Environmental Risk Mitigation Top Of Operational Excellence Agenda For Firms In 2021 And 2022
According to the 2020 Verdantix annual survey of 259 managers within operations, maintenance, engineering, and process safety roles, 66% view environmental risk mitigation as a high priority for their firm to improve over the next two years. The high priority for environmental risk mitigation is driven by multiple factors. Firstly, the surge in investor demand since 2019 for ESG disclosures and subsequently lower ESG risk profiles for their investee firms. Secondly, the large hit to firms’ solubility caused by major environmental disasters, such as PG&E that filed for Chapter 11 bankruptcy when forced to pay $11 billion in fines for the Californian wildfires. Thirdly, corporate agreements to meet and contribute to international environmental goals, such as UN sustainable development goals, and the 2015 Paris Climate agreement, that require firms to reduce their impacts and emissions before 2030.
Firms can implement a variety of digital solutions for environmental risk mitigation and management. Process safety management software such as that offered by Enablon, Intelex, Sphera, Tenforce and VisiumKMS to control risks that could result in fires, explosions and accidental chemical releases. Asset performance management offered by the likes of Aspentech, AVEVA, Bentley Systems, GE Digital that assist users with identifying critical equipment that may fail for major accident and disaster prevention. Operational performance management software offered by GE Digital that can simulate emissions into planned production changes, enabling firms to stay within agreed limits. Asset investment planning software brought to market by Aspentech, Copperleaf, Cosmotech, and Direxyon that can incorporate non-financial metrics into operational and capital expenditure simulations. Finally, ESG tech offered by Matter, Novisto, Persefoni that eases the burden of sustainability reporting and management requirements.