3-18. Utilizing EHS Data in Investor Relations (IR)

In recent years, the use of EHS (Environment, Health, and Safety) data in investor dialogue (IR) has become increasingly important. Traditional financial information alone is no longer sufficient to fully explain a company's value, and non-financial EHS data is now directly influencing investment decisions. With the expansion of ESG investing and the international harmonization of sustainability disclosure standards, companies must strategically organize and disclose EHS data to effectively communicate with investors.

1. Types of EHS Data That Investors Focus On

Investors are interested in more than just environmental performance metrics. Specifically, in addition to environmental data such as CO2 emissions, water usage, and waste reduction rates, they also value indicators like the occupational accident rate, lost workdays, and the utilization of employee health checkup results. The state of chemical substance management and human rights due diligence in the supply chain are also subject to evaluation. These are crucial indicators of a company's risk management capabilities.

2. Benefits of Using EHS Data in Investor Dialogue

First, transparent data disclosure builds trust with investors. Second, presenting environmental and safety initiatives with concrete numbers allows companies to highlight their sustainability and long-term growth potential. Third, by providing explanations that include industry averages and comparisons with competitors, companies can objectively demonstrate their competitive advantage. This can ultimately lead to a reduction in capital-raising costs and an increase in corporate valuation.

3. Key Points for Effective EHS Data Utilization

• Identify Key Performance Indicators (KPIs): It is important to select EHS metrics that are meaningful to investors and are based on your company's business characteristics.

• Provide a Narrative: Rather than just a list of numbers, present the data alongside improvement initiatives and future goals to emphasize its connection to the overall business strategy.

• Align with International Standards: Adhering to disclosure standards such as the GRI Standards, SASB Standards, and ISSB allows for information disclosure that is understood by international investors.

• Visualize Data: Using charts and graphs makes complex data easier to understand intuitively.

4. Practical Approaches in IR Activities

In investor briefings and integrated reports, EHS data should not be treated as a separate part of CSR activities but rather as an integral component of the business strategy. For example, by creating concrete links such as "CO2 reduction = improved cost competitiveness" or "occupational safety = improved employee retention," the information is more likely to be perceived by investors as having a direct financial value.

Conclusion

Using EHS data in investor dialogue is a powerful tool that enhances corporate transparency and credibility. It also provides a basis for demonstrating long-term value creation. By disclosing data in a way that is linked to business strategy, going beyond mere regulatory compliance, companies can foster constructive dialogue with investors and increase their corporate value.