New global benchmarking study reveals lack of EHS maturity and future readiness
SYDNEY, December 18, 2023 /PRNewswire/ — As the working year draws to a close, a new study shows that 97% of Australian workers and New Zealand Workplaces are still too vulnerable to health and safety risks. Of these, 8.7% are exposed to unacceptably high levels of risk.
Only 3% of organizations believe they are ready to manage their environmental, health and safety (EHS) risks. This is despite growing advocacy for zero risk in the workplace.
Research shows that a central issue is the ability to capture vital data and then leverage that data in time to prevent or respond to an incident or crisis. The study included more than 1,000 EHS professionals from 20 industries around the world and was undertaken by independent analyst firm Focus Networks.
A staggering 68% of EHS managers lack confidence in the quality and quantity of data captured. (See key findings below.) This is not to say that EHS professionals do not keep their workers safe, but that they believe the processes could be much improved.
“Behavioral economics tells us that leaders are overconfident when assessing an organization’s ability to respond to future events. And we also know that one of the best antidotes to overconfidence is objective data. A vote of no confidence of 68% from EHS professionals is very objective and very revealing,” said Neil Mogridgegeneral director of HSI APACthe company that commissioned the research.
“Risk management is still in its infancy. Ineffective or inaccurate assessment of the likelihood and severity of risks can be extremely serious in EHS, just as in cybersecurity.
“From a risk perspective, we can’t keep thinking ‘if it happens’ but rather ‘when it will happen’. And if you’re not ready to answer the “when” question, you either have a healthy appetite for risk or are extremely complacent. Neither one is good,” Mogridge said.
EHS maturity varies by sector. For example, the healthcare and construction industries both have high levels of risk, but their maturity is very different. Healthcare has a maturity score of 63.6 out of 100 and is the best performing sector. On the other hand, the construction sector only obtained a score of 49.3 out of 100 possible, which actually constitutes a failure.
In response to the research report, ACTU Deputy Secretary Liam O’Brien said: “All workers should have the right to a safe workplace, but research from HSI Donesafe confirms that a lack of health and safety capacity is all too common in Australia. One of the main gaps is the failure of some companies to consult and involve workers and their representatives in the design of their health and safety systems, when it is the workers who actually carry out the work and understand its implications. risks.
“ACTU research last year confirms these new findings, with 20 to 25 per cent of workers saying employers did not consult them or involve them in decision-making about their own health and safety – this must change.”
But there is good news.
“There are a small number of important factors that make a difference,” said Andrew Milroyauthor of the report and principal investigator at Focus Networks, the HSI Donesafe company commissioned to undertake the investigation.
“First, many organizations are in a storm of complexity. They can barely see the terrain they are on. This is because there are too many disconnected systems.
“Security data is typically time-sensitive and too many organizations cannot act on the data in time. Often people don’t even know where or how to report a problem. So a simple, integrated system solves a lot of problems,” Milroy said.
The study also found that most organizations approach health and safety in terms of compliance, rather than as part of risk management or as an investment in people and culture.
“Compliance is a grudge purchase. It’s no wonder people aren’t interested in security systems or adopting better practices. The leadership team needs to change the conversation around health and safety, so that it is part of the vision,” Milroy said.
Research shows that organizations that adopt best practices and integrate technology and data significantly reduce complexity. They also focus on the safety of the whole person, which goes beyond physical risks to include psychosocial factors such as anxiety and harassment, as well as cybersecurity and privacy.
“Yes, technology has grown by leaps and bounds, particularly in our ability to integrate and use real-time data, but ultimately it is a question of leadership. It’s about risk management and company culture. It’s about the organization you want to be, not compliance, and if you don’t understand you’ll fall further behind,” said Jose ArcillaPresident and Chief Operating Officer, HSI.
ENDS
The report was prepared by Focus Networks and commissioned by HSI.
A complete copy of the report can be find here.
Key findings for policymakers
Compliance and commitment
75.8% of organizations are focused on compliance and struggle to engage their employees
67.1% of organizations are simply “operational” with limited digitalization
88.3% of organizations are vulnerable, in one way or another, to risks and falling behind in their EHS processes.
70% of EHS managers face multiple solutions rather than a multi-solution platform, increasing their lack of data integrity.
68% of executives report gaps in the security and privacy capabilities of their EHS process
Obtaining management support is the main concern when implementing a new EHS platform
Reducing workplace incidents and injuries is the main expected outcome of a new EHS platform, followed by the desire to reduce time spent on administrative tasks.
A growing number of respondents, 57%, are focused on consolidating suppliers and costs.
A major challenge for immature organizations is to effectively engage their staff and workforce on EHS issues.
Lack of connectivity
In terms of connectivity, 47% of participants cited system disparity as a major capability gap.
The relationship between complexity and technology is poorly understood
Cutting-edge technology can make data collection, analysis, and action much simpler. Yet too few organizations understand this relationship, preferring to continue adding standalone technology that is difficult to integrate.
Contemporary and emerging technologies will improve EHS preparedness but, to date, only the most mature organizations understand this potential and have acted accordingly.
Biggest capacity gaps
Overall, the four biggest gaps are:
- Lack of engagement with staff and workforce
- Lack of integrated data that can be used in real time
- Low or no resources allocated to psychosocial and mental health challenges
- Security and privacy concerns
EHS risk level and maturity by sector
Industry |
Risk |
Maturity level |
Maturity |
Oil and gas |
Very high |
Operational |
57.3 |
Mining and metals |
Very high |
Operational |
56.4 |
Health care |
High |
Progressive |
63.6 |
Utilities |
High |
Progressive |
61.1 |
Construction |
High |
Fundamental |
49.3 |
Transport and logistics |
High |
Operational |
52.9 |
Agriculture |
High |
Operational |
51.1 |
Manufacturing |
AVERAGE |
Operational |
56.6 |
Automotive |
AVERAGE |
Operational |
56.7 |
Retail |
AVERAGE |
Operational |
59.7 |
Government |
Weak |
Progressive |
61.2 |
Education |
Weak |
Operational |
58.2 |
Methodology
During the second half of 2023, Focus Network, in collaboration with HSI, conducted 1,013 interviews and surveys with EHS decision-makers around the world, spanning more than 20 industries. Respondents were asked a series of questions relating to each component of the EHS function. The answers to these questions were then used to determine the maturity of each component. A number of categories were determined for the overall average readiness and risk maturity scores.
Overall distribution of responses: 37% North America29% ANZ, 26% UK, 7% Other countries
Organization size: 41% greater than 1,000 total employees, 59% less than 1,000 total employees
About HSI Donesafe
HSI Donesafe, the global leader in integrated EHSQ and ESG software, has redefined how modern workplaces enable safer, smarter and more sustainable ways of working. Donesafe is an advanced cloud-native platform for achieving universal regulatory compliance, risk management and data reporting.
Built with next-generation no-code technology, the Donesafe platform has more than 50 adaptive modules. This unrivaled configurability allows customers to effortlessly co-design their own modules using simple drag-and-drop, opening the door to a world of possibilities, all managed within a single source platform.
Used by more than 3 million people worldwide, the Donesafe platform is trusted by the world’s largest organizations, including governments, for its next-level security, privacy and authentication standards. It offers a world-class suite of enterprise support services, integration connectivity and business intelligence (BI) reporting capabilities, designed to enable workplaces of the future to keep pace.
For more information visit: https://www.donesafe.com.
HSI Donesafe is a division of HSI, a single global partner for EHS, ESG, training, compliance and professional development solutions with over 40 years of experience supporting businesses, including many Fortune 500 companies, spanning 22,000 customers in 71 countries.
For more information visit: https://www.hsi.com.
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SOURCE HSI Donesafe