Ten Predictions For EHS Technology In 2023

Ten Predictions For EHS Technology In 2023

2023 promises to see EHS practices taking on even greater responsibilities to manage mounting ESG and sustainability reporting obligations. Organizations will look to empower EHS functions to influence budgets and set strategic targets to meet stricter product and environmental compliance regulations. In addition, firms will rely on EHS software to streamline their aggregation, analysis and reporting processes to enable the auditable collection of an expanding scope of performance metrics. Conversely, EHS vendors have been developing their offerings through regulatory content partnerships to help customers navigate the increasingly complex landscape.

Considering the current economic climate, highly publicized layoffs from big-tech firms Amazon, Google and Microsoft underline the market expectations of a looming recession. However, Verdantix forecasts that the EHS software market will remain resilient, with low removal or replacement risk. This is because the industry is primarily compliance-driven – and with ESG data collection falling into the remit of EHS managers, we envision a robust global CAGR of 12.1% between 2022 and 2027. Private-equity firms have also taken a more profound interest in the EHS software market, recognizing its significance in ESG reporting. As a result, they will continue to invest in prominent players and orchestrate the acquisition of specialist ESG software providers.

Leveraging the past year of Verdantix research, the EHS team have produced a consolidated list of predictions for the next 12 months. We foresee the following trends affecting EHS functions in 2023:

1. EHS functions will have greater influence on budgetary planning and C-Suite discussions.
   
   
2. ESG will be a prominent driver of EHS software adoption.
   
   
3. Spend on EHS software will be resilient through a global recession.
   
   
4. The mid-market will lead the overall increase in EHS software spend.
   
   
5. ESG disclosures will accelerate very high-risk firms’ adoption of environmental compliance functionality.
   
   
6. Regulations will increase pressure for investments in chemicals and waste management.
   
   
7. Recently PE-backed EHS vendors will seek integrated risk management through partnerships.
   
   
8. IoT hardware uptake for connected worker safety will slow.
   
   
9. EHS functions will accept growing responsibility for workplace mental health and wellbeing.
   
   
10. The appetite for AI-enabled worker safety capabilities will increase.
    
    

To gain deeper insight into the ten Verdantix predictions for EHS in 2023, see our recently published report Market Insight: 10 Predictions For EHS Technologies In 2023 And Beyond.