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This newsletter offers a critical analysis of a limited shareholder-value perspective that assesses health, safety, and environmental (HSE) expenditures solely based on short-term profits. Instead, it redefines process safety as a means to maintain long-term value.

As an example, consider the toxic release that occurred at the Union Carbide facility in Bhopal, one of the worst industrial accidents in history, which involved the discharge of toxic methyl isocyanate (MIC) from an emergency pressure relief system. Union Carbide Corporation paid $470 million in 1989 to settle litigation for the tragedy, valued at roughly $1.03 billion in 2026.

Union Carbide Corporation later reviewed and mitigated its safety systems in the U.S. As a result, later incidents occurred without damage to employees or the surrounding population.

The sound and logical management of HSE issues “pays” the company back in terms of “losses not incurred”. It is incumbent on the senior HSE managers to educate the top management of the company as to why small expenditures in a well thought out multi-year program of HSE management can pay back more than a thousand times the costs incurred by avoiding losses.

Valuable lessons for all corporate executives.

Have a great and safe day.

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