Market Insight: The Role Of EHS In Corporate ESG Ratings

18 Apr, 2023

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Executive Summary

ESG ratings objectively assess a firm’s capability to manage ESG-related risks. This process involves utilizing publicly available data and engaging with EHS functions that are assuming greater responsibility for managing firm-wide ESG strategies. EHS executives can leverage this report to understand how existing EHS metrics and activities can inform ESG rating assessments. Additionally, the report highlights practices and technologies that support high-quality ESG data collection. Given the rapidly expanding market for ESG investment, firms pursuing ESG ratings can gain a competitive advantage in attracting customers, talent and capital investment.
EHS Functions Are Integral To Achieving Corporate ESG Ratings
ESG Ratings Help Firms Identify Exposure To Long-Term Risks And Signal A Commitment To Sustainable Outcomes
Commonly Collected EHS Metrics Contribute To A Majority Of ESG Rating Frameworks
EHS Functions Are Evolving Their Processes To Meet The Expanding Need For ESG Reporting
The Increasing Demand For Accurate And Timely EHS Data Necessitates Adopting Technology Solutions
Figure 1. The Intersection Between EHS Data And ESG Issues
Figure 2. How MSCI Evaluates Key Issues Managed By EHS Practices

About the Authors

Rain Chiang

Rain Chiang

Industry Analyst

Rain is an Industry Analyst in the Verdantix EHSQ practice. His current research agenda focuses on the intersection between EHSQ and ESG priorities. Prior to joining Verd...

Bill Pennington

Bill Pennington

VP Research

Bill is VP Research at Verdantix, where he leads analysis on the evolving and interconnected landscapes of EHS, quality, AI and enterprise risk management. His research helps ...

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