Global EY survey finds businesses looking to bolster EHS
Businesses across the globe are looking to protect their workers and the environment, as well as boost commercial value and resilience, by investing in environmental, health and safety measures.
Recent research from EY Global has unveiled a sharpened focus on worldwide businesses recognising the benefits of investing in environmental, health and safety (EHS) measures in an attempt to bolster and protect their employees, value and resilience.
Despite these efforts, EY’s Global EHS Maturity Study found that many businesses were failing to build these measures into longer-term strategies and could have missed out on significant gains as a result.
The study examined the benefits of strategic investment in EHS and captured any activity that mitigated risks related to environmental issues, such as pollution or climate change, or the promotion of welfare and employee wellbeing.
According to the big four firm, the study drew on the insights of more than 500 global EHS professionals and C-suite leaders while exploring the extent to which organisations were building EHS into their long-term strategy.
Jessica Wollmuth, EY Global EHS co-leader and EY climate change and sustainability services, said the study highlighted that EHS could be on the brink of a surge in investment, as 78 per cent of businesses said they planned to spend more on EHS initiatives over the next three years.
“It is easy to dismiss EHS initiatives as box-ticking exercises, or as ways to shore up risk defences, but the reality is that, done well, EHS is a key that can unlock untold value for businesses, their stakeholders, and the planet as a whole,” Wollmuth said.
“Get EHS right, and businesses can reap a host of commercial, operational and reputational gains. But that means investing strategically and casting off the blinkers that often leave businesses stuck in the here and now, rather than looking to the future.”
The survey found that 79 per cent of businesses believed that EHS led to operational efficiencies, including productivity, incident reduction and higher levels of innovation – highlighting their plans for increased investment into EHS.
Sixty-five per cent of firms surveyed recognised the commercial value of EHS such as its influence on business resilience and external reputation, 52 per cent of firms that proactively invested in EHS initiatives said they’re more resilient for doing so and reported that unexpected interruptions had little to no impact on operations and 67 per sent said their approach to EHS led to “greater agility in uncertain times”.
The findings also found “clear recognition” that EHS initiatives could help safeguard hard-won reputations, as 68 per cent of government and public sector organisations and 77 per cent of non-governmental organisations saw EHS as a mechanism to enhance trust externally across customers, investors and the broader public.
Wollmuth noted that despite this, the clear recognition of EHS benefits was not reflected in businesses’ long-term plans, with only 50 per cent of surveyed organisations having said they prioritised and invested in EHS as part of their overall business strategies.
Thirty-six per cent said their investment tended to be driven by immediate needs, and 13 per cent said they were mainly focused on investment to meet mandatory compliance obligations.
Additionally, EY revealed that businesses worldwide were making widespread use of technology to manage and improve their EHS practices as 64 per cent had some firm of technology platform in place, 49 per cent reported they were using AI tools for EHS initiatives and 81 per cent said that tools such as AI helped “identify and tackle possible blind spots to prevent serious incidents, health and safety breaches”.
Monica Merlo, EY Global EHS co-leader and EY climate change and sustainability services, said there was no denying the challenges that businesses were set to encounter on the road toward “effective” EHS.
“Building a business case, securing budgets, measuring the returns, and even getting heard at board level all present challenges which can hinder the efforts of even the most determined organisations,” she said.
“But with the right leadership, which prioritises strategy, data-driven decision making, ongoing investment and early adoption of technology, businesses can steer a course around these obstacles and position themselves for long-term rewards.”
About the author
