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Audit-Ready Carbon Reporting for Health Insurers

Track office building energy, data center emissions, and emerging financed healthcare carbon for managed care operations.

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The Industry Hotspot: Office Operations and Financed Healthcare

Office operations quantified, financed care emerging

Managed care organizations have relatively low direct operational emissions from office buildings, call centers, and data centers processing claims and managing member information. Office energy for HVAC, lighting, and computers represents primary operational footprint. Data centers for claims processing, member portals, and analytics consume electricity for servers and cooling. Emerging carbon accounting considers financed healthcare emissions from covered medical services representing payments to hospitals, physicians, pharmacies, and other providers. Healthcare services have substantial carbon footprints from hospital energy, anesthetic gases, medical supplies, and pharmaceuticals. Attribution methodology developing for insurer financed emissions accounting. Member engagement on preventive care and virtual visits may influence healthcare utilization patterns with carbon implications. NetNada tracks office building energy, monitors data center electricity, and supports emerging financed healthcare carbon methodologies.

SASB Industry Definition

The Managed Care industry provides health insurance products for individual, employer-sponsored, Medicare, and Medicaid members. Companies manage healthcare networks, process claims, operate customer service centers, and administer pharmacy benefits. Operations include office buildings, call centers, data centers for claims processing, and member engagement programs. Most emissions potential lies in financed healthcare services through covered medical care (Scope 3 Category 15) though methodology and reporting remain emerging practices.

View SASB Standard →

Industry-Specific Carbon Accounting

No generic solutions. Metrics, data sources, and reporting aligned to Managed Care operations.

Office Building Energy Consumption

Managed care companies operate office buildings housing administrative staff, call centers, claims processing, and management. Office energy includes HVAC, lighting, computers, and equipment. Call centers operate extended hours with workstations and telecommunications equipment. Track utility consumption per office location. Normalize by building square meters or employee count. Benchmark across facility portfolio. Implement LED lighting, HVAC controls, and building management systems. Consider renewable energy procurement.

Office energy per sqm

Data Center Energy and Efficiency

Claims processing, member portals, analytics, and care management systems run on data center infrastructure. Servers, storage, and networking equipment consume electricity. Cooling systems maintain equipment temperature. Data center efficiency measured by power usage effectiveness comparing total facility power to IT equipment power. Track data center energy consumption and calculate emissions. Monitor efficiency trends and server utilization. Implement virtualization and cloud migration where appropriate. Select data center providers with renewable energy commitments.

Data center PUE

Employee Commuting Footprint

Office-based workforce commuting to work sites generates Scope 3 Category 7 emissions. Commute mode, distance, and frequency determine emissions per employee. Remote work policies during pandemic reduced commuting substantially. Ongoing hybrid work arrangements affect emissions. Survey employees on commute patterns or model based on office locations and regional transportation. Calculate commuting emissions per employee. Implement transit benefits, remote work options, and office location selection near public transit.

Commuting emissions per employee

Financed Healthcare Emissions Methodology

Health insurers pay for medical services generating healthcare delivery emissions. Methodology for financed healthcare carbon accounting emerging with several approaches: Spend-based: Apply emission factors to medical spending by service category (inpatient, outpatient, pharmacy). Provider-based: Collect emissions data from network hospitals, physician groups, and pharmacies allocating to covered lives. Service-based: Model emissions per medical encounter using service utilization data and healthcare carbon benchmarks. Calculate financed emissions per member per year. Report methodology, data sources, and development status. Engage provider networks on sustainability and emissions disclosure.

Financed healthcare per member

Telehealth Adoption and Impact

Virtual care visits reduce member travel emissions compared to in-person appointments. Video visits, phone consultations, and remote monitoring decrease transportation needs. Pandemic accelerated telehealth adoption with sustained utilization. Track telehealth visit volumes by service type. Estimate avoided member travel emissions comparing virtual versus in-person visit scenarios. Consider data center and member device energy for virtual visits. Report telehealth penetration rates and assess net carbon impact. Promote appropriate telehealth use reducing unnecessary travel.

Telehealth visit percentage

SASB HC-MC Metrics Automation

Auto-generate disclosure including gross Scope 1 and 2 emissions, energy consumption, percentage renewable energy, member satisfaction scores, data security incidents, and network adequacy metrics. Emerging: Financed healthcare emissions with methodology disclosure. Footnotes cite member count, office square meters, and covered lives.

SASB HC-MC compliant

Product Features for Managed Care

Use Carbon Data Uploader to import office utility bills, data center energy data, medical spending by category, and member utilization for managed care emissions calculation. Learn more →

The Activity Calculator applies emission factors for electricity, employee commuting, and emerging financed healthcare methodologies—calculating managed care carbon footprints. Learn more →

Related Solutions

See our Carbon Accounting solution for managed care emissions tracking from office operations through emerging financed healthcare carbon methodologies.

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Managed Care Case Studies

How entities in this industry use NetNada to solve carbon accounting challenges.

Regional Health Plan (Commercial and Medicare Advantage members, Provider network across multiple states, Growing telehealth utilization)

Challenge

Board sustainability committee requested baseline carbon footprint and climate strategy. Operational emissions from offices understood but financed healthcare emissions methodology uncertain. Investor ESG surveys increasingly asking about healthcare portfolio carbon impact. Needed operational baseline and financed emissions exploration.

Solution

Established operational carbon accounting for office buildings and data centers. Calculated employee commuting emissions from workforce survey and office locations. Explored financed healthcare emissions using spend-based approach applying emission factors to medical claims by service category. Assessed telehealth utilization trends and estimated avoided member travel emissions.

Result

Generated operational carbon footprint per member showing offices and data centers as primary direct sources. Calculated preliminary financed healthcare emissions demonstrating magnitude relative to operations. Implemented renewable energy for corporate campus and major offices. Expanded telehealth benefit promoting virtual visits for appropriate services. Engaged provider network on sustainability through annual partner surveys. Published first climate disclosure documenting operational footprint and financed emissions methodology development.

National Managed Care Organization (Medicaid and marketplace plans, Focus on underserved populations, Multi-state operations)

Challenge

Climate-conscious stakeholders questioned health insurance industry role in healthcare sector emissions. Needed framework to assess financed healthcare carbon and identify reduction levers. Provider network engagement required understanding hospital and clinic emissions drivers.

Solution

Deployed financed healthcare carbon modeling using medical spending data by service type. Applied healthcare sector emission factors from research literature. Analyzed utilization patterns identifying high-emission services. Assessed telehealth adoption potential by member demographic and service line. Engaged network providers on sustainability practices and emissions disclosure.

Result

Established financed healthcare carbon baseline showing inpatient services and prescription drugs as largest contributors. Identified preventive care and chronic disease management programs with dual benefit of improved health outcomes and reduced acute care utilization. Promoted telehealth for behavioral health and routine follow-ups reducing member travel burden. Published thought leadership on health insurance industry role in healthcare sustainability. Positioned organization for future financed emissions disclosure requirements.

SASB Disclosure Topics for Managed Care

Material sustainability topics beyond emissions that investors and stakeholders expect disclosed per SASB standards.

Greenhouse Gas Emissions

environment

Track Scope 1 from backup generators and company vehicle fleet. Report Scope 2 from office and data center electricity. Emerging: Scope 3 Category 15 financed healthcare emissions from covered medical services. Report operational emissions per member or per revenue.

Energy Management

environment

Monitor office building and data center energy consumption. Report energy intensity per square meter or per member. Disclose renewable energy procurement percentage.

Member Health Outcomes

social

Report preventive care utilization rates, chronic disease management enrollment, and health outcome metrics. Disclose health equity programs addressing disparities in care access and outcomes.

Network Sustainability

business model

Emerging: Track provider network engagement on sustainability. Monitor telehealth adoption reducing member travel emissions. Report pharmacy formulary considerations for environmental impact.

Data Privacy and Security

social

Report data breaches affecting member records and response protocols. Disclose cybersecurity investments and HIPAA compliance auditing. Monitor member data security incidents.

Access and Affordability

social

Track member coverage by region and demographic group. Report prior authorization approval rates and appeals. Disclose programs improving care access in underserved communities.

NetNada tracks all SASB material topics, not just emissions. Our platform supports disclosure across environmental, social, governance, and business model topics relevant to your industry.

Managed Care FAQs

Common questions about carbon accounting for this industry

What are financed healthcare emissions and should health insurers report them?
Financed healthcare emissions represent carbon footprint of medical services paid for by health insurers including: Hospital care: Facility energy, anesthetic gases, medical waste, and supplies for covered inpatient and outpatient services. Physician services: Office energy and medical supplies for covered visits and procedures. Pharmacy: Drug manufacturing emissions for covered prescription medications. Medical equipment: Devices and supplies used in covered care. This falls under Scope 3 Category 15 (Investments) by analogy to financed emissions in banking. However, methodology remains emerging with challenges: Attribution: How to allocate provider emissions to specific payers versus patients versus services. Data availability: Limited provider emissions disclosure. Double-counting: Risk of counting same emissions by multiple insurers covering same facilities. Most health insurers do not yet report financed healthcare emissions but leading organizations exploring methodologies. Report development status, methodology approach, and stakeholder engagement on this evolving topic.
How do health insurers influence healthcare sector emissions?
Health insurers affect healthcare delivery emissions through several mechanisms though attribution complexity remains: Provider reimbursement: Payment models influencing care settings and utilization. Value-based care emphasizing outcomes over volume may reduce unnecessary high-emission procedures. Benefit design: Coverage policies for telehealth versus in-person visits. Formulary decisions potentially considering environmental impact alongside clinical and cost factors. Network configuration: Provider selection and stewardship programs engaging on sustainability. Care management: Programs promoting preventive care and chronic disease management potentially reducing acute care utilization. Member engagement: Wellness programs and health promotion encouraging healthy behaviors reducing care needs. Report initiatives linking healthcare delivery efficiency, quality improvement, and environmental sustainability. Acknowledge complexity and avoid attributing full healthcare emissions to insurers while recognizing influence levers.
Does telehealth reduce carbon footprint and should insurers promote it?
Telehealth can reduce carbon emissions compared to in-person visits depending on factors: Member travel avoided: Virtual visits eliminate patient commuting. Emission reduction depends on travel mode, distance, and visit frequency. Long car trips to appointments have substantial emissions avoided. Provider operations: Virtual visits reduce need for office space, energy, and supplies per encounter. Data center and device energy: Video visits consume electricity for telecommunications and devices but typically much less than avoided travel. Net impact assessment: Calculate emissions per visit type comparing in-person versus virtual accounting for travel, facilities, and IT infrastructure. Research shows virtual visits typically lower carbon for most scenarios especially suburban and rural patients traveling by car. Promote telehealth when: Clinically appropriate for service type, Patient preference and access support virtual care, Quality and outcomes maintained. Report telehealth utilization rates and estimated emission benefits. Balance carbon considerations with clinical effectiveness, health equity, and patient choice.
Can health insurers include preventive care as emission reduction strategy?
Preventive care and population health management have potential emission implications though attribution remains complex: Preventive care may reduce future acute care needs: Vaccinations and screenings prevent illness reducing hospitalizations. Chronic disease management avoids complications and emergency care. Wellness programs promote health reducing medical utilization. Acute care is emission-intensive: Hospital admissions have high footprint from facility energy, anesthetics, and supplies. Emergency department visits use intensive resources. Reduced acute utilization potentially lowers healthcare system emissions. However, causation challenges: Many factors influence utilization beyond insurer programs. Preventive care itself has emissions though typically lower intensity than acute care. Lifespan effects: Better health may increase longevity and lifetime healthcare use. Report preventive care programs for health outcome benefits first. Acknowledge potential emission co-benefits while avoiding overstated claims. Focus measurable initiatives: Telehealth adoption, Provider network engagement on sustainability, Operational emission reductions.
How do managed care operational emissions compare to other healthcare sectors?
Managed care organizations have lower operational emission intensity than healthcare delivery sectors: Health insurers: Office buildings and data centers with typical commercial building energy intensity. Low emission-intensity operations per dollar revenue compared to manufacturing. Healthcare delivery: Hospitals with high energy intensity from continuous operation, medical equipment, and specialized HVAC. Pharmaceuticals: Manufacturing with energy-intensive API synthesis and formulation. Medical devices: Manufacturing with materials processing and assembly. Per member emissions: Health insurer operations generate emissions per covered member. Healthcare delivery generates emissions per patient encounter or admission typically higher intensity. Industry comparison: Health insurance more similar to financial services than healthcare delivery for operational footprint. Focus operational emission reductions on: Energy efficiency in offices and data centers, Renewable energy procurement, Employee commuting and business travel, Data center efficiency and cloud strategy. Financed healthcare emissions (emerging) much larger than operations if reported.

Track Managed Care Operations and Emerging Financed Healthcare Emissions

See how health insurers monitor office energy, explore financed healthcare carbon methodologies, and generate SASB-aligned disclosures—automated from operations data.

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