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.

OPEX To What Extent Is Environmental Risk Mitigation A Priority For Your Firm To Improve In The Next Two Years 28

Sebastian Winter

Industry Analyst, Verdantix

Sebastian is an Industry Analyst in the Verdantix Operational Excellence practice. His research agenda covers digital twins for industrial facilities, asset management software, and connected worker platforms. Sebastian also delivers market strategy, voice of the customer, thought leadership, CDD, and digital strategy advisory pieces. Prior to joining Verdantix, Sebastian worked for Trucost, a division of S&P Global, and held positions in China, Brunei and Kenya. Sebastian holds an MSc Environmental Technology from Imperial College London.