EHS will guide the future ESG success of many organizations
EHS records and reports provide a baseline for an ESG program.
The ever-increasing interest of financial investors and consumers in companies doing the right thing 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 programs. But as companies increasingly show interest in aligning with environmental, social and corporate governance (ESG) principles, there is a clear overlap of concerns between EHS and ESG and one will help most certainly the other.
“With ESG, there is a triple bottom line: profit, people and planet, which will be demanded not only by the internal stakeholder, but also by the consumer and those seeking to invest as shareholders,” says Intelex vice president of health and safety, Scott Gaddis.
“As we move forward, the ability to position EHS as a business partner with increased value for the ethical and moral vision of EHS – and in support of ESG efforts – is good. .”
EHS and ESG
EHS compliance expert Enhesa says EHS is the foundation of ESG success and that “many regulatory areas that your EHS team already manages are crucial to understanding and improving your ESG rating.” In fact, a article published by Enhesa indicates that while many ESG concepts can be vague and meeting the criteria can be daunting, EHS is a first step towards success in managing regulatory compliance which is fundamental to achieving ESG sustainability goals .
EHS records and reports provide a baseline for an ESG program and “serve as a starting point to help stakeholders see clearly where your business stands,” the article states. The concept of sustainability of people and planet – where business is conducted in a way that does not deplete natural resources or cause pollution – is what investors Global BDO insists is the future of business reporting.
This article originally appeared in the September 1, 2022 issue of Occupational Health and Safety.