Strategic Focus: ESG Reporting Will Force Firms To Consolidate Legacy EHS IT Systems

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Executive Summary

For three decades firms have invested in digital solutions to manage environmental, health and safety processes. In the 1990s and the 2000s firms often bought EHS IT systems at a site or divisional level, or for a region. Operational groups such as industrial hygienists, chemical compliance experts and environmental engineers procured their own best-of-breed solutions from vendors such as Enviance, Medgate, MSDSonline and opsInfo. Whilst integrated EHS software platforms became more prevalent from 2015 onwards, the majority of large enterprises with revenues above $5 billion still run a multitude of new and old EHS IT systems, with some operating as many as 200 different applications. This report explains why a highly fragmented EHS IT estate is not compatible with enterprise-wide ESG disclosures and points to the implications for corporates, services firms and tech vendors.
New ESG Reporting Dictates Require Robust EHS Data Management Capabilities
A Fragmented EHS IT Estate Poses Multiple Problems For ESG Reporting
Consultants Should Amp Up Their EHS Digital Transformation Tunes
EHS Software Vendors Need To Ride The Consolidation Wave – Or Lose Out Big Time

Figure 1. Example ESG Reporting System Architecture For A $5-Billion-Plus Revenue Organization
Figure 2.
Implications Of A Fragmented EHS Ecosystem For ESG Compliance
Figure 3.
Business Functions Responsible For Implementing ESG Strategies
Figure 4.
Lockheed Martin To-Be EHS And ESG Systems Architecture Diagram
Figure 5.
The Crowded ESG Reporting And Data Management Software Market 

 

About the Authors

Chris Sayers

Chris Sayers

Senior Manager

Chris is a Senior Manager at Verdantix. His current research agenda targets enterprise AI integration and adoption, AI market trends and agentic AI. Chris joined Verdantix in ...

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David Metcalfe

David Metcalfe

CEO and Co-Founder

David is the CEO and co-founder of Verdantix, where he leads the firm’s strategic direction and client engagement. Since co-founding the firm in 2008, David has built a ...

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