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Energy Management Policy

Background

Limiting factors that contribute to climate change amid increased global warming are an important part of our ESG program. The increasing demand for energy and its growing consumption due to expanding businesses has negatively impacted the environment while causing irreversible damage to the ecosystem. Changing global weather patterns are responsible for more frequent and severe weather events destroying habitats and wreaking havoc on communities.

Risks arising from climate change have also led various stakeholders, including regulators, investors, customers, employees and the public at large to urge businesses to identify, measure, monitor and reduce their energy consumption, carbon footprint and emissions.

Responsible energy consumption is required to ensure continued economic development along with environmental sustainability. Therefore, it is critical that businesses dramatically reduce their carbon footprints to achieve this.

Climate change from rising greenhouse gas emissions (“GHG”) also has a negative health impact, leading to an increase in disease, and injury from hurricanes, floods, droughts, forest fires, etc., thereby putting an added burden on the health care industry. As the health care industry grows globally, so does the cost to administer health care and the environmental impact of health care from its operations. Therefore, the health care industry plays a pivotal role in addressing its own environmental footprint for the benefit of the planet and society at large.

Commitment

  • As an environmentally responsible organization, Pediatrix® Medical Group is committed to the implementation and maintenance of efficient consumption of energy and reducing its Green House Gas (GHG) emissions.
  • Pediatrix will practice responsible energy consumption at all locations and facilities under its direct control.
  • Pediatrix will encourage responsible energy consumption in other locations and facilities where Pediatrix has no direct control, but conducts business operations.

Purpose

Although Pediatrix doesn’t have significant emissions from its operations and facilities under its direct control, it acknowledges the environmental impact arising from carbon emissions and seeks to do its part to reduce it. This policy is aimed at managing, countering, and reducing the carbon footprint from its business operations over time.

To achieve this, Pediatrix is committed to making the necessary adjustments to its economic and technological resources to adopt cleaner energy technologies and aims to mitigate the impacts of its carbon emissions through a collective and sustainable approach.

Pediatrix will:

  • Measure the energy consumption and related carbon footprint of all locations and facilities under its direct control
  • Report on energy-related matters as required by applicable rules and regulations or as approved by the ESG Executive Oversight Committee
  • Remain committed to broadening the scope of measurement and reduction of energy consumption and emissions through continuous improvement
  • Aim to increase awareness of energy and carbon management matters in all regions of operation through open and transparent communication with all stakeholders including but not limited to associates, physicians, patients, shareholders and the public

Objective

  • Stabilize and reduce energy consumption through energy-saving programs across operations and in locations and facilities under its direct control
  • Develop a monitoring and measurement framework for energy use, cost, and carbon emissions from its operations and in locations and facilities under direct control
  • Set goals and measurable targets with an aim to continuously improve
  • Strive to achieve the highest possible energy efficiency standards for new and redeveloped infrastructure considering the energy usage and carbon emission implications of the operations
  • Report on energy, carbon, and GHG emissions as required by applicable rules and regulations or as approved by the ESG Executive Oversight Committee

Approach

Pediatrix will:

  • Measure the energy consumption from its operations and in locations and facilities under its direct control
  • Estimate the carbon footprint from its operations and in locations and facilities under its direct control
  • Identify areas for improvement in energy consumption in its operations and in locations and facilities under its direct control
  • Improve energy efficiency by implementing an organization-wide energy management program for its operations and locations and facilities under its direct control
  • Identify the need to develop low-carbon strategies for climate change mitigation and adaptation
  • Improve energy efficiency and reduce its carbon emissions in its operations and owned locations facilities, by applying wherever financially viable, the most modern and efficient technology, equipment, along with following appropriate work practices
  • Build its capabilities and increase awareness among relevant stakeholders with the aim to create a low-carbon culture
  • Communicate Pediatrix’s objectives to relevant stakeholders including employees, vendors, suppliers, shareholders and other relevant stakeholders
  • Create awareness and educate all relevant stakeholder groups regarding energy management and ways in which to save energy
  • Evaluate incorporating energy management as an important criterion in the selection of vendors, suppliers, contractors and facilities, thus improving the energy management in its supply chain

Applicability

  • The policy shall be applicable at all locations and facilities of Pediatrix under its direct control.
  • For entities and stakeholders with which Pediatrix conducts business, but that do not fall under its administrative control, Pediatrix shall communicate and promote, through its associates, the alignment of procedures and policies with those of Pediatrix.

Action Plan

  • Pediatrix will strategize, undertake, and implement relevant energy management and emissions reduction activities to execute organizational objectives in accordance with this policy.
  • Pediatrix plans to set goals and targets related to energy and GHG emissions.

Responsibility

The ESG Executive Oversight Committee under the supervision of the CEO/ Board of Directors is responsible for the overall implementation of the items stated in this policy.

Compliance

Pediatrix will ensure that it complies with all applicable local, state, and federal laws and regulations.

Review

The policy shall be reviewed at least once every three years or more frequently, as required. The policy will be reviewed and approved by the ESG Executive Oversight Committee to ensure that it meets all regulatory and business requirements.