Incident Rates – An established industry KPI is also relevant to sustainability reporting
In the Global Reporting Initiative, there are reporting metrics for many aspects of a entity’s sustainability performance. Section 403 Occupational Health and Safety puts focus on how an organization is ensuring a safe workplace through management systems, employee engagement, safety engineering, etc. When we talk about Social Responsibility, the topic of workplace safety is a key aspect. One of the most important items tracked within Disclosure (403-9) is the number and rates of worker injuries.
You can learn more about it here: GRI 403 Occupational Health and Safety
The total number of injuries or incidents that occur is obviously something that must be tracked when evaluating safety performance. However, this metric lacks key context around the size of the organization, or the number of hours worked, or other qualifying factors. That is where the incident or injury rate comes in. The rate on injury provides context and allows comparison to regulatory norms, comparison between facilities, or regions, or even other industries. It is a very well established and understood metric for safety professionals and corporate managers.
While exact rules for calculation vary by region, industry, country, or even locality, I will use the formula OSHA requires in the US and emulated by various countries:
(Number of injuries and illnesses X 200,000) / Employee hours worked
The 200,000 hours in the formula represents the equivalent of 100 employees working 40 hours per week, 50 weeks per year, and provides the standard base for the incidence rates.
A good explanation can be found on the official Bureau of Labor Statistics website. Click Here.
Within SAP EHS, we have functionality for tracking incidents and worker injuries as part of the Workplace Safety product. The application manages the full lifecycle of an incident from initial recording to investigation, root cause analysis, and corrective action.
It also supports standard regulatory reporting and real-time incident rate calculations. See below:
For more information on the functionality within SAP EHS Workplace Safety, let me know.