Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital
• Community
• Environmental Sustainability
• Board Diversity

Environmental Achievements

• Working diligently to minimize our effect on the environment by conserving energy and protecting our natural resources. Focusing on being more energy efficient and reducing our water use and wastewater discharges while continuing to provide a healthy environment for our patients, Partners and visitors. Adhering to applicable federal, state and local environmental regulations. Minimizing environmental risks to our patients and in the communities in which we operate. Reducing the amount of waste sent to landfills through recycling programs. Recycling electronic waste through a zero-landfill recycling company.

Social Achievements

• Ensuring employee (Partners) safety and access to PPE during the COVID-19 pandemic, following WHO, CDC, CMS, and local government recommendations. Implementing preventative measures such as increased hygiene procedures, providing additional PPE, restricting travel, encouraging time off for illness, establishing protocols for outside guests, enabling work from home where possible, and following guidelines for COVID-19 testing and vaccinations. Maintaining good relations with Partners, guided by NHC’s Code of Conduct. Supporting a workplace culture that values diversity and promotes inclusion. Investing in communities through the National Health Foundation and The Foundation for Geriatric Education, providing grants and tuition reimbursement. Operating a Compassion Fund to support Partners in need. Encouraging Partner volunteerism and community involvement.

Governance Achievements

• Increased Board size from seven to eight members, adding Sandra Y. Trail as a female director to enhance Board diversity. Adopted a Board Diversity Statement committing to enhance Board diversity over time. Amended the Nominating and Corporate Governance Committee Charter to more directly address Board diversity criteria. Adopted Corporate Governance Guidelines that include a section devoted to Board diversity, considering race, gender, ethnicity, and age when evaluating Board candidates. Established a Certification Committee to oversee risk management and ensure communication between senior management, the Audit Committee, and the full Board. The Board annually reviews its leadership structure to ensure it remains optimal.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on employee safety and operations. Fluid and changing guidance and requirements around COVID-19.

Mitigation Strategies

• Implemented various preventative measures (detailed in Social Key Achievements) to ensure Partner safety and operational continuity during the COVID-19 pandemic. Adjusted response and efforts as the pandemic and regulatory environment shifted.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Wellbeing
• Community Investment

Environmental Achievements

• Working to minimize environmental effect by conserving energy and protecting natural resources; focusing on energy efficiency, reducing water use and wastewater discharges; adhering to environmental regulations; reducing waste sent to landfills through recycling programs; recycling electronic waste through a zero-landfill recycling company.

Social Achievements

• Maintained a rehabilitation staff of over 1,200 therapists in 2022; offered competitive rates for rehabilitative services; provided specialized care and programs for Alzheimer’s patients; offered robust educational tuition reimbursement program, an American Dietetic Association approved internship program, specialty designed nurse aide training classes, and financial scholarship aid for various health care vocation programs; conducted an ‘Administrator in Training’ course; regularly utilized third-party consultants to conduct anonymous surveys to seek feedback from partners on compensation, benefits, career growth, etc.; implemented preventative measures during the pandemic, including increased hygiene, cleaning, and sanitizing procedures, providing additional PPE, restricting travel, encouraging time off for illness, establishing protocols for outside guests, and enabling partners to work from home where possible; invested in communities through the National Health Foundation and The Foundation for Geriatric Education; operated a Compassion Fund to support partners in times of need; encouraged partner volunteerism.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Workforce crisis resulting in spiraling wages, reliance on contract agency workers, and restrictions on admissions; difficulty in attracting and retaining qualified personnel, especially nurses, certified nurses’ aides, and other important health care providers; inflationary increases in costs; increasing frequency and severity of professional liability and workers’ compensation claims; potential lawsuits under the federal False Claims Act; rising cost and limited availability of professional liability and workers’ compensation insurance; competition for patients and staff; possible changes in the case mix of patients and payor mix; efforts by private third–party payors to reduce health care costs; healthcare reform efforts; compliance with laws governing the transmission and privacy and security of health information; compliance with employment-related laws and regulations; compliance with environmental laws and regulations; cybersecurity risks; potential inability to meet all capital needs; fluctuations in stock price; potential inability to pay or maintain dividends.

Mitigation Strategies

• Using every means to attract and retain a competent, caring team; offering competitive total rewards, including wages, salaries, health, welfare, and retirement benefits; offering a robust educational tuition reimbursement program, an American Dietetic Association approved internship program, specialty designed nurse aide training classes, and financial scholarship aid; conducting anonymous partner surveys to drive improvements in partner engagement; implementing preventative measures during the pandemic; working internally to improve systems to be responsive to referral sources and payors; finding creative initiatives to retain and attract qualified healthcare professionals; participating in partnerships with hospital systems, payors, and other post–acute alliances; developing performance measures to address patient care issues most likely to produce professional liability exposure; establishing policies and procedures to ensure substantial compliance with anti–fraud and abuse requirements; maintaining adequate provisions for unrecognized tax benefits; refining and implementing information technology to improve customer service and operating efficiencies; taking steps to protect the safety and security of information systems; maintaining adequate reserves for self-insured programs; diversifying the fixed income portfolio to avoid concentrations in any single industry group or issuer and by limiting investments in securities with lower credit ratings; closely monitoring the financial condition, performance, and outlook of NHI.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed