Businesses are beginning to recognise the benefits of investing in Environmental, Health and Safety (EHS) measures as a way to not only protect their workers and the environment, but also boost commercial value, according to the latest research from EY. 

The professional services firm’s annual Global EHS Maturity Study found that two-thirds of organisations globally (65%) say their EHS initiatives are creating market opportunities, as well as bringing reputational gains and operational efficiency.

Polling more than 500 EHS professionals and C-suite executives around the world, the study, now in its second year, found that 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 these initiatives over the next three years.

Among those investments is the use of emerging technology to manage and improve their EHS practices, with two-thirds (64%) already having some form of EHS tech platform in place, and 49% using AI tools for EHS initiatives. 

The majority of businesses (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, despite the benefits, only 27% ranked tech investment as one of their top three priorities.

EY’s study found that these investments in EHS, which cover everything from mitigating environmental risk to employee well-being, have become a business-critical issue.

Two-thirds of the firms surveyed (65%) recognise the growing commercial value of EHS, including its impact on business resilience and external reputation, leading more than half to proactively invest in EHS initiatives (52%).

Those who do report being more resilient as a result, and have noticed that unexpected business interruptions have little to no impact on their operations. Two-thirds (67%) say their approach to EHS has led to greater agility in uncertain times.

Almost eight in ten businesses (79%) believe that EHS leads to operational efficiencies, including increased productivity (14%), incident reduction (13%) and higher levels of innovation (9%).

“It is easy to dismiss EHS initiatives as box-ticking exercises, or as ways to shore up risk defences, 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,” said Jessica Wollmuth, EY Global EHS co-leader.

“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.”

However, many are failing to build EHS into longer-term strategies, risking missing out on even bigger gains.

Only half (50%) of the organisations EY surveyed were planning to prioritise and invest in EHS as part of their overall business strategies.

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Around a third (36%) admit that their EHS investment tends to be driven by immediate needs, while 13% say they are mainly focused on investment to meet mandatory compliance obligations.

“There’s no denying the challenges that businesses will encounter as they set out on the road toward effective EHS,” said Monica Merlo, EY Global EHS co-leader.

“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 organisations.

“But with the right leadership which prioritises 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.”