Bay Area Council Blog: Economy Archive

Screen Shot 2018-04-02 at 1.09.48 PM

New Report: California’s Healthcare Sector Key to Meeting State Climate Action Goals

New Report: California’s Healthcare Sector Key to Meeting State Climate Action Goals

Sector Uniquely Positioned to Take Lead On and Accountability For
Sustainable, Low-Carbon Transformation

SAN FRANCISCO, CA – Despite the recent 10th anniversary of California’s landmark climate change legislation SB 375 targeting global warming pollution, the state is currently falling short of its ambitious targets set to reduce greenhouse gas (GHG) emissions for 2030 and 2050. Meanwhile, the devastating public health and economic consequences of climate change are ever-present in the wake of California’s deadliest wildfires, increased respiratory diseases and extended droughts. A new report unveiled today by the Bay Area Council Economic Institute, California Clean Energy Fund and Health Care Without Harm – Building a Climate-Smart Healthcare System for California – assesses how the healthcare sector is uniquely positioned to play a critical role in helping the state meet its GHG reduction goals.

Read the report>>

California’s healthcare sector accounted for 13 percent of the state economy as total spending reached $292 billion dollars in 2016. However, this booming sector is also one of the most energy intensive, responsible for an estimated 10 percent of all GHG emissions nationwide. Hospitals represent the lion’s share of those emissions at 36 percent requiring significant energy to support operations, and unique heating, ventilation and air conditioning needs. Other key contributors to increased levels of GHG emissions generated by healthcare include employee and patient travel, facilities built,  products and equipment, food procured and served, and waste generated. The analysis estimates that California’s carbon-intense health sector could be responsible for between $1.6 and $9.5 billion in long-term damages each year.

“Transitioning away from fossil fuels and toxic chemicals is the most important public health intervention we can make to support healthy people and healthy communities,” says Gary Cohen, President of Health Care Without Harm.

With its mission to protect and improve health, combined with the huge economic costs of inaction, California’s healthcare industry is taking important steps to advance climate-smart strategies. Diving into case studies across the state, the report explores the cutting-edge innovations, strategies and investments being led by some of the top industry leaders like Kaiser Permanente, UC San Francisco, Dignity Health, Palomar and UC San Diego.

“Meeting state goals of bringing GHG emissions to 1990 levels will require the entire healthcare industry to act and transform,” says Dr. Micah Weinberg, President of the Bay Area Council Economic Institute. “Just as California is a leader for the nation in taking action on climate change, healthcare can serve as a role model for all private and public sectors as it transitions to a sustainable, low-carbon future.”

“We know that when a sector seizes such an opportunity in its entirety, great transformation can happen that will improve the bottom line, build jobs and provide solutions to climate change,” says Danny Kennedy, Managing Director of the California Clean Energy Fund. “We want to start a race of entrepreneurs and intrapreneurs driving the innovations and new business models to do this in healthcare.”

The report outlines key sector recommendations necessary to achieve long-term sustainability and resiliency. Energy audits of facilities, investing in on-site and off-site renewable energy, waste reduction, conserving water and purchasing local, sustainably-grown food are among the key industry recommendations. Advancing smart policy on local, state and national levels will also be crucial, including streamlining the approval process of energy-saving technologies, creating an enforcement arm for the Solar Rights Act, continued state funding for renewables and energy storage, expanding Zero Waste Principles, and creating a sustainable water supply, among others.

# # #

About the Bay Area Council Economic Institute
The Bay Area Council Economic Institute is a public-private partnership of business, labor, government and higher education that works to foster a competitive economy in California and the San Francisco Bay Area, including San Francisco, Oakland and Silicon Valley. The Economic Institute produces authoritative analyses on economic policy issues affecting the region and the state, including infrastructure, globalization, energy, science and governance, and mobilizes California and Bay Area leaders around targeted policy initiatives.

About the California Clean Energy Fund
The California Clean Energy Fund (CalCEF) is optimizing the clean energy transition by connecting money to investments, ideas to support and issues to solutions. Driven by the opportunity to accelerate climate protection, CalCEF is committed to creating 100%+ clean energy to benefit all. CalCEF’s family of initiatives seek to bring about the energy transition already underway, but sooner and better.

About Health Care Without Harm
Health Care Without Harm seeks to transform health care worldwide so that it reduces its environmental footprint, becomes a community anchor for sustainability and a leader in the global movement for environmental health and justice. Health Care Without Harm works to reduce health care’s carbon footprint, foster climate resilient health systems, mobilize the health sector to address climate change as a public health issue, and advocate for solutions that accelerate a transition to clean, renewable energy.

Board

Council’s Board Welcomes Senator Feinstein and Mayor Schaaf

U.S. Senator Dianne Feinstein and Oakland Mayor Libby Schaaf met with the Bay Area Council’s Board of Directors Thursday to discuss a range of pressing issues, from healthcare reform and homelessness to infrastructure investment and public safety. Board Chairman and Kaiser Permanente Chairman and CEO Bernard J. Tyson welcomed both leaders to a packed room at Kaiser’s Oakland headquarters. Feinstein updated the Board on her efforts to ban assault weapons, an issue she has championed for decades. She also discussed the importance of making Deferred Action for Childhood Arrivals (DACA) permanent as well as her interest in leveraging public private partnerships to repair and rebuild the nation’s aging and crumbling infrastructure.

Investing to expand and improve the region’s congested transportation system was also a top issue as Feinstein emphasized the need for a new crossing south of the Bay Bridge. Tyson thanked Feinstein for her great leadership and urged Council members to join a business delegation we’re leading to D.C. in May to promote California’s importance to the nation as some critics frame the Golden State as out of control.

Feinstein also gave warm praise for Mayor Schaaf, who described the progress Oakland is making in turning around years of crime and addressing a complicated homeless problem. Schaaf also highlighted a measure she is championing for the November ballot—the Oakland Children’s Initiative—that would invest in expanding access to early education and other early childhood programs. She touted the huge returns that early childhood investments have in increasing employment opportunities and avoiding expensive social and public safety costs. This is an issue that has long been a priority for the Council, whose executive leadership has expressed early support for Schaaf’s November measure as she works to get it placed on the ballot. The Council extends its gratitude to Kaiser Permanente for hosting our meeting.

image001_v2

ON ONE HAND: GROWING CHINESE INVESTMENT IN THE BAY AREA MEGAREGION

As business and economic connections deepen across the Bay Area megaregion so do opportunities to attract greater foreign direct investment in everything from infrastructure to agriculture. The Bay Area Council’s China Initiative team highlighted those opportunities during a recent meeting with business leaders from the Greater Sacramento Economic Council (GSAC). The Council described its more than 10 years of experience building robust ties between China and the Bay Area and outlined how we can leverage the inbound services we offer to bring new investment in such booming sectors as agriculture, biotechnology, and manufacturing.

GSAC’s board of Sacramento CEOs and elected officials agreed that cooperating with the Council to attract and direct Chinese investments aligned with the broader joint megaregional strategy, which argues for improving economic development structures that cross regional lines. To this end, the Council is excited to work more closely with GSAC President and CEO Barry Broome to maximize opportunities for our intertwined economies. For more information about the Council’s work in China and inbound investment services, please contact Global Initiatives Manager Laurent Arribe.

Millbrae1

THUMBS UP FOR NEW HOUSING THAT COUNCIL BACKED

It won’t solve the region’s housing crisis alone, but it was a step in the right direction as the Millbrae City Council Tuesday (March 13) approved a much-needed 400-unit development that the Bay Area Council had endorsed. The Gateway at Millbrae Station project has been years in the making. A great example of a mixed-use and transit-oriented development located next to BART, the project represents much of what Bay Area Council members look for in development projects and what all residents should support to advance smart and sustainable development. The Gateway at Millbrae Station project will provide 80 affordable units for low income tenants, as well as 320 apartments for middle-income workers. Uniquely, qualified military veterans will be given priority for 55 of the affordable apartments. The Council is thrilled that Millbrae City Council recognized our region’s staggering need for housing and chose to say, “yes, in my backyard!” To engage in the Council’s housing policy work, please contact Senior Vice President Matt Regan.

Sean Randolph

OP-ED: KEEP INTERNATIONAL STARTUPS FLOWING TO THE BAY AREA

It’s no secret that the Bay Area is the leading place for technology, innovation and entrepreneurial activity in the nation. Not the only one, for sure, but the largest, richest and most productive. Its universities are strong and aggressively support entrepreneurship, the region hosts the world’s largest pool of venture capital, incubators and accelerators abound, and an open, entrepreneurial environment attracts and fosters creative talent that drives the economy forward.

This is also an international story. The Bay Area is considered by aspiring entrepreneurs around the world as the ultimate source of inspiration and opportunity. The result is the massive presence of early-stage companies from every corner of the world who come to connect, learn and tap its resources. Many remain to base their companies here.

Read Bay Area Council Economic Institute Senior Adviser Dr. Sean Randolph’s Keep international startups flowing to the Bay Area>>

workforce_banner

OCCUPATIONAL COUNCILS TARGET SKILLS GAPS

Last Wednesday, the Bay Area Council’s Workforce of the Future Committee wrapped up research for a one-year evaluation of its Occupational Councils (OCs) model. The study, conducted in conjunction with a Stupski Foundation Learning Grant, showed that Council members see the OCs as a critical platform for communication among the region’s economic stakeholders. As one member explained, “The Council serves as a great resource to discuss best practices within an industry that needs additional education for prospective students/members/educators.”

Employers surveyed expressed enthusiasm for the Occupational Councils’ ability to connect them with potential talent through hands-on experiences such as classroom visits and industry-specific career fairs, as well as the opportunities for cross-sector collaboration. As another member stated, “Whenever we are able to freely share best practices/challenges, and create opportunities that help all, we each benefit.”

First implemented in 2016 in partnership with the Bay Area Community College Consortium, Occupational Councils are groups of employers working together in conjunction with educators and trainers to solve the skills gaps pertaining to specific industries or middle-skills occupations. In response to the overwhelmingly positive feedback, the Workforce of the Future Committee is looking to recruit new employer members and establish additional Occupational Councils to facilitate information-sharing between employers, educators, and job seekers.

If you are interested in learning more about the Occupational Councils and other employer programs, please contact Senior Vice President Linda Bidrossian.

BWGE

CELEBRATING WOMEN AND WORKING FOR GENDER EQUITY

The world celebrated International Women’s Day on Thursday to honor the social, economic, and political achievements of women across the globe and highlight the considerable work that still needs to be done to provide more leadership and economic opportunities for women and eliminate gender inequity in the workplace and elsewhere. The day was marked by actions across the globe, with women walking out on strike in Europe to protest the gender pay gap and holding #MeToo rallies in South Korea. In the Bay Area and throughout California, women continue to be underrepresented in top leadership roles across many industries and challenged by some workplace practices.

The Bay Area Council has been working through our Gender Equity and Diversity Committee to address these issues, including releasing a Best Practices Resource Guide to build gender equity in the workplace.

You can join the Council’s Gender Equity and Diversity Committee at one of our upcoming meetings to discuss opportunities to advance gender parity in the workplace. On March 30 the committee will convene to hear the results of a transformative Bain & Company study about how flexible workplace policies support thriving employees (not just women) and improve overall employee retention within companies.

On April 12 we are honored to be hosting state Senator Connie Leyva (D-Chino) for a discussion on her new bill to address the rampant culture of sexual harassment across the nation. In response to the #MeToo movement, SB 820 would ban secret settlements in the cases of sexual harassment and sexual assault in an effort to address cultures of predatory behavior in the workplace. A new NBC News poll released today revealed that a majority of Americans believe the #MeToo movement has helped address gender inequality.

To engage in the Council’s Gender Equity & Diversity Committee work, please contact Policy Director Emily Loper.

affordable housing

COUNCIL-SPONSORED BILL TACKLES DEARTH OF STUDENT HOUSING

Across California an estimated 762,000 college students experience some form of housing insecurity or homelessness because of the state’s massive housing shortage. As part of our overall battle to increase new housing, the Bay Area Council is sponsoring legislation (SB 1227) by state Sen. Nancy Skinner that would encourage developers to build affordable student housing. The bill would allow the construction of 35 percent more units over existing local limits as long as 20 percent of the units are dedicated for low-income students, among other requirements. It would also eliminate parking requirements that add considerable cost to projects.

The bill is one of several the Council is sponsoring or supporting this year to boost housing. The Council also is sponsoring SB 229 by state Sen. Bob Wieckowski (Fremont) that would ease local regulatory barriers and fees on accessory dwelling units, aka granny units. And, were supporting two key bills by state Sen. Scott Weiner (San Francisco) that would boost housing near transit (SB 827) and hold cities more accountable for meeting their housing obligations (SB 828). To engage in the Council’s housing policy, please contact Senior Vice President Matt Regan.

TrafficTranspo

TRAFFIC RANKING POINTS TO URGENCY FOR BIG INVESTMENT

Not that Bay Area residents need a reminder of how urgently we need to invest big on regional traffic relief, but a ranking released this week by congestion research firm INRIX put some jaw-dropping numbers to the problem. The Bay Area ranked third in the U.S. as the most congested urban area, with traffic costing each driver $2,250 a year and costing the region $10.6 billion. Among cities, San Francisco ranked fifth worldwide for snarled roads and highways. The report comes as the Bay Area Council partners with the Silicon Valley Leadership Group and SPUR to win voter approval in June 2018 for a ballot measure—Regional Measure 3—that would invest $4.5 billion on key projects to ease gridlock, including improving critical highway interchanges where our worst bottlenecks occur, closing gaps in carpool lanes, improving BART service, expanding regional ferry service and other vital mass transit systems, improving connections between local and regional transit and enhancing bicycle and pedestrian corridors. Polling shows that RM3 can win with a strong campaign. To support our RM3 campaign and help move the Bay Area far down on the INRIX ranking, please contact Senior Vice President Michael Cunningham.

BART housing

LEADERS DISCUSS WAYS TO SOLVE THE BAY AREA’S HOUSING CRISIS

The Bay Area’s top business and political leaders converged at Facebook today (Feb. 9) to recommit themselves to addressing California’s housing crisis. The summit, cohosted by the Bay Area Council and Silicon Valley Leadership Group, featured state legislators David Chui, Jim Beall and Scott Wiener, who urged support for the upcoming state housing bond (SB3), a bill to increase density near transit (Wiener, SB827), and creating a cap and trade system for housing permitting. San Jose Mayor Sam Liccardo and Oakland Mayor Libby Schaaf urged companies to invest in local affordable housing projects by working with cities to provide low-interest capital.

Led by Council CEO Jim Wunderman and Leadership Group CEO Carl Guardino, a veritable who’s who of housing and company leaders, including Andy Ball (RAD Urban) and Denise Pinkston (TMG Partners), among others, discussed the economics of housing construction, while Council Housing Committee Chair Carla Boragno from Genentech and Elliott Schrage from Facebook discussed how the shortage is hurting communities and the Bay Area economy. Participants, which included some of the region’s top c-suite executives, also talked about the solutions they plan to support at state and local levels. To engage in the Council’s housing policy work, please contact Senior Vice President Matt Regan.