ESG-Driven

Safety Excellence
The Practical Guide for Safety Experts
Occupation Health and Safety Business and Human
(OHS) (Ref. GRI 403) Rights

OHSMS Right to healthy work

HIRA, Incident investigation environment
Occupational health Workers’ communication
Workers’ participation, and training on health and
consultation and safety
communication Access to water, toilet and
Worker training accomodation
Promotion of worker health Non discrimination and
Work related injuries equality
Work related ill-health Remedy and
s * Trans
sure p
accountability for affected
lo individuals

ar
c
cy and Dis

en
cy and Dis
OHS related
ESG
Requirements
ren

cl
a

os p
ure
s * Trans
Supply Chain
Responsibility and Safety Stakeholder Engagement
Clearly establish safety
criteria for supplier selection Community health and
Risk management safety
Safety performance and Community
evaluation engagement for onsite
Incentive & recognition and offsite emergency
Auditing and verification plan
Transparency and reporting

Transparency and Disclosures

Adequate disclosure and communications with internal stakeholders

Level of accuracy and authenticity of the OHS data
Use of universal, and sector-specific standards for disclosure
Applying reporting principles like context, materiality, clarity, reliability etc.
Adequate disclosure and communications with external stakeholders
External assurance - level, scope (limited/reasonable)

Consultivo
 Contents
Introduction 4

Chapter 1: Understanding
ESG and its Significance
5

Chapter 2: The Intersection

of Safety and ESG
13

Chapter 3: Integrating ESG

Principles into Safety 19
Practices

Chapter 4: Interdependence
of ESG and Safety Culture
27

Chapter 5: Future Trends and

Continuous Improvement
30

Conclusion: ESG-Driven
Table of

Safety Excellence
36
 INTRODUCTION
ESG Driven safety excellence is a practical
guide for safety professionals who want to learn
how to integrate ESG principles into their work.
The guidebook covers topics such as risk
management, compliance, and stakeholder
engagement.
ESG, or environmental, social, and governance,
is a framework for evaluating the sustainability
and ethical impact of an organization. Safety is
a critical social factor, and ESG principles can be
used to improve safety performance.
The guide begins by providing an overview of
ESG and safety. It then discusses how to
integrate safety elements with the ESG risk
management process, develop and implement
ESG-aligned safety programs, communicate
ESG-related safety information to stakeholders,
and measure and improve ESG-related safety
performance.
The guidebook is written in a practical and
easy-to-understand style. It is an essential
resource for safety professionals who want to
create a more sustainable and ethical
workplace.

4 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Understanding ESG
and its Significance

Chapter 1
1.1 Defining ESG: Environmental,
Social, and Governance

ESG stands for Environmental, Social, and Governance. It is a

framework used to evaluate the sustainability and ethical
impact of a company's operations and practices

Let's know more on each element of ESG:

Environmental (E)
The environmental component of ESG focuses on a company's
impact on the natural world (air, water, land, natural resources, flora,
fauna and humans).

Climate Change and Carbon Water Management:

Emissions:
This involves strategies
This involves assessing a
to conserve water,
company's greenhouse gas
manage water-related
emissions, its strategies to
risks, and ensure
reduce them, and its response
responsible water
to climate change risks.
usage
Energy Efficiency and
Waste Management
Resource Management:
and Pollution Control:
Companies are evaluated on Companies are assessed
their efforts to use resources on their waste reduction
efficiently, reduce energy and disposal practices, as
consumption, and adopt well as efforts to
renewable energy sources. minimize pollution and
environmental
Biodiversity and
contamination.
Conservation:
This relates to a company's
practices to protect and
preserve biodiversity and
ecosystems.

6 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Social (S)
The social component of ESG focuses on a company's
impact on people, both within the organization and in
the broader society.
Key elements within the social category include:

Labor Practices and Human Community Engagement:

Rights:
The company's
his involves evaluating how interactions with the
an organization treats its surrounding
employees and addresses communities in which it
issues that include fair operates. This includes
wages, non-discrimination addressing community
policies, and adherence to concerns and
human rights standards. contributing to local
development.
Occupational Health and
Safety (OHS): Consumer Protection:
Companies are assessed on
Ensure the safety and
their efforts to provide a
quality of products or
safe and healthy work
services delivered to
environment for
consumers.
employees and to prevent
accidents and injuries.

Diversity, Equity, and

Inclusion:
Companies are evaluated
on their commitment to
diversity and inclusion in
the workplace, promoting
equal opportunities for all.

7 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
Importance of the 'S' (Social) in ESG
The importance of the "S" in ESG lies in its emphasis on
people - both internal as well as external people like
employees, communities, customers, and other
stakeholders.
A few of the people orientation elements of ESG are:
Employee Well-being: Well-being Community Engagement:
measures include fair wages or Leads to improved
living wages, safe working relationships, local support,
conditions, opportunities for and sustainable business
professional growth, and a practices that benefit both
supportive work environment that the company and the
enhances employee satisfaction, community.
engagement, and productivity.
Attracting Talent:
Stakeholder Trust: Demonstrating Companies that embrace
a commitment to social social responsibility are
responsibility and ethical behavior more appealing to top
helps build trust with stakeholders, talent. Employees are often
including investors, employees, motivated to work for
customers, and local communities. companies that align with
Long-term business success and their values and contribute
reputation management are two to positive societal impact.
very important pillars of stakeholder
Risk Management:
trust.
Companies reduce the
Inclusive Culture: Valuing diversity likelihood of negative
and equality fosters an inclusive incidents that could harm
culture that makes companies more their brand and financial
innovative and better equipped to stability.
navigate the ever-changing
business challenges. In summary,
companies that
Customer Loyalty: Companies integrate the "S"
that prioritize social effectively into their
responsibility tend to attract operations are more
socially conscious consumers. likely to create
They are more likely to remain value for both
loyal and support the themselves and
society as a whole.
company's products or services.

8 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Governance (G)
The governance component of ESG focuses on a
company's internal structures, policies, and practices
that guide its decision-making and accountability
Key elements within the governance category include:

Corporate Ethics and Shareholder Rights:

Integrity:
Companies are
This involves evaluating a evaluated on how they
company's adherence to protect and respect the
ethical business practices, rights of shareholders,
codes of conduct, and anti- including transparency
corruption measures. in financial reporting.

Board Diversity and Risk Management and

Structure: Accountability:
Companies are assessed on This involves assessing a
the composition of their company's approach to
board of directors, the identifying and
independence of the board, managing risks, as well as
and diversity among board mechanisms for holding
members. executives accountable
for decisions.
Executive Compensation:
This relates to the
transparency and fairness of
executive compensation
packages and their
alignment with company
performance.

These three components - Environmental, Social, and Governance

are interconnected and collectively provide a comprehensive
framework for evaluating a company's non-financial performances
and long-term viability.
Companies that take steps to manage their ESG factors are more
likely to attract investments and good partners. They are also more
likely to be seen as contributing to a better future for everyone

9 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
1.2 The Business Case for ESG

ESG qualifies to be a strong business case because it can help

companies reduce risk and improve their reputation.

Risk Management
ESG factors directly influence a company's risk profile, affecting
both short-term and long-term risks. By addressing ESG issues,
companies can mitigate potential negative impacts and seize
opportunities for positive outcomes.
The areas include Environmental Risks, Social Risks, Governance
Risks, Operational Efficiency related risks, transition risks, and
many more.

Reputation and Brand Image

Reputation is a crucial intangible asset that ESG factors
significantly impact. Companies with a strong commitment to
ESG principles tend to have a more positive reputation, resulting
in several benefits:
Attracting Customers: Ethical practices and responsible
products/services attract consumers who prioritize
sustainability and social responsibility.

Investor Confidence: Companies with strong ESG practices

are more attractive to responsible investors, positively
impacting stock performance and access to capital.

Talent Attraction: Millennials and Gen Z employees seek

employers aligned with their values, making ESG-focused
companies more appealing to top talent.

Supplier Relationships: Companies with a positive

reputation are preferred partners, leading to better supplier
relationships and enhanced supply chain resilience.

10 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
1.3 ESG's Evolution and Relevance

The concept of ESG has been around for centuries but gained
prominence in recent years. Investors, regulators, and
businesses now have much more concern about
environmental, social, and governance factors.

The early roots of ESG in business can be traced back to the 1960s
when the environmental movement began to gain momentum. A
number of socially responsible investment (SRI) funds were created,
which excluded companies that are not responsible to the
environment or society.
In the 1990s, the concept of ESG began to evolve as investors and
businesses started to realize that environmental and social risks
could also have a financial impact.
In recent years, ESG has become increasingly mainstream. A
growing number of companies are now reporting on their ESG
performance, and ESG investing is becoming a standard practice for
many investors.

11 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
In India, SEBI was one of the early adopters of sustainability
reporting and the filing of the BRR containing ESG
(Environment, Social and Governance) disclosures was first
introduced for listed entities in 2012.

In August 2020, the Business Responsibility Reporting

Committee recommended Business Responsibility and
Sustainability Reporting (BRSR) as an update on the existing
Business Responsibility Reporting (BRR). The purpose was to
incorporate the current global practices in non-financial
sustainability reporting based on the National Guidelines on
Responsible Business Conduct (NGRBC).

As per the SEBI Circular on “Business Responsibility and

Sustainability Reporting by listed entities”, the BRSR is now
applicable to the top 1000 listed entities (by market
capitalization).

These are just a few of the

many events that have
shaped the development
of ESG. As the ESG
movement continues to
evolve, it is likely to have a
significant impact on the
way businesses operate
and the way investors
make decisions.

12 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 The Intersection
of Safety and ESG

Chapter 2
2.1 The Role of Safety within ESG
Safety is considered a critical social factor because it is
essential for protecting the health and well-being of
workers, their families, and the community. When
workers are safe, they are more productive and less likely
to be injured or become ill. This can lead to a healthier
and more prosperous society for everyone.

By investing in safety, we can create a more ethical and

just world where everyone's rights are respected.

ESG stands for The demand for

environmental, social, enhanced ESG
and governance. It is a disclosure is intense.
framework for Globally, overall ESG
evaluating the investing is massive,
sustainability and having grown as much
ethical impact of an as tenfold in the last
investment. decade.

ESG reporting is the

enabler for
transparency and
dialogue between
companies and their
stakeholders.

14 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
2.2 ESG and Sustainability
Reporting Frameworks
Here are some of the ESG frameworks that require
companies to disclose safety data:

Global Reporting Initiative (GRI)

Provides one of the most widely used ESG and
sustainability reporting standards. The GRI has a
standard on occupational health and safety (GRI 403)
that requires companies to disclose information
about their safety practices, such as their incident
rates and their policies and procedures for safety.

Task Force on Climate-related Financial Disclosures

(TCFD):
The Financial Stability Board (FSB) created the TCFD
to develop recommendations on the types of
information that companies should disclose to
support their stakeholders. The TCFD recommends
that companies disclose information about their
safety practices, such as their incident rates and their
investments in safety.

Sustainability Accounting Standards Board (SASB):

The SASB is a non-profit organization that develops
industry-specific sustainability reporting standards.
The SASB standards require companies to disclose
information about their safety practices and
performances.

By following any of these frameworks, companies can

ensure that they are disclosing the right safety data in
their ESG reports. This can help them to improve their
ESG performance and demonstrate their commitment to
sustainability.

15 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 European Sustainability
Reporting Standards (ESRSs)
Complementing Corporate Sustainability
Global Reporting Reporting Disclosure (CSRD)
International Sustainability
Initiative (GRI) Standards Board (ISSB)

Business Responsibility and National Guidelines on

Sustainability Reporting (BRSR) Responsible Business
By Securities and Exchange Board of India (SEBI) Conduct (NGRBC)

Performance Standards (PS)

Consolidation of ESG Ecosystem

16 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
2.3 How safety data fits into ESG
reporting as per common
frameworks (GRI, SASB, TCFD)

ESG reporting is a process of disclosing environmental, social,

and governance (ESG) information to stakeholders. Safety
data is an important and integral part of ESG reporting.
Here are some specific ways that safety data can be used in
ESG reporting

Performance indicators:
Companies report on their
Lagging indicators like incident statistics, such as the
number of workplace injuries (reportable accidents, first
aid cases), near misses, number of days without a lost-
time injury, etc.

Leading indicators - Often unique or tailored to a

specific organization. Examples of such indicators
include unsafe conditions, unsafe practices, the number
of workers trained in hazard identification and incident
reporting, the increase in reporting of hazards and
incidents after implementation of reporting policy and
processes and worker training, the frequency of health
and safety inspections or audits, the average time it
takes to implement the recommendations of an
inspection or audit, and response times for the
investigation and elimination of hazards.

This data can help to track progress over time and

identify areas where improvements are needed.

17 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Investments in safety:
Companies can report on their budgets and
spending in safety, such as the amount of money
they spend on training, safety equipment,
technology, audits, certifications and system
development. This data can demonstrate a
company's commitment to safety.

Policies:
Companies can report on their policies to establish
management commitment.

By including safety data in ESG reporting, companies can

demonstrate their commitment to protecting the health and safety
of their people, their customers and community. This can help to
improve their reputation, attract investors, and gain a competitive
advantage.

18 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Integrating ESG Principles
into Safety Practices

Chapter 3
3.1 Occupational Health and Safety
(OHS) within the organization

Here's a brief overview of how to achieve this:

3.1.1 Stakeholder Engagement

Engaging with stakeholders, including employees, customers,
investors, and local communities, to understand their safety
concerns and needs is vital.

This engagement fosters transparency, accountability, and a

sense of trust, all of which are critical components of a strong
ESG strategy.

GRI 403-4 requires reporting the following information for

employees and for workers who are not employees but whose
work and/or workplace is controlled by the organization:
a. A description of the processes for worker participation and
consultation in the development, implementation, and
evaluation of the occupational health and safety
management system.
Additionally, it involves ensuring access to and effective
communication of pertinent information on occupational
health and safety to workers.
b. Where formal joint management–worker health and safety
committees exist, a description of their responsibilities,
meeting frequency, decision-making authority, and
whether and, if so, why, any workers are not represented by
these committees.

Employee Satisfaction - Ensure that employee satisfaction

programs related to OHS hazard communication, risk mitigation,
effective controls, right to safe working conditions, etc. are in place.
One of the methods to collect such feedback is through an
independent Safety Perception Survey.

20 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3.1.2 Transparency & Disclosure
Sharing safety performance data demonstrates transparency and
openness about a company's safety practices, incidents, and
progress. Transparency is a core principle of ESG reporting, as it
helps stakeholders make informed decisions and evaluate a
company's social responsibility efforts.

For example, GRI Disclosure 403-1 requires the reporting

organization to list any legal requirements it has followed in
implementing the occupational health and safety
management system.
GRI Disclosure 403-2-c covers the right of workers to refuse or
stop unsafe or unhealthy work.
GRI disclosure 403-4 Reporting recommendation 1.4 requires
the reporting organization to disclose whether and, if so,
which, occupational health and safety topics are covered in
local or global formal agreements with trade unions.

By disclosing safety data, companies show their willingness to be

held accountable for their safety performance. This accountability is
vital for maintaining trust with stakeholders and for continuously
improving safety measures.

Some examples of internal disclosure is the hazard communication

process for the relevant people (exposed to that particular risk)
through different communication mediums like signposts, policies,
toolbox talks, etc. External disclosures are made through the
website, ESG report, Sustainability Report, etc.

Benchmarking and Comparison: Disclosure of safety performance

data allows for benchmarking and comparison between companies
within the same industry. This helps investors and stakeholders
assess which companies are effectively managing safety risks and
adopting best practices.

21 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3.1.3 Business and Human Rights

The concept of "business and human rights" is highly

relevant to safety practices within a company. Business
and human rights refer to the responsibility of businesses
to respect and uphold the fundamental rights and
dignity of individuals who are affected by their activities,
including employees, customers, communities, and other
stakeholders. Ensuring safety aligns closely with these
principles, and several aspects of business and human
rights are directly related to safety practices:

Right to Life, Safety, Health, and Security:

Businesses have a responsibility to provide a safe,
healthy, and secure environment for their employees
and other stakeholders. This includes implementing
safety and occupational health measures to prevent
accidents, injuries, and other harm that could
jeopardize individuals' lives and well-being.

Right to Work: .
The right to work is closely tied to safety. Businesses
should ensure that employees are not subjected to
unsafe working conditions that could result in
accidents or injuries

Remedy and Accountability:

When safety incidents occur, businesses should
provide remedies for those affected and be held
accountable for any harm caused. This could involve
providing compensation, medical assistance, and
support to affected individuals.

22 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Non-Discrimination and Equality:
Safety measures should be extended consistently to
all employees and contractor employees regardless of
their background, engagement mode, or
characteristics. Discrimination and unequal
treatment can lead to unsafe working conditions for
certain individuals or groups. Businesses should
ensure that safety practices are inclusive and
respectful of human rights principles.

GRI 403-3 requires to

report how the
organization maintains
the confidentiality of
workers’ personal health-
related information

23 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3.2 Supply Chain Responsibility
and Safety

To ensure safety standards in the supply chain,

companies need to take a systematic approach that
includes all of their suppliers and partners. This means
setting clear safety standards, monitoring compliance,
and taking action when necessary.

Here's a brief overview of how to achieve this.

3.2.1 Supplier Selection and Due Diligence:

Establish clear safety criteria as part of your supplier
selection process.
Conduct thorough due diligence to assess suppliers'
safety practices, human rights issues, and compliance
with legal requirements.
Include safety as part of the mandatory requirements in
supplier agreements. These may include safety standards,
reporting requirements, etc.
Prioritize suppliers who demonstrate a commitment to
safety and align with your ESG goals.

3.2.2 Risk Management:

Work with suppliers to identify and mitigate safety risks
within their operations and supply chain.
Address potential vulnerabilities that could impact safety
standards.

24 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3.2.3 Safety Performance Evaluation and
Support:
Regularly conduct safety audits and assessments of
supplier facilities to evaluate safety practices and identify
potential risks.
Collaborate with suppliers to address any deficiencies and
improve safety measures. Support them with safety
training programs for critical risk areas.

3.2.4 Incentives and Recognition:

Offer incentives or recognition to suppliers that excel in
safety performance.
Foster a culture of healthy competition among suppliers
to improve safety practices.

3.2.5 Auditing and Verification:

Utilize third-party auditing or verification services to
assess supplier safety practices. This can enhance
credibility and provide an unbiased evaluation of safety
standards.

3.2.6 Transparency and Reporting:

Include supplier-related safety information in your ESG
reporting.
Require suppliers to provide safety-related data, incident
reports, and performance metrics.
Communicate efforts taken to ensure safety standards in
your supply chain to stakeholders.

25 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3.2.7 Engage with stakeholders:
In a higher level of interventions, you engage with supply
chain workers, communities, and other interested parties
like industry associations, NGOs, Government
departments, etc.

3.2.8 Addressing human rights concerns in

the supply chain
Occupational health and safety itself is an important human
rights concern in the supply chain. Some other concerns are:
Forced labor: This is when people are coerced to work
against their will, often under threat of violence or
imprisonment.
Child labor: This is when children are forced to work in
dangerous or unhealthy conditions, often for low wages.
Discrimination: This is when people are treated
differently because of their race, gender, religion, or
other characteristics

26 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Interdependence of ESG
and Safety Culture

Chapter 4
4.1 Fostering a Culture of
Responsibility and Accountability

Safety culture is the shared attitudes, beliefs, and

behaviors that determine how safety is managed
within an organization.

A strong safety culture is essential for preventing accidents and

injuries. It is also important for protecting the environment and the
communities in which an organization operates.

ESG can play a role in shaping safety culture by:

Promoting a culture of transparency and accountability. ESG

requires organizations to be transparent about their
environmental, social, and governance practices. This can
help to create a culture of accountability, where employees
are held responsible for their actions.

Demonstrating transparency through communication and

disclosure by detailed reporting on its safety performance in
addition to encouraging a focus on prevention. ESG
emphasizes the importance of preventing harm to people
and the environment. This can help to shift the focus from
reacting to accidents to preventing them from happening in
the first place.

Building a sense of community. ESG can help to build a sense

of community within an organization. This can create a more
supportive environment where employees feel comfortable
speaking up about safety concerns.

28 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Empowering employees. ESG can empower employees to
take ownership of safety. This can help to create a culture
where everyone is responsible for safety.

Engaging with stakeholders on safety issues.

There are also a number of ways that organizations can integrate

ESG into their safety culture. Some of these ways include:

Developing an ESG-aligned safety policy. This policy should

outline the organization's commitment to safety and its ESG
goals.

Implementing ESG training for employees. This training

should help employees to understand the importance of ESG
and how it can be applied to safety.

Measuring and reporting on safety performance. This will help

to track progress and identify areas where improvement is
needed.

Engaging with stakeholders. This includes employees,

customers, suppliers, and the community. Stakeholder
engagement can help to build support for ESG and safety.

By integrating ESG into their safety culture, organizations can

create a more sustainable and ethical workplace that is safer for
everyone and can align with their ESG goals.

29 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Future Trends and
Continuous Improvement

Chapter 5
5.1 Emerging ESG Trends - Evolving
ESG regulations and standards
In India, the Securities and Exchange Board of India (SEBI)
has taken the lead in developing ESG regulations. In 2021,
SEBI introduced the Business Responsibility and
Sustainability Report (BRSR) framework.

SEBI requires the top 1,000 listed companies by market

capitalization to report on their ESG performance. The BRSR
framework covers a wide range of ESG topics, including
climate change, human rights, and workplace diversity.

SEBI is also considering introducing mandatory ESG

disclosures for all listed companies. In addition, the Indian
government is working on a number of policies and
initiatives to promote ESG, such as the National Action Plan
on Climate Change and the National Policy for Electronics.

Globally, the ESG landscape is changing fast, and here are

some of the key evolving ESG regulations and standards:

UK Sustainability Disclosure Requirements (SDR):

It requires large companies in the UK to disclose
information about their ESG performance. The
SDR is expected to come into effect in 2023.

The European Union's Sustainable Finance

Disclosure Regulation (SFDR) is a European
regulation introduced to improve transparency in
the market.

The Task Force on Climate-related Financial

Disclosures (TCFD) has developed a set of
recommendations for companies to report on
their climate-related risks and opportunities.

31 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 The Sustainability Accounting Standards Board
(SASB) has developed industry-specific standards for
ESG reporting.

In June 2023 the International Sustainability

Standards Board (ISSB) issued its first two IFRS®
Sustainability Disclosure Standards, IFRS S1 General
Requirements for Disclosure of Sustainability-related
Financial Information and IFRS S2 Climate-related
Disclosures.

These are just a few of the many ESG regulations and

standards that are evolving around the world. As the
importance of ESG continues to grow, we can expect to see
even more regulations and standards being developed in
the years to come.

In India, the evolving ESG regulations and standards are

posing a number of challenges for businesses. These
challenges include:

The lack of clear and consistent standards

The high cost of compliance

The lack of expertise in ESG reporting

However, the benefits of ESG compliance are also

significant. Businesses that are able to meet ESG standards
can attract more investors, improve their reputation, and
reduce their risk.

As the ESG landscape continues to evolve, businesses in

India will need to adapt in order to remain competitive.
They can do this by developing a strong ESG strategy,
investing in ESG reporting, and working with stakeholders
to promote ESG.

32 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
5.2 Continuous Improvement in
Safety and ESG
Integrating ESG principles into long-
term safety strategies

Integrating ESG (Environmental, Social, and Governance)

principles into long-term safety strategies involves aligning
a company's commitment to sustainability and ethical
practices.

This integration goes beyond mere compliance with

regulations; it reflects a proactive approach to embedding
responsible practices into the core of a company's safety
initiatives.

Here's how companies can achieve this integration:

1. Leadership Commitment

Top leadership must demonstrate a genuine

commitment to ESG principles and safety. Leadership
support ensures that ESG and safety goals are
consistently communicated throughout the
organization and that necessary resources are allocated
for implementation.

2. Holistic Approach

Treat ESG and safety as interconnected elements rather

than separate functions. Recognize that effective safety
practices contribute to both the "S" (Social) component
of ESG and the company's long-term sustainability.

33 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
3. Materiality Assessment

Identify safety issues that are material to the company's

ESG performance and stakeholder interests.
Focus on areas where safety practices have the most
significant impact on social outcomes and the
environment.

4. Data Collection and Monitoring

Collect relevant data on safety performance and

incidents. Monitor trends over time and track safety
metrics that align with ESG reporting frameworks to
provide accurate information for disclosures.

5. Risk Assessment and Mitigation

Incorporate ESG considerations into risk assessments.

Identify potential safety risks that could impact
employees, communities, and the environment, and
implement strategies to mitigate these risks.

6. Stakeholder Engagement

Engage with employees, communities, and other

stakeholders to understand their safety concerns and
expectations. Incorporate their feedback into safety
strategies to enhance trust and collaboration.

7. Ethical Behavior and Human Rights

Ensure safety practices align with ethical behavior and

respect for human rights. This includes providing fair
wages, non-discriminatory treatment, and safe working
conditions for all employees.

8. Innovation and Technology

Leverage technology and innovation to enhance safety

practices. Implement IoT sensors, wearable devices, and
other technologies that not only improve safety but also
align with the company's ESG goals.

34 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
9. Training and Awareness

Educate employees about the company's commitment

to ESG and how safety practices contribute to broader
sustainability objectives. This helps foster a sense of
shared responsibility and commitment.

10. Continuous Improvement

Regularly review and update safety strategies to ensure

they align with evolving ESG goals and industry best
practices. Foster a culture of continuous improvement
in both safety and sustainability.

11. Transparency and Reporting

Integrate safety data and performance into ESG

reporting. Share progress, achievements, and
challenges related to safety practices in sustainability
reports to showcase the company's commitment to
both ESG and safety.

12. Long-Term Vision

Integrate ESG principles into the company's long-term

vision and strategic planning. Consider how safety
initiatives can contribute to ESG objectives and vice
versa over the coming years.

By weaving ESG principles into long-term safety

strategies, companies demonstrate a holistic approach
to responsible business practices.

This integration enhances employee well-being, builds

stakeholder trust, reduces risks, and supports the
company's overall sustainability journey.

It also reinforces the idea that safety and sustainability

are not separate priorities but interconnected goals
that contribute to a safer, healthier, and more
sustainable future.

35 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
 Conclusion: ESG-Driven
Safety Excellence
Forging a harmonious connection between safety
and ESG yields manifold advantages for both
safety professionals and organizations alike.
Safety professionals acquiring knowledge of ESG
can have improved decision-making capacity
about safety, risk management, and compliance.
Safety professionals can help to create a more
sustainable and ethical workplace culture by
integrating ESG principles into their practices
which will be more marketable and have more
opportunities for advancement.
Some potential positive outcomes of aligning
safety practices with ESG principles for the
organizations are Reduced risk, Improved
reputation, Increased productivity, and
heightened attraction and retention of talent.
By aligning safety practices with ESG principles,
companies can reduce their risk of regulatory
violations.
ESG-driven safety practices not only protect lives
but also contribute to sustainable business
success and a better future for all stakeholders.

36 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
References for Introduction to ESG
for Safety Professionals
Focus area
Occupational health & safety

Check points

Legal requirements followed in implementing occupational

health and safety management system

Incidents of non-compliance with occupational health and

safety regulations and/or voluntary codes

Number of fatalities and serious injuries to employees and

workers

Number of days lost due to occupational health and safety

incidents

Occupational health and safety training provided to

employees and workers

Occupational health and safety performance indicators

Approach to preventing and mitigating significant negative

occupational health and safety impacts and the related
hazards and risks

Workers covered under occupational health & safety

management system

Work related injuries

Work related ill health

Occupational health management system

Work area monitoring & ergonomics

Safety culture management

37 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
Focus area
Business and Human Rights

Check points

Right to the healthy work environment

Workers’ communication on training on health & safety
Access to water, toilet and accommodation
Remedy and accountability for affected individual
Process established for identifying and managing mental
well-being including stress
Wellness programs for employees
Data privacy of employees - Occupational Health related data
(both physical & digital)in the security process established
(implementation ISO 27001, VAPT, or other information
security method)

Focus area
Stakeholder engagement

Check points
Process of SHE related stakeholder engagement
Community health and safety
Community engagement for onsite and offsite emergency plan

Focus area
Supply Chain responsibility and safety

Check points

Clearly establish safety criteria for supplier selection

Risk management
Safety performance and evaluation
Incentive & recognition
Auditing and verification

38 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
About consultivo.in

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Offering 100+ solutions in ESG, Social, Safety, Environment, Climate Change & Energy,
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31 ESG Driven Safety Excellence - The Practical Guide for Safety Experts
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