Categories
Predictive Value

Predicting accidents

A poor record in environmental compliance is strongly suggestive of a poor record in worker safety. Companies that exceed the limits set by the EPA on pollutants released into nearby bodies of water are more likely to have worker accidents that have to be reported to the Occupational Safety and Health Administration. Beyond work accidents, facilities that suffer severe accidents typically also have high numbers of EPA violations.

Categories
Predictive Value

A different perspective on supply chains

Snarled shipping and material shortages are on the front pages of the financial press these days. Also, investors are interested in the total carbon content of a product, which needs to take into account scope 3 greenhouse gas emissions.

Categories
Predictive Value

Predicting violations – The case of the outlying ratio

In the last blog we looked at different industries and how they deal with mitigating environmental impact. We used the waste-to-disposal ratio to assess an industry’s efforts and success in reducing the release of regulated chemicals into the air and water.

The same measure can be used to predict whether a company is likely to get into trouble with the regulator and be cited for violations of the Clear Air and Clean Water Acts.