EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can Help
-
EY teams can help your business address emerging environment, health and safety challenges using the EHS Maturity Model. Find out how.
Read more
Separating the “E - environmental” from the “HS - health and safety” in EHS, EY analyzed how companies’ environmental performance and success in the health and safety field improved financial, social, and regulatory success.
Environmental performance
The analysis found that a company that improves its environmental performance also typically improves its financial performance. This finding suggests that companies can address environmental challenges without compromising financial performance.
In a similar vein, the link between elevating environmental responsibility and social performance is evident. The analysis showed that improved environmental performance corresponds to lower employee turnover rates – supporting the idea that employees are more inclined to stay with environmentally conscious firms.
Lastly, the regulatory benefits of EHS are illustrated via the reduction in environmental controversies as environmental performance escalates. A decrease in controversies not only improves the company’s reputation, but also ties to superior financial results by facilitating smoother operations and minimizing risks.
Health and safety performance
EY statistical analysis found that companies that improve their health and safety performance also typically improve their financial, social, and regulatory performance.
The data indicated a clear correlation between reduced injury rates and increased net income. This suggests that robust health and safety practices not only protect employees but also bolster a company's financial performance through smoother operations, reduced costs, and enhanced reputation.
The statistical analysis also showed that companies that reduce their total injury rate see lower attrition. The study observed an association that suggests investing in employee well-being not only helps to ensure their health but also contributes to the stability and continuity of the workforce.
Moreover, the statistical analysis showed that decreasing the total injury rate can result in reduced EHS controversies involving employee health and safety, human rights, child labor, public health, customer safety, product quality, consumer complaints, and environmental issues. This minimization of controversies significantly lowers the risk of legal, reputational, and financial repercussions for the business.