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Blog - ESG - Employee Health & Safety

  • on 22 Feb.2023

When investors focus on companies that value Environmental, Social and Governance (ESG) investing, one of the main things they look for is the wellbeing of the employees which tackles the ‘S’ factor in ESG; especially after the stress that was caused during the COVID-19 pandemic which posed a huge threat for businesses’ operations.

A firm that doesn’t rate its employee’s health and safety leaves the employees feeling disengaged, mentally sick, prone to absenteeism and presenteeism, staff turnover, and not living up to their full potential. In fact, chances of having catastrophes and commercial failures spontaneously rise when staffs aren’t offered good care in their atmosphere and workplace.

It is safe to say that since most of our time is at work, how we’re feeling there reflects how we are feeling in our lives in general. So why should companies invest in employees’ health and safety?

1)     Businesses attract more talented individuals. A company that has good reputation with its employees will automatically interest more brilliant individuals as well as retaining them for a longer period of time.

2)     Boosting Productivity. According to multiple studies, tasks that include the application of an operative’s social and emotional intelligence, are enhanced when his or her wellbeing is taken care of. Healthcare could be very costly for businesses if not properly tackled.

3)     Attract investors and higher ESG score. In recent trends, investors are favoring companies that have a high ESG score and take into consideration of the main points being the care-system embedded for employees.

Some tips and procedures to use in order to have a healthier and safer workspace in your company:

-        Train employees on emotional health

-        Create a good workspace that provides freedom

-        Update all kinds of tools and machineries

-        Offer them employee perks and benefits

-        Support a health-inspired culture

-        Appoint a Chief Wellbeing Officer

-        Create health and safety campaigns

For your ESG reports, some KPIs that could be used:

-        Lost Time Incident Rate (LTI)

-        Frequency Rate (FI) per 100 full-time Workers (FTEs)

-        Workplace Injuries/Illnesses by Severity, Type, and Costs

Citations
https://www.business-humanrights.org/en/latest-news/employee-well-being-is-an-emerging-key-environmental-social-and-governance-esg-issue-for-companies-and-investors/
https://www.linkedin.com/pulse/esg-reporting-mental-health-ashwin-naik/
https://whatworkswellbeing.org/blog/how-can-businesses-put-wellbeing-into-the-s-of-esg/
www.omega-financial-solutions.com

When investors focus on companies that value Environmental, Social and Governance (ESG) investing, one of the main things they look for is the wellbeing of the employees which tackles the ‘S’ factor in ESG; especially after the stress that was caused during the COVID-19 pandemic which posed a huge threat for businesses’ operations.

A firm that doesn’t rate its employee’s health and safety leaves the employees feeling disengaged, mentally sick, prone to absenteeism and presenteeism, staff turnover, and not living up to their full potential. In fact, chances of having catastrophes and commercial failures spontaneously rise when staffs aren’t offered good care in their atmosphere and workplace.

It is safe to say that since most of our time is at work, how we’re feeling there reflects how we are feeling in our lives in general. So why should companies invest in employees’ health and safety?

1)     Businesses attract more talented individuals. A company that has good reputation with its employees will automatically interest more brilliant individuals as well as retaining them for a longer period of time.

2)     Boosting Productivity. According to multiple studies, tasks that include the application of an operative’s social and emotional intelligence, are enhanced when his or her wellbeing is taken care of. Healthcare could be very costly for businesses if not properly tackled.

3)     Attract investors and higher ESG score. In recent trends, investors are favoring companies that have a high ESG score and take into consideration of the main points being the care-system embedded for employees.

Some tips and procedures to use in order to have a healthier and safer workspace in your company:

-        Train employees on emotional health

-        Create a good workspace that provides freedom

-        Update all kinds of tools and machineries

-        Offer them employee perks and benefits

-        Support a health-inspired culture

-        Appoint a Chief Wellbeing Officer

-        Create health and safety campaigns

For your ESG reports, some KPIs that could be used:

-        Lost Time Incident Rate (LTI)

-        Frequency Rate (FI) per 100 full-time Workers (FTEs)

-        Workplace Injuries/Illnesses by Severity, Type, and Costs

Citations
https://www.business-humanrights.org/en/latest-news/employee-well-being-is-an-emerging-key-environmental-social-and-governance-esg-issue-for-companies-and-investors/
https://www.linkedin.com/pulse/esg-reporting-mental-health-ashwin-naik/
https://whatworkswellbeing.org/blog/how-can-businesses-put-wellbeing-into-the-s-of-esg/
www.omega-financial-solutions.com