Struggling To Keep Up? EHS Functions Turn To Technology To Manage Changing EHS And ESG Regulations

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Struggling To Keep Up? EHS Functions Turn To Technology To Manage Changing EHS And ESG Regulations

As regulation of environmental standards, chemical management and hazardous waste tightens, it is becoming increasingly important for firms to stay updated and compliant. Infringement can result in harsh penalties and harm a brand’s reputation. The growing importance of ESG illustrated by these mounting regulations often becomes the responsibility of EHS functions, which have turned to technology for support. In a Verdantix global corporate survey of EHS priorities and tech preferences, ESG and sustainability and environmental compliance were ranked as the top two use cases of EHS software, with 91% and 88% of respondents respectively using them at multiple facilities. According to the latest market size and forecast for EHS software, mounting ESG requirements will serve as the most significant long-term factor impacting EHS software market growth. To keep pace with ever-increasing regulations, EHS software vendors have introduced new modules around ESG and EHS compliance.

There have been a flurry of acquisitions from EHS software providers in the last few years, specifically of firms offering ESG reporting capabilities. For example, in May 2023 Cority acquired Greenstone, a UK-based sustainability and ESG reporting software provider. This was, in fact, Cority’s third ESG-reporting-focused acquisition in the past two years, following WeSustain and Reporting 21. Another firm to follow suit is IBM, which acquired Australia-based carbon accounting and energy software provider Envizi in early 2022. Ultimately, these acquisitions will equip EHS software providers with the ability to support customers with the resources needed to comply with new ESG reporting and management requirements.

Many EHS functions have opted for multiple point solutions to manage different processes in the EHS and ESG space. However, these solutions are often not integrated, creating data silos. Functions are now increasingly looking for either one, or a limited number of solutions that can consolidate data across an organization. This makes it easier to share information across departments, helping managers to make more informed decisions to maintain a workforce’s health and safety. To the same end, some providers are innovating to design offerings that integrate with enterprise business tools.

Take Pro-Sapien, an EHS software provider built on Microsoft 365. This enables access via Microsoft Teams and SharePoint – both common applications that frontline workers access on a daily basis. In August 2023, it introduced Scheduler, a new module that helps firms manage EHS and ESG tasks while ensuring regulatory and policy compliance. This ties in with Pro-Sapien’s environmental management tool, which helps with compliance by categorizing Scope 1 and 2 emissions data, by scheduling recurring tasks – including audits and energy reporting – in advance. Other notable features include the ability to create a range of recurring actions in a year-round schedule, assigning roles and locations across the organization, and using Power BI to report on action status and EHS performance.

As regulation continues to increase, EHS functions will need to continue adapting to meet these demands. To read more about how EHS software providers can help teams meet compliance requirements, click here.

Zain Idris


Zain is an Analyst in the Verdantix EHS practice. His current research agenda focuses on total worker health and software vendor partnerships. Prior to this role, Zain completed an internship at Verdantix recording major mergers and acquisitions within each practice. Zain holds a BSc in Economics from the University of Warwick.