The EHS function continues to play a key role in understanding and mitigating risk across organizational portfolios. With the rise of ESG priorities and movement towards dynamic risk management, firms need to look inwards at their processes, people and technology to meet these challenges. The EHS software market is expected to continue on its upward trajectory in 2024, with environmental compliance and consolidation to remain high priorities accompanied by increased visibility amongst contractors. As we look forward to the next 12 months, Verdantix predicts that:
1. EHS technology vendors will increasingly prioritize and expand their partnership networks for market success.
Partnership types include specialist EHS software firms, content provider integrations, enterprise solutions and hardware vendors. The growth in EHS technology partnerships is attributed to the increased customer demand for broad integrated ecosystems that can still provide specialist functionality.
2. Emissions, ESG and sustainability management will be the fastest-growing EHS software segments.
Increased pressure to disclose accurate emissions data and demonstrate sustainability credentials to stakeholders has placed greater responsibility on EHS firms to manage environmental compliance. As a result, EHS software vendors will continue to improve and expand their software modules around tracking emissions and ESG and sustainability management.
3. The next era of EHS digital strategies will be defined by integrated software ecosystems.
Many firms are currently laden with several solutions creating various challenges such as low platform engagement, inconsistent workflows and siloed EHS data. To alleviate this issue, firms are seeking an integrated software solution that provides consistency across their EHS operations.
4. Total worker health trends will shift EHS priorities and technology spend.
COVID-19 and changes to social norms have highlighted the importance of mental health. As a result, firms are now taking an increased responsibility for both the physical and mental well-being of their workforce. This will be facilitated through occupational health software and training EHS professionals around the subject area.
5. The value proposition for the application of AI in EHS will become clearer.
Advances in machine learning tools have trickled down to EHS technology platforms and there is now a plethora of AI use cases. These can be categorised into four main topics: data management, proactive risk management, regulatory compliance and workflow optimization. With demand increasing, it is expected that AI will transition from pilot projects to being fully embedded in EHS workflows.
6. Spend on digital EHS training solutions will grow in response to a broader focus on worker competency.
Significant innovation in immersive technology and the rise of dynamic training, has helped to develop visual learning programmes that help keep workers engaged. Furthermore, greater emphasis has been placed on training in efforts to improve worker competency and help drive down incident rates.
7. A broader range of industries will leverage contractor management tools for third-party visibility.
Outside of highly regulated industries, firms tend to only rely on the preliminary vetting of workers’ credentials. However, the recordable incident rates involving contractors remain significantly higher than for full-time employees. Therefore, it is important that firms have increased visibility of contractor data. Digital contractor management tools help alleviate this as firms can quickly identify each contractor onsite and their corresponding details.
8. Enhanced internal communications will foster a positive safety culture.
Improvements in internal communications can help alleviate the lack of connectivity between teams due to siloed systems. Instead, this helps to foster a safety culture, where workers are encouraged to report risks and near-misses to senior staff, who establish procedures to minimize them.
9. Software vendors will enhance their compliance capabilities through innovation and acquisitions.
In response to mounting regulation, software vendors have introduced new modules to help meet EHS and ESG compliance. This has been facilitated through various acquisitions or integrating existing enterprise business tools.
10. Age related factors will have an impact on workplace hazards and risk.
Age can affect workers’ physical capabilities and risk perception impacting their ability to navigate workplace hazards. On one hand, younger workers can be more risk-taking but may lack skills and experience, whilst age could cause elements of complacency to creep in.
