FAQs: How to level up your EHS data

Global companies are faced with managing and navigating a plethora of risks triggered by hundreds of new and emerging EHS and ESG regulations around the world. Following a conversation between veteran EHS leader, formerly at both Siemens and GE, Claus Rose, and Enhesa’s Expert Services Lead, Tamer Azar, in our webinar, “Leveling up your EHS data”, the moderator invited audience questions. 

Here are a few of the questions answered by our experts on how to improve your EHS data as one component of a comprehensive and efficient risk management system, how ESG and EHS intersect, and the potential role of AI in futureproofing compliance. 

Is a proactive, strategic approach to managing risk with better EHS data similar to the ‘Assess, Plan, Do’ and Review’ cycle?

Claus: Yes, it is similar. The only difference here is that you get a platform that will help you get to the point. The risk management process is the ‘Plan, Do’ part of the cycle — but there’s more to it than that.

How have you seen recent developments in ESG regulations affect EHS teams?

Claus: Businesses are very regularly trying to find experts that can help with the implementation of Environmental, Social, Governance (ESG), and they start by creating a strategic approach to answer what it actually means. 

What they often tend to forget when looking at scope 1, scope 2, and scope 3 is where the data comes from. It comes from the business and, more importantly, the people servicing those data points — the ESG and EHS people.  

The level of accuracy EHS teams are faced with is a lot higher than it used to be. You cannot afford to make mistakes in your calculations. You have to be very accurate. If you’re not, you could be fined for not adhering to the legislation.  

There’s a lot of movement in this space and people are trying to figure out how best to do it. Is there a good answer as to how to do it? Yes and no, as each business operates differently.
 

Tamer: ESG and sustainability is a new and emerging topic that’s starting to be developed across the globe in different jurisdictions, which can cause a lot of uncertainty for organizations because it’s impacting day to day operations. Companies need to comply with new rules and regulations for ESG, and the challenges that are often affecting our clients are around ‘who within our organization is going to be managing these new set of rules?’.  

We’ve seen a lot of EHS people taking on certain elements. You need to have verifiable data that can help you make reports and be accurate in your descriptions. Having the ability to manage data collection points, having a global overview of how your operations are working, and how you’re managing your risk on EHS topics and sustainability, is going to make your job much easier. You can more easily tackle the challenges that decentralized systems are facing when they have to start from scratch. 

We’ve seen a lot of demand from our clients to have some guidance through these new changes, and we’ve created a separate offering for Corporate Sustainability, similar to what we’ve done with EHS, where we’re capturing and reporting on new sustainability changes globally. 

In addition, we’re creating data sets where we’re highlighting to clients the mandatory regulations for them to comply with, and which are voluntary.  

How long does it take to implement Enhesa?

Claus: I’m in favor of doing it fast. For me, it was about creating that very quick oversight, but also being very efficient. The good thing about doing it fast is you get people engaged and knowledgeable about how to use the system. In my experience, nothing good comes out of trying to push it. 

Managing risks — regardless of what risks you’re faced with — is a priority for any organization. If you mean it, then do it fast. If you’re a smaller company, you can do it even faster. I won’t hide that if you want to get into using Enhesa as a newcomer, you have to put effort in from an organizational perspective. However, once you get on the other side of that investment, you get all of the benefits.  

So why wait?
 

Tamer: I agree with you, Claus. If you buy a new phone, why don’t you just use it right away? 

We have our global coverage and in-house experts keeping up to date on the data and the news in areas of expertise and covered jurisdictions. We have all of our information, experts, and tools ready to go as soon as our clients are ready.  

Sometimes I get questions from our clients who are acquiring a new manufacturing site in a region or country they’re not aware of, and they ask how long it will take to secure our help. They’re expecting it will take a long time to establish a system, but our answer oftentimes is that we’re ready to go right away.  

You tell us when you want to start and we’ll help with whatever you need. 

What role do you believe AI will play in companies’ future compliance strategies?

Claus: In many cases, people have a raw understanding of artificial intelligence and machine learning. If you’re using a machine learning tool, it means that it’s learning, so there’s no ‘garbage in, garbage out’; it doesn’t exist from a machine perspective. It doesn’t matter whether it’s good or bad. It still learns very fast, which is an advantage over humans. 

What the machine isn’t able to do is validate whether it’s true or not. If enough people feed the AI with incorrect information, the machine will learn the wrong facts. So you have to understand where the data comes from.  

If I take the system I operate with in a controlled environment, I decide where the data comes from. If I use EHS data and quality data, those are the data sets that I control. Is the machine able to tell whether the data is substantial enough or accurate? Absolutely. The good thing about that is the machine will tell you that it’s discarded that data set. You have full visibility. 

Understand where the data comes from — and if it’s controlled, use it, because it provides efficiency, and efficiency equals less cost.

How is Enhesa using AI to help sites with applicability and monitoring changes in regulation?