Market Insight: How The Intersection With ESG Is Transforming The EHS Software Landscape
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Executive Summary
The EHS software and function landscape has been transformed by its intersection with ESG. Across both software and functions, EHS has undergone numerous changes, propelled by the maturity of particular vendors and firms, their exposure to regulations and investor pressure, their willingness to adapt, and their ability to make progress. The EHS function has seen its role move from that of handling ad hoc requests – under pressure to produce data and deliver strategy – into planning, executing and owning sustainability initiatives, and then to stepping back, to serve as a buttressing function. Vendors have simultaneously adjusted their capabilities, to reflect new priorities and to remain competitive, via internal development, strategic partnerships and targeted acquisitions. Together, these shifts have fundamentally affected how EHS vendors see the market and have set the course for the future of EHS software.The intersection of ESG and EHS has had undeniable impacts on organizational operations, responsibilities, outlooks and strategies
Operational impacts of the traditional EHS role have shifted in response to ESG pressure, but are stabilizing in mature firms
The EHS software market has evolved reactively amid regulatory and investor pressure
Solution capabilities have rapidly altered in the face of competition and consumer demand
Amid the challenges ahead, EHS functions have a robust toolbox to draw on
Figure 2. Shift in ESG-related responsibility responses: 2022-2023 (percentage point change)
About the Authors
Nathan Goldstein
Senior Manager
Nathan is a Senior Manager at Verdantix, specializing in EHS software and the convergence of sustainability, EHS and operational risk. He leads research that helps corporate d...
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Bill Pennington
VP Research
Bill is VP Research at Verdantix, where he leads analysis on the evolving and interconnected landscapes of EHS, quality, AI and enterprise risk management. His research helps ...
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