8-19. Next-Generation Models for EHS Data Utilization from an Investor's Perspective

Investors' use of EHS (environmental, health, and safety) information is evolving from a traditional risk-avoidance model to a new generation model emphasizing value creation. While EHS information previously focused on avoiding negative risks like environmental accidents and workplace injuries, it is now used as an important investment decision-making tool that demonstrates a company's sustainability and competitive advantage.

Key Features of the New Generation Model

・ Integrated Reporting:

The new model is characterized by the widespread adoption of integrated reporting that combines EHS information with financial data. Investors are focusing on how initiatives such as reducing CO2 emissions and improving working conditions are linked to cost savings and increased brand value. This shift means that EHS activities are no longer viewed simply as compliance, but as a strategic element that enhances investment returns.

・ Real-Time Data and Digital Technology:

Advances in digital technology have enabled investors to access EHS data in near real time. Providing transparent information through cloud-based dashboards and big data analysis strengthens trust between companies and investors and improves the speed and accuracy of investment decisions. Furthermore, AI-based predictive analytics is expected to become an important tool for early detection of potential EHS risks.

・ Social Impact and ESG Finance:

Investors will increasingly utilize EHS information within the framework of social impact investing and ESG finance. Companies that actively address environmental impact reduction and human rights tend to enjoy lower capital costs and more favorable market access. Conversely, companies that inadequately disclose information or respond slowly face reduced corporate value and are disadvantaged in the capital markets.

In summary, from an investor perspective, the new generation of EHS information models centers on three elements: transparency, real-time data, and value creation. To respond to this trend, it is essential for companies to promote advanced management and proactive disclosure of EHS information. This will help them gain investor trust and generate new capital flows for sustainable growth.