EHS Survey Insight: Incident, Environmental And Chemicals Compliance To See Highest Spend Increases In 2020
Verdantix recently published its seventh annual corporate EHS survey of 403 senior EHS decision-makers across 35 countries and 25 industries. Each respondent represented a distinct firm, with two-thirds of individuals holding role titles of Director or above and 79% from firms having annual revenues exceeding $1 billion. Among the survey findings, one tenth (10%) of respondents said EHS is the leading business function for digitization within their firms, one quarter (23%) perceived innovation as essential to their function and nearly two-thirds (60%) viewed adopting IoT and/or wearable devices as having a high impact or being essential to the success of their EHS management efforts.
The global survey examined current adoption practices across EHS technologies and services, along with planned budget and spending changes for 2020. One interesting finding is the continued market appetite for various EHS technology use cases such as occupational health, industrial hygiene and ergonomics. When asked how their firms’ spend on various EHS activities will change for 2020 compared to 2019, 27% of respondents noted forthcoming expenditure increases of 5% or higher for incident management, while 24% and 21% stated the same for environmental compliance and chemicals compliance, respectively. The percentage who cited expenditure increases for EHS activities varied from a high of 47% for incident management, down to 23% for advanced business intelligence tools and 21% for sustainability programme management. Increasingly stringent regulations in both developed and emerging markets, scrutiny from diverse stakeholders on climate change risks, and corporate practices that are progressively focused on risk mitigation remain long-term positive drivers for EHS information management. On average, 11% of the 403 respondents have earmarked double-digit spend increases specifically for EHS IT software in 2020 (see infographic below).
Beyond specific EHS activities and software use cases, the survey also found a continued appetite for EHS mobile applications, digital sensors for environmental data collection and vehicle telematics for safety, to name a few. Among demand for EHS services, survey respondents anticipate that their spending will increase most dramatically for EHS technology implementation, upgrades and support, followed by support for operational performance improvements and EHS audit services. Similarly, respondents’ spend on training, learning and resource development activities also will see significant increases during 2020, reflecting corporate decision-makers’ increased attention to organizational safety culture improvements.
To learn more about the shifting priorities for EHS spending, see the Verdantix report Global Corporate Survey 2019: EHS Budgets, Priorities & Tech Preferences and register for our upcoming webinar, which is scheduled for Thursday, January 16, 2020.