Dive Brief:

• Nearly four out of five companies and government agencies worldwide (78%) plan to step up budgeting for environment, health and safety initiatives in the next three years, responding to rising workplace injury and mortality rates, according to EY.
• Through EHS spending, organizations upgrade efficiency, bolster their reputations and improve resilience and business performance, EY said, describing survey results. EHS programs range from waste management and workplace safety to water conservation and mental health support.
• “Investing in EHS not only helps you comply with regulations but also enhances your ability to operate effectively and responsibly,” Jessica Wollmuth, EY global EHS co-leader, said in a statement. Companies should prioritize EHS spending despite current market volatility and budget constraints, she said.

Dive Insight:

Work-related accidents and diseases annually take the lives of 3 million people worldwide, a 5% increase compared with 2015, the International Labor Organization said in a 2023 report.

Malignant neoplasms, and circulatory and respiratory diseases contracted at work led to most of the 2.6 million deaths, with the other fatalities caused by accidents, the ILO said. Agriculture, construction, forestry, fishing and manufacturing are the most hazardous industries.

Promoting health and wellbeing is the top reason organizations have increased EHS spending during the past three years, according to EY.

“This is almost certainly in response to the high workplace mortality and injury rates in many markets,” EY said in a report.

Nearly three out of four (73%) companies that proactively invest in EHS programs said they have reduced costs during unexpected disruptions, compared with 64% of respondents that take a reactive approach to EHS challenges, EY said.

Among so-called EHS leaders, 81% said their programs have increased commercial value compared with 59% of other respondents, according to EY.

Nearly four out of five of all respondents (79%) said their EHS approach has upgraded operational efficiency, including through improved productivity, increased innovation and reduced health-related mishaps, EY said.

Respondents planning to boost EHS spending will most likely focus on attaining sustainability goals, promoting employee health and wellbeing, and achieving technological advancements, according to EY.

EY surveyed 526 C-suite leaders and EHS executives in 34 countries, across a range of industries, in March and April of this year. The organizations operate on an annual revenue or budget of at least $500 million.