2-20. Practical Know-How for Collecting and Organizing EHS Data for ESG Evaluation

In response to the growing demand for ESG (Environmental, Social, and Governance) evaluations from investors and business partners, the collection and organization of EHS (Environment, Health, and Safety) data have become critical. Failure to provide accurate and consistent information on environmental and occupational health and safety can lead to lower evaluations and loss of business opportunities. Here is an overview of how to collect and organize the EHS data necessary for ESG evaluations, along with practical tips.

1. Essential EHS Data Collection Items

The EHS data required for ESG evaluation can be categorized into the following essential items:

• Environmental Data: Energy consumption, CO2 emissions, waste generation and recycling rates, water usage, and chemical substance releases.

• Safety and Health Data: Number of industrial accidents, lost workdays, frequency of occupational safety and health training, and safety audit results.

• Labor-related Data: Working hour management, employee health check-up rates, and mental health support.

This data must be collected regularly and managed in a format that can be presented to third parties.

2. Building a Data Collection System

EHS data is often scattered across different departments, making centralized management a challenge.

• Clarify Responsibilities: Define collection responsibilities for each department, such as the environmental management department for environmental data and HR for safety and health data.

• Introduce Standardized Formats: Use common formats, such as spreadsheets or specialized systems, to increase data compilation efficiency.

• Establish a Regular Collection Cycle: Set a monthly or quarterly collection schedule to prevent delays and data gaps.

3. Data Organization and Ensuring Reliability

Accuracy and transparency are key in ESG evaluations.

• Preserve Evidence: Always retain evidence that supports the data, such as measurement results, contracts, and reports.

• Align with External Standards: Organize data in accordance with international frameworks like the GHG Protocol, GRI Standards, and SASB Standards.

• Establish a Cross-Checking System: Ensure data reliability through internal audits and third-party verification.

4. Effective Presentation and Reporting

When reporting to ESG rating agencies and investors, it is effective to present not just a list of numbers but also a story of improvement.

• Set KPIs: Quantify progress with KPIs like the reduction rate of CO2 emission intensity or the decrease in accident rates.

• Use Graphs and Charts: Organize information visually to make it easier for third parties to understand.

• Present Improvement Examples: Supplement numerical reports with specific examples of energy-saving measures or safety training to enhance credibility.

5. Utilizing Digital Tools

Specialized EHS data management systems for ESG compliance are becoming increasingly common. Automated compilation and cloud management can ensure data immediacy and transparency, making it easier to handle external audits.

Systematic EHS data collection and organization not only improves your ESG rating but also enhances internal risk management and productivity. Improving the accuracy of daily data management is a fundamental step toward sustainable business operations.