A mature environmental health and safety (EHS) culture is strongly associated with a robust approach to risk management.
But what are the hallmarks of EHS maturity?
A new study from global professional services firm EY has helped shed some light on the elements that underpin companies that perform highly in EHS.
The study has revealed that companies that lift in EHS performance also typically improve in a financial sense, as well as meet social and regulatory benchmarks.
Financially, it found that companies with high-performing EHS functions saw faster increases in their net income, revenue and market capitalisation compared with average performers.
Across the past decade, a high-EHS-performing company, on average, saw a 22% increase in net income, five percentage points higher than the average EHS-performing company, which lifted its income by 17% over the same time frame.
From a social standpoint, a high-EHS-performing company achieved a 3% lower employee turnover rate and had fewer environmental controversies than average-performing companies.
Why tracking EHS metrics is vital
One of the hallmarks of a company with high EHS maturity is that they track, report and process information effectively, with tracking and reporting a pillar of their overall strategy.
The report shows that 60% of mature EHS functions track internal audit performance, 57% of mature EHS functions track external EHS performance, and, generally, companies with mature EHS functions track far more metrics.
This is where we can assist companies seeking to elevate their EHS maturity.
Underinvesting in tracking and reporting is a common trap for business leaders, where arguments around the issue are inclined to focus on the financial outlay for the business.
Technology is a common battleground. While new software could indeed streamline certain operations or better allow a company to understand exactly how it is performing against EHS benchmarks, it’s typically an investment outside of the core function of the business.
The EY study promotes a shift in that thinking by showing that tracking and analysing EHS data is not only vital for reputational management, but that it can have a positive impact on your bottom line.
Areas such as risk management, environmental monitoring and streamlined processes are common examples of this type of investment, yet legacy systems that involve time-consuming paperwork and multiple spreadsheets remain in place for many companies.
However, companies seeking to stay competitive should not be narrow-minded to the gains that can be made through improving these efficiencies, and the EY study shines a light on the potential financial and reputational advantages to be gained.
Make a break from legacy EHS systems
The risks of not automatically tracking metrics, and relying on spreadsheets and paper-based legacy systems, can be costly in terms of efficiency as well as the bottom line.
A smart technology investment can not only save time and money but also makes a business more resilient to shocks and other issues.
Our workforce management and EHS software solutions are tailored to the needs of highly complex organisations with a mobile workforce.
Our intuitive software creates safer and smarter workplaces for the future, enabling complex businesses to monitor, report, and adapt their operations to keep people safe.
INX Software is your EHS technology partner
As Australia’s leading provider of software specifically designed to meet the risk, compliance, logistics, training and reporting needs of large, complex and remote businesses, we power some of the biggest and most complex operations in Australia.
But as we noted in our recent INX Insider newsletter, technology alone isn’t the solution.
We understand companies and business leaders need a partner, a support team that will help organisations achieve their goals and adapt to them as necessary.
Our expertise can help you build resilience in your organisation and enable companies to anticipate, prepare for, and cushion against shocks.
But we can also position a company to grow and mature, working alongside clients to define their business needs and address challenges with intuitive software.
We have a range of health and safety software solutions, as well as environmental management tools, that can deliver real-time insights and be tailored to support specific business needs around compliance, monitoring and reporting.
We have two decades of deep industry insight and experience, and our solutions are trusted by large, high-risk organisations across a range of industries.
Talk to us about how we can support your business today.
