Sustainability Data Management
Sustainability Data Management
Sustainability Data Management
February 2013
© NAEM 2013
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 1
About this Report
NAEM is pleased to present the Approaches to EHS & Sustainability Data report, which examines the
primary tools environment, health and safety (EHS), and sustainability leaders use to ensure regulatory
compliance, increase efficiency and support public disclosure of sustainability achievements. Putting these
systems in place requires a great deal of collaboration, time and effort.
NAEM first began tracking the question of how companies manage EHS data at its early workshops about
management information systems in the late 1990s. Beginning in 2001, NAEM expanded its efforts to
also include a formal biennial benchmarking survey that looks at how companies are managing EHS and
sustainability data as well as the capabilities of available software tools.
Over the years, the survey has continued to evolve to reflect changes in usage and the maturation of
the software marketplace. This year’s report is a snapshot of how companies are using management
information systems to track progress, improve performance and facilitate external communication.
NAEM is providing this free of charge with the primary goal of advancing the collective understanding of
this important issue.
As a non-profit association focused on increasing the success of all EHS and sustainability managers,
NAEM does not recommend any one approach or vendor, but rather aims to illuminate common data
management practices. We hope the report will contain valuable insights for anyone working on EHS
and sustainability data management, whether it is with the purpose of implementing a new system,
benchmarking a current system, or expanding the offerings of a commercial solution.
We would like to gratefully acknowledge the support of our advisory committee, who helped shape the
questionnaire as well as our financial supporters whose contributions made the research possible.
Sincerely,
1. Glossary of Terms 4
2. List of Figures 5
3. Executive Summary 7
5. Research Results:
6. Acknowledgments 47
About NAEM
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 3
Glossary of Terms
Approaches: Respondents were asked to indicate which approach their company primarily uses to manage its EHS and
sustainability data. They were given the option of:
• Commonly available tools: This option was used to indicate when a company primarily uses programs such
as Microsoft Excel, Microsoft Access, Microsoft SharePoint, Microsoft Outlook, etc. to manage its EHS and
sustainability data.
• Internally developed system: This option was used to indicate when a company primarily uses a system that was
built by the company itself rather than an off-the-shelf solution or a commonly available tool.
• Off-the-shelf solution: This option was used to indicate when a company buys a commercially available software
system. This does not include tools such as Microsoft Excel, Microsoft Access, Microsoft Share Point, Microsoft
Outlook, etc.
• Combination: This option was used to indicate when a company does not have a primary data management
system, but instead uses a relatively equal combination of internally developed systems, commonly available tools
and/or off-the-shelf solutions.
Business Objectives: This term is used to refer to the goals a company hoped to achieve with the implementation of its
current data management system. For respondents who indicated they are in the market for a new system, they were asked
to rank the goals they hoped to achieve with the implementation of a new system.
Capabilities: The data points that information management system allows a company to track.
Data management: This term is used to denote the business management process associated with collecting, tracking and
reporting data.
Facility: This term includes manufacturing sites, office buildings and other physical locations where business operations
take place.
Implementation: This includes all activities until the date the system goes live. Implementation costs are therefore those
incurred until the system goes live, excluding licensing or subscription fees.
Maintenance: This refers to all activities that keep the system updated and functioning properly on an ongoing basis.
Maintenance costs may include licensing or subscription fees.
Sustainability: The survey did not define this term for respondents.
System: This term refers to the type of software, database or tool a company uses to manage its data.
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 5
List of Figures
System Implementation and Maintenance
Figure 33: Implementation Time 42
Figure 34: Function Responsible for Building Internally Developed Systems 42
Figure 35: Implementation Time by Number of Employees 43
Figure 36: Median Implementation Cost by Approach 43
Figure 37: Implementation Cost by Number of Employees 44
Figure 38: Function Responsible for System Maintenance 45
Figure 39: Maintenance Cost by Approach 45
Figure 40: Maintenance Cost by Number of Employees 46
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 7
Executive Summary
Companies use a variety of approaches to meet all their EHS and sustainability data
management needs
Among respondents, 34 percent use a combination of approaches to meet all of their data management needs. The remaining
two-thirds of respondents said their companies have a ‘primary’ approach, which consists of either commonly available tools,
an internally developed system or an off-the shelf-solution. Even those that have a primary approach, however, use alternative
approaches at least some of the time, according to the results.
Combination 34%
N = 106
The following chart shows the top ten capabilities most frequently managed by each approach.
Percent of Respondents
Commonly Available Tools
Using this Approach
SARA Title III reporting (Tier II, TRI) 35%
Percent of Respondents
Internally Developed System
Using this Approach
Accident/Incident management 47%
Percent of Respondents
Off-the-Shelf Solution
Using this Approach
Chemical/MSDS management 62%
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 9
Executive Summary
Supply chain monitoring and product footprinting are the greatest unmet needs
Respondents seem to be satisfied with the core EHS capabilities of their chosen approach, particularly in the areas of injury and
illness reporting, incident management and auditing. Emerging issues such as supply chain monitoring, product footprinting, on
the other hand, remain unmet needs. Managing lifecycle data, for example, is an unmet need for 38 percent of respondents; 30
percent of respondents reported that material traceability and supply chain transparency is also data they would like to collect
but currently cannot.
Unmet Need
3. Product liability/REACH/RoHS/TSCA
N = 73
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N = 106
Don't know
Rank Commonly Available Tools Internally Developed System Off-the-Shelf Solution Combination
N = 75
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 11
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Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 13
Methodology & Demographics
Objectives
Since 2001, NAEM has conducted an EHS and sustainability data management survey in conjunction with the biennial EHS and
sustainability software conference. The purpose of this benchmark study is to understand:
Survey Design
This study reprises core concepts from NAEM’s previous research on EHS and sustainability management information systems
and incorporates input from an advisory committee composed of senior EHS and sustainability leaders. The committee helped to
shape the project and additionally served as beta-testers, completing an initial draft of the questionnaire.
The resulting online survey consisted of 31 questions, which were broken into sections similar to those in this report.
The online survey was fielded between Dec. 20, 2012 and Jan. 18, 2013.
Figure 1. Annual Revenue
Company Demographics
The survey asked respondents a number of identifying questions to facilitate effective benchmarking. The following charts provide
a profile of responding companies:
• The respondents represented companies with revenues ranging from less than $250 million to more than $50 billion. The
largest group (49 percent) reflected the perspective of companies with revenues of between $1 billion and $10 billion.
Annual Revenue
Figure 1
49%
20%
10%
9%
6% 7%
Less than $250M $250M - $1B $1B - $10B $10B - $25B $25B - $50B More than $50B
N = 105
N = 105
25% 25%
24%
16%
11%
Less than 1,000 1,000 - 10,000 10,000 - 20,000 20,000 - 80,000 More than 80,000
N
N ==
1106
06
• Responding companies have a broad geographic reach, covering all of the world’s major economies and regions.
Canada 62%
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 15
Methodology & Demographics
• Responding companies operate in a wide variety of industries, with the strongest representation from manufacturing
(42 percent).
Industry
Figure 4.4Industry
Figure
Manufacturing 42%
Utilities 15%
Chemicals 11%
Consumer Products 8%
N = 106
• Most respondents self-identified as operating with a medium level of EHS risk relative to companies operating in other
industries.
EHS RiskFigure
Profile
5. EHS Risk Profile
Figure 5
65%
N = 107 N = 107
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 17
Data Management Approaches
This section addresses how respondents currently approach their data management needs. The information is segmented by risk,
revenue, headcount and industry to facilitate benchmarking.
Results from later questions on how specific needs are met by different types of systems reveal that even the two-thirds of
respondents who reported having a primary approach use different types of systems to meet all of their EHS and sustainability
data management needs. A company that primarily uses an internally-developed system, for example, may turn to an off-the-
shelf solution for a specific set of capabilities. The ‘System Capabilities and Effectiveness’ section of this report provides more
granularity and further explores how companies diversify their data management portfolios to meet the multitude of EHS and
sustainability needs.
Combination 34%
N = 106
N
N==
1104
04
In order to justify the expense, companies tend to weigh cost against avoidance of risk. According to one respondent that
primarily uses commonly available tools, the biggest driver for choosing this approach was, “perceived level of risk based
on rate of return for off-the-shelf solution or time spent developing an internal system.” Another respondent echoed
with, “Cost has been a limiting factor. The present system works, so justifying the cost is justifying avoidance of risk. The
perception of risk is low.”
Companies that primarily use an off-the-shelf solution tended to cite ‘ease of use’ as the primary driver behind their
decision to purchase software. Other reasons included the ability to customize the solution, along with increased
efficiency, consistency and transparency. Most companies that have chosen to manage data using an internally
developed system also cited customization as a primary driver.
For those who are using a relatively equal combination of systems, a decentralized EHS structure was often cited as the
deciding factor behind adopting this combination approach. As one respondent explained, “We are a siloed company
and each business unit determines what technologies are needed to best manage data and maintain compliance.”
Another deciding factor for a combination approach was the lack of a coherent data management strategy, according to
respondents. “Systems were developed at different times,” one respondent said. “Various components were selected to
meet the needs at that point in time.” Another significant driver for companies to adopt a combination approach was the
fact that they couldn’t find a single solution that met all of their needs.
While lack of funding seems to be keeping companies reliant on commonly available tools, some respondents advocate
for these tools. As one respondent explained, “familiarity, portability, ease-of-use/training, remote access and cost,” were
the biggest drivers behind their company’s decision to use commonly available tools.
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 19
Data Management Approaches
Consumer-facing industries tend to use commonly available tools or a combination
of systems
Respondents from companies in the consumer products industry tend to manage EHS and sustainability data using a
combination of approaches, while retail and services companies stick with commonly available tools. Utilities, along with
companies in the pharmaceuticals and biotech industries, are the most likely to employ off-the-shelf solutions for their EHS and
sustainability data management needs.
Off-the-Shelf Solution
Combination
Consumer Products 13% 13% 13% 63%
Combination
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
=
103
N = 104
The number of facilities a company has may also suggest a decentralized structure1, which is another potential driver for using
a combination of systems. Indeed, in response to an open-ended question about the primary driver for using a combination of
systems, one respondent wrote, that it was “primarily the result of the decentralized operation structure of the company.”
Data Management
Figure 9. DataApproach by Number
Management of by
Approach Employees
Total Number of Employees
Figure 9
Internally Developed
20,000 - 80,000 8% 21% 21% 50%
System
Off-the-Shelf Solution
10,000 - 20,000 28% 12% 24% 36%
Combination Co
Too
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
N=
=103
103 Co
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
N==
1104
04
1. NAEM’s December 2012 benchmark on EHS & Sustainability Staffing and Structure revealed that companies with a large number of
facilities tend to be decentralized.
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 21
Data Management Approaches
Off-the-shelf solutions are the newest systems
The average age of an EHS and sustainability data management system is a little more than eight years. Off-the-shelf solutions,
however, tend to be newer, with an average age of four years. The age of other data management approaches averaged nine or
ten years.
Combination 9.7
N
N ==
998
8
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 23
Integration with Other Business Information Systems
Integration is rare
On average, about 50 percent of companies expect to integrate, or have already integrated, their data management system with
other business information systems. Companies that have plans to integrate, however, do not seem to know when the integration
will occur, and very few expect it to happen in the next year.
Integration
Figure 17.
Figure 12 Integration
Already integrated
Third party data 12% 7% 28% 53%
Expected to be
Already integrated
integrated by the
Risk Management 20% 5% 27% 48%
end of 2013
Plans to integrate,
Manufacturing 16% 5% 24% 54% but a date is not
yet set to be integrated by the
Expected
end of 2013
Maintenance 18% 8% 25% 49% No plans to
integrate
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
=
98
N = 98
Integration by Risk
Figure 13
Figure X. Integration by EHS Risk profile
62%
Third party data 43%
36%
71%
Risk Management 47%
36%
65%
Manufacturing 41%
40%
62%
Maintenance 45%
55%
57%
Supply Chain/Inventory/Purchasing 47%
55%
High EHS Risk
57%
Human Resources 46%
55% Medium EHS Risk
High EHS Risk
N = 97
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 25
Integration with Other Business Information Systems
On average, about 20 percent of employees access EHS and sustainability data systems
The level of access to a company’s data management system varies according to approach. On average, 20 percent of employees
have access to a company’s system. Those that use a combination of systems give access to 27 percent of employees; those with
internally developed systems only provide access to 10 percent of employees.
When it comes to compiling, analyzing and reporting data, the results show that only about three percent of employees access
the data for this purpose. Companies using commonly available tools provide the greatest level of access to employees for data
analysis and reporting (4 percent), while companies using internally developed systems provide the least (2 percent).
Access to System
Figure 13. Percent of Total Employees
Figure 14 who have Access to the
System
N
==
95
N 95
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 27
Business Objectives for Selecting a Data Management Approach
Better data management is expected to improve performance, communication
Respondents were asked to rank a set of 14 business objectives in terms of how important they were to their company when
considering the implementation of a new EHS and sustainability data management system. Improving performance rose to the
top, as did improving communication about EHS and sustainability activities.
Business Objective
4. Standardize processes
N = 75
Rank Low EHS Risk Medium EHS Risk Low EHS Risk
Improve communication about EHS Improve EHS and sustainability Improve EHS and sustainability
1
and sustainability activities performance performance
Improve communication about EHS
2 Save time Standardize processes
and sustainability activities
Improve EHS and sustainability Improve corporate-level visibility on
3 Reduce risks
performance EHS and sustainability performance
Improve corporate-level visibility on Improve facility-level visibility on EHS Improve corporate-level visibility on
4
EHS and sustainability performance and sustainability performance EHS and sustainability performance
Improve communication about EHS
5 Reduce injuries and illnesses Standardize processes
and sustainability activities
N = 74
Half of all responding companies indicated they are in the market for some type of off-the-shelf solution. Among prospective
buyers, the largest segment (41 percent) is composed of those with a combination of systems. It’s not clear, however, whether these
potential purchasers are looking for a comprehensive solution to replace their primary system or are seeking another addition to
their diverse portfolio of data management software.
5% Yes
Yes Commonly
Combination Available
No
Tools
No Off-the-Shelf Solution
Don't know 25%
Don’t Know Internally Developed
41% System
50% Internally-Developed
45% System
19% Off-the-Shelf
Commonly-Available Solution
Tools
15%
Combination
N = 106 N = 106
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 29
Business Objectives for Selecting a Data Management Approach
Continuous improvement seems to drive prospective buyers of off-the-shelf solutions
Those who are in the market for off-the-shelf software seem to seek a solution that will help them advance their programs. For
those who currently use commonly available tools, these objectives include risk and injury reduction. Respondents that use
internally developed systems seem to seek a system that will save time, standardize processes and improve productivity. Those
who already have an off-the-shelf solution seem most ambitious in their goals, seeking a transition to tracking leading indicators,
as well as improving visibility and communication about their EHS and sustainability activities. For the majority of buyers,
who are using a combination of approaches, the purchase drivers are a mix of the aforementioned goals, ranging from process
improvements and injury reduction to facilitating communications.
Rank Commonly Available Tools Internally Developed System Off-the-Shelf Solution Combination
Improve corporate-level
3 Reduce injuries and illnesses Standardize processes visibility on EHS and Reduce injuries and illnesses
sustainability performance
Improve communication
4 Reduce risks about EHS and sustainability Save time Reduce risks
activities
N = 75
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 31
System Capabilities and Effectiveness
In this section, respondents were no longer asked questions about their primary approach. Instead, they were asked to indicate
which type of system they use to collect data among a list of 41 different capabilities. Because the results represent the
perspective of all respondents, regardless of primary approach, they offer a more detailed look at how companies use different
EHS and sustainability data management systems to meet different needs.
Even companies with a primary approach may use different systems for different needs
While two-thirds of the survey respondents reported having a primary approach to managing data, the results from this section
demonstrate that few companies depend on a single system to meet all of their EHS and sustainability data management needs.
A company that primarily uses an internally developed system, for example, may turn to an off-the-shelf solution for a specific set
of capabilities.
It’s important to note that while the following charts weigh each capability equally (i.e. injury/illness reporting is weighed the
same as carbon tracking), some of the capabilities are much more important to the EHS function and companies spend much
more time on some than on others. Therefore, even though respondents who primarily use commonly available tools only use
those tools for 32 percent of the 41 capabilities listed below, that small percentage could be the handful of that consumes 90
percent of their time and energy.
Commonly Available
Average Percent Internally
of 41 Capabilities Being Met Developed Off-the-Shelf Breakdown for
Tools
by Each Approach Systems Solutions Combination Users
Figure 21 AverageFigure
Percent
22 of 41 Capabilities Beingn
AverageMet by Figure
Each
Percent Approach
of 41
23Capabilities Being MetAverage
by EachPercent
Approach
Figureof24
41 Capabilities Being Me
Primary Approach = Commonly-Available Tool
Primary Approach = Internally-Developed Syste
Primary Approach = Off-the-Shelf Solutio Primary Approach = Combin
20% 18%
Commonly-Available Tools 22%
30%
Commonly-Available Tools
28% 29%
32%
Internally-Developed System
Internally-Developed System
Commonly-Available Tools
Off-the-shelf Solution
61% 17%
Off-the-shelf Solution Internally-Developed System
N = 19 N = 17 N = 19 N = 29
Off-the-Shelf Solution
There are very few unmet needs in this category of health and safety capabilities, but 44 percent of the respondents reported that
voluntary protection programs do not apply to their company.
Commonly-Available To
Off-the-Shelf
Industrial hygiene data 21% 25% 25% 17% 12% Solution
Unmet Need
Internally-Developed Sy
Hazard identification and assessment 30% 43% 6% 10% 10%
N/A
Off-the-Shelf Solution
Employee health and wellness 14% 15% 35% 20% 16%
Emergency management and preparedness 27% 30% 6% 17% 19% Unmet Need
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
N ==
880
0
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 33
System Capabilities and Effectiveness
Internally developed systems and off-the-shelf solutions often used for incident data
Internally developed systems, followed closely by off-the-shelf solutions, are the primary ways companies manage data related
to ‘injury and illness reporting’, ‘incident management’, and ‘corrective action tracking’. Very few respondents reported using
commonly available tools for these types of capabilities.
This category of capabilities also has the lowest rate of respondents with unmet needs. In most cases, less than 10 percent of
respondents are struggling to meet these needs.
Approaches Used
Figure 26. Data for Incident
Management TrackingUsed
Approaches and for
Management Capabilities
Incident Tracking and Management
Figure 26
Capabilities
Off-the-Shelf
Injury/Illness reporting 11% 43% 37% 8% Solution
Off-the-Shelf Solutio
Incident reporting, investigation and tracking 14% 47% 34% 4% Unmet Need
N/A
Accident/Incident management 9% 47% 37% 3%4%
Unmet Need
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
=
80
N = 80
N/A
Off-the-Shelf
GHG inventory and reporting 14% 40% 23% 12% 12%
Solution
N/A
Environmental auditing/inspections 29% 41% 23% 4% 4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
=
80
N = 80
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 35
System Capabilities and Effectiveness
Managing product regulations a key unmet need for respondents
Although particular types of systems are commonly used to track particular compliance and regulatory data, no one approach
seems to dominate this area for most respondents. The key unmet need for this category is data management for product
regulations such as REACH, RoHS and TSCA (26 percent).2 A nearly equal number of respondents, however, said this issue does
not apply to their company.
SARA Title III reporting (Tier II, TRI) 35% 25% 16% 16% 9% Commonly
Commonly-
Available
Tools
Available
Tools
Regulation tracking and monitoring 23% 15% 36% 18% 8%
Internally
Developed
Product liability/REACH/RoHS/TSCA 18% 24% 5% 26% 27% System
Internally-
Developed
System
Compliance reporting, investigation and tracking 24% 42% 21% 8% 5% Off-the-Shelf
Solution
Compliance calendar 26% 30% 26% 14% 4% Off-the-
Unmet
Shelf Need
Solution
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N/A
N
N ==
880
0
Unmet
Need
N/A
2. Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), Restriction of Hazardous Substances Directive
(RoHS), and the Toxic Substance Control Act (TSCA).
Material traceability and supply chain transparency 10% 22% 11% 30% 27%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N
N ==
8
800
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 37
System Capabilities and Effectiveness
Supply chain monitoring and product footprinting issues are the largest unmet needs
The largest unmet needs, according to the results, are in the areas of ‘life-cycle assessments/product footprinting’, ‘material
traceability’ and ‘supply chain transparency’. This may be due to the fact that product stewardship is still emerging area of focus
for many companies. It’s important to note, however, that almost the same number of respondents indicated that these data
management issues do not apply to their company.
Unmet Need
3. Product liability/REACH/RoHS/TSCA
N = 73
Respondents seem most satisfied with how their systems manage health and safety data
On average, respondents rate their systems that manage data related to accident and incident management as most effective.
Other areas where respondents are most satisfied include ‘chemical and MSDS management’, ‘air emissions management’ and
‘environmental reporting’.
Respondents are less satisfied with their data management systems when it comes to issues related to ‘material traceability’,
‘supply chain transparency’, ‘product footprinting’ and ‘product liability’. This explains why companies see these areas as the
biggest unmet needs (Figure 30).
2 Incident reporting, investigation and tracking Life-cycle assessment (LCA) product footprinting
4 Chemical/MSDS management Responding to external requests for information (CDP, DJSI, etc.)
N = 73
Most Effective
Least Effective
Responding to external requests for Material traceability and supply chain Emergency management and
2
information (CDP, DJSI, etc.) transparency preparedness
5 Regulation tracking and monitoring Job hazard/Risk assessment (JHA) Annual sustainability reporting
N = 73
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 39
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Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 41
Implementation and Maintenance
Implementing a data management system takes about 20 months
The average implementation time for a data management system is about 20 months, a rule of thumb that is shaped by a
company’s chosen data management approach. For those companies using internally developed systems or an off-the-shelf
solution, the average implementation time is about a year. A company that uses commonly available tools or a combination of
systems should expect implementation to last about twice as long.
The longer implementation times for companies using a combination of systems may be due to the fact that these companies
tend to integrate their EHS and sustainability data management systems with other business information systems. Respondents
may also report longer implementation times with a combination of systems because all of the systems are not developed at the
same time.
Figure 18. Average Implementation Time by Data Management
Implementation Time
Approach (Months)
Figure 33
Commonly-Available Tools 23
Internally-Developed System 12
Off-the-Shelf Solution 13
Combination 26
N
N= =
80
80
EHS 52%
IT 9%
Consultant(s) 7%
Other 5%
N
N
=
4= 4
44
41
25
16
14
13
Less than 1,000 1,000 - 10,000 10,000 - 20,000 20,000 - 80,000 More than 80,000
N
N ==
8
800
Median
Figure Implementation
20. Median Cost Cost
Implementation by Approach
by Data Management Approach
Figure 36
Combination $100,000
N
N ==
556
6
3. It is important to note that respondents were asked not to include licensing or subscription fees when calculating implementation
costs. These types of costs were included in the annual maintenance costs, which are discussed on pages 45 and 46.
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 43
Implementation and Maintenance
Implementation costs are driven by company size
As previously mentioned, the number of employees affects implementation time more so than a company’s current approach
to data management. Companies that employ fewer than 1,000 people tend to experience the lowest implementation costs
($20,000), which makes sense, since smaller companies most frequently use commonly available tools (Figure 9). Companies
with more than 80,000 employees typically have the highest implementation costs ($175,000).
The same is true of implementation costs. In Figure 36, the data shows that implementation costs are typically the same for
all approaches other than commonly available tools. The results in Figure 37, however, show a very strong relationship between
company size and implementation costs.
$175,000
$100,000 $100,000
$35,000
$20,000
Less than 1,000 1,000 - 10,000 10,000 - 20,000 20,000 - 80,000 More than 80,000
N
N ==
5
566
Another lesson that respondents said they learned about the implementation process was the value of working with a non-biased
third party to help with software selection, developing a detailed requirements document and ensuring “full backing of business
leadership.” Respondents also reported underestimating how much time and resources were necessary for the implementation
of their data management system.
EHS 59%
IT 15%
Consultant(s) 2%
Other 6%
N
N==
997
7
Figure 36 shows very little difference in implementation costs between the different types of data management approaches
(except for commonly available tools). Maintenance costs tend to be much lower for companies using internally developed
systems ($11,000); the other three have very similar implementation costs (Figure 39).
Figure 23.Maintenance
Median Annual
CostMaintenance
by Approach Cost by Data
Management Approach
Figure 39
Combination $50,000
N
N=
=61
61
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 45
Implementation and Maintenance
Larger companies spend more on annual maintenance
Maintenance costs, like implementation costs (Figure 37), are higher for larger companies. Although larger companies tend to rely
on internally developed systems (which have lower annual maintenance costs), companies employing more than 80,000 people
reported annual maintenance costs of $75,000. This suggests that the size of a company, not its approach to data management,
is a better determinant of annual maintenance costs.
On the opposite end of the spectrum, companies with fewer than 1,000 employees typically experience annual maintenance
costs of only $4,000. This is most likely due to the fact that smaller companies tend to primarily use commonly available tools to
meet their EHS and sustainability data management needs (Figure 9).
Figure 24.Maintenance
Median Annual
Cost Maintenance Costs by Total Number
by Number of Employees
of Employees
Figure 40
$75,000
$47,500
$30,000 $30,000
$4,000
Less than 1,000 1,000 - 10,000 10,000 - 20,000 20,000 - 80,000 More than 80,000
N
N ==
6
611
Advisory Committee
NAEM would like to thank the members of the benchmarking advisory committee for their input into the survey design:
David Asplund, Jim Cline, Hal Ehrhardt, Ana Fernandez, Luke Freeman, Josh Gibson, Deb Hammond, Ellen Huang, Grant
Hilbers, Kimberly Jackson, Joanne Jones, Marty Moran, Laura Murphy, Tim Puyleart, Kelvin Roth, Laura Scott and Tony
Shea.
Report Sponsors*
NAEM gratefully acknowledges the following sponsors, whose support is helping to advance the collective knowledge of our
profession on the topic of data management trends and approaches:
Credit360
Enablon
Intelex
KMI
Analyst
Virginia Hoekenga
Deputy Director
NAEM
Report Design
Ellie Diaz
Chaos Studios
Report Editor
Elizabeth Ryan
Manager, Interactive Media and Communications
NAEM
Media Inquiries
For more information about this report or to request an interview with an NAEM analyst, please contact NAEM at (202)
986-6616.
* Financial sponsorship of this report supported the costs of production and dissemination only. The survey design and results were developed
by NAEM in partnership with an advisory committee of members.
Approaches to Managing EHS & Sustainability Data © NAEM 2013. All rights reserved. 47
48 © NAEM 2013. All rights reserved.