The report, Green Quadrant Environmental Management Software (Global) 2012, compares 12 environmental management software applications. The analysis is based on interviews with 15 buyers representing firms and public authorities with more than $1 billion in revenue, supplier responses to a 115-point questionnaire, and supplier interviews.
The three market leaders — Enablon, IHS and SAP — have established market positions ahead of other suppliers because of the breadth of their environmental management functionality and regulatory coverage, Verdantix says.
The report also praises the extent of the applications’ pre-built workflows and task management processes, functionality for environmental reporting and performance analysis, pre-built connectors to integrate with other systems, and large customer bases.
Four other suppliers — BSI, Enviance, Locus Technologies and MetricStream — offer a compelling feature/function set and have large-scale deployments, according to the study.
Additionally, CRedit360, FirstCarbon Solutions, Gensuite, Intelex, and PE International all offer highly customizable software that adapts to their customers’ environmental management processes and meets their specific needs, the report says.
Previously, compliance and risk reduction drove companies to implement environment, health and safety software, Verdantix analyst Emilie Beauchamp said. However, the new study shows customers in sectors including chemicals and manufacturing are turning to software to improve their environmental performance (see chart). Beauchamp says software suppliers now offer increasing capabilities to allow firms to manage and report their greenhouse gases, hazardous waste, water, toxic releases, toxic chemicals and refrigerants.
As part of the survey, Verdantix asked a multi-industry customer panel about how their environmental management software spending will change over the next three years. Thirty three percent said it would increase by more than 25 percent, 27 percent of respondents said it would increase by up to 25 percent, and 33 percent said it would stay the same. Only 7 percent thought it would decrease by more than 25 percent.
The research firm says this suggests that spending increases on environmental software will outstrip spending increases on environmental performance, which will range between a CAGR of 12 percent in the US and 8 percent in Germany over the next three years.
A July report by Verdantix said Deloitte, ERM, Fujitsu Services and Mahindra Satyam are among the tech service companies that will reap the benefits as large US firms spend $2.5 billion annually on technology consulting and systems integration relating to their energy and sustainability initiatives by 2015.