Health systems are building healthier communities through ESG principles

In order to improve health outcomes and build healthier communities, we must commit to environmental, social and governance (ESG) principles. Delivering innovative and compassionate care is only part of our mission — advancing community health requires us to look far beyond patients' medical records to address all the factors that impact health. Whether it’s creating greener hospital campuses, supporting anti-violence initiatives or addressing patients’ non-medical needs, we can’t build healthier communities without this approach.

In this conversation, Robert Garrett, CEO of Hackensack Meridian Health, shares how the New Jersey-based health system is embracing ESG principles.

Can you identify a few recent examples of how ESG strategies are making a difference in your network?

Robert Garrett: Let’s start with sustainability. We are deeply committed to cutting emissions, conserving energy and investing in renewable sources with the goal of net zero emissions by 2050. In April, we announced a 30-year partnership that will make Hackensack Meridian the largest renewable energy nonprofit healthcare provider in the U.S. The project will result in a 10% reduction in carbon emissions, a 25% decrease in purchased electricity and 33% guaranteed energy savings. Considering that the industry produces 8.5 % of the nation's total carbon emissions, we can play a major role in fighting climate change. For our continued commitment, Hackensack Meridian is the first system in the nation to receive the Joint Commission’s Sustainable Healthcare Certification.

Many health systems are investing in strategies to support communities in need to improve outcomes and advance health equity. What differentiates Hackensack Meridian’s approach?

RG: The network was recently recognized by the Lown Institute as the top nonprofit health system in the U.S. for giving back to the communities it serves. This means our spend in charity care and community investments exceeded the value of our tax exemption status. We’re very proud of this $358 million investment. We created a compassionate care program, the first and only program of its kind in New Jersey, by offering discounted care to people who fall through the cracks. With six in 10 Americans living paycheck to paycheck, more health systems need to make care more affordable. Additionally, we created a network-wide strategy to address the social determinants of health. We have screened 1.2 million people and provided 4 million referrals for community services patients may not even know existed.

Another key element to ESG is diversity, equity and inclusion. At a time when many organizations are dialing back these initiatives, what is the network’s strategy?

RG: We are doubling down. It is clear that advancing these important strategies enhances a company’s success and team member engagement. As staff shortages continue to plague the industry, it’s vital to create a strong culture. Research from Great Place to Work found that teams in diverse and inclusive work environments are more than five times as likely to want to stay on the job. Our DEI strategy includes enhanced leadership accountability, diverse leadership development programs and an expanding supplier diversity program. For these efforts, the network was recently ranked No. 1 in the U.S. among healthcare systems for the second time in a row by Fair360.

Was it a challenge to get the Board of Trustees and executive leaders to support ESG strategies given the urgent issues defining healthcare today?

RG: Not at all. Trustees and executive leaders have long supported efforts to enhance health equity, sustainability and DEI initiatives, which are included in our key strategic priorities. They have also been on board with prioritizing efforts to ensure robust governance practices that bring about transparency, accountability and ethical decision-making. This work is a natural extension of our mission as a nonprofit health network.

What advice would you give other healthcare CEOs who are trying to launch or advance ESG principles in their organizations?

RG: There is a moral and financial imperative to adopt these practices and policies. We have an extraordinary opportunity to expand our gaze beyond treating illness to redefine the essence of healthcare and wellness. Atul Gawande, noted surgeon, author and industry reformer said it best: “We’ve been wrong about what our job is in medicine. We think our job is to ensure health and survival. But really it is larger than that. It is to enable well-being.’’