Market Insight: The Role Of EHS In Corporate ESG Ratings

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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.

Table of contents

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

Table of figures

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

Analyst
Rain is an Analyst in the Verdantix Environmental, Health, and Safety practice. His current research agenda focuses on evaluating the financial return of proven EHS technologies. Prior to joining Verdantix, Rain worked at Deecon Consulting where he gained project management experience in the UK construction and telecommunications industry.  Rain holds a Master of Arts degree in Economics and Politics from the University of Edinburgh.  

Bill Pennington

VP Research, EHS & Risk Management.

Bill leads the Verdantix Environment, Health & Safety and Risk Management practice. His current agenda focuses on EHS and sustainability services, product stewardship as well as benchmarking EHS technology buyer’s budgets, priorities and preferences globally. Bill comes from a background of corporate EHS roles in the manufacturing and logistics industries. He holds an MBS degree in sustainability from the Rutgers University.

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