News / FTs warned against cutting green budgets

NHS foundation trusts have been urged to protect their sustainability budgets, despite financial pressures and the need to find efficiency savings.

A survey of NHS managers conducted for a report by the NHS Confederation’s FT Network, Riding the recession: foundation trusts and the sustainability agenda, found concerns that sustainability  funds might be raided to plug budget gaps in other areas or the sustainability agenda might be pushed aside entirely.

Some managers reported that energy-efficiency budgets had already been cut because of pressure to cut costs. In some organisations, surpluses are being used to prop up sustainability efforts, which raised doubts over funding as surpluses fall.

In contrast to these concerns, the FT Network report said there was huge potential to save money and cut carbon emissions simultaneously. Some low-cost demand management and retrofit schemes could have quick paybacks, but the report said it could be harder to ‘provide an accounting justification for investment’ in projects with a longer term payback, such as energy sub-metering.

However, FTs were encouraged to make the case for sustainability in hard financial terms. ‘Specific sustainability funds must be protected to position organisations to compete in an increasingly carbon-constrained and sustainability-conscious society,’ it said.

Network director Sue Slipman said FTs must show leadership. ‘FTs must act to manage their carbon footprint and use this commitment to drive their efficiency and effectiveness,’ she said.

The report also suggested that NHS managers had an incomplete understanding of the new carbon reduction commitment (CRC) carbon emissions trading scheme, launching in April 2010. It found that the CRC was considered a ‘very important driver’ for sustainability in 35% of trusts and ‘not important’ in 28% of trusts.

Finance’s role in carbon battle

The HFMA is preparing its latest briefing examining the finance role in carbon reduction. The briefing will consider the various drivers for finance managers to get involved with the carbon reduction agenda – including the contribution to reducing costs, the upcoming carbon reduction commitment and auditors’ increasing interest in environmental issues. Anyone wishing to contribute to this briefing – either with comments or case studies of local practice and initiatives – should contact [email protected]