How to merge ESG and EHS reporting

In a recent enlightening presentation at EcoOnline’s 2024 Safety Insights Summit, David Picton, senior vice president of environmental, social, and governance (ESG) and sustainability at EcoOnline, and world-renowned climate expert, Richard Tipper, shed light on the crucial convergence of environmental, health, and safety (EHS) reporting with ESG reporting. Health and safety professionals are increasingly recognizing the importance of this synergy in driving sustainability, compliance, and business resilience.

A shared vision

Picton, an industry veteran, began by emphasizing EcoOnline's commitment to ESG technology solutions, saying, "the focus for me is ESG technology solutions now, with a lens of having been that guy late at night, trying to keep people safe, trying to make the planet a better place and trying to particularly improve the way we look after it."

Tipper was part of a team that received the Nobel Peace Prize for their work on climate change.  "I've been working in it since the 1990s. I've seen quite a lot of developments."

Exploring the overlap

The core of their presentation revolved around the intersection of EHS and ESG reporting.

ESG in context: Picton offered a comprehensive introduction to ESG, defining it as a three-pillar framework encompassing environmental, social, and governance factors. "What we mean by ESG is predominantly three pillars of reporting, management, strategies, policies, processes, and so on."

1. The growth of ESG reporting: Tipper discussed the shift from voluntary CSR reporting to mandatory ESG reporting. "ESG, as an area of regulations and frameworks, has been growing rapidly over the last few years."
2. Materiality analysis: Picton highlighted the importance of materiality analysis. "Materiality is what matters, what should we be tracking? What should we be looking at?"
3. Data Challenges: Both presenters noted data challenges, with Tipper stressing the importance of technology. "The number one challenge is creating that one true view of what's happening across an organization."

Mounting pressure and future trends

"The majority of the world is moving towards this idea of pressure on ESG reporting," says Picton. "Just under half of those CEOs believe that unless they reinvent their business in a number of ways, unless they focus on looking at the way they view the world... businesses cease to exist within 10 years,” claims Picton, citing a recent survey.

Looking ahead

Tipper highlighted a critical shift in the top risks to businesses, saying "what CEOs are expecting to see in the next 10 years is a much greater predominance of environmental-related impacts on businesses."

They underscored the urgent need for businesses to merge their EHS and ESG efforts. To thrive in an increasingly ESG-focused world, organizations must not only report but also actively pursue sustainability, social responsibility, and resilience in all aspects of their operations. The bridge between EHS and ESG is becoming ever more vital, ensuring that businesses not only survive but also thrive in a rapidly changing world.