IiAS Sustain, a wholly owned subsidiary of IiAS, has published a study on Workplace Safety in India; this is the first study of workplace safety in India after companies have begun publishing safety data on Business Responsibility and Sustainability Reporting.

The report provides an overview of the current state of workplace regulations in India, and the current practices and disclosures. In addition, the report analyses the safety performance metrics across sectors and between public and non-public sector companies and identifies companies and sectors with superior safety practices.

Safety and welfare of workers on the factory floors are rarely matters of concern for the board and top management, whose pay structures continue to reflect a focus on the bottom line.

This study has been supported by APG, a Dutch pension provider and HDFC Ergo General Insurance, a non-life insurance company.

Through this study, IiAS, APG and HDFC Ergo General Insurance draw attention to this subject to try ensure worker safety is a priority for boards.

In FY23, NIFTY-500 companies employed a total workforce of 10,408,603, consisting of 3,989,262 workers and 6,419,341 employees.

• Workplace injuries increased to 10,733 in FY23 from 9,889 in FY22, with high-consequence injuries rising by a third to 907 (compared to 679 previously). • Total fatalities decreased to 463 in FY23 from 587 in FY22, however, it still accounts for more than one death per day.

As this data pertains to NIFTY-500 companies which are larger, well-resourced entities with informed boards of directors, it raises concern.

This data covers direct employees and excludes outsourced labour or temporary workers, suggesting that the actual numbers may be higher.

Companies should prioritize transparency by disclosing policies and adherence to global and domestic standards. Accountability must be established at the appropriate level. Stakeholders, including suppliers, contractors, and third parties, should also be considered.

The study also reveals a strong correlation between health and safety training and reduced workplace injuries and fatalities. Prioritizing such training is a cost-effective strategy. Employers should extend health insurance benefits not only to 100% of their workforce but also to contractual workers. Evidence suggests that increased health insurance coverage leads to reduced time lost due to injuries.

As companies continue reporting data, we anticipate gathering comprehensive information for better analysis of underlying trends. Ultimately, prioritizing workplace safety will position India as a prominent global manufacturing hub.

“At APG, employee health and safety has always been a key area of focus and discussion. As a responsible, long-term investor and in line with our clients’ responsible investing policies, we are constantly raising the bar when it comes to evaluating the safety culture at our portfolio companies. Our approach is based on the underlying tenet that access to safe and healthy working conditions is both essential from an operational perspective and is a basic and fundamental right.” said Aaten Thijs, CEO, APG Asset Management Asia.

"Workplace safety is a strategic investment in the well-being of workers and the prosperity of businesses and economies alike. It is not only a regulatory requirement but also a moral obligation to protect workers and promote sustainable growth in India. Safe working conditions attract and retain skilled workers, enhance the reputation of businesses, and foster trust among stakeholders. This, in turn, can lead to long-term success and competitiveness in the market.", said Amit Tandon, MD and CEO, IiAS

The full report is attached here.