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Occupational Health and Safety Topic Methodology

The second installment in our Social Topic Methodology is now available for public comment

Occupational Health & Safety Public Comment

Introduction

The Occupational Health and Safety (OHS) Topic Methodology tackles the significant repercussions of hazardous workplace conditions by measuring and valuing the impact of occupational injuries, illnesses, and fatalities on people.

The right to a “safe and healthy working environment” is codified in the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. Yet, in 2019 alone, over 395 million workers globally sustained a non-fatal occupational injury, 2.6 million workers died from occupational illnesses, and 330,000 workers died from occupational injuries, according to the ILO’s latest data.

The OHS Topic Methodology guides preparers of impact accounts to measure and value, in currency, the impact of occupational injuries, illnesses, and fatalities on people. Ultimately, the methodology encourages companies to manage and reduce negative occupational health and safety impacts.

Highlights

  • Identifies three distinct impacts of OHS issues:
    • Human health: Occupational injuries, illnesses, and fatalities cause pain and suffering to workers and any associated loss in the intrinsic value of life, such as the inability to participate fully in one’s familial and community roles.
    • Healthcare cost: Workers and society must pay for any uncompensated costs of medical treatment and rehabilitation, which diverts that money from other valuable uses.
    • Lost wages: Workers, or their survivors, may lose wages and certain fringe benefits when they are incapacitated from work, depending on the extent to which they are protected by workers’ compensation insurance.
  • Data expected from preparers of impact accounts builds upon reporting requirements in ESRS S1: Own Workers  and GRI 403: Occupational Health and Safety, while also extending into greater detail for the purposes of valuation.
  • Reaffirms the importance of intangible impacts. Known to be difficult to value, intangible impacts on human health have been excluded from several prior OHS methodologies in both academia and industry. This methodology prioritizes valuing intangibles, often the largest source of OHS impacts, to ensure faithful representation.
  • Links commonly used corporate metrics to outcomes that matter. Originally a productivity metric, not a health metric, “lost workdays” is the primary OHS reporting mechanism due to strong regulatory and industry precedent. The methodology makes the critical link between this conventional metric and different health state severities.

Influences

The development of this methodology builds on frameworks and protocols published by leading organizations in the impact management ecosystem and sustainability-related disclosures required by governing jurisdictions and international standard setters, including:

The content of the OHS Topic Methodology builds on the General Methodologies and will be complemented by other Topic and Industry-specific Methodologies.

Development process

The development of the OHS Topic Methodology is governed by the Valuation Technical & Practitioner Committee (VTPC) and follows the Due Process Protocol.

  • Development of the OHS methodology was approved by the VTPC as part of its 2024 work plan. 
  • Research and development began in December 2023. VTPC discussion meetings were held in February and May 2024.
  • The VTPC approved the Exposure Draft of the OHS Methodology in June 2024.
  • Public comment period was launched on September 24, 2024.

Join the webinar

IFVI and VBA will host a webinar on October 29 at 4pm CET / 10am ET to introduce the exposure drafts for:

  • General Methodology 2: Impact Measurement and Valuation Techniques
  • OHS Topic Methodology
  • Water Consumption Topic Methodology
REGISTER NOW