Bupa

RATING

SECTOR

Insurance

WEBSITE

CONTACT

Bupa Group Headquarters

1 Angel Court, London, England EC2R 7HJ, GB

STOCK EXCHANGE

LISTING

  • Forbes 2020 Top 100 Employers for Bupa Group
  • MercoTalent’s 2019 Top 100 (#15) for Bupa Sanitas
  • MercoCompanies’ 2019 Top 100 (#86) for Bupa Chile
  • LinkedIn’s 2019 25 Top UK Companies (#5) for Bupa UK

EMPLOYEES

83,000

CHIEF SUSTAINABILITY OFFICER

Alex Cole

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Hamilton Anderson

Bupa

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Bupa is an international health insurer and provider to 17.5 million people across twelve countries (the UK, Australia, Spain, Poland, Chile, New Zealand, Hong Kong, Turkey, the US, Brazil, the Middle East, and Ireland). 

Without shareholders, Bupa places their focus on their customers, ensuring they are providing the care they need now and in the future. Bupa’s services include health insurance provision, clinical treatment, dental centers, hospitals, and retirement care homes for elderly residents.

Bupa operates using Five-Year visions and strategic frameworks, ensuring they execute their goals to create value for their customers, people, partners, and society.

In 2019 Bupa strengthened their corporate responsibility and sustainability (CRS) agenda through the establishment of a CRS Committee, and is planning on releasing their defined environment and climate change strategy for 2021-2025. 

*Bupa has yet to make their 2021-2025 environmental goals publicly available. 2/9/2021

Company Sustainability Activity

Bupa believes that it is essential to follow the ESG industry to ensure Bupa long-term, sustainable success. Their sustainability approach is organized around 5 pillars: quality care, positive working environment, responsible business conduct, active community involvement, and positive environmental impacts.

Over the past 10 years, Bupa has transformed the way they source and use energy. At Bupa UK, all of the energy used – within retirement homes, clinics, the Cromwell hospital, and offices – came from renewable sources. Furthermore, the Bupa Place office in Salford Quays and Bupa Headquarters in London have a BREEAM rating of Excellent for its environmental, social and economic sustainability performance. 

On the 13 of November 2019, Alex Perry, CEO of Bupa Insurance Ltd, announced that Bupa Global and UK became carbon neutral. An achievement due in part to Bupa’s membership within the UN’s Climate Neutral Now initiative.

Bupa’s carbon reduction goals are global. 

  • Their Poland and Denmark sites have converted to 100% renewable power across all sites. 
  • Since 2014, Bupa Australia has installed over 4,400kW of solar energy in their retirement care homes. 
  • In 2018, Bupa’s New Zealand care homes began to source from 100% renewable electricity
  • Bupa Spain continues to use 100% renewable energy and has reduced their carbon footprint by 8.1% since 2015. 

Globally, renewable energy accounts for over 50% of Bupa’s energy supply

In 2019, Bupa Global and UK signed the Business in the Community Waste to Wealth initiative, a commitment to improve the UK’s resource productivity and eliminate avoidable waste by 2030.

Bupa Sanitas hosted a panel discussion at the UNFCCC’s COP25 in Madrid. The discussion covered topics including the reduction of carbon footprints through renewable energy, innovation to reduce customer carbon footprints, and taking an active role to create healthy communities.

Bupa continues to invest significantly in technology that would allow for long-term, sustainable growth. They are committed to progressing sustainably, and strive to meet the 1.5°C target of the Paris Agreement.

Highlights

  • In the UK, Spain, Poland, and Denmark, Bupa has converted to 100% renewable power across all their sites
  • Globally, renewable energy accounts for 50% of Bupa’s energy supply
  • Bupa on-site solar PV panels contribute 4% of their global energy use.
  • Bupa has reduced their carbon emissions by 37% since 2009, keeping them on track to deliver their carbon goals.
  • Committed to the UN’s Climate Neutral Now initiative in the UK.
  • Actively supported UK Pride events
  • Committed to improving mental health and wellbeing services
  • Strengthened ESG standards 
  • Improved commitment to combatting modern slavery and human trafficking
  • Contributed £1M(~$1.4M) to their communities, a total of £7.3M (~$10M)

Targets

*Note: Targets are non-numeric and paraphrased by the Index Analyst.

Positive Impact on the Environment

  • Ensure compliance with laws and regulation relating to the environment, and other applicable CRS laws and regulations.
  • Continue to grow the amount of renewable power we consume through self-generation and the purchase of certified green electricity.
  • Ensure capital expenditure for natural resource efficiency, carbon, water and waste reduction projects is available
  • Identify and manage material impacts at local level, including reduction of natural resource use and carbon emissions. The plan must ensure there are processes in place locally to accurately report and track these emissions and prevent pollution across their operations.
  • Implement an Environmental Management System (EMS) in material facilities in order to identify, monitor and reduce environmental risks
  • Strive to continuously reduce our environmental impacts.

Ensuring Quality Provision of Health and Care

  • Focus on Bupa customer service
  • Quality, treatment and care

Maintaining the Bupa Community

  • Promote a positive working environment
  • The Smile program, Bupa’s workplace health and wellbeing campaign. 
  • Strive to be an inclusive and diverse organization, welcoming all beliefs, talents, and backgrounds. 

Conducting Business Responsibly

  • Commitment to fair, transparent, and legal operations

Bupa – An Active Community Member

  • Support the Healthy Communities Fund
  • Work with local community groups and organizations.
  • Maintain Bupa’s Health Foundations: 
  • Develop a community investment plan that reflects the causes most relevant to Bupa’s customers and people throughout their business locally.

Progress

  • Bupa reduced their global carbon emissions by 3.4% — from 2018-2019 — through energy efficiency and electricity decarbonization projects.
  • In 2018, 50% of Bupa’s global energy came from certified renewable sources. In 2019, 67% of their global energy came from renewables, an 17% overall increase in renewable energy.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 3

SDG 5

  • Bupa strives to be more diverse and inclusive of all members of their team.
  • Bupa contributes to ending forms of discrimination against all women through their work to close their own gender pay gap. Read about here in their 2020 Gender Pay Gap Report.
  • Bupa has been a member of the Women in Finance Charter since 2018.
  • Bupa’s board is 50% female and their executive team is 42% female.

SDG 11

  • Developed community guidelines to expand Bupa’s social impact.
  • Introduced the Healthy Communities Fund to place a global focus on mental health.
  • Increased contributions to communities by £1M(~$1.4M) to a total of £7.3M (~$10M).

SDG 13

  • Bupa is constantly striving to reduce its carbon emissions and energy use by switching to renewable and clean energy wherever possible.
  • In 2015, Bupa invested £50M (~$68.7M) into their Energy Saver Fund to reduce their carbon emissions.
  • Bupa assesses and oversees the risks of climate change and their impact on the Bupa Group in order to be a more climate resilient company.
  • Bupa seeks to understand the health impacts from climate change in order to properly mitigate them.

Evaluation

Overall, Bupa has made some tremendous achievements in sustainability. In particular, their renewable energy projects and carbon neutrality awards.

However, most of their reporting is in need of an update. It is not clear what certificates and awards the company currently holds. The company would benefit from a separate section on their website reviewing awards, certificates, and achievements they have made. 

It is easy to see that they have won awards from their past initiatives, but their reporting has faded since 2018. Within their 2019 report they state that they “disclose [their] annual carbon footprint on bupa.com” but that information is nowhere to be found.  

Bupa provides us with information on sustainability, but lacks specific information on how they plan on achieving the goals laid out in their 2019 Report. Bupa mentions that they align their CRS agenda and priorities to the UN SDGs, but lack a clear connection of which aspects they aim to improve on and which they may have already achieved. 

Bupa is not transparent enough with the actions they are taking now, but they are clearly dedicated to sustainability efforts. A quick search on their website will produce numerous results, but most are from a few years ago rather than now.

For these reasons Bupa is rated a “C”.

Analyst Outlook: Neutral

Bupa has clear sustainability initiatives and strategies, but they lack specific targets to push them to achieve their goals. If they dedicated more time to their sustainability reporting and kept their website up to date, their outlook could be positive. Instead, Bupa’s goals are vague and do not make their progress clear.

Key Points

  • Bupa remains committed to sustainability but has not published their 2021-2025 commitments.
  • Bupa does not have a separate sustainability report and does not use a particular sustainability reporting framework.
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