Table of Contents
Introduction:
ESG stands for Environmental, Social, and Governance. This implies the social responsibility of the organization towards the planet and the resources it provides. It plays a vital role in investments through a conscious approach.
EHS stands for Environment, Health, and Safety. It plays a very crucial in protecting the employees and their safety. EHS is also an essential part of corporate responsibility toward the safety of the employees and the environment.
A business cannot run on the shoulders of a single person. Though it may start with a single idea, it needs many shoulders to carry it to scalable heights. A business’s success depends on the co-existence of all departments and employees. This coexistence requires stability, balance, and a unique hand-holding ability. One such similarity is the co-existence of ESG and EHS.
We will look at how they go hand in hand.
Now, a business is responsible for developing products/services for its customers, society, the environment, the planet, and its employees. Then what is EHS and ESG? What role do they have to play in the business model? Is there a difference between ESG and EHS, or are they intertwined?
Let us understand these terms in detail.
Defining the Dependance of EHS vs ESG
ESG stands for Environmental, Social, and Governance. This implies the social responsibility of the organization towards the planet and the resources it provides. It plays a vital role in investments through a conscious approach.
EHS stands for Environment, Health, and Safety. It plays very crucial in protecting the employees and their safety. EHS is also an essential part of corporate responsibility toward the safety of the employees and the environment.
The environment term is common in both terms, and the metrics are also intertwined. Both aspects of ESG and EHS are crucial, from carbon emissions to significant environmental data reporting.
The social aspect also plays a crucial role in both. For example, social responsibility is how the business impacts employees, customers, the community, and their safety. This includes training methods, safety policies, risk management, and compliance.
Governance implies the factors that contribute to control in the business. The aspects include bribery, corruption, working conditions, and measurement of standards and performances.
The above factors simplify how EHS and ESG are intertwined, and there have to be no choices made when it comes to HSE vs. ESG. However, they are considered different aspects of metrics; they need to coexist for the organization’s success. The combined metrics of ESG, health, and safety make it easier to identify areas for improvement, make sustainable decisions, and provide a fool-proof road map to solutions.
The Co-Existence of ESG and EHS
If ESG is affected or paid less attention to, EHS gets affected and vice versa. We will further explain it with a simple example.
For example, when an organization has to display its CSR metrics, the corporate social metrics are not only about the social work or donations that the organization makes. They are also about the way it treats its employees and worker health and safety.
Now, this treatment is measured by the ESG and a part of the EHS. How is that done?
The ESG metrics survey the employees about their well-being and happiness at the workplace. Similarly, the EHS compliances ensure that the workplace is safe for the employees and provides them with proper training and PPE whenever required.
The company’s CSR and retention rate is positive if both the ESG and EHS surveys give positive results!
This simple example shows the common aspects of ESG and EHS from the employee’s point of view. It can be done similarly to community and environmental management aspects.
ESG Supports EHS and Vice Versa
The majority of the organizations know EHS and its importance. Moreover, the strict compliances and standards force workplaces to be EHS compliant. This EHS compliance and EHS sustainability plays an essential role in overcoming the challenges of ESG. A perfect example of this would be a safety officer taking part and assisting in defining the organization’s goals for success and better sustainability.
We have listed a few crucial points to define how ESG supports EHS and vice versa.
Conclusion
The above overview literally explains how EHS and ESG co-exist. Their co-existence and handholding are crucial for any organization to be compliant, safe and sustainable. Thus, the organization should merge the efforts of EHS and ESG departments for a promising and safe future.
To put in a few words, a proactive EHS approach will precisely handle ESG aspects. This will ensure a happy, sustainable, prosperous, and healthy workplace. And once that is achieved retention, soaring sales graph and customer satisfaction follow eventually.
