With rising interest in green hospitals, what do investors need to know about sustainable infrastructure?
Private equity (PE) is increasingly investing in healthcare due to high returns and societal impact. HBI recently reported on the rebound in European healthcare investments, with ~€9 billion across 154 deals by August 2024, signalling renewed sector momentum after 2023’s decline.
Interest in green hospitals is rising as ESG (Environmental, Social, and Governance) principles gain traction, particularly in response to extreme weather events. Research shows that 1 in 12 hospitals globally are at risk of shutdown due to severe conditions. The Cross Dependency Initiative (XDI), a climate risk analyst, warns that over 16,000 hospitals could face high risks by century’s end if greenhouse gas emissions aren’t cut drastically.
With Europe experiencing extreme temperatures, hospital resilience has become critical.
Private equity investors are increasingly focusing on sustainable healthcare infrastructure, driven by environmental concerns. Extreme weather events like heat waves, storms, and floods pose significant threats, leading to power outages and infrastructure damage.
Speaking to HBI, Natasha Nelson, CTO for Services at Schneider Electric, outlined strategies for mitigating these risks. She highlighted the model used at Finland’s health care provider Helsinki’s Uusimaa Hospital District (HUS), which uses smart sensors and predictive monitoring to boost energy efficiency and reduce downtime. HUS’s modernisation efforts have cut water, raw material, and CO2 consumption by up to 90% and extended equipment life by 25%, she said.
Nelson stressed to HBI the importance of digital solutions, AI, and lifecycle digitalisation in enhancing hospital operations and resilience. Microgrids, which integrate renewable energy sources, are also essential for maintaining a reliable power supply during extreme weather-induced outages.
Looking ahead, Nelson envisions healthcare facilities as resilient, care-centric, hyper-efficient, and sustainable.
Achieving this requires reliable energy and adaptable digital solutions. Interoperable technologies like advanced analytics and AI, combined with lifecycle digitalization and expert consultation, are key to transforming healthcare operations.
Nelson advises starting with tailored solutions and consulting specialists to optimise power and automation systems, ensuring improved safety, performance, and long-term maintenance. It is thus crucial that healthcare investors prioritise investing in a resilient, efficient, and sustainable healthcare infrastructure.
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