3-13. Learning from Global Companies: An Integrated EHS Management Model

Global companies are moving beyond treating EHS (Environment, Health, Safety) as a simple compliance framework and are instead integrating it into their corporate strategy to enhance enterprise value. As sustainability and ESG investing gain prominence, positioning EHS at the core of management directly leads to a competitive advantage. This article explains the characteristics of the EHS management integration model used by global companies and the practical implications for businesses.

1. Integration of Business Strategy and EHS

Leading global companies view EHS not as a "cost" but as an "investment." Through reducing environmental impact, saving energy, minimizing waste, and fostering a strong safety culture, they achieve long-term risk reduction and brand value enhancement. A common trait is that these companies embed EHS activities into their business plans and have a clear commitment from top management.

2. Cross-Organizational Management System

Global companies integrate EHS management across the entire organization based on international standards like ISO 14001 and ISO 45001. Instead of operating independently at each location, they set common policies and goals and monitor progress globally. This approach allows them to balance compliance with regional regulations and maintain company-wide consistency.

3. Data-Driven EHS Management

A key feature of the integrated model is the use of data. Companies set KPIs such as the number of workplace accidents, CO2 emissions, and waste recycling rates, and track them in real-time on dashboards. This enables management to quantitatively evaluate EHS performance and quickly reflect this data in investment decisions and improvement activities.

4. Extension to the Entire Supply Chain

Global companies apply EHS standards not just internally but also to their suppliers. By including environmental and occupational safety requirements in procurement contracts and conducting regular audits and providing improvement guidance, they reduce risks across the entire supply chain. Human rights due diligence and climate change responses, in particular, are attracting international attention and directly impact corporate valuation.

5. Employee Engagement and Education

The success of EHS management integration depends on employee understanding and practice. Global companies utilize VR for safety training and implement participatory programs for environmental issues to encourage active employee involvement. Embedding sustainability as a core management philosophy at the operational level leads to continuous improvement.

6. Implications for Japanese Companies

The global EHS management integration model provides a valuable reference for Japanese companies. Specifically, making management decisions based on data, securing top management involvement, and comprehensive management that includes the supply chain are methods that can elevate Japan's traditionally compliance-focused EHS activities to the next level.

Summary

The EHS management integration model of global companies is a mechanism for increasing corporate value beyond mere legal compliance. By leveraging EHS as a strategic asset through data-driven approaches, cross-organizational management, supply chain extension, and thorough employee education, companies can strengthen their competitiveness for the future.