An impact valuation method to capture the societal and business value of investing in Safety and Health developed with the National Safety Council - Download the methodology report here:
As discussed in The New Value of Safety and Health in a Changing World (The New Value of Safety) report to which this piece is a companion, the scope of safety and health has evolved in response to social, political, technological and economic change into a more holistic one that considers broader social and environmental factors and has begun to overlap with the concept of environment, social and governance (ESG) In addition, in recent years there has been a growing recognition of the importance of understanding the physical and social determinants of health, such as poverty and work arrangements, in improving health and safety In June 2022,
the International Labor Organization (ILO) declared a safe and healthy workplace as a fundamental right at work.
This “impact valuation” activation guide is intended to provide context, methodologies, metrics and case studies that can be utilized in the field to reckon with the changed scope of safety and health in 2023. Supporting this evolution with actual impact valuation metrics is key to influencing strategy and management decision-making processes Impact valuation metrics translate complex outcomes into economic terms, making them tangible and comparable across various activities and businesses. These metrics can be directly compared with financial metrics, raising awareness even further beyond the traditional safety and health audience
Throughout this guide, “safety” is used to refer to occupational safety and health, which frequently extends into other areas such as environmental (or EHS) Building on the ESG evolution mentioned above, the National Safety Council (NSC), in partnership and funded by Lloyd’s Register Foundation (LRF), developed the concept of The New Value of Safety, connecting the human and organizational performance (HOP), total worker health (TWH)
and ESG aspects.
Valuing Impact developed a case study on Nike supply chain program and developed the full methodology to address a variety of impact drivers both from a societal and business value perspectives. The impact framework is summarized in the figure below:
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