How can NHS Trusts achieve sustainability targets with limited funding?

Your Trust will have already started its journey to net zero and will be trying to navigate the complexities of the sustainability agenda. All whilst addressing the ‘here and now’ priorities of backlog maintenance, improving the quality and quantity of clinical space and seeking cost savings.

Understanding why these targets are needed is easy – the NHS in England has set targets to reach 80% net zero by 2040 and 100% net zero by 2045 for the emissions it influences.

The what to do and how to do it is more complicated and from our experience we believe focus should be placed on the following three key areas: Strategy, Process and Technology.

STRATEGY

Take a holistic approach with your estate.

Integrate sustainability into all your estates projects to ensure maximum benefits and demonstrate wider accountability.

Seek self-funding projects

Focus on projects that can be self-funded, for example, solar PV and battery storage which can be done over 25 years with Power Purchase Agreements (PPA). Government funding such as Salix is also available to apply for (see our list of funding options available to you in the table below).

Set your baseline

Understand your initial starting position and baseline, so you can accurately assess

progress against targets.

Invest in feasibility studies

Investing in feasibility studies will allow you to determine cost/benefits for the longer term and ultimately get the best value for your estate projects.

FUNDING OPTION	USE	SUITABILITY
Phase 5 Public Sector Decarbonisation Scheme	To support estates decarbonisation, mainly acute hospitals.	Any public sector organisation in England
Phase 6 Public Sector Low Carbon Skills Fund	To develop heat decarbonisation plans, mainly acute hospitals, schemes that can be delivered by 31 March 2026.	Any public sector organisation in England
Net zero - solar installations	Solar installations, including those with battery storage.	Trusts
Net zero - EV charging	EV charging infrastructure	Trusts

PROCESS

Current baseline - Start by properly understandingyour current baseline. This vital step is oftenforgotten or rushed through which can lead tounwise decisions and outcomes that can be costlyto fix.

Review energy holistically - Take a holisticapproach to how you use energy. There could be amultiplier effect to benefit generation andrealisation if issues and measures can beaddressed together.

Research various options - There is rarely a singlebest option to any energy solution. Considering arange of alternative design solutions and backingthese up with detailed energy and cost modelling isan investment which should be viewed as a savingrather than a cost.

Prioritise funding needs - Any solution will require funding and some solutions are more capital intensive than others. Prioritise initiatives by payback period if you are short on funds and need to re-circulate capital, or if this is not such a pressing issue, by Return On Investment (ROI). As mentioned earlier, remember that there are various grant funding opportunities that you can bid for as well as opportunities for partnering with third parties for funding and project delivery.

Make prompt decisions - The finish line to net zero may seem far away but will arrive sooner than we realise especially as strategies will take time to plan and implement. Your sustainable energy projects must remain at the top of your organisation’s strategic priorities and acted upon without delay to ensure targets are achieved in time.

TECHNOLOGY

Balancing projects - Balance short and medium-term projects that will provide quick turnaround and revenue from energy, such as solar PV, battery storage and air source heat pumps, with longer term decarbonisation projects such as district heat networks connections, ground source heat pumps, major fabric upgrades, wind turbines, or emerging technologies.

Don’t try to reinvent the wheel -It is quicker and more prudent to adopt proven sustainable technology measures which are available now.

Knowledge sharing - Share your experiences and reach out to others to learn from theirs. We’ll meet our sustainability targets quicker by working together.

THE BENEFITS OF THIS APPROACH

By following our approach, you will quickly start to deliver the following organisational and financial benefits.

Organisational

• Step change to your organisation’s approach to sustainability

• Immediate improvement to your buildings’ EPC rating

• Improve your organisation’s carbon footprint and ability to market environmental credentials

• Mitigate operational and business risk in relation to future changes to environmental legislation.

Financial

Lower your operating expenses from going fully or partially ‘off-grid

• Protection from normal market volatility and ability to forecast future electricity costs in line with business growth and higher energy demands

• Funded solutions eliminate upfront investment that would take cash away from core business activity

• No ongoing maintenance, repair or replacement costs (for funded solutions)

• Savings can be used to fund investment in FM repair /replacement activity, thus prolonging the life of your assets.