DaVita's Global Operations Powered by 100% Renewable Energy

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DaVita (NYSE: DVA) plans to power its global operations with 100% renewable energy by 2025, partnering with ACCIONA Energía in Spain. The company has already achieved this goal in its North American operations. DaVita's commitment to sustainability includes reducing carbon footprint, saving water, and upgrading facilities with energy-efficient solutions.

Positive

• DaVita (NYSE: DVA) aims to match 100% of its global electricity use with renewable energy purchases by 2025.
• The company has signed a virtual power purchase agreement with ACCIONA Energía in Spain to develop clean energy projects.
• DaVita has reached 100% renewable energy in its North American operations.
• The partnership with ACCIONA Energía is expected to generate 91,000 megawatt hours of clean energy annually in Spain.
• DaVita's environmental initiatives include reducing operational emissions by 73% ahead of schedule and saving over 100 million gallons of water in 2023.
• The company has upgraded its dialysis centers with energy-efficient LED lighting and received a high climate change score from CDP.
• DaVita has committed to cutting greenhouse gas emissions by 50% by 2030 and achieving net zero emissions by 2050.

Negative

• None.

Environmental Sustainability Analyst

DaVita's move to power its global operations with 100% renewable energy is a significant stride in the health care industry's effort to combat climate change. Their approach not only benchmarks them against their own previous sustainability goals but also against the broader health care sector's environmental impact. With the industry accountable for about 4.6% of total greenhouse gas emissions, DaVita's successful reduction of operational emissions by 73% from a 2018 baseline resonates as a leading example for others to emulate.

From an investor's perspective, emphasis on ESG factors is becoming increasingly influential in evaluating company performance and potential. The environmental component of ESG is of particular interest to stakeholders concerned with long-term viability. DaVita's measures, such as the opening of the first all-electric net-zero dialysis center, reflect a proactivity that not only could reduce operational costs in the long run but also likely enhance the company's reputation among environmentally conscious investors.

Energy Industry Analyst

The decision to enter a virtual power purchase agreement (PPA) with ACCIONA Energía aligns DaVita with the ongoing shift towards clean energy within global corporate strategies. A PPA is a financial agreement where a buyer agrees to purchase electricity indirectly from a generator, which helps in financing new renewable energy facilities. In DaVita's case, this agreement regarding two solar plants in Valencia, Spain, represents a forward-thinking investment into renewable infrastructure that not only secures energy prices but also potentially provides a hedge against future energy cost fluctuations.

As for the impact on the stock market, such agreements might attract impact investors, who are looking for companies with a clear strategy for sustainability. This could lead to a more stable investor base and possibly a positive impact on DaVita's share price over time. Furthermore, the energy produced is slated to match the company's international operations' electricity use, which can be seen as a move to mitigate operational risks associated with energy availability and sustainability.

Kidney care provider enters virtual power purchase agreement in Spain after reaching 100% renewable energy goal in its North American operations

DENVER, April 22, 2024  /PRNewswire/ -- By 2025, DaVita (NYSE: DVA), a leading provider of kidney care services, expects to match 100% of its electricity use across its global operations with renewable energy purchases. DaVita has contracted with ACCIONA Energía on a virtual power purchase agreement (PPA) facilitating the development of clean energy projects in Spain. This announcement follows DaVita reaching 100% renewable in its North American operations in December 2021. 

DaVita's share of two solar plants located in the province of Valencia, Spain, is expected to generate approximately 91,000 megawatt hours of clean energy each year, equal to the amount of electricity currently used by the company in its international operations. This energy is the equivalent of avoiding carbon dioxide emissions from the annual electricity use of approximately 24,000 homes.

"At DaVita, we have a deep sense of responsibility to help make our world, and those we care for within it, better," said Misha Palecek, chief transformation officer for DaVita. "Expanding our renewable commitment across our global operations accelerates momentum and accountability to help mitigate the lasting impacts of climate change."

"We are very pleased to have DaVita in this project," said Javier Montes, commercial director at ACCIONA Energía. "With long-term PPAs such as this one, we accompany our customers through their decarbonization journey, enhancing sustainability in their operations and helping them reach their renewable energy goals."

The health care sector is currently responsible for approximately 4.6% of total greenhouse gas emissions worldwide. DaVita has built a foundation over the past 20 years to help protect the environment by embedding sustainability practices in its business operations. In 2021, DaVita set ambitious science-based targets as part of its 2025 Environmental, Social and Governance (ESG) goals—many of which were aspirational, but several of which have been achieved ahead of schedule. Establishing this ESG platform has propelled DaVita to make strides in reducing its carbon footprint, including:

• Designing and opening the first all-electric net-zero dialysis center in the U.S, powered by solar energy.
• Achieving its 2025 carbon reduction goal three years early, reducing operational emissions by 73% from a 2018 baseline.
• Saving more than 100 million gallons of water in 2023 and achieving the company's 2025
• goal of saving 240 million gallons of water since 2021.
• Upgrading more than 2,500 dialysis centers with energy-efficient LED lighting.
• Being recognized as the only North American health care provider to receive a climate change score in the highest "Leadership" category, with a score of A- from CDP, formerly known as the Carbon Disclosure Project—a global nonprofit that runs the world's leading environmental disclosure platform.
• Signing the White House and U.S. Department of Health and Human Services Health Sector Climate Pledge to cut greenhouse gas emissions by 50% by 2030 and achieve net zero emissions by 2050.

To learn more about DaVita's global renewable energy commitment and other ESG focus areas, visit the ESG Reporting Hub.

Forward Looking Statements: This press release contains or refers to certain forward-looking statements within the meaning of the federal securities laws including, among other things. Without limiting the foregoing, statements including the words "expect," "intend," "will," "may," "continue," "target," "goal" and similar expressions are intended to identify forward-looking statements. The Company bases its forward-looking statements on information available to it on the date of this press release, and undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, except as may otherwise be required by law. Actual future events could also differ materially due to numerous factors that involve substantial known and unknown risks and uncertainties including, among other things, our aspirations, goals and disclosures related to environmental, social and governance ("ESG") matters, including, among other things, evolving regulatory requirements affecting ESG standards, measurements and reporting requirements as well as the other risks and uncertainties set forth under "Risk Factors" and elsewhere in the Company's reports on Form 10-K and Form 10-Q and the other risks and uncertainties discussed in any subsequent reports that the Company files with the Securities and Exchange Commission from time to time.

About DaVita Inc.
DaVita (NYSE: DVA) is a health care provider focused on transforming care delivery to improve quality of life for patients globally. The company is one of the largest providers of kidney care services in the U.S. and has been a leader in clinical quality and innovation for more than 20 years. DaVita cares for patients at every stage and setting along their kidney health journey—from slowing the progression of kidney disease to helping to support transplantation, from acute hospital care to dialysis at home. As of December 31, 2023, DaVita served approximately 250,200 patients at 3,042 outpatient dialysis centers, of which 2,675 centers were located in the United States and 367 centers were located in 11 other countries worldwide. DaVita has reduced hospitalizations, improved mortality, and worked collaboratively to propel the kidney care industry to adopt an equitable and high-quality standard of care for all patients, everywhere. To learn more, visit DaVita.com/About.

MEDIA CONTACT:

Newsroom@davita.com 

 

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SOURCE DaVita

FAQ

What is DaVita's (NYSE: DVA) goal regarding renewable energy by 2025?

DaVita aims to match 100% of its global electricity use with renewable energy purchases by 2025.

Who is DaVita partnering with for clean energy projects in Spain?

DaVita is partnering with ACCIONA Energía for clean energy projects in Spain.

What milestone has DaVita reached in its North American operations?

DaVita has achieved 100% renewable energy in its North American operations.

How much clean energy is expected to be generated annually as part of the partnership in Spain?

The partnership in Spain is expected to generate 91,000 megawatt hours of clean energy annually.

What environmental initiatives has DaVita undertaken?

DaVita has reduced operational emissions by 73%, saved over 100 million gallons of water in 2023, and upgraded dialysis centers with energy-efficient LED lighting.

What climate change score did DaVita receive from CDP?

DaVita received a high climate change score of A- from CDP.

What are DaVita's commitments regarding greenhouse gas emissions?

DaVita has committed to cutting greenhouse gas emissions by 50% by 2030 and achieving net zero emissions by 2050.