Climate Action Premium Credit Program for Hospitals
Climate change is a threat to human health and worker safety. Although the health care sector is on the frontlines of confronting the effects of climate change, it is also a significant source of greenhouse gas (GHG) emissions, contributing to the crisis. To encourage a reduction in emissions, enhance system resilience and improve worker safety, NYSIF is launching a pioneering, voluntary program to help hospital system policyholders manage the risks posed by climate change.
The program has three components:
- An upfront workers' compensation premium credit (5%, up to a cap of $1 million) to help hospital system policyholders develop a comprehensive climate action plan.
- An ongoing premium credit to reward hospitals for each year they adhere to their plan.
- Ongoing access to NYSIF’s risk control services, including climate-related training resources and a learning forum.
NYSIF expects the program to encourage current and prospective hospital system policyholders—regardless of where they are on their emissions reduction journey—to measure, report, and reduce GHG emissions. The program is currently a pilot for hospital system policyholders but will eventually be expanded to include other health care sector policyholders and then all industries.
NYSIF Report: Insurance as a Catalyst for Climate Action
In tandem with NYSIF's pilot program, NYSIF has released a groundbreaking report, Insurance as a Catalyst for Climate Action. The report explores the relationship between rising emissions and worker safety, focusing on studies demonstrating the association of extreme temperatures with higher rates of on-the-job injuries. Consistent with leading academic research, the analysis, which encompassed approximately 95,000 claims, found a higher correlation in the frequency and severity of workplace injuries and illnesses on extreme heat days. The data showed that when the heat index is over 80°F injuries resulting in claims were 45 percent more likely to arise and 20 percent more severe. NYSIF intends to study its data further to better understand these correlations.
Take the Pledge
All hospital systems with NYSIF workers’ compensation policies are eligible to participate in the voluntary premium credit program. To join the program, a hospital system will sign the pledge form promising to reduce emissions, enhance their resilience to climate-related disruptions, and develop a climate action plan to meet these goals. Participants will have 10 months to develop and submit their plans.
While these climate plans must satisfy certain broad parameters, the pilot program does not impose any specific emissions reduction strategies on hospitals; instead, it allows them flexibility and time to meet their long-term strategic objectives. In addition, climate action plans should focus on addressing both direct and indirect emissions, including those produced in the supply chain such as anesthetics, pharmaceuticals, food, and single-use medical supplies.
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