As we near the end of the year, we’re taking a look back at some of our highlights from 2023. For our latest Faces of EHS feature, we are sharing some insights from some of our favorite guests this year. Here are their answers to the question, “What will be the impact of Environmental, Social, and Governance (ESG) principles on the EHS industry?”
Amanda Smith
Amanda Smith is VP, Solutions Marketing and Enablement at Cority.
In my opinion, ESG principles are going to shake things up for the EHS industry, but it’s not all doom and gloom. In fact, I believe it will ultimately lead to more resources for EHS programs and new technologies that improve operations. Four specific impacts I expect are:
- Greater emphasis on sustainability: ESG principles will push companies to prioritize sustainability initiatives, such as reducing greenhouse gas emissions or improving water management practices. This will require EHS professionals to integrate broader environmental and social considerations into their traditional focus on compliance, health, and safety. For example, an EHS manager may need to work with other departments to reduce the amount of energy consumed by manufacturing processes.
- Increased collaboration: ESG requires companies to engage with stakeholders, including employees, customers, investors, community members, and regulators. EHS professionals will need to collaborate across departments and with external partners to ensure goals are met. For instance, an EHS manager may need to work with the marketing team to develop an outreach program that educates consumers about the company’s commitment to sustainability and safety.
- Enhanced transparency: ESG reporting and disclosure requirements will increase transparency, which will require EHS professionals to collect and report more data, and demonstrate the impact of their programs. For example, an EHS manager may need to provide data to investors that demonstrate how the company’s safety initiatives have reduced incidents and injuries over time.
- New opportunities: ESG principles will create new business opportunities for companies that can demonstrate their commitment to sustainability and safety. EHS professionals can play a key role in identifying and pursuing these opportunities, such as renewable energy projects, waste reduction initiatives, and supply chain sustainability programs.
Overall, ESG principles will have a significant impact on the EHS industry, requiring EHS professionals to broaden their focus and collaborate more extensively with other departments and external partners to meet company goals.
Click here to read Amanda’s full interview.
Tyler Vanchure
Tyler Vanchure is Senior EHS Specialist at The Hershey Company.
There will be a significant impact of ESG principles on the EHS industry and companies worldwide. Gen Z has made it very clear that ESG principles are a top priority, especially from a sustainability and social responsibility standpoint. As more Gen Z workers enter the safety profession, there is going to be a greater push to make sure companies are taking responsibility for their financial performance, regulatory risks, reputation, and environmental impact.
There is also going to be a continued emphasis on emissions, energy consumption, climate change, and renewable energy. I would not be surprised if EHS departments at companies that don’t support ESG principles have a hard time filling their positions. Along with that, as companies continue to make improvements, expand, bring in new equipment and projects, etc., ESG principles are going to be the expected standard as they start.
Click here to read Tyler’s full interview.
Cindi Nandlal
Cindi Nandlal is HSSE Manager at PLNL.
I think the “why” of ESG principles is noble, essentially to operate from a space that assures we do not impose more harm to people and the planet. Companies that operate from values applied ESG long before it was termed ESG, which to me means it always comes back to values and not something imposed but because doing it because it is the right thing to do.
What worries me about ESG on the social side is the view of lagging safety statistics (i.e., injury rates) as a criterion for safety in the workplace. This can be a misleading view that workplace safety is assured from lagging outcomes, and it can encourage a host of negative effects including manipulation. We need to do more to educate the investors on the contemporary views around safety measures and metrics that are proactive and geared at controlling hazardous energy exposure as an example.
Click here to read Cindi’s full interview.
Tricia Kagerer
Tricia Kagerer is Executive Vice President of Risk Management and Safety at Jordan Foster.
Environmental, Social, and Governance (ESG) principles are becoming increasingly crucial for businesses and investors as they seek to balance profitability with sustainability and ethical responsibility. ESG encourages interaction to collaborate with local communities to understand concerns and perspectives. ESG also drives a business risk management approach that identifies emerging risks so that these concerns can be engrained in the executive decision-making process.
Organizations that have successfully integrated EHS into their business model have a strategic advantage and a road map to follow to establish ESG best practices. EHS and ESG are well aligned when prioritizing stakeholder engagement and sustainability—risk management best practices and reputation into the overall business philosophy.
Click here to read Tricia’s full interview.