EHS Industry Insights 2021

1EHS Program

About 1EHS

1EHS Program
1EHS program is India’s first EHS community research program (1st edition was extremely insightful & useful for the EHS community). It provides deep insight into standards, trends, future needs, employment, growth potential, perception, and most importantly the pattern of growth. It is India’s one-of-a-kind annual research done by Sparrow Risk Management to find out all the latest trends in EHS segment in India, what the people associated with EHS think about the upcoming technologies, new laws, and what is necessary to do in order to make all the premises safer and risk-free.

As a consulting & technology company, we believe it’s our responsibility & affection towards EHS fraternity to bring the annual EHS insights.

About the data
We reached out to more than 3000 EHS professionals in India this year, for the in-depth survey, considering all sectors, experience & knowledge segmentation.

  • Collected the insights spanning over 11,000 data points.

  • Participants across 3 levels of EHS hierarchy – Senior, Middle & Entry level EHS professionals.

  • 3200 Man hours spent for collection & analyzing data*.

  • 18 sectors covered.

CEO's Desk

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Mr. Pawan Director & CEO,
Sparrow Risk Management

“The more the number of Failures & Rejections, the more you are close to Success!!!Let us Fail more.”

What a year it has been, when we started our 1EHS program (Edition I) a year ago, it was the peak of the pandemic, but we did not allow COVID to dampen our energy & continued our work for EHS (Environment Health and Safety) community – a community which is small but closely knit.

This year’s 1EHS Insight Report (Edition II) is deeper and more data driven, it mesmerizes your thoughts on endless possibilities of growth in EHS. It focuses on future trends, perception & possibilities in EHS perspective Personal Career & Growth, Sustainability, Role of technology, Process Safety, Road Safety to name a few. We have also updated the data nodes for career orientation & related educational institution demand along with global certification indexes.

This report took us more than 3 months (> 3200 man-hours) – to collect data, to analyze and to add value by our mentors (refer their messages in coming pages). In today’s competitive world, we decided to dedicate our key resources for this project, just for two things — our love & responsibility towards the community which helped us to reach where we are, today!!! Our fantastic journey would not have been possible without EHS fraternity support and well-wishers, alongside we kept our promise of world class solution delivery.

The coming 2 to 3 years, for us, shall be extremely critical perspective growth & our new product IndustryOS — a digitalization enabler for Industries. We have dedicated our last 2 years in R&D of advanced technologies totally inhouse! The reason is our foundation to recognize & solve a problem — we believe in innovation — we cannot remain non-responsive! We believe that IndustryOS shall lead the future of Industrial digitalization including EHS.

Sincere thanks to our team of interns from IIM Indore & NITIE Mumbai, our respected mentors and colleagues back at home i.e., Sparrow.

Science has moved with a lot of pace than our learning capability – we are catching up with more R&D in focus.

Enjoy reading and utilizing the great insights ahead

Message From Mentors

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Thakur Pherwani,

Global Head SHE & sustainability,
Dr. Reddy's Laboratories
This is one of the great initiative taken by Sparrow under leadership of Mr. Pawan. I am delighted to be part of this extensive SHE research. I have shared my insight around the role of safety leadership in COVID time and the future, perspective of leadership in challenging times. I have also gone through the research outcome and it seems to be very much valuable for young and aspiring SHE resources. More power to the Sparrow team, and best wishes.
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S Srinivasan,

AVP - Manufacturing,
Pernod Ricard
This is a great initiative in engaging a thought building Process on EHS as a serious Business Priority. Sparrow has taken up this ambitious noble task and providing a continuous learning and upgrading platform in close collaboration with the Industry. Best Wishes and look forward to co-learn and implement
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Gyanesh Pathak,

Head EHS,
Bennett Coleman and Co. Ltd. (Times Group)
Trust has to be earned, and should come only after the passage of time” – Arthur Ashe. I would like to say Team Sparrow have earned this Trust in the EHS fraternity. I have closely watched them over the past few years and have grown fond of their approach, passion and perseverance to work on every minute details to be as authentic as possible. I congratulate them for achieving another forte by releasing their second edition of 1EHS & would like to appreciate the insights provided in the edition. My wishes to them for their future endeavors.
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Milind Datar

Head Quality, Safety & Environment,
Pernod Ricard
Many compliments to Sparrow team ably led by Mr. Pawan for initiating this unique initiative. Frankly, I never came across such an excellent research and compilation of data which is an eye-opener on many aspects. I am delighted to be part of this journey and interact with budding talent from the top-notch institutes in India. The interaction with such talent is always pleasing and value adding with some insightful questions. I hope, I have been able to add value to them and wish them a bright future in the EHS domain. My best wishes to Sparrow team in this exciting journey.
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Saurabh Srivastava,

Head H&S Compliance - South Asia, ASEAN & NoA,
Reckitt
My heartiest congratulation to Sparrow and their (Durga Shakti) Team for generating industry insight called as “1EHS Program”. The way you are creating this culture will certainly lead to new dimension on the EHS industry and professional. This goes true with the cardinal principal “You will achieve the level of safety that you demonstrate you want to achieve”. This culture change is evolutionary and revolutionary that mean a paradigm shift i.e. shifting the focus from operators error to focusing on culture and management system that influence safety behavior of not any individual but industry. EHS workspace is waiting for young diverse professionals with fresh revolutionary ideas to make workplace safe. I wish this report to reach all industry leaders so that they understand the great work done by your team in collecting and analyzing mammoth data for the benefit of employee Health & Safety.
Thanks for giving me opportunity to be part of this fantastic
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Pankaj Singh,

Head of Road Safety, India
Holcim Group (ACC and Ambuja Cements)
Absolutely great insights covering all aspects from industry requirements to employability, from the current status of EHS to what the future holds. Congratulations to Team Sparrow for coming out with the second edition of 1EHS Survey so beautifully to help thought leaders in this space work on a strategy to meet the ever growing industry demands on different facets of EHS and Sustainability. Step up from the maiden edition in spite of the country going through such a difficult time of COVID pandemic which clearly shows the grit, resilience and passion to support the larger EHS community with deep insights and help the ecosystem be ‘future ready’. While we see the areas of industry safety and environmental compliance maturing due to the legislative framework and focus of the industry, the future is clearly about ‘beyond compliance’. This can only be achieved if the academia and corporate work hand in hand to bring out industry ready EHS professionals who are ready to talk the language of digitization and sustainability, who cares road safety as much as process safety, who bring value rather than just meet legal requirements. Health will get much deserved focus across the globe due to the ongoing pandemic and shall continue to be one major area of expenditure going forward. I will put my bet on Digital, Road Safety and Sustainability as three key verticals that will see exponential growth

The Team

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Amala Varsheni

IIM lndore
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Manasa Bhukya

IIM lndore
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Aishwarya Gupta

NITIE, Mumbai
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Nehal Patni

NlTlE, Mumbai
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Anupama Anil Kumar

IIM lndore
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Piyush Vasava

Sparrow Risk Management

Job Opportunities

Perception among EHS professionals towards increase in Job opportunities

We asked the respondents if they saw any increase in the job opportunities in their own organization and whether their organization was hiring more professionals this year. To understand the difference in requirements due to pandemic and economic slowdown as well as the additional responsibilities of health & safety due to COVID – 19, we asked the entry level & the middle management employees about it and here’s what we got and why.

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Overall, 47.9% Middle management professionals said that they saw a increase in job opportunities in their companies, while 3ó% middle management professionals disagreed that there was no significant change in opportunities, while 1ó% felt that the opportunities had actually decreased in their organization. Middle management positions were significantly higher in demand during the previous year in the corporate compared to entry level posts with 4ó.8% professionals believed that opportunities increased in corporate for middle management while only 14.8% felt that opportunities increased for entry level posts in corporates.

With the above data and talking to multiple professionals in EHS fraternity, we get an impression that due to COVID 19, the companies felt the requirement of more experienced professionals from middle management level and more than 5 years of experience in the field rather than hire and train entry level employees.

New job openings in the organization

Entry Level Professional’s take:

When asked about possible new openings in their organization, employees from entry level responded that the growth in team size was very less, with 70% of professionals saying there might be no openings at all or less than 5 openings when it came to EHS department. On a brighter side, 22% professionals thought their organization might need additional

5 -10 professionals for EHS related duties by next year and 8% professionals were optimistic that the number might go above 10. Respondents mentioned that the pandemic affected the job opportunities with the entry level being hit the hardest among the 3 tiers in EHS as no company wanted to invest in training fresh recruits.

“We can infer from the data that demands for entry level EHS jobs decreased, especially at the corporate level while middle level job opportunity increased, showing high rotation among the EHS professionals from one organization to another rather than absolute increase in total EHS jobs”

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Senior Management’s take:

To confirm about the perception about the entry level towards less opportunities in organizations for EHS roles, we asked the respondents from the Senior management about their current team size and their plans to increase the head count of the total team members.

Looking at the team size, we analyzed the data from approximately 100 organization & averaged out the number of team members by taking the middle values i.e. for a range of 10 – 20, we take 15 as the average value for further calculations.

We found there were roughly 8000 EHS professionals in the organization sample taken, with approximately ó0% being permanent employees & rest contract basis.

Analyzing the data about the planned increase, the total number goes to 9000 employees after planned intake.

 

We get a 12% increase in the headcount compared to the current team size considering the sample size of approx. 100 organizations.

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Comparing the perceptions of middle level professionals, entry level professionals and Senior management, we get a clarity that though the organizations are planning a 12% intake, the actual number of fresh EHS job opening for entry level might be less as the organizations are focusing on hiring professionals with experience above 5 years.

#LinkedIn Facts (Global data)

NEBOSH shall be too generic to be valued as a world- class certification. More specific engineering driven certification will hold the key to future EHS opportunities.
  • 145 NEBOSH Certified professionals on LinkedIn
  • 63 IRCA Certified professionals on LinkedIn
  • 45 OSHA-certified professionals on LinkedIn
  • 17 IEMA Certified professionals on LinkedIn
  • 06 RLI Certified professionals on LinkedIn

EHS Leaders from industry give higher preference to full time courses like RLI rather than few certifications such as NEBOSH or OSHA.

Education

Educational Requirement for EHS professionals

While there are multiple combinations of courses and certificates through which one may enter into the EHS field, we asked the entry level teams about their highest qualifications and compared the same with the practical requirements expected by the senior and middle management when they hire for entry level positions.

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97% of the respondents from entry level believed that core engineering knowledge helps in fulfilling EHS duties. This is evident with the highest qualifications of the entry level with over 70@o having BTech/MTech degrees while the rest specializing in other services or management with or without engineering as base.

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Respondents having MTech showed more confidence about cracking leadership roles in their career compared to the others

College preference & rankings

Speaking about the colleges from which the senior management EHS leaders would like to hire, NITIE Mumbai takes the lead in preference with IIM Lucknow, IIT Kharagpur ranked 2nd and Anna university behind them. Although this preference was limited to the above 4 colleges, Industry leaders have specifically mentioned colleges such as NIT Trichy , Regional Labor institute & open preference to other major engineering  colleges such as all major IITs, private colleges offering  specializations.

Hiring v/s Studying

Talking to the middle management, we asked them both questions – Where would they like to go to pursue higher studies & from which colleges would the prefer to hire. As expected, there were slightly different result when comparing both answers raising a though of criteria such as job role, salary & specialization mattered more when it came to hiring.

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While the respondents from the middle management preferred to study in NIT Trichy (23.5%), UPES (21%), NITIE (29.4%), etc. when it came to hiring, they had positive preference towards Anna University, Cochin university with 2.7% and 2.6% more preference to hire than to study in these colleges respectively. These few minor differences in the hiring pattern and studies indicate the budget restrictions where companies prefer to hire from a step below the top tier colleges. This may also mean specializations are more preferred which are not available in those colleges.

Respondents had the highest preference to hire from NITIE, NIT Trichy & UPES Dehradun , with the same results for college preference to study for higher studies as well. But not all who wanted to study from these top tier colleges wanted to hire from them, showing positive difference in hiring vs studying for colleges like Anna University, Cochin university & IPS

Getting Ready for Future - Perspective EHS

Skills

When asked about which skills or education was more important while thinking about the near future of EHS, Employees from the middle and entry level gave their preference according to this:

38.69% EHS employees feel the need for core engineering knowledge which can integrate with the EHS field while

24.ó2% felt much more appreciation towards data analytics in accordance to the IOT and AI based software coming into the EHS market and making data a bigger parameter while performing EHS duties, and 3ó.68% respondents weighted towards the more conventional methods of certifications & specialization.

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We see an upcoming trend for Data analytics after the advent of multiple software in the EHS field with data increasing in size due to IOT and AI based tools. While the Current perception about core engineering knowledge is at 97%, the future sees a higher value for more specialized skills & data analytics.

Certifications

In recent years, the growing need and demand for EHS-based skills and certifications has resulted in an outstanding marketable skillset. Every EHS Personnel has few certifications listed on Linkedln while others are actively pursuing more certifications. To understand the importance of these certifications from a practical point of view, we compared how these additional skill sets fare in real life expectations. We asked the entry level respondents about what certification or skill set do they think is valuable and compared them with the expectations of EHS professionals having more than 5 years of experience in the field to see if the expectations of entry level personnel was in line with seniors or not.
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There comes a stark difference between the perception of entry level EHS respondents and more experienced set of professionals in the industry. While the Middle management and senior management views are very similar to each other, giving higher priority to RLI (Regional Labor Institute) with more than 40°@ upper management professionals responded they would prefer to hire professionals with RLI certification much more than MTech,

Role of EHS Professionals

Typical duties of Entry Level EHS Professionals

Entry Level – Primary role:

Out of the total work, 30% respondents mentioned that their primary role at the site was that of data collection. 26% were involved in training while 21% were just supporting the seniors which leaves them very little to do anything on their own accord and implement new ideas. These all roles can be assumed by digital tool which may leave the employees more time for productive implementation of new SOPs, inspections and actionable work rather than just recording data.

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Analysis show that the Entry level EHS personnel spend up to 70% time in repetitive tasks.

Out of the total Entry level professionals, 31% professionals belonging to factories said they have 20 – 40% repetitive work where else 36% professionals of factories said that their tasks involve 40-70%  work. We believe that it needs disruption.

India depends highly on man power rather than technology. As evident by the percentage time spent by ground level employees on repetitive work, we see a stark difference in the corporate vs factory setting. Companies have implemented technology at corporate level but factories still remain dependent on man power. It is also true that at corporate level, the requirements are less as compared to factory level, but it only strengthens the need for technological advances to reduce repetitive work. Repetitive work may lead to less active approach by EHS personnel due to routine work & may lead to human error.

Repetitive Work & Data Collection - Middle management EHS Professionals

Middle management – Data collection

Data collection may be a tedious job, but due to the whole end to end process being completely manual, its not just data collection that consumes time for the EHS personnel, according to the participants, because of an absence of an automated system, more than 31% professionals from the total middle management employees spent more than 50% or more time just for data logging. It’s primitive that only 18% respondents had organizations that use automated digital tools and IOT to log data.

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Repetitive Tasks - Conclusion

Repetitive tasks for entry level team in EHS is much higher compared to middle management with maximum respondents pointing out that they have repetitive tasks in range of 40 -70 percent or at least more than 20 to 40a». The middle management on other hand felt they had 20 – 40% task repetitive with 43a» people agreeing with that, while 24% said their repetitive tasks went up to 70%.

Due to this repetitive nature of work, 60% EHS professionals from middle management say that they feel there is nothing much left to learn after spending 5 years in the EHS field while 23% felt that number to be near to 10 years.

Career Growth

Appraisals & job satisfaction

Data shows that the respondents were more satisfied with their jobs when their appraisals were decent. The job satisfaction ratings of up to 4 did not have any major appraisals, as soon as we go above 5 & 6 ratings, we see comparatively higher appraisal rates with figures reaching 12% & more as we move towards the higher rating scale.

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Appraisal – Middle management

The salary hike for middle management in the last 3 years saw a similar trend to how entry-level employees are being paid. There are stark differences for hiking when it comes to different organizations. Researching it, we find that such high appraisals are often found in professionals working in pharma, manufacturing, chemical & electrical industries. These industries have a much more serious approach towards EHS and reward their employees based on their performance. The maximum professionals (42%) belonged to the 5-10% appraisal range, while 24% were on the higher side with more than 15% hike and 18% on the lower side with less than 5% hike.

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Appraisal – Entry Level

While the appraisals for the entry level in the last 2 years have differed among each organization and the data gives us 3 distinct groups where the majority of respondents voted. The 8-12% bracket remained ahead with 30.6% people coming under this umbrella. But almost at the same place, 29.3% professionals were a part of the group getting 1-5% appraisal in 2 years. This shows the major differences in different organizations. 5-8% bracket also has more than 25% respondents which can be considered as acceptable. There is a brighter side to this as well, with 10.6% getting hikes in range of 12-18% in 2 years and 4% professionals got more than 18%

Average appraisals for EHS Professional is below par compared to all the other industries such as software, finance, marketing, etc. EHS fraternity as a whole needs to resolve this as early as possible . EHS has never been a sought after career nor has been the primary choice of students. Most of the EHS professionals are underpaid compared to other professions, making EHS unattractive for fresh candidates.

Views for their future generation in choosing EHS as career path

90% professionals from entry level feel that EHS is now becoming more important than ever with good growth opportunities and better working conditions and would love to see their future generation into EHS field, but how the next generation will cope up with the lesser growth?

Over 60% middle management professionals gave a rating of above 8 out of 10 to show their willingness towards their future generations joining EHS field, while 32% showed medium willingness by giving 5 – 7 ratings for the same.

Safety Culture

Safety Culture in recent times

Safety in workplace was first followed as a part of legal compliances with minimum effort, focusing more on production and profits. In the recent years, since the companies have started focusing on human resource as a valuable part of the overall functioning, companies have started integrating safety within the culture. While safety culture is a very vague term, we tried to answer how do professionals working in the organization measure the safety culture and how are their perceptions linked with different duties that management performs.

Safety Culture Measurement

Professionals tend to measure their organizations safety culture on the kind of support they receive from their management with 56% respondents taking management support as the biggest parameter of safety culture in the organization. Many of the respondents (23%) related their safety culture directly with the number of accidents/incidents or trainings happening in their organization. EHS representation in board was the second lowest with 15% which makes us think how much does the EHS representation in the boardroom actually mean to the professionals working in the EHS departments and the budget received was the lowest in the list with only 6% respondents relating safety culture with EHS budget.

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Support for initiative from management for day to day safety related activities, initiatives for new programs and campaigns, support in terms of approvals, man power, participation, etc. had a much deeper impact than giving a position in boardroom or giving higher budget for EHS.

Man hours spent for safety related activities by Non EHS employees

Manhours spent on safety related activities for non EHS personnel:

EHS Department routinely sets up training for safety related activities which have to be attended by every one. But the perception of entry level employees and senior management differs when it comes to the amount of non-EHS professional spend on safety related activities. Whereas the senior management has a optimistic perception with more than 70% professionals responding that the non EH5 staff spends more than 50 man hours for safety related activities, the same perception was different for entry level EHS personnel. Almost half of entry level employees say that the amount of time a non EHS person spends for safety related activities is less than 50 hours a year. This difference of opinion may be a result of unawareness of entry level employees, but most likely can be a result of difference between planned activities by senior management and actual activities that happened in real life scenario.

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The perception of senior management on the amount of hours all non EHS personnel spend on safety is higher than what the entry level thinks are the number of hours spent by non EHS personnel a year on safety activities. This may be the difference between the planned trainings and the trainings actually not happening due to multiple reasons such as cancellation, people not attending , production targets & culture.

Impact of Organization Culture on Employees

Cultural impacts have far more reaching consequences. It impacts the way a person working in the organization thinks about himself/herself. The analysis between the perception that employees will reach a much higher position in their career and how their organization treats them gives us a better picture.

 

How organizations can build confidence among their employees:

Organizations that are more receptive of their employee’s ideas inspire more confidence where the employees feel they can advance their career at a much higher pace. Out of the 46% respondents who answered that their organizations were very receptive of their ideas, 65% professionals felt they would reach high positions but when we compare the same with professionals who answered that their ideas were only heard few times, the number of professionals who believe they will reach at higher positions decreases to 35%.

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Organizations who support ideas from their employees, implement them give boosts to the employees and incentivize them to think beyond the box, making them more confident about their job and accelerate their career growth.

Gender Bias:

EHS has traditionally been a very male dominated industry with almost all positions held by them. Even today, comparing the data, it is unfortunately true. Out of the total respondents, just a little over 3% were women, rest whooping 97% participants were men. 60% of these women employees were from the corporate, with less than 0.03% women out of the total respondents occupying senior level positions and 1.2% of total respondents in middle management roles

While the organizations are actively making efforts to add gender diversity in their organizations, EHS is still a long way behind. Women admissions have increased in Engineering & safety courses which point out to the changes in the coming times with the ratio for gender diversity improving soon.

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Updating SOPs:

Almost a quarter of the respondents participating in 1EHS from upper management said that their SOPs were almost Gender Distribution Women 3% Men 97% updated completely every year, although majority of the organization (36%) updated around 25-50% of their SOPs every year.
Updating SOPs constantly ensures that the mistakes made are not repeated again & lessons are learnt from it by making sure to close those loopholes when updating the SOPs. In general, other than the 25% professionals who said their organization updated less than 25% of their SOPs yearly, the rest seem to ensure that safety is not just taken as a compliance, but as a part of the culture.

Increasing amount of data, CAPA, regulations and organization’s own desire to become better than what they are today has resulted in continuous updating of SOPs and making sure nothing is left to chance.

ENS Budget

ENS Budgets and Distribution

The amount of financial resources allocated to EHS say a lot about how seriously an organization takes the well being of its employees.

Budget Approvals:

The senior management usually gets the task of getting the EHS budget approved for the whole year and then manage it among environment, safety, health. It gives a huge boost when the budget asked is approved by the management without any deductions. Out of the total respondents, 60% mentioned that their budget request always got approved while 225 said that budget approval for the requested amount happened only half the time, and 16 -17% had even lesser approval rate. Seeing the majority of managements approving budget for EHS gives a good sense of feeling about the direction the Indian industries are heading and the seriousness with which they are taking the EHS aspects of the organization.

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More than 50% of the time, request for EHS budget was approved which shows the dedication of most of the leading organizations.

Spending:

EHS spending is growing as organizations start understanding the importance of safety, incorporating EHS not just for compliance purposes, but also incorporating it in board rooms, decision making process and making it a part of annual planning. Just from a sample size of 92 respondents from the senior management, a combined amount of roughly 2ó37 cr has been spent in a year by taking approximate revenues and averaging out the percentage terms into absolute terms.

This value comes by using the publicly available data on the revenues of the organizations, and the respondents answers on the percentage of revenue allotted to EHS budget. AII values obtained are approximate.

 

Considering a sample data of less than 100 companies result in spending worth 2ó00+ Crores INR, Índia has literally thousands of companies, all of them getting slowly aware about the importance of EHS and are allocating more and more budget every year for it making it grow on a very rapid rate.

EHS Budgets for Safety

The amount of financial resources allocated to EHS say a lot about how seriously an organization takes the well being of its employees.

EHS Budget for safety Middle management perception We see 2 distinct groups of organizations when it comes to safety spending. The majority participants (41%) were from organizations that spent more than 40% of the EHS budget on safety while another approx. 40% spent less than 30% of their budget on safety aspects of the EHR budget.

EHS budget for safety Senior management perception The senior management of many organizations had a perception that their organization spent more on safety when it came to the overall EHS budget. With 21.9% responding they spent up to 40% and 39% professionals responding they spent beyond 40%, we can assume that the EHS budget of many organizations stay tilted towards the safety aspect of EHS.

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While the perception of middle and upper level employees matched at the higher end of the spending spectrum, there were difference of opinion when it came to the lower end of the spectrum with almost 40% of middle management responded that their organization spent less than 30% of EHS budget on safety while only 26% senior management of various organizations accepted their spending below 30% for safety. Most of the upper management quoted towards the higher end of the range when it came to safety budget as a part of EHS budget.

Organizations tend to spend more on safety aspect when it comes to EHS due to its immediate nature of results and impact for improving conditions compared to health and environment which are generally long term projects.

EHS Budget for Health

EHS budget on Health:

Maximum respondents (60%) from the upper management had a perception that their organization spent 25-30% of the overall EHS budget on direct health of the their employees. While there were respondents who thought their organizations spent more of their EHS budget on health parameter, they were a minority and pretty much equally distributed among the 31% to more than 40% spending range.

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Spending on Health has increase very much due to the ongoing pandemic. Previous years data shows a spending of mere 10 -20% on health, while this figure has increased to 25-30% with many organizations nearing 40% of their annual EHS budget spending on health.

Parameters for Health & Safety

When asked about the priority of critical parameters for Health & safety, majority of respondents (42%) gave chemical exposure as a top priority while selecting machine guarding (24%), ergonomics (19%) & falling object (15%) in the order of priority

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Road Safety

Assessment

Road safety is another growing concern for organizations, especially when they have a lot of road travel included due to distance involved between factories & residential places. A lot of these organizations providing transportation have their own road safety officers (42.8%) who ensure that the correct guidelines are being followed. With digital systems in place, (19%) organizations are able to monitor and track their vehicle movements inside & outside their premises. A good chunk of organizations also rely on penalty structure & road safety rules (38.1%). Relying on penalty structure ensures the compliance of the workers but works only as long as there is strict enforcement of penalties

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Road safety for Non Factory Workers

While the organizations are taking an interest for measuring road safety, it is still in the initial stages and not all factory workers are covered. There are a lot of non factory staff working on the field who are barely covered. On asking about the same, respondents from different organization responded that only 33.33% organizations had their non factory workers covered in road safety while 47.6% did not have any such ability, 4.7% were developing their strategy for the same & 14.29% measured it but had no KPI’s defined for the same.

Safety Strategy focused on road safety

43% respondents from senior management said their safety strategy consisted of more than 15% when it came to road safety with 19% responding it was between 10- 15% and another 19% responding it was around 5-10% of their overall safety strategy. Remaining had less than 59é focus on road safety or none at all. In the coming years, this numbers will change significantly as more and more organizations are focusing on their employee’s safety on the roads.

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Organizations are focusing more on road safety with more than 5-15% of their safety strategy revolving around road safety. With 40% organizations having dedicated road safety officers who take care of all the incident investigations, SOP update, rules & implementation of penalty based systems, etc. Being relatively new in adaption by organizations, there are no strict KPIs for majority of the organizations when it comes to road safety but more and more organizations are planning to implement it.

Digital Transformation Journey

Industry 2.0

Started with the advent of the concept of mass production. Brought around changes using continuous production lines & electricity.

Industry 3.0

Advent of Computers and preprogrammed machines performing pre selected functions. Base of the modern day industries & groundwork for implementation of Industry 4.0

Industry 4.0

Smart decisions using AI & machine learning. Interconnectivity through IOT based tools, digital networks through cloud computing.

Majority of Indian SMEs & industries are in varying stages of industry 2.0 and 3.0. Indian Industries need to adapt, accept new technologies and improve their productivity to compete with the competiton from around the globe

70 % organizations lack specialized software for daily operations and are stuck with generally used tools like emails, excels, etc which are very basic in nature.
‹5 %  Use of AI based tools in the industry in current time

 

Digital transformation - A new chapter in Indian Industries

Out of the total respondents from senior management, only 75% of their organizations had a digitalization strategy in hand.

Talking about maturity of their digital strategy, 36.7% professionals felt their strategy for digital transformation is mature enough. 43% of respondents maintained a stand that their strategy was mature, but there is a lot of scope for improvement and rated it medium. 19.5% respondents rated their own digital strategy was not mature with a poor rating of below 4 out of 10.

Out of those who had digital strategy, when asked to give rating to their own digital process, only 28.7% felt confident to give their own digital process a rating of above 8 out of 10. Rest majority of the respondents felt their digital process could be rated as medium rated, between 5-7 out of 10 and 26% rated their processes as poor, giving

less than 4 ratings.

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There appears to be a lack of confidence among the EHS professionals over their own digital strategies and processes. Out of the total respondents, only 30-35% have enough confidence on their digital plans and implementations to give a rating above 8 out of 11. 20-25% have out rightly accepted that their digital transformation journey lacks the correct direction or

Views by entry level professionals on Digital tools currently implemented in organizations:

While talking about the digital process currently implemented in the organization, most of the organizations have just started implementing basic tools and excels, slowly leaving the pen and paper method and adopting digital methods. When we say adopting digital methods, these are just the basic ones. Even the entry level workers, who, having recently joined the organizations as freshers, have a perception that the tools available to them currently are very basic and they need more IOT & AI based tools.

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There appears to be a strong need of improvements in the implemented tools currently as per the entry level professionals who are the major users of such tools. With most of their tools being just basic forms & excels, there is a demand for IOT based and in depth software.

Artificial Intelligence & Machine Learning

With the advent of Artificial Intelligence & Machine Learning, the coming few years is going to bring a lot of new developments in the field of EHS.

The perception of the respondents when it comes to AI/ML is very much in line with the hype we see in the market for EHS tools & software with advanced analytic and decision-making abilities. On a scale of 1 – 10, the average rating for AI/ML being an important part of digitalization process was 7.34

Current Applications of Technology

When talking about the digital technologies implemented in their organizations, almost 50% of the senior management said they have implemented and are using Web based MIS systems, while 16.67% did not use any such advanced software at all. AI, IOT – human connected tools were in minority. But respondents also mentioned that their plans for the next 5 years included AI and IOT in a huge part, with 39% organizations implementing AI to make decisions and 34% organization to implement IOT 4.0 for automated data collections and management

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The companies are very much in line with their expectations of using Artificial intelligence and Industry 4.0 tools, but their current conditions makes it highly unlikely that many companies will reach that stage in the next 5 years considering the trend of growth in digitalization. Digital transformation cannot be achieved in a day, it’s a long process, with significant CAPEX. It can be achieved slowly over a period of time while balancing the

Safety

Reliability as a function of EHS KPI

Safety is generally rated higher when compared to Environment & Health in EHS with most organizations allocating higher budgets to safety.

Reliability:

Talking about the Reliability as a function of EHS KPI, maximum respondents (68%) said that their organization did not consider it as a function of EHS KPI, that they haven’t planned it or still planning and need more knowledge. 32% organizations of the participants saw reliability as a function of EHS KPI which shows the organizations have started thinking about the seriousness with which they are treating their EHS work above and beyond the legal compliances but still have a substantial way ahead with market leaders taking the lead in having EHS as a major part of the organization framework

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Behavior Based Safety

Maximum respondents (48%) believed that Behavior based safety was implemented in their organization due to very low involvement of workers when it came to safety. The organizations used trainings, reward systems to increase the involvement of workers and make safety as a part of the overall culture. 33% mentioned it was implemented due to various non repetitive issues where safety could be improved only if it comes from the workers themselves. 16% also mentioned about increasing accident rate which led to the implementation of BBS to better educate the workers about safety at workplaces. The perception of 3% respondents was that it had nothing to do with the above mentioned points and their organization just implemented it because others were doing it.

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Rating of existing systems

LOTO – Lock out tag out

LOTO systems are generally designed to be very robust and failure free, but due to human error, accidents have happened in the past. When we asked about the ratings that the respondents would like to give to their established LOTO procedures, 66.2% gave a rating above 8 out of the total 10, 27% gave between 4-7 and only 6.5% respondents thought their organization had much more scope to improve when it came to LOTO

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CAPA - Corrective and Preventive actions

CAPA is done to improve & mitigate chances of incidents or shut downs happening by identifying the problems and taking corrective or preventive actions before the fault becomes serious. High level of accuracy results in a better CAPA management. On asking the respondents about the accuracy of their CAPA management systems, we found that less than 50% respondents could say that their CAPA findings are matching with the actual results and on paper without any kind of repetition observed. Rest of the respondents had experienced issues related to repetition, non alignment of results or both.

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While organizations focus a lot on systems like LOTO, which can have serious consequences if not followed, the same cannot be said for processes that help in improving the efficiency and mitigating risks. It shows the mentality of the organizations about reactive safety & preventive safety, meaning they focus only on high risk, immediate factors rather than have a long term plan.

Process safety management program

On asking the senior management EHS leaders about having a process safety management program active in the organization, only 60% professionals responded yes. The rest of the organizations did not have any such program or were still in the planning stage.

Managing Process safety

From managing everything on paper, the companies are slowing moving towards using digital tools. Although this transition is coming, its still slow and not even remotely near the standards set by western countries. The implementation of various different tools were as follows when the upper management respondents were asked which tools they used to manage PSI.

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While majority of the respondents, 41% were using commonly used digital mediums such as excel, mails, pdfs, etc. a lot of professionals (29%) said they did not keep information on a common server and kept it within defined teams only. It was interesting to know that a lot of companies have now started using more sophisticated methods of collecting and storing data with 12% using custom software and 18% using digital twin interface software.

Process safety has in general been given higher importance due to the catastrophic consequences of PSM failure. Process safety can be improved on a large scale via usage of data analytics and data collection in real time. Use of digital mediums are rapidly increasing with more custom built software & real time data with digital twin interface. While there are still organizations not utilizing the full potential of data, those numbers are bound to decrease

When asked if they could rate their PSI management system for updating and storing data without multiple versions, only 45% of the respondents gave a Good rating of above 8 out of 10. Rest 45% gave ratings between 5 – 7 and 10% rated poor when it came to data management. It was interesting that most of the professionals using digital twins & custom software gave higher ratings.

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The ratings though on a better side of expectation prove that organizations using custom software and digital twin interface were more likely to rate their PSI management on the higher side compared to organizations who did not use centralized data management tools & digital mediums for storage.

Management of change:

When asked about how their organizations did MOC, the senior management respondents were divided into three groups with the first using automated software (36%), second group using conventional means on emails (46.38%). the third group (17.39%) opted for none of the automated or emails, using their own methods for MOC.

MOC awareness:

The entry level respondents were asked about how they would rate themselves with respect to knowledge of Management of change on the scale of 10. Maximum respondents (67.53%) rated between 8 – 10, giving a good rating to themselves. 26% said they felt adequately knowledgeable but not enough to rate above 8 and gave themselves ratings between 5 – 7. Only 6% respondents thought they had poor knowledge about MOC and had a lot to learn before giving themselves decent ratings.

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It is nice to see organizations training their entry level EHS professionals about management of changes. Though the process may be followed by all levels in the organization, chances of mistakes, error in judgement tend to happen on ground where most of work is done by entry level employees. Though 32% entry level professionals rated their knowledge about MOC as less, its a surprise that 67.5% rated their knowledge on a very high end of the ratings.

Environment, Sustainability & ESG

Key benefits
Better Business in terms of more customers, investors, public relations

Better valuation
Government support & subsidies

Better preparedness for future changes in regulations

Better Adaptability to counter
disruptions

Need for Changing the Mindset towards a sustainable future

Seriousness on sustainable mindset

While only half (51%) EHS professionals thought their organization was serious or even partially serious about sustainability with only 11% taking a positively strong stance on their organizations sustainable practices while 33% preferred to remain neutral and 16% accepted that their organization was not into sustainability with much effort. These figures reveal the extent of the organizations contribution towards sustainability. To achieve a balance between profits and sustainability, organizations as whole will have to think beyond productions & profit,- for future

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In today’s times, sustainability is not only required for the purpose of legal requirements. Sustainability has become a core part of Corporate social governance as well as for public relations. Organizations not following sustainable means for productions are looked down upon and slowly get affected on their business revenues as people in general are more aware than before, and believe that they can do their bit in saving the environment by supporting organizations who themselves are using sustainable means of production.

Though organizations have started following reporting standards, their general mindset towards sustainability remains below par compared to organizations from the western countries. Using sustainable means for productions is not cheap, but have long term benefits. Sadly, less than 52% EHS professionals believe that their organizations is not taking sustainability very seriously.

Reporting Mechanisms

Reporting Standards followed

While 91% respondents said that they have a reporting mechanism in place, 83% out of the given 91% organization had an internal reporting mechanism for sustainability. Among those 83%, GRI (Global Reporting Initiative) appeared to be the most prominent with over 31.42% organizations using it. Surprisingly, 34% of the organizations reporting internally did not follow any of the major reporting standards such as GRI, CDP, IIRC or SASB, giving a different approach towards reporting or just logging it for compliance purposes.

We also asked professionals which standard they found more relevant and practical when it came to Indian scenario. A whopping 44% selected GRI as the best practical reporting mechanism IIRC(Incident Investigation & Reporting Committee being the second most popular with 18% votes.

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GRI (Global reporting index) appeared to be the most popular for organizations with over

31.4% organizations using it, while 44% EHS professionals believe that GRI is more suitable in Indian

Efforts in improving the society

Plastic Waste Management

48% respondents believed their organization was working very well in plastic waste management and gave above 8 ratings out of 11 to their organizations efforts. 44% respondents thought their organizations were giving adequate efforts but things could be improved much more and gave them ratings between 5 to 7 out to 11. Only 8 % professionals felt their organization was poor in terms of plastic waste management & needed a lot of work to improve.

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Water Management

With all majority of the companies situated out side of water scarce zone, there is a perception that companies don’t care about their surrounding air and water resources. When asked to the respondents about the same, it came as a surprise to see the data with 68% participating EHS personnel giving a good rating between 8 to 11 out of 11 to their organizations for their water management processes, while 29% gave a rating of 4-7 and only 3% felt the efforts their organization was putting in was wholly inadequate. This shows the seriousness of the organizations towards water management and compliance to state and national laws being followed strictly.

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Organizations have started working on plastic wastage & water management but according to the entry level staff who are on the ground most of the day, the efforts towards water management are rated much higher as compared to the efforts by the organizations on plastic waste management.

GHG Emissions - Measurement & Focus

GHG Emissions

For GHG measurements, out of the total middle management respondents, 59% did not have sensors in place and the whole recording took place manually. While the 41% respondents had sensors, only 26% had the technology to go with the sensors in place, rest 15% are still depended on manual logging.

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GHG Emissions Focus

Organizations of the 50% Professionals from the middle management who were actively recording GHG emissions, said that their prime focus was on CO2 (61.4%) with the others being secondary concerns according to the type of the industry.

There are too many types of emissions the companies need to focus depending on their production and material handling, but there is significant seriousness only for carbon dioxide emissions which are in focus these days due to Global warming and media outrage. This is again a part of reactive approach and not proactive approach to mitigate risks before they happen. Only 50a» organizations recorded GHG emissions out of the total respondents.

ESG goals & Paris agreement

Goals

56% of the respondents mentioned that their organization’s ESG goals were aligned with the Paris agreement. majority of the organizations, 70%, have set their goals for 2030 and they remain unaffected by the current pandemic. while 2.7% organization had set goals for 2030, but due to the pandemic they are planning to postpone their deadlines. 26.1% organizations have not set their goals for ESG but out of them, 15.6% organizations are planning to set goals soon, while the rest have no immediate plan to do so.

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Focus in next 10 years

30 to 35% organizations are focusing on the target of having at least 10 – 20% reduction in Energy consumption & GHG emission. As evident by the chart, most of the organization follow a similar pattern for both Energy reduction as well as GHG emissions, with a slight more focus on energy reduction in the 10 – 20% goal set bracket.

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Organizations are focusing on both, energy consumption reduction and GHG reduction with both targets going hand in hand for almost all the organizations except few who are more focused on reducing energy consumption compared to GHG emissions. This may be due to multiple  organizations  going  with  green  building  designs,  power  efficient  lighting  & application of renewable energy to reduce their net energy consumption from conventional

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