Here are the key safety metrics companies use for ESG reporting:
- Total Recordable Incident Rate (TRIR)
- Lost Time Injury Frequency Rate (LTIFR)
- Fatality Rate
- Near Miss Frequency Rate
- Days Away, Restricted or Transferred (DART) Rate
- Safety Training Completion Rate
- Safety Audit Compliance
- Employee Safety Program Participation
- Corrective Actions Completion Rate
- Safety Observation Rate
Why this matters:
- 89% of global investors now consider ESG performance
- New EU rules affect 50,000+ European and 10,000+ US companies
- Good safety metrics can boost a company's ESG profile
| Metric | What It Measures | Why It's Important |
|---|---|---|
| TRIR | Recordable incidents per 100 workers | Overall safety performance |
| LTIFR | Lost time injuries per 1M hours worked | Serious injury frequency |
| Fatality Rate | Work-related deaths | Most severe safety failures |
| Near Miss Rate | Close calls and potential incidents | Proactive risk identification |
| DART Rate | Days of work affected by injuries | Impact of injuries on productivity |
Bottom line: Tracking these metrics helps companies improve worker safety, meet new regulations, and attract ESG-focused investors. It's no longer optional - it's becoming a must-have for businesses.
Related video from YouTube
What Are Safety Metrics in ESG?
Safety metrics in ESG are numbers that show how well a company protects its workers. They're a key part of the "S" (Social) in ESG.
Defining Safety Metrics
Safety metrics track:
- Worker injury rates
- Missed workdays due to injuries
- Compliance with safety regulations
These numbers help everyone see if a company is keeping people safe.
Impact on Sustainability
Safety metrics matter for a company's long-term success:
- Safe workers stick around longer
- Fewer accidents save money
- Safe companies often perform better in the market
Meeting ESG Rules
Safety metrics are becoming mandatory:
- New EU rules affect 50,000 European and 10,000 American companies
- 89% of global investors want standardized ESG reports
Companies tracking safety metrics are ready for these rules.
"We're not just focused on physical safety anymore. As health and safety professionals and organization leaders, we're really focused on total worker health, environmental, social, and governance as well." - Sarah Ischer, National Safety Council
Safety now includes:
- Creating an inclusive workplace
- Supporting work-life balance
- Promoting mental health
10 Key Safety Metrics for ESG Reports
Safety metrics are crucial for ESG reporting. They show how well a company protects workers and manages risks. Here are 10 important safety metrics:
1. Total Recordable Incident Rate (TRIR)
TRIR measures recordable safety incidents per 100 full-time workers yearly. It's used by OSHA and insurers.
To calculate:
- Count recordable incidents
- Multiply by 200,000
- Divide by total hours worked
Lower TRIR is better. High scores can lead to more inspections and higher insurance costs.
2. Lost Time Injury Frequency Rate (LTIFR)
LTIFR tracks injuries causing missed work, per 1,000,000 hours worked.
Example: 10 lost-time injuries in 1,500,000 hours = LTIFR of 15.
3. Fatality Rate
Tracks work-related deaths. Even one fatality seriously impacts ESG scores.
4. Near Miss Frequency Rate
Tracks potential harm events. Helps prevent future accidents.
5. Days Away, Restricted or Transferred (DART) Rate
Measures work missed, restricted duties, or job transfers due to injuries.
6. Safety Training Completion Rate
Shows percentage of workers completing required safety training.
7. Safety Audit Compliance
Tracks follow-through on audit findings.
8. Employee Safety Program Participation
Measures worker involvement in safety programs.
9. Corrective Actions Completion Rate
Shows how quickly safety issues are fixed.
10. Safety Observation Rate
Tracks how often workers report safety concerns.
| Metric | Measures | Importance |
|---|---|---|
| TRIR | Recordable incidents/100 workers | Overall safety |
| LTIFR | Lost time injuries/1M hours | Serious injury frequency |
| Fatality Rate | Work-related deaths | Most serious failures |
| Near Miss Rate | Close calls | Future incident potential |
| DART Rate | Days lost/restricted from injury | Injury impact on work |
| Training Completion | % workers safety-trained | Safe work preparedness |
| Audit Compliance | Safety check follow-through | Proactive risk management |
| Program Participation | Worker safety involvement | Safety culture strength |
| Corrective Actions | Safety issue fix speed | Improvement commitment |
| Safety Observations | Worker safety reports | Risk communication openness |
These metrics help track safety performance and show worker well-being commitment in ESG reports.
"We're not just focused on physical safety anymore. As health and safety professionals and organization leaders, we're really focused on total worker health, environmental, social, and governance as well." - Sarah Ischer, National Safety Council
This quote shows how safety metrics fit into the bigger ESG picture, telling the story of worker care and risk management.
Using Safety Metrics in ESG Reports
Safety metrics are crucial for ESG reporting. Here's how to gather and use this data effectively:
Collecting Good Data
- Set clear goals: Know what you're measuring and why.
- Use the right tools: Get software that tracks safety data. Altex Energy boosted incident management by 30% with ComplianceQuest's EHS software.
- Train your team: Everyone should know how to report safety issues.
- Check data often: Verify accuracy regularly.
- Automate where possible: Cut down on human error.
Integrating Safety and ESG Data
To blend safety metrics with ESG reporting:
- Connect safety to ESG: Show how safety impacts environmental and social goals.
- Use standard frameworks: Align with GRI or SASB guidelines.
- Tell the whole story: Use numbers and narratives.
- Show improvement: Track year-over-year progress.
- Get external checks: Have a third party verify your data.
| Step | Action | Benefit |
|---|---|---|
| 1 | Set clear safety KPIs | Focuses efforts |
| 2 | Use ESG software | Boosts accuracy |
| 3 | Train staff on reporting | Ensures consistency |
| 4 | Regular data audits | Maintains quality |
| 5 | Align with ESG frameworks | Increases credibility |
Good ESG reporting starts with solid data. Sarah Ischer from the National Safety Council puts it well:
"We're not just focused on physical safety anymore. As health and safety professionals and organization leaders, we're really focused on total worker health, environmental, social, and governance as well."
This shows how safety metrics fit into the bigger ESG picture.
sbb-itb-6dc65f6
Problems and Things to Think About
Keeping Data Correct and Consistent
Accurate and consistent safety data for ESG reporting? It's a headache for many companies. Here's why:
- Data comes from everywhere: different departments, locations, you name it
- Supply chains are messy, making data quality a nightmare
- Too many reporting frameworks (GRI, SASB, CDP) to juggle
Get this: 68% of financial executives now handle ESG risk reporting. Talk about pressure to get data management right!
So, what can you do?
1. Standardize data collection
No more wild west of data gathering. Get everyone on the same page.
2. Invest in ESG software
Ditch the spreadsheets. Use tools built for the job.
3. Audit regularly
Don't wait for mistakes. Catch them early and often.
4. Train your people
Give your team the skills to report like pros.
Using Past and Future-Looking Metrics
ESG reports need to look back AND forward. Here's the deal:
| Past Metrics | Future-Looking Metrics |
|---|---|
| Show progress | Set goals |
| Prove compliance | Plan improvements |
| Build credibility | Attract investors |
But here's the problem: too many companies are stuck in the past. Check out what one hotel chain's Chief Sustainability Officer said:
"My team spends endless hours collecting ESG data from across our organization, meanwhile, I am drowning in data requests."
Yikes. That's a lot of time spent looking in the rearview mirror.
Want to balance past and future? Try this:
- Set clear safety goals (and make sure you can measure them)
- Use predictive analytics to see what's coming
- Report on what you've done AND what you're going to do
- Show how yesterday's data shapes tomorrow's plans
Bottom line: Great ESG reporting isn't just a data dump. It's showing you're serious about making safety better, now and in the future.
What's Next for Safety Metrics in ESG
New Technology
AI is changing safety metrics in ESG. Here's how:
- It creates OSHA-compliant exposure plans
- It helps safety pros make data-driven decisions
- It's part of a growing $1.8 trillion AI industry
Real-world example: Altex Energy used ComplianceQuest's EHS software and saw:
- 30% faster incident handling
- 600+ documents centralized
- Plans for more dashboards and risk checks
Changing ESG Standards
New rules are coming:
| Change | Impact |
|---|---|
| EU's CSRD | 50,000 EU companies must report |
| ESRS | Audited, digital reports required |
| Environmental justice focus | Protect low-income areas |
| Human capital disclosure | Report on diversity and inclusion |
CSRD starts January 1, 2024, for the 2024 financial year.
What to do:
1. Prepare for detailed reporting
2. Invest in reporting tech (74% of public companies are)
3. Watch AI ethics rules
4. Build strong data collection systems
99% of companies are preparing. Don't fall behind.
Safety metrics in ESG are evolving. Embrace new tech and get ready for stricter standards to stay competitive.
Wrap-up
Safety metrics play a crucial role in ESG reporting. They demonstrate a company's commitment to worker well-being and regulatory compliance. Here's what you need to know:
Safety Metrics and ESG Performance
Safety data impacts all ESG pillars:
| ESG Pillar | Safety Metric Impact |
|---|---|
| Environmental | Monitors incidents with potential environmental harm |
| Social | Demonstrates worker protection measures |
| Governance | Shows compliance with safety regulations |
Data Quality Matters
To maximize the value of safety metrics:
- Implement robust data collection systems
- Use technology for real-time metric tracking
- Ensure data accuracy and consistency
EHS Teams Lead the Charge
EHS professionals are often at the forefront of ESG initiatives:
- 44% of EHS leaders expect to own the ESG strategy
- 36% anticipate being key decision-makers
Sarah Ischer from the National Safety Council notes:
"We're not just focused on physical safety anymore. As health and safety professionals and organization leaders, we're really focused on total worker health, environmental, social, and governance as well."
Preparing for New Regulations
Stricter ESG standards are on the horizon:
- EU's CSRD affects 50,000 companies from January 1, 2024
- More detailed reporting requirements are coming
- 99% of companies are already gearing up
Technology's Role
AI and new tools are transforming safety metrics:
- Altex Energy improved incident handling speed by 30% with new software
- 74% of public companies are investing in reporting technology
FAQs
What are key ESG measures?
ESG measures cover a lot of ground. Here's a quick look at some important metrics:
| ESG Pillar | Key Metrics |
|---|---|
| Environmental | - Greenhouse gas emissions - Energy usage - Water consumption - Waste management |
| Social | - Employee health and safety - Diversity and inclusion - Human capital development - Community involvement |
| Governance | - Business ethics - Board diversity - Enterprise risk management - Corporate resiliency |
For safety-specific ESG reporting, companies often zero in on:
- Total Recordable Incident Rate (TRIR)
- Lost Time Injury Frequency Rate (LTIFR)
- Fatality Rate (FAR)
- Days Away, Restricted or Transferred (DART) Rate
These numbers help investors and stakeholders get a handle on a company's safety performance and overall sustainability.
Fun fact: Starting January 1, 2024, about 50,000 European companies will have to report on these factors thanks to the EU's Corporate Sustainability Reporting Directive (CSRD).
So, if you're keeping score at home, that's a LOT of companies crunching these numbers soon.
