Strategic Focus: Winning ESG Product Strategies For EHS Software Vendors

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Executive Summary

Since 2019 a diverse range of stakeholders – led by investors – have accelerated demands for better quality environmental, social and governance (ESG) disclosures, improved performance and enhanced risk management. As developed economies emerge from the COVID-19 pandemic, policymakers around the world are doubling down on a wide range of ESG-related initiatives, from slowing climate change to preventing modern slavery in the supply chain and enhancing diversity, equity and inclusion (DEI). This report focuses on environment, health, and safety (EHS) software vendors and provides recommendations on how these firms can leverage their installed base and existing application portfolios to meet the needs triggered by the rise of corporate ESG strategies.

Table of contents

Framing The ESG Market Opportunity For EHS Software Vendors 
Sustainability Executives Need A Digital Response To Ballooning ESG Challenges
EHS Software Is A Strong Starting Point For An ESG Information Architecture

EHS Vendors Need A 2025 Vision To Shape Their ESG Product Strategy 
Vendors Should Benchmark EHS Software Against The Full Range Of ESG Requirements
Target An ESG Commercial Strategy Designed To Maximize Wallet Share

Table of figures

Figure 1. Sustainability Executives Are Under Pressure From Multiple ESG Challenges 
Figure 2. EHS Function Is One Of The Most Important For Implementing A Sustainability Strategy 
Figure 3. Twelve Functional Requirements For Enterprise ESG Information Management 
Figure 4. ESG Product Roadmap Recommendations For EHS Software Providers 

About the authors

Yaowen Ma

Principal Analyst

Yaowen is a Principal Analyst at Verdantix conducting research on EHS and ESG information management. His current agenda focuses on digital technologies, best practices and growth strategies across EHS, product stewardship, sustainability performance and ESG risk management. Yaowen has more than seven years of experience managing and delivering EHS and ESG research and consulting engagements to corporates, vendors, investors and industry associations. He holds a dual major bachelor’s degree in environmental management and international relations from the University of Pennsylvania.

David Metcalfe

CEO

David is the CEO of Verdantix and co-founded the firm in 2008. Based on his 20 years of experience in technology strategy and research roles he provides guidance on digital strategies to C-level executives at technology providers, partners at private equity firms and function heads at large corporations. His current focus is on helping clients understand their market opportunity tied to ESG investment trends and their impact on corporate sustainability strategies. During his 12 years running Verdantix – including 4 leading the New York office – he has helped dozens of clients grow their businesses through fund raising, acquisitions and international growth. David was previously SVP Research at Forrester and Head of Analysis & Forecasting at BT. He holds a PhD from Cambridge University and also worked as a Research Associate at the Harvard Business School.

Kim Knickle

Research Director, ESG & Sustainability

Addressing business challenges and priorities in ESG and sustainability through technology.

Specialties: manufacturing and retail industry subject matter expert, thought leadership, storytelling, emerging technology research and analysis (cloud, artificial intelligence, augmented and virtual reality, computer vision, IoT), sales enablement, competitive and SWOT analysis, market research, research operations.

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