Leveraging EHS Analytics for Strategic Decision-Making

Over time, the way businesses engage with investors and key decision makers has changed. Advances in data analytics and management have given the largest companies the chance to make higher returns on investments by using data to drive timelier and improved decision-making.

However, many overlook the benefits associated with advanced data analytics when assessing environmental, health, and safety (EHS) performance. Analytics and data are crucial for EHS management and can have a huge impact on the operational overhead and incidents that affect the bottom line, strengthen the company's reputation, and improve employee morale.

Estimates show that globally, 2.8 million deaths are related to work every year at a cost of over $3 trillion. The largest number of deaths are associated with work-related diseases, but fatal accidents are also part of the problem. Data can create better awareness of EHS incidents and support improved performance.

Why Data Matters in EHS

While the best tools and data may not be available to everyone, EHS departments are increasingly working with huge quantities of data. With technology like sensors and beacons to aid data collection, more data than ever is available. Raw data is available in abundance but it can be challenging to take that and determine performance from it.

When used correctly, EHS data gives insights into costly or frequent compliance violations, can justify spending on projects, and may uncover hidden safety risks. Tracking a number of indicators helps predict future problems by looking at how past performance was affected by different factors.

The appropriate key performance indicators (KPIs) will vary from one industry to the next, but there are several that are used in almost all EHS programs:

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• EHS compliance – Reviewing the types, numbers, and level of regulatory certifications and EHS systems provide indicators of compliance. Audits can determine where you’re doing well and where things may need to change. Being aware of violations and their costs is an important part of EHS compliance.

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• Environmental audits – This audit can give an overview of the current environmental performance of a company, which can act as a self-assessment. For instance, indicators like toxic chemicals released to land, water, and air, can help drive strategic changes.

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• ESG – Environmental, social, and governance(ESG) disclosures demand accurate reporting and data management. There is some overlap with EHS metrics but KPIs will vary. A materiality assessment can give insight into what data is the most important and has the largest organizational impact.

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• Health and safety – Safety managers often focus largely on observations and near misses related to hazardous behaviors and conditions, as well as employee safety training completion rates. OSHA illness and injury reports are also standards for measuring the results of your safety initiatives.

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How to Better Leverage Data for Decisions

Most companies learned long ago that you can’t focus on opinions to determine EHS performance. You need actual structured data to inform all your decision-making. However, not everyone is aware of how to access it. Becoming data-driven is an essential step toward moving forward and ensuring your EHS program is the best it can be.

A data-driven company is largely ruled by data. There’s an easy method to add new data sets into a repository and the process is quick and easy. Data curation at this point will be normalized and automated to take the least amount of time. Less specialized workers may generate analysis and reports so business questions can be immediately answered.

When you leverage data in your organization, EHS has total visibility across the entire company. People become accustomed to looking at data before making any kind of important decision. However, keep in mind that adapting the company culture, creating new tech avenues, and building processes do take time.

Even after you are driven by data, asking questions and looking at performance in new ways will continue to be critical. It’s a continuous process of improvement and sometimes smaller changes may be better than huge ones. Testing small improvements before implementing others should be your data analytics approach.

While you might be focusing on simply getting started right now, remember that you’ll want additional analysis and data in the future. Consider doing the work now so you don’t have to later. Consider scenarios that might occur in the future and avoid problems so you don’t find yourself fixing them later.

Conclusion

Over the past few decades, technology has quickly changed the way organizations approach EHS. Investors today expect detailed disclosures and analyses about future strategies and past performance. Developing and implementing a comprehensive data and analytics solution is a must for any business that wants to excel.

Knowing the benefits of using data analytics for strategic decision-making, it’s important to create a roadmap that indicates how data visualization and analysis will be used and streamline the process of getting the information you need. Reducing complexity and engaging in IT data alignment can be two good steps to take.