What Is PESTLE Analysis

Understanding the Role of PESTLE in Strategic Risk Assessment and ISO 45001 OH&S Systems

Updated March 2025

PESTLE Analysis is a structured strategic tool used to evaluate external macro-environmental factors that influence an organisation’s operations, compliance, and decision-making. It breaks down the analysis into six external factors: Political, Economic, Social, Technological, Legal, and Environmental—hence the acronym.

Originally designed for market trend and policy forecasting, PESTLE analysis has become a valuable input for risk-based thinking in modern Occupational Health & Safety (OH&S) systems, including those structured around ISO 45001:2018.

Why PESTLE Analysis Matters for OH&S Management Systems

ISO 45001:2018 Clause 4.1 requires organisations to understand the external issues that affect their OH&S management system. PESTLE analysis provides a systematic method for fulfilling this requirement. It helps identify potential threats and opportunities that exist beyond internal operations, such as legislative shifts, economic pressures, workforce trends, and environmental factors.

Applying PESTLE analysis in OH&S planning ensures that hazard identification and risk assessments are informed by broader contextual realities—enabling more robust, proactive safety strategies.

Breakdown of the PESTLE Framework

Examples of PESTLE Applied to OH&S

The practical application of PESTLE analysis in OH&S may include:

How PESTLE Supports ISO 45001 Planning

Clause 6.1.1 of ISO 45001 requires organisations to determine risks and opportunities that need to be addressed to ensure the OH&S system achieves its outcomes. PESTLE analysis provides a formalised input to this process, helping risk assessments and strategic planning reflect current and future external realities.

When conducted regularly, PESTLE analysis becomes part of the management review cycle, supporting continual improvement under Clause 10 of the standard.

PESTLE Analysis is used to understand how external macro-level factors affect an organisation. In OH&S, it supports strategic planning, risk identification, and ISO 45001 compliance by analysing external threats and opportunities.

ISO 45001 does not explicitly require PESTLE, but it does require organisations to identify external issues (Clause 4.1) and assess risks and opportunities (Clause 6.1.1). PESTLE is a useful tool to meet those requirements.

A logistics company might use PESTLE to anticipate the impact of new noise pollution laws (Legal), economic fuel price shifts (Economic), or automated vehicle technology (Technological) on its driver safety strategy.