EHS Focuses on Employee Safety and Complying with Regulations
EHS is a well-established practice that’s primary purpose is to ensure the health and safety of employees and the public, while also protecting the environment from business-related hazards in Special Data the context of complying with regulations like the US Environment Protection Agency’s (EPA) Clean Air Act and Clean Water Act or the Occupational Safety and Health Administration’s (OSHA) Occupational Safety and Health (OSH) Act.
Many companies in process industries (think manufacturing, mining, oil & gas) already have experienced EHS teams that ensure their workplace is complying with all necessary regulations and requirements. Governments and regulatory bodies around the world have synced on common standards and fines for components of EHS.
ESG Focuses on Stakeholder Concerns and Sustainability
Despite its recent growth, ESG is still a relatively new discipline that’s primary purpose is to provide a means to objectively grade organizations on their sustainability efforts. ESG originated as a financial concept intended to protect investors, address stakeholder sustainability concerns, and quantify sustainability impacts and risks.
Considerations for each of the three categories of ESG (Environmental, Social, Governance) can vary widely depending on what’s material to an organization, but information on energy consumption, waste management, employee diversity, data protection, executive compensation, lobbying and political contributions, and much more, all fit under the ESG umbrella. While originally driven by investor and stakeholder concerns, more governments like the U.S., Canada, and the EU are proposing regulations in an effort to standardize ESG disclosure to something akin to current financial reporting.
Compared with EHS, ESG is an evolving discipline, and organizations are still developing metrics and best practices to deliver on ESG’s ambitious goals. Organizations like CDP, TCFD, and many more have developed ESG frameworks and standards to help guide companies on their ESG journeys.
As described, ESG also has a very broad scope outside of the ‘E’ which includes topics that are not currently regulated but are still concerns to stakeholders, including Diversity, Equity, and Inclusion (DEI), corporate philanthropy, board composition and compensation, hiring practices, and more.
How Can EHS and ESG Work Together