Businesses Boost EHS Spending But Miss Strategy Gains

To increase resilience, protect employees, and conserve the environment, companies all across are increasing their investment in Environmental, Health and Safety (EHS) initiatives. However, according to EY's most recent Global EHS Maturity Study, many companies run the risk of missing out on long-term value by not completely incorporating EHS into their core business plans.

The survey, which collected input from over 500 managers and EHS specialists from many sectors, found that nearly four out of five businesses (78 percent) intend to raise expenditures on EHS over the following three years. The majority of this investment will be aimed at digital tools and artificial intelligence; three-quarters of respondents (75%) say they are integrating sophisticated technologies including digital platforms and analytics to improve their risk management systems.

Many businesses already understand the rationale for EHS. Two-thirds (65%) of companies now see EHS as a source of commercial value rather than only a compliance necessity, therefore providing advantages including better reputation, increased operational efficiency, and more stakeholder trust. This view signals a departure from the conventional way of treating EHS just as a tool to satisfy legal requirements or minimize immediate risks.

Emphasizing the transformational capacity of EHS when handled strategically, EY Global EHS Co-Leader for Climate Change and Sustainability Services Jessica Wollmuth said, "It is simple to discount EHS programs as box-ticking exercises or as ways to bolster risk defenses, but the truth is that EHS, done well, is a key that can unlock untold value for companies, their stakeholders, and the planet as a whole."

Still, the research pointed out a serious void: just half of companies—50 percent—today include EHS into their long-term corporate plan. For many, investment is mostly reactive and motivated either by immediate operational requirements (36%) or regulatory compliance obligations (13%). According EY, this short-term perspective could restrict the possible rewards of EHS programs and make companies less resistant against disruption and uncertainty.

The data stresses the benefits of a more deliberate strategy. Among organizations that have included EHS into their long-run strategy, 52 percent stated that their expenditures had considerably decreased the effect of corporate interruptions. Another 67 percent said their focus on EHS has increased organizational agility, therefore enabling more effective adaptation during times of ambiguity. Beyond operational resilience, EHS efforts are also becoming increasingly important for reputational building. Actually, EHS was mentioned as a major driver of stakeholder trust and credibility by 68 percent of public sector institutions and 77 percent of non- governmental groups (NGOs) surveyed.

Emerging as a strong facilitator of these results is technology. While practically half (49 percent) are using artificial intelligence to help projects including risk detection to incident prevention, the poll indicated that 64 percent of companies have already adopted digital platforms to oversee EHS operations. Over 80% of respondents agreed that using technology reveals blind spots and lowers the chance of major environmental or safety events. Still, only 27% listed technology spending as a top EHS priority over the last year, indicating that many companies still underrate the possibilities of digital transformation in this field.

Monica Merlo, EY Global EHS Co-Leader for Climate Change and Sustainability Services, observed that organizations will have several difficulties in integrating EHS as a strategic priority. She said, "There's no denying the challenges businesses will encounter as they set out on the road toward effective EHS." "Developing a business case, securing budgets, measuring the returns, and even getting heard at board level all present challenges which can hinder the efforts of even the most determined organizations. But with the right leadership—which prioritizes strategy, data-driven decision making, ongoing investment and early adoption of technology—businesses can steer a course around these obstacles and position themselves for long-term rewards.”

The EY report suggests that as EHS grows more sophisticated, its role is set to evolve from a compliance-driven function into a strategic driver of value. By embedding EHS into broader corporate strategy, organizations can not only enhance resilience and agility but also bolster their reputation and relationships with stakeholders. At the same time, advances in digital technology and artificial intelligence are expected to play a pivotal role in strengthening EHS management, offering businesses new tools to anticipate risks and respond proactively.

As global disruptions—from climate-related events to geopolitical instability—continue to pose challenges, the findings serve as a reminder that resilience cannot be built reactively. For companies, the opportunity lies in treating EHS as a long-term strategic lever rather than a short-term operational obligation. Those that embrace this shift, EY concludes, will be better positioned to unlock commercial value, secure stakeholder trust, and ensure a sustainable future for their organizations and the wider world.