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.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
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
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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