, and operational resilience. Care homes that fail to address sustainability risks could face increasing regulatory scrutiny, financial pressures, and even threats to resident safety due to climate-related events.”

“One of the biggest risks care homes face is falling behind on regulations. Sustainability requirements are beginning to feature in CQC assessments, and the government is pushing for net zero healthcare. Without a clear strategy for keeping up with new and evolving regulations, care homes could find themselves exposed to compliance failures. This could mean lower CQC ratings, reputational damage, or even funding restrictions.”

Solution

To manage this risk effectively, care homes need a structured approach:

• Assigning a sustainability lead to track regulatory changes,
• Engaging with industry networks for insights, and
• Embedding sustainability governance into decision-making processes can help keep operations ahead of compliance requirements.

“Climate change presents another significant challenge.”

Care homes are particularly vulnerable to extreme weather events, with heatwaves, flooding, and storms posing risks to resident health and safety.  Without the right mitigation plans in place, these events can disrupt operations and increase costs. For instance, heatwaves can place residents at risk of heat stress, while flooding can damage buildings and essential equipment.

Developing an extreme weather response plan is essential, as is investing in climate resilience measures such as improved insulation, green energy solutions, and enhanced ventilation systems. Conducting a climate risk assessment can help care homes identify vulnerabilities and prioritise the most critical actions.

“Financial risks linked to sustainability are also growing.”

Transitioning to a more sustainable model often requires upfront investment, whether in upgrading buildings, switching to more energy-efficient systems, or upskilling staff.  Rising energy costs also create financial pressure, especially for those relying on outdated or inefficient systems.

Managing financial risk involves integrating sustainability into long-term planning for a care home provision, exploring funding options such as grants or low-carbon loans, and identifying cost-effective improvements that provide immediate benefits, such as LED lighting or water-saving initiatives.

Beyond these core risks, it is also recommended that a care home provider consider supply chain vulnerabilities, reputation risks, and waste management challenges. Many care homes rely on external suppliers for food, medical equipment, and cleaning products, and poor sustainability performance within supply chains can create compliance and reputational issues.

Families and prospective residents increasingly consider sustainability when choosing a care home, meaning a strong commitment to sustainability can be a key differentiator. Waste management is another critical area, with inefficient disposal practices leading to compliance issues and rising costs.

“A robust procurement strategy, improved waste management systems, and clear communication of sustainability efforts to residents and families can help mitigate these risks.”

Finally, Sustainability Risk Management is no longer optional, it is an essential part of ensuring resilience, financial stability, and high-quality care. By embedding sustainability into governance structures, planning for climate risks, and integrating sustainability considerations into financial planning, care homes can position themselves for long-term success.

We have created a go to checklist to support your sustainable care home journey.