EHS Will Guide Future ESG Success for Many Organizations
EHS records and reporting provide a baseline for an ESG program.
- By Dan McLean
- Sep 01, 2022
Ever-growing interest by financial investors and consumers in companies that do the right things for people and the planet is great news for environmental health and safety (EHS) concerns. What does one have to do with the other?
EHS has long been positioned as a cost-avoidance function to protect company profits through protection programming. But as businesses show more interest in aligning with the principles of environment, social and corporate governance (ESG), there’s an obvious overlap in concerns between EHS and ESG and one will most definitely help the other.
“With ESG, there's a triple bottom line—profit, people and the planet—that will be demanded not only by the internal stakeholder, but the consumer and those looking to invest as shareholders,” says Intelex Vice President of Health and Safety, Scott Gaddis.
“As we advance, the ability to position EHS as a business partner with an increased value for the ethical and moral view of EHS—and in support of ESG efforts—is a good thing.”
EHS and ESG
EHS compliance expert Enhesa says EHS is foundational to ESG success and that “many of the regulatory areas that your EHS team already manages are crucial to understanding and improving your ESG rating.” In fact, an article posted by Enhesa says that while many ESG concepts can be vague and keeping up with criteria can be daunting, EHS is a first step to success in managing the regulatory compliance that is foundational to achieving ESG sustainability goals.
EHS records and reporting provide a baseline for an ESG program and “serve as a starting point to help stakeholders clearly see where your company stands,” the article says. The people-and-planet concept of sustainability—where business is conducted in ways that neither deplete natural resources nor cause pollution—is what investors BDO Global insists is the future of corporate reporting.
Occupational safety and health are at the heart of what the UK-based Institution of Occupational Safety and Health (IOSH) describes as the second wave of sustainability. They explain, “having good sustainability practices and setting high standards in your business for the treatment of your workforce, communities and supply chains will reward you with stronger performance and growth.”
This article originally appeared in the September 1, 2022 issue of Occupational Health & Safety.