3-1. Integrating EHS Management into Business Strategy: Sustainability and Corporate Value Enhancement

For companies to achieve long-term growth, integrating EHS (Environment, Health, Safety) management into their business strategy is essential. While EHS activities traditionally focused on legal compliance and accident prevention, they are now seen as a critical component of increasing corporate value, especially in the context of ESG investment and sustainability management. Here are some key points on how to connect business strategy with EHS management.

1. The Relationship Between Business Strategy and EHS

EHS management is not just about compliance; it is directly linked to reducing corporate risk and establishing a competitive advantage. On the environmental side, initiatives for decarbonization, energy savings, and waste reduction can lead to cost reduction and enhanced brand value. In terms of occupational health and safety, accident prevention can boost employee morale and aid in talent acquisition, forming the foundation for a company's sustainable growth.

2. The Role of EHS in Sustainability Management

In advancing sustainability management, EHS covers both the "E" and "S" components of ESG. Reducing environmental impact and introducing renewable energy sources improve environmental ratings, while strengthening occupational health and safety systems and respecting human rights build social trust. This boosts a company's evaluation by investors and business partners, strengthening its ability to raise capital and its market competitiveness.

3. Steps to Integrate EHS into Business Strategy

• Top Management Commitment: It is crucial for top management to clearly articulate an EHS policy and ensure it is shared throughout the company.

• KPI Setting and Monitoring: Set concrete goals, such as a percentage reduction in CO2 emissions, a decrease in the industrial accident rate, and an increase in the waste recycling rate, and regularly monitor progress.

• Integrated Management System: Implementing an integrated management system like ISO 14001 and ISO 45001 can increase the effectiveness of EHS efforts and allow for strategic management.

• Stakeholder Dialogue: Transparently disclose the results of EHS activities to investors, customers, and employees to build trust.

  
  

4. Impact on Corporate Value

Integrating EHS into business strategy is more than just risk avoidance; it drives corporate value. Not only does it reduce reputational risk from accidents or environmental issues, but it also provides benefits such as improved cost competitiveness through energy and resource conservation efforts, higher employee retention rates, and a better brand image. Furthermore, an improved ESG rating from investors can enhance a company's standing in the capital markets, establishing a foundation for sustained growth.

Integrating EHS management into business strategy is no longer optional but a necessity. To achieve both sustainability and increased corporate value, a company-wide push for EHS is required.