{"id":18902,"date":"2025-08-25T11:37:48","date_gmt":"2025-08-25T08:37:48","guid":{"rendered":"https:\/\/africasustainabilitymatters.com\/?p=18902"},"modified":"2026-01-11T05:31:58","modified_gmt":"2026-01-11T05:31:58","slug":"ey-study-shows-rising-global-ehs-investment-but-africas-industries-face-a-strategy-gap","status":"publish","type":"post","link":"https:\/\/rayscohosting.best\/ASM\/2025\/08\/25\/ey-study-shows-rising-global-ehs-investment-but-africas-industries-face-a-strategy-gap\/","title":{"rendered":"EY study shows rising global EHS investment, but Africa\u2019s industries face a strategy gap"},"content":{"rendered":"<p>A new EY Global EHS Maturity Study, released on August 21, 2025, lands with a clear message for African boardrooms: investment in Environment, Health and Safety (EHS) is rising fast, but the value will accrue to the companies that embed it in strategy, not those treating it as compliance overhead.<\/p>\n<p>EY surveyed 526 C-suite leaders and EHS professionals across 34 countries and found that 78% plan to increase EHS spending over the next three years, with 75% channeling funds into digital systems and advanced analytics to strengthen risk management. Two-thirds (65%) already see EHS as a source of commercial value, from reputational gains to operational efficiency, yet only half say EHS is prioritized within long-term business strategy. That misalignment is costly: firms that invest strategically report greater resilience, with 52% saying EHS spending reduces the impact of disruptions and 67% crediting it for agility in uncertain times.<\/p>\n<p>For Africa\u2019s most exposed sectors; mining and metals, oil and gas, infrastructure and construction, agribusiness, logistics, and a rapidly expanding renewable power industry, the study\u2019s findings are particularly salient. These are operations that often span remote sites, complex contractor ecosystems, and sensitive social and environmental contexts. When EHS is framed as a strategic capability rather than a defensive obligation, it becomes a lever for continuity, lower incident rates, faster restarts after shocks, stronger community trust, and lower cost of capital. EY\u2019s data underscores that technology is now central to this shift: 64% of respondents already have an EHS platform in place and almost half (49%) are using AI in their EHS programs, while more than 80% say such tools help reveal blind spots and prevent serious incidents. Yet just 27% ranked technology investment among top priorities last year\u2014evidence of the execution gap leaders must close if they want data-driven gains rather than dashboards that gather dust.<\/p>\n<p><a href=\"https:\/\/www.impactingafrica.com\/wp-content\/uploads\/2025\/08\/IACL-SAS-capability-statement-2025.pdf\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-18366\" src=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/07\/Academy-Website-ads.jpg\" alt=\"\" width=\"728\" height=\"200\" srcset=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/07\/Academy-Website-ads.jpg 728w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/07\/Academy-Website-ads-300x82.jpg 300w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/07\/Academy-Website-ads-585x161.jpg 585w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/a><\/p>\n<p>African developers and operators are not starting from zero. The continent\u2019s leading financiers and regulators have tightened expectations in ways that nudge companies from narrow compliance to integrated practice. The African Development Bank\u2019s updated Integrated Safeguards System (ISS), approved in April 2023 and effective since May 31, 2024\u2014sets clearer requirements on environmental and social risk management across AfDB-financed projects, and is already shaping government capacity-building and implementer behavior from North Africa to the Sahel. For sponsors and contractors that internalize ISS-aligned processes early, the bid room and the boardroom both become more welcoming places.<\/p>\n<p>Read also:\u00a0<a href=\"https:\/\/rayscohosting.best\/ASM\/zanzibars-pemba-island-confronts-a-230-tonne-a-day-waste-problem-offering-a-blueprint-africa-can-use\/\">Zanzibar\u2019s Pemba Island confronts a 230-tonne a day waste problem offering a blueprint Africa can use<\/a><\/p>\n<p>Beyond the regional anchor, international capital brings its own discipline. The IFC Performance Standards and the World Bank\u2019s Environmental and Social Framework remain the reference points for lenders and equity investors in African infrastructure and industry, setting expectations on impact assessment, labor and working conditions, community engagement, biodiversity, and pollution prevention. Aligning internal EHS management systems to these frameworks is not simply \u201cproject hygiene\u201d; it is a ticket to bankability, syndication, and long-term operations. Companies that treat the standards as a strategic architecture, rather than a box-ticking exercise, find it easier to scale programs, harmonize contractor performance, and withstand scrutiny from auditors, media, and communities alike.<\/p>\n<p>Trade dynamics add another layer of urgency. The European Union\u2019s Carbon Border Adjustment Mechanism (CBAM) will progressively impose a carbon price on imports of carbon-intensive goods, starting with sectors such as iron and steel, cement, fertilizers, aluminum, electricity and hydrogen. For African exporters, this is not a distant policy debate but a near-term, data-heavy requirement that will penalize opacity and reward robust measurement and management of emissions and process risks.<\/p>\n<p><a href=\"https:\/\/www.aecweek-registration.com\/\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-18856\" src=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1.png\" alt=\"\" width=\"2560\" height=\"316\" srcset=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1.png 2560w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-300x37.png 300w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-1024x126.png 1024w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-768x95.png 768w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-1536x190.png 1536w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-2048x253.png 2048w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-1920x237.png 1920w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-1170x144.png 1170w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/AEW25-Web-Banner-2-2-1-scaled-1-585x72.png 585w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><\/p>\n<p>South Africa\u2019s government has already flagged concerns at the WTO level, underscoring how consequential CBAM could be for continental trade and industrial policy. Companies that invest now in high-quality EHS and environmental data systems, capable of granular emissions accounting and verifiable controls, will protect market access and turn compliance into competitiveness.<\/p>\n<p>The digital thread running through EY\u2019s study is especially relevant for African operating realities. Dispersed worksites, multi-tier subcontracting, fast-moving construction programs, and a younger, mobile-first workforce make the continent a fertile ground for leapfrogging legacy EHS processes. Platforms that integrate incident reporting, learning management, permit-to-work, contractor onboarding, and environmental monitoring can condense lag times from weeks to hours.<\/p>\n<p>Read also:\u00a0<a href=\"https:\/\/rayscohosting.best\/ASM\/zambia-advances-2030-energy-access-ambition-with-300m-zesco-anzana-lobito-corridor-electrification\/\">Zambia advances 2030 energy access ambition with $300M ZESCO\u2013Anzana Lobito Corridor electrification<\/a><\/p>\n<p>AI models trained on local incident narratives and sensor data can flag leading indicators, heat stress patterns, vehicle near misses, tailings anomalies, or recurring confined-space risks, before they become life-changing events. But technology is only as effective as the governance around it. EY\u2019s research makes this plain: without leadership that elevates EHS onto the strategy agenda, funds it predictably, and links it to enterprise risk and performance, digital tools won\u2019t deliver the promised step change.<\/p>\n<p><strong>What does \u201cembedding EHS in strategy\u201d look like in practice for African firms?<\/strong><\/p>\n<p>It starts with board oversight and executive ownership that position EHS alongside finance, operations, and commercial as a core driver of value. It means integrating EHS metrics into capital allocation and procurement, so contractors and suppliers are selected on the strength of their systems, not just their price. It requires robust data architectures that align with lender and buyer expectations, from the AfDB\u2019s ISS through to IFC and World Bank standards, so audits become an exercise in validation rather than discovery.<\/p>\n<p>It demands workforce capability, frontline training, supervisor coaching, and credible channels for worker voice, because the best analytics in the world cannot compensate for weak culture on the ground. And it calls for genuine community engagement, treating social performance as a relationship to be maintained, not a set of meetings to be held.<\/p>\n<p><a href=\"https:\/\/www.impactingafrica.com\/gri-trainer-in-africa\/\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-18644\" src=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px.png\" alt=\"\" width=\"1280\" height=\"132\" srcset=\"https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px.png 1280w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px-300x31.png 300w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px-1024x106.png 1024w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px-768x79.png 768w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px-1170x121.png 1170w, https:\/\/rayscohosting.best\/ASM\/wp-content\/uploads\/2025\/08\/GRI-Website-ads-1280-x-132-px-585x60.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/p>\n<p>There is also a reputational dividend at stake. EY\u2019s study notes that public institutions and NGOs explicitly link EHS to trust, and private firms are hardly different in the eyes of their stakeholders. In African markets where industrial sites sit close to communities, the line between incident prevention and social license can be thin. Transparent reporting, swift corrective action, and a habit of learning out loud can preserve that license through construction delays, commodity downturns, or regulatory shifts. Put simply, companies that invest in EHS as a strategic asset buy resilience cheaply compared to the cost of crisis response.<\/p>\n<p>The headline numbers from EY\u2019s study are encouraging: budgets are rising, digital adoption is climbing, and executives increasingly see the business case, but value will accrue in proportion to strategy. For African companies facing lender safeguards, evolving trade rules, and intense operational realities, the opportunity is to turn this wave of EHS spending into a durable competitive advantage, one built on safer people, cleaner operations, stronger communities, and better access to capital.<\/p>\n<p>Read also:\u00a0<a href=\"https:\/\/rayscohosting.best\/ASM\/u-s-tariffs-deal-heavy-blow-to-lesothos-textile-industry-leaving-thousands-jobless\/\">U.S. tariffs deal heavy blow to Lesotho\u2019s textile industry, leaving thousands jobless<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new EY Global EHS Maturity Study, released on August 21, 2025, lands with a clear message for African boardrooms: investment in Environment, Health and Safety (EHS) is rising fast,&hellip;<\/p>\n","protected":false},"author":6,"featured_media":18903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","pagelayer_contact_templates":[],"_pagelayer_content":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[79,88,92,98,101,113],"tags":[],"class_list":["post-18902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-africa","category-corporate-sustainability","category-environmental-responsibility","category-health","category-international-news","category-sustainability"],"_links":{"self":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/18902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/comments?post=18902"}],"version-history":[{"count":0,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/18902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media\/18903"}],"wp:attachment":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media?parent=18902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/categories?post=18902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/tags?post=18902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}