The research found that 78% of organizations plan to boost their EHS spending over the next three years, with a focus on digital systems and advanced analytics to manage risks.

The study, which surveyed more than 500 EHS professionals and C-suite leaders worldwide, shows that two-thirds of organizations (65%) believe EHS initiatives bring commercial value, including reputational gains and operational efficiencies. Nearly 80% of businesses surveyed (79%) believe EHS leads to operational efficiencies such as increased productivity, reduced incidents, and higher levels of innovation.

However, the report highlights a disconnect between this recognition of value and long-term planning. Only half (50%) of the organizations surveyed prioritize and invest in EHS as part of their overall business strategy. A significant number of companies, 36%, said their investment tends to be driven by immediate needs, while 13% are mainly focused on meeting mandatory compliance obligations.

Jessica Wollmuth, EY Global EHS Co-Leader, EY Climate Change and Sustainability Services, said: “It is easy to dismiss EHS initiatives as box-ticking exercises, or as ways to shore up risk defenses, but the reality is that, done well, EHS is a key that can unlock untold value for businesses, their stakeholders, and the planet as a whole. Get EHS right, and businesses can reap a host of commercial, operational and reputational gains.” 

For companies that are planning ongoing investment, EHS strategy is the highest-ranking priority, with two-fifths (41%) stating it as their main focus. The study also found that two-thirds of companies (64%) are already investing in EHS strategy and almost three-quarters (71%) intend to increase this investment over the next three years.