healthy sustainability presentation dr. bradley (1)

Dr. Kent Bradley

President, Safeway Health

SVP, Chief Medical Officer, Safeway Inc.

Healthy Sustainability

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A Key Term

• Healthy – having the quality of robustness, thriving, well, sound, fit

• Healthy is the key modifier that describes the quality of our

sustainability efforts – healthy planet, healthy products, healthy

people

• Different than explosive or incremental – it suggests life – the ability

to sustain its existence

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The Beginning of a Movement

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1960s- The Birth of the Movement

• In June 1969, Cleveland's Cuyahoga River was so fouled with industrial waste,

it caught fire.

• Although the river had caught fire at least ten times before, this time, people

took action—thus igniting the American environmental movement.

Scott, Michael. "Cuyahoga River Fire 40 Years Ago Ignited an Ongoing Cleanup Campaign." Cleveland.com. N.p., 07 Mar. 2011. Web. 10 July 2014.

Dykstra, Peter. "History of Environmental Movement Full of Twists, Turns." CNN. Cable News Network, 15 Dec. 2008. Web. 10 July 2014.

• Prior to this event there was a growing emphasis on social responsibility which,

in the 60s increasingly tied in the role of corporations and the notion of

Corporate Social Responsibility

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Today, issues surrounding the environmental movement are well accepted.

In fact, almost all major companies have a focus on environmental responsibility.

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The Maturation of a Movement

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Responsibility Sustainability

* Kevin Moss in http://csrperspective.com/uncategorized/sustainability-is-overrated-part-2/

*

Corporate Sustainability is a business approach that creates long-term shareholder value by embracing

opportunities and managing risks deriving from economic, environmental and social developments.

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Sustainability – Why It Matters

• Sustainable business practices are critical to the creation of long-term

shareholder value in an increasingly resource-constrained world

• Sustainability-related megatrends are changing our world and are

having a measurable impact on companies’ top and bottom lines

• What are the megatrends that will impact the sustainability of your

business?

Dow Jones Sustainability Indices Corporate Sustainability Retrieved from:.sustainability-indices.com/sustainability-assessment/corporate-sustainability.jsp

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Falling Life Expectancy In the United States

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Aging Workforce

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Workforce Age Trend

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Commercial Costs By Age

Yamamoto, D.H. (2013) Part of the Health Care Cost Institute’s Independent Report Series –

Report 2013 -1 Retrieved from: http://www.healthcostinstitute.org/files/Age-Curve-Study_0.pdf

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Millennials Come of Age as America's

Most Stressed Generation

American Psychological Association (2013) Stress in America Survey Retrieved from https://www.apa.org/news/press/releases/stress/2012/full-report.pdf

High and constant stress levels can negatively affect a person’s physical and

mental health. In addition to the ongoing mental strain, stress affects people

physically – and not everyone is coping well.

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Growth in High Deductible Plans

B

S

G

P

Bronze

Silver

Gold

Platinum

$5,081 $10,386

$2,907 $6,078

$1,277 $2,846

$347 $698

Trend of high deductible

health plans with a saving

option (HRA or HSA)

(number represents # of

lives in million)

Most people (81%) in

public exchanges are

selecting a HDHP (bronze

or silver) but with no

saving option

Individual Family

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Large Employers Evolving View

AON Hewitt (2013) Aon Hewitt 2013 Health Care Survey Retrieved from http://www.aon.com/attachments/human-capital-consulting/2013_Health_Care_Survey.pdf

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Rise in Health and Wellness Focus

31%

36%

39%

65%

75%

76%

0% 50% 100%

Top Health Care Outcomes Organizations Would Like to Achieve in 2013

Increase participation in wellness, health

improvement / disease management programs

Increase participants’ awareness of and

decision making related to health issues

Reduce health risk of population

Improve disease management / health

improvement program compliance

Increase employee use of tools and information

on provider price and quality

Improve productivity (reduce work absence

and improve presenteeism)

AON Hewitt (2013) Aon Hewitt 2013 Health Care Survey Retrieved from http://www.aon.com/attachments/human-capital-consulting/2013_Health_Care_Survey.pdf

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Significant Adoption of Biometrics

AON Hewitt (2013) Aon Hewitt 2013 Health Care Survey Retrieved from http://www.aon.com/attachments/human-capital-consulting/2013_Health_Care_Survey.pdf

Program/Service Offered in

2012

Offering in

2013

Percentage

Point

Change

Biometric screenings 63% 71% +8

Physical activity challenges 47% 53% +6

Telephonic health improvement coaching 46% 52% +6

Nutrition programs 31% 37% +6

Stress reduction initiatives 29% 35% +6

Online/web live chat health coaching 24% 29% +5

Health Improvement Programs Increasing in Popularity

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Incentives

5%

24%

17%

17%

21%

14%

2%

0% 20% 40% 60% 80% 100%

NA

>$500

$300-$500

$150-$300

$50-$150

<$50

$0

Achieve Outcomes – Incentive Value

AON Hewitt (2013) Aon Hewitt 2013 Health Care Survey Retrieved from http://www.aon.com/attachments/human-capital-consulting/2013_Health_Care_Survey.pdf

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According to a study by Reputation Institute - a global consulting firm -

willingness to buy, recommend, work for and invest in a company is

driven 60% by your perceptions of the company. And three of the

seven dimensions that drive reputation fall under CSR (citizenship,

governance and workplace)

Brand

Smith, J. (2013, Oct, 10). The Companies With the Best CSR Reputations Retrieved from http://www.forbes.com/sites/jacquelynsmith/2013/10/02/the-companies-with-the-best-csr-reputations-2

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What Should Be the Result

• Healthier Employees

• Safer worksites

• Improved Retention

• Improved Financials

– Healthplan spend in long-term

– Business Metrics

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How You Get There Matters

• The Positive Principle

• Deconstructing and Reconstructing Habits

• The Importance of Small Wins

• The Halo Effect – How Small Change Reverberates

• Story of Alcoa

• Story of Safeway

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Summary

“Well done is better than well said.”

“Healthy citizens are the greatest asset any

country can have.”

- Winston Churchill

- Benjamin Franklin