[Sustainalytics logo slides into screen. Screen then switches to Sam Goodyear.]

Hello my name is Sam Goodyear and I'm the manager of the construction and industrials team at Sustainalytics and I'm here today to talk  to you a little bit about Occupational Health and Safety.

Now Occupational Health and Safety is one of the 20 material ESG issues, or MEIs, that we have at Sustainalytics and is part of our ESG Risk Rating looking at the material risks the company's businesses face from ESG issues. Now  health and safety is a very important issue in a number of industries and many studies really have shown that the cost of health and safety really comes back onto businesses as well  as obviously impacting employees that suffer illnesses or injuries in the workplace.

[Video shows a construction site, and then a construction worker with his arm hurt. Screen then switches back to Sam Goodyear.]

One study  has shown that in the US alone non-fatal injuries cost companies an estimated 60 billion dollars  a year in compensation payments, while in Europe   studies have shown that the global cost of health  and safety issues worldwide amounts to almost four percent of global GDP, which is obviously a huge  amount of money, almost three trillion euros.

[Video shows two people going through a form. Screen then switches back to Sam Goodyear.]

Now health and safety can take a number of forms  in the workplace. There can be illnesses that come from long-term issues, such as exposure to dust and harmful particles, such as asbestos, and we can also have short-term injuries: falling  from heights, working with dangerous machinery, working with high heat in remote locations with  hazardous substances.

[Video shows a man drilling into a road and then a welder. Screen then switches back to Sam Goodyear.]

And so all of these issues can lead to injuries for employees if companies do not manage their health and safety properly,   and this can lead to lawsuits compensation payments, fines, penalties, and also operational disruptions whereby company has to suspend some work in order for investigations to take place and that can also have an economic impact on companies.

So how does sustainalytics look at this issue? Well we look at a number of indicators within our  ESG risk rating, first on the exposure side to see which industries have the most exposure to health  and safety risks, and then on the management side how are those industries managing these risks. And perhaps it's no surprise that industries such as mining, metals, steel and gold industries, precious metals, oil and gas, construction, these industries that have a lot of manual work sometimes in hazardous locations and with dangerous  substances tend to have higher ESG risk from occupational health and safety.

[Video shows two men walking through a construction site, and then an oil rig in the ocean. Screen then switches back to Sam Goodyear.]

But it is possible  to manage these issues and we look at a number of indicators including health and safety management  systems and indeed whether companies have their systems certified to an international best practice such as OHSAS 18001 or ISO 45001.

Other indicators we look at will be whether an employee fatality rate is low for that particular industry or whether injury rates are falling year over year compared with previous averages.

And indeed number of companies do manage this issue well, one that we're highlighting in this background on the issue is royal boss Scarlett's Westminster and they indeed do have very strong programs including a certified management system to international best practice.

That leads them to only have negligible risk for this issue, and in this Covid-19 environment I think we can all agree that the management of  health and safety issues in the workplace has never been more important.

Thank you for listening,I hope you found this information useful and please look out for more videos on other ESG  issues that will be available soon.

Thank you

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