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Implications of Mergers and Acquisitions on EHS Management Systems

Northampton, MA – News Direct – Antea Group

Growth and expansion through acquisitions can be exciting and profitable, but maintaining focus on a strong and effective environmental, health and safety management system (EHS) during the merger of two or more companies can be challenging. While the focus during the integration is much more on increasing the provision of goods and services, ensuring a stable and structured EHS management system is also crucial in order to reduce both risks and costs.

7 components of an effective EHS management system:

  1. Comprehensive written EHS programs that are in line with applicable regulatory requirements and best management practices, with clearly defined roles, responsibilities and record-keeping requirements

  2. Management’s commitment to the EHS management systems and programs

  3. Established processes to monitor and review the effectiveness of the implementation of programs and to implement program changes, if necessary (i.e. management of the change process)

  4. Strong process for identifying, analyzing and correcting hazards and related documentation (e.g. analysis of occupational risks)

  5. Comprehensive incident reporting and investigation process, including root cause analysis

  6. Detailed employee training

  7. A strong focus on continuously improving EHS compliance

The benefits of a strong EHS management system include:

  • Fewer injuries and incidents

  • Cost savings

  • Improved profitability

  • Improved reputation

  • Improved employee morale, employees will feel like they have a voice

  • Better quality control

  • Better performance (audits and regulatory compliance)

  • Better informed decision making

Change management through cultural change

In mergers and acquisitions, there are often several common EHS management challenges, including different programs and practices, and conflicting processes, goals, personalities, and corporate cultures. In the case of some acquisitions, the changes that occur may conflict with the previous management. This could include introducing new or changing existing documents, including work permits, inspection checklists, and other documentation. Managing cultural change can be difficult, so it is important to involve employees and managers from all organizations in decision-making processes. If they feel they are part of the process and the changes, they will be much more likely to adapt to and adapt to these changes.

The story goes on

Combination of EHS programs vs. maintaining local programs

In the early stages of integration, efforts should be made to evaluate each company’s EHS programs and procedures to identify gaps and best management practices and to determine if there are processes or documentation that can be shared or replaced by best practices Others. If it is impractical to integrate the organizations into the same programs, the organization should determine whether a decentralized or a centralized EHS management system would be more appropriate for the combined organization. If the organization chooses to decentralize the management system, EHS management programs and procedures would be administered at the local level and a process to monitor and manage each organization’s EHS metrics should be implemented and maintained.

The concept of “one size fits all” should not be used in all circumstances. When bringing together companies that do not offer the same type of operations or services, it is important to take these differences into account. An understanding should be created to ensure that components of the EHS management system, such as policies and procedures, can be effectively applied across organizations.

For example, if an acquiring organization is active in the manufacturing industry and acquires an organization that provides field service, such as

Importance of EHS programs

A coordinated, stable and structured EHS management system promotes efficient operation and reduces risks and costs during and long after the merger and alignment. A number of approaches can be used to determine the type of EHS management system that will be most effective for the organization. Gap assessments, EHS program comparisons and applicability matrices are just a few examples of methods that support this decision-making process.

Antea Group has the resources and experience to determine what is best for your business as it continues to grow. For further information please contact our Management Systems Service Line Team!

Health and safety management systems support

About the Antea Group: The Antea Group is an international engineering and environmental consultancy specializing in full-service solutions in the areas of environment, infrastructure, urban planning and water. By combining strategic thinking and multidisciplinary perspectives with technical know-how and pragmatic action, we not only solve customer challenges effectively; We deliver sustainable results for a better future. We serve clients ranging from global energy companies and manufacturers to national governments and local communities. Learn more at https://us.anteagroup.com/.

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