Companies worldwide are stepping up investment in environmental, health and safety programs to protect workers, improve resilience and strengthen reputations, but half are failing to embed such measures into long-term business strategies, according to new research by consultancy EY.
The EY Global EHS Maturity Study found that 78 percent of businesses plan to increase spending on EHS over the next three years. Three-quarters intend to invest in digital systems and advanced analytics to manage risks more effectively.
The report, based on a survey of 526 executives in 34 countries, suggests that the corporate case for investment is gaining traction.
Nearly eight in ten respondents, or 79 percent, said such programs improve operational efficiency through higher productivity, fewer workplace incidents and stronger innovation.
Two-thirds, or 65 percent, said the initiatives add clear commercial value by reinforcing business resilience and protecting external reputation.
More than half of those who invested proactively, 52 percent, reported greater resilience and little disruption when unexpected events struck.
Strategy Gap Undermines Progress
Despite these benefits, only half of the organizations surveyed said they prioritize environmental, health and safety as part of their core strategy.
A third admitted their approach was largely reactive, driven by immediate operational needs, while 13 percent said investment focused mainly on regulatory compliance.
EY warned that companies failing to integrate such programs into long-term plans could forfeit future value. “It is easy to dismiss EHS as box-ticking exercises, but done well, it unlocks untold value for businesses, stakeholders and the planet,” said Jessica Wollmuth, EY global EHS co-leader, in the statement.
The survey also revealed differences in how organizations view reputational benefits. Around two-thirds of government and public sector bodies, 68 percent, said EHS was a trust-building tool, while three-quarters of nongovernmental groups, 77 percent, viewed it as a way to enhance credibility with customers, investors and the public.
Health, Safety and Wellbeing Priorities
When asked about priorities for future investment, 62 percent of companies ranked health and safety risk management as their main concern, followed by 60 percent who highlighted employee mental health and wellbeing. Strategy development itself was also a growing focus, with 41 percent listing it as their highest priority.
Businesses are increasingly using technology to manage programs. Nearly two-thirds, 64 percent, have digital platforms in place, and almost half are experimenting with artificial intelligence.
Four in five respondents said AI tools helped them detect blind spots and prevent health and safety breaches.
Despite that, only 27 percent ranked technology among their top three investment priorities last year, suggesting adoption is still uneven.
Barriers and Leadership Challenge
EY said organizations face hurdles in making progress, including building business cases, securing budgets and gaining board-level attention.
“Leadership is critical,” said Monica Merlo, EY’s other global co-leader. “With the right strategy, data-driven decision-making, ongoing investment and early adoption of technology, businesses can steer around obstacles and capture long-term rewards.”
The survey, conducted by Oxford Economics in April, covered companies and agencies with annual revenue or budgets of at least 500 million dollars across 24 industries.
