Businesses ramp up “Environmental, Health and Safety” investment to unlock value — but half fail to build into long-term strategy and could miss out on future gains 

• Two-thirds of organizations (65%) say EHS initiatives bring commercial value, including reputational gains and operational efficiencies.
•  Three-quarters (78%) plan to boost Environment, Health and Safety (EHS) spending over next three years; 75% aim to invest in digital systems and advanced analytics to manage risks.
• However, only half (50%) prioritize EHS in their overall business strategy, meaning they may not capture longer-term value of investment. 

Businesses worldwide are wising up to the benefits of investing in Environmental, Health and Safety (EHS) measures as a way to protect workers and the environment, boost commercial value, and bolster organizational resilience. However, many are failing to build it into longer-term strategies and could be missing out on huge gains, according to the latest EY Global EHS Maturity Study.

The study, now in its second year, examines the benefits of strategic investment in EHS — defined as any activities to mitigate risks relating to environmental issues such as pollution or climate change, or to promote the welfare and wellbeing of employees. It draws on the insights of more than 500 global EHS professionals and C-suite leaders and explores the extent to which organizations are building EHS into long-term strategy; views on commercial advantages; current spending and investment intentions; and the obstacles standing in the way of further improvements.

It shows EHS could be on the brink of a surge in investment, with more than three-quarters (78%) of businesses surveyed saying they plan to spend more on EHS initiatives over the next three years.

Jessica Wollmuth, EY Global EHS Co-Leader, EY Climate Change and Sustainability Services, says:

“It is easy to dismiss EHS initiatives as box-ticking exercises, or as ways to shore up risk defenses, 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.  

“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.”

Plans for increased investment reflect a widely held view that EHS brings benefits to businesses. According to the survey’s findings, almost eight in ten businesses (79%) believe that EHS leads to operational efficiencies, including increased productivity (which is number one on the list of efficiencies for 14% of respondents), incident reduction (13%) and higher levels of innovation (9%).

Two-thirds of the firms surveyed (65%) recognize the clear commercial value of EHS, including its impact on business resilience and external reputation. More than half of organizations that proactively invest in EHS initiatives (52%) say they are more resilient as a result of doing so, and that they notice that unexpected business interruptions have little or no impact on operations. Two-thirds (67%) say their approach to EHS has led to greater agility in uncertain times.

There is also clear recognition that EHS initiatives can help safeguard hard-won reputations. The survey shows that two-thirds (68%) of government and public sector organizations, and three-quarters of non-governmental organizations (77%) see EHS as a way to enhance trust in the external world — among customers, investors, and the public at large.

This clear recognition of EHS benefits is not reflected, however, in businesses’ long-term plans. Only half (50%) of the organizations surveyed say they prioritize and invest in EHS as part of their overall business strategies. One-third (36%) say their investment tends to be driven by immediate needs, while 13% say they are mainly focused on investment to meet mandatory compliance obligations.

For those companies that are planning ongoing investment, EHS strategy is the highest-ranking priority, with two-fifths (41%) stating that it is their main focus. Other leading priorities include health and safety risk management (62%) and employee mental health and wellbeing (60%). Two-thirds (64%) say they are already investing in EHS strategy, and almost three-quarters (71%) report that they intend to ramp up investment over the next three years.

The study shows that businesses are making widespread use of technology to manage and improve their EHS practices – two-thirds (64%) have some form of technology platform in place, and half (49%) report that they are using AI tools for EHS initiatives. In addition, eight in ten (81%) say that tools such as AI help them identify and tackle possible blind spots to prevent serious incidents and health and safety breaches. However, only one-quarter (27%) ranked technology investment as one of their top three priorities over the past year. 

Monica Merlo, EY Global EHS Co-Leader, EY Climate Change and Sustainability Services says:

“There’s no denying the challenges that businesses will encounter as they set out 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 organizations.

“But with the right leadership — which prioritizes 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.”

To learn more visit: How does EHS investment drive tangible commercial value?

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About the research

The EY Global EHS Maturity Study is based on a survey carried out by Oxford Economics. Data was collected from a web survey answered by 526 EHS professionals and C-suite executives from around the world. The survey was in the field from 31 March to 11 April 2025.

The respondents come from 34 different countries and work for organizations with annual revenue or budget of US$500 million+. These organizations include publicly listed companies, privately held companies and government agencies and departments. Overall, 24 different industry sectors are represented in the research.  

Disclaimer

This material has been prepared for general informational and educational purposes only and is not intended, and should not be relied upon, as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice. 

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