Health and safety as a business enabler

 

Governing the health and safety of their people is not only a legal duty for directors, it is also a building block of organisational success, says Phil Parkes.

The former WorkSafe chief executive is now leading the environment, social and governance (ESG) work of HSE Global, a risk management consultancy with offices across the United States, Australia and New Zealand. The company has recently partnered with the Institute of Directors in New Zealand to bring new perspectives, tools and support to boardrooms. 

Parkes says international conceptions of health and safety have come to include the environment – hence the name ‘HSE’ – and how to leverage success across those areas to improve business outcomes.

“There are three distinct lenses that directors should apply to health, safety and the environment, each of which feeds directly into achieving profitability and a sustainable future for an organisation,” Parkes says. 

“The first, which most directors will be very familiar with, is compliance. To continue operating, boards need to ensure their organisations understand and operate in line with relevant regulations and legislation. There may also be reporting requirements to meet including, for some organisations now, for climate change.

“The second lens takes a perspective beyond compliance to accessing markets. If you want to export primary produce to the EU, for example, you will want to be able to demonstrate your ESG credentials. Or if you want to grow in our domestic tourism market, you will want to show case efforts to be safe and carbon-neutral as an ethical operator.”

“And the third lens is managing financial risks. We know that global insurance, banking and private investment firms increasingly look for environmental, social and governance practices to demonstrate viability for future investment, mergers and acquisitions funding or provision of insurance services.

HSE Global has developed a global safety index platform that enables organisations to measure, understand and report more effectively on a range of ESG indicators such as health, safety and environmental outcomes. The tool has more than 100,000 users globally which enables benchmarking and incorporates a range of tools to measure key indicators such as safety leadership capability, safety culture, psychological risk and employee wellbeing. 

“By measuring and understanding a broader range of inputs, organisations are able to identify strengths and weaknesses to, ultimately, drive more financially sustainable outcomes,” Parkes says.

Find out more about HSE Global

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