Big Ambitions.

Complex Data.
Limited Visibility.
How North American H&S and ESG
Professionals Are Prioritizing the Planet
Chapter 3:
Prioritizing
the Planet

01
Recent years have seen environmental,
social and governance (ESG) concerns
growing in importance for businesses
the world over. The Six Most-Common ESG Challenges in North America

Sometimes this is driven by regulatory

changes. Over three-quarters of our
respondents say keeping up with 48% Measuring ESG performance improvement metrics

regulatory compliance is quickly

becoming the biggest challenge faced

46
by their organization.
% Deriving the maximum sustainability
improvements from changes
Sometimes it’s the result of
reputational concerns. Over four-
fifths of respondents say that if their
organization doesn’t improve its
ESG performance, it will negatively 38% Employee support/adherence to ESG efforts

impact their brand and reputation in

the market.

Sometimes it comes from a desire to 37% Inefficient data collection and reporting
be more competitive. 81 percent
admit that a failure to improve their

32%
ESG performance will negatively
impact their organization’s ability to Disclosure reporting and comms
win new business.

We wanted to learn more about the

key challenges facing organizations
and ESG professionals today and how 31% Adhering to compliance regulations

they’re tackling them.

02
The E of ESG
While ESG is made up of three core areas of focus, today’s companies are typically
prioritizing environmental concerns (49 percent) over social ones (36 percent), with
governance lagging far behind (12 percent).

This is understandable given the amount of attention environmental concerns get

in the media and from consumers. We see 85 percent of respondents claiming their
customers are now more interested than ever in how the businesses they buy from
are limiting their impact on the environment.

ESG is also where virtually all respondents are experiencing challenges.

03
How Will We Know That It’s Working?
The most-cited challenge (by almost half of respondents) is measuring ESG
performance metrics/ROI. It’s one thing to make change happen, it seems, but
another to prove its effectiveness.

The second most-cited challenge, and perhaps related, is deriving the maximum
sustainability impacts from the changes they make (46 percent of respondents
chose this). Of course, if you can’t measure impact, it will be difficult to truly
understand the effects of your programs.

Finally, as previously mentioned, there’s the human aspect. Thirty-eight percent of

respondents are facing challenges in gaining employee support for and adherence to
their business’s ESG efforts.

Using Technology to Manage Complexity

As with health and safety, many businesses are turning to technology for help
meeting these complex challenges.

We see more respondents using either a partially or fully connected system for
managing and reporting ESG processes than we do for health and safety. Although,
the reality is that over half still use many separate solutions or basic office software
for the task.

There is also clear agreement about the types of applications and technology
that offer the greatest benefits. Software for collecting ESG data and providing
performance indicators is the one most used by those surveyed. Risk management
software comes in second. The third spot on the list goes to environmental aspects
and impact management software.

However, we see a slightly different picture for what’s on ESG professionals’ wishlists
for future purchases.

Non-users agree with users on the potential benefits of software focused on

environmental aspects and impact management. These share first place. Joining
them is social project management software. In third place, selected by almost one-
third of ESG professionals, is sustainability project management software.

04
11
Management More than Measurement
Overall, respondents appear to place greater value on applications and technology
that help them manage ESG initiatives than they do on those that measure and track
results.

This could be, of course, why the number one and number two challenges they
cite are directly related to measurement. It could also be why under half are very
confident in the accuracy of the ESG data they collect even though a majority claim
they are very confident they comply with all ESG regulations.

While confidence over meeting regulatory demands is good news, it remains to

be seen whether this will continue as regulations increase. In Europe, where this
has already happened, just 48 percent share their North American colleagues’
confidence.

The Need To Do More

Everything to do with ESG is, of course, a work in progress—today’s companies are
very much on a journey.

We see over a third of our respondents recognizing they need to do more around
environmental protection but struggling due to lack of knowledge or lack of support.
The good news? Some 44 percent are starting to do more and are making good
progress.

05
Unlocking the
Secrets of Success

This research shows a group of professionals who

are committed to making meaningful changes to
how their organizations do business, protect their
people and safeguard the wider environment
However, doing so is complex and challenging.
Many respondents are struggling with making
progress when faced with many real-world
challenges.

06
Making Technology Work for Health and Safety
Health and safety professionals are increasingly using technology to meet their
core objectives. At the same time, they’re battling to make disparate systems work
seamlessly together.

This is making it difficult for them to get a clear picture of what’s really happening
across their organizations. It’s also making it more challenging to react to incidents
in a timely manner or track and act on near-misses.

This is a key reason why respondents are seeing incidents happen not just in isolation
but repeatedly in their businesses. It’s also why so many say that everything about
how they deal with incidents needs significant improvement.

The Struggle for Insight in ESG

The picture is similar in ESG. Many businesses are using software and technology
to help meet ambitious targets. However, just as many are struggling to link these
systems together to give them the information and insight they need to make the
progress they and their customers demand.

While they often have management systems in place, too many businesses are
unable to accurately measure the effects their programs and initiatives are having.

07
The Manager—Worker Disconnect
Of course, it’s not all about systems and software. The results around people show
a worrying gulf between an ambition for deep cultural shifts and how managers and
workers view day-to-day reality.

Unless businesses manage to bridge this gap, it will be difficult for them to fully meet
their objectives.

The Path to Progress

Ultimately, success across both health and safety and ESG will revolve around
having a clear strategy, employing connected technology that delivers an actionable
perspective on what’s happening, and the ability to bring people into the picture in
meaningful ways.

08
About Intelex
For over 30 years, Intelex has been making a difference in the world by helping
our 1,400 customers achieve safer, more sustainable operations. Our web and
mobile solutions streamline and simplify environmental, safety, quality and risk
management, empowering organizations to meet the challenges of an increasingly
complex marketplace while minimizing negative social, environmental and human
impacts. Intelex is proud to be an operating company of Fortive Corporation, which
provides strength in numbers, strength in skills and perspectives and strength in
our shared conviction to make an impact.

For more information about Intelex, visit www.intelex.com

09