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Auto industry safety in reverse gear: ICRA study
Industry News- Apr 07,25
The automobile industry recorded a 33% increase in Total Recordable Work-Related Injuries (TRWRI) among workers, a 42% rise in Lost Time Injury Frequency Rate (LTIFR), and no reduction in High-Consequence Work-Related Injuries (HCWRI).
The automobile industry has demonstrated worrying safety performance trends, standing out as the only sector where workplace safety metrics deteriorated, according to ICRA ESG Research’s latest study. The report, Health and Safety Trends: A Comparative Analysis across Major Industries, assessed 25 leading Indian companies across five high-risk sectors—cement, automobile, oil & gas, mining, and chemicals—from FY2022 to FY2024.
The automobile industry recorded a 33% increase in Total Recordable Work-Related Injuries (TRWRI) among workers, a 42% rise in Lost Time Injury Frequency Rate (LTIFR), and no reduction in High-Consequence Work-Related Injuries (HCWRI). These concerning trends suggest potential gaps in safety management protocols, particularly as production volumes scale up. In contrast, the oil & gas sector emerged as a top performer, showcasing an 88% reduction in fatalities, an 82% decline in LTIFR, and a 68% drop in TRWRI—marking one of the most significant safety improvements across industries.
The chemical industry outperformed all sectors, achieving a 75% reduction in fatalities, an 84% improvement in LTIFR, and complete elimination of HCWRI by FY2024. Meanwhile, the mining sector, traditionally considered high-risk, demonstrated strong progress with 33% fewer fatalities and a 70% lower LTIFR, reflecting enhanced safety measures and regulatory compliance. The cement sector delivered mixed results, with a 40% reduction in employee injuries but a concerning 60% rise in fatalities, pointing to specific areas needing urgent intervention.
Sheetal Sharad, Chief Ratings Officer, ICRA ESG Ratings Limited, commented, “Despite the expansion of operational activities and production levels, the commitment to track and maintain high standards of occupational health and safety is evident, but continuous efforts are required to address the challenges in specific sectors.”
The report identifies best practices among top-performing sectors, including advanced risk assessments, predictive safety tech, rigorous worker training programs, robust emergency response plans, and maintenance of ISO 45001 certification. For the auto sector, the findings reiterate the urgency of adopting these measures to align with industry leaders like oil & gas and chemicals.
ICRA ESG Ratings Ltd (ICRA ESG) is a SEBI-registered Category-I ESG Ratings Provider, offering comprehensive sustainability assessments. A wholly owned subsidiary of ICRA Limited, it leverages three decades of analytical expertise, backed by Moody’s Investors Service as the indirect largest shareholder.
The study analysed 25 top-listed Indian companies (by market cap) across five sectors as of December 31, 2024, evaluating fatalities, TRWRI, LTIFR, and HCWRI. All companies held ISO 45001 certification.
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