Cost and Risk Analysis for EHS Management Systems

This technical report provides a comprehensive cost and risk analysis for Environmental Health and Safety (EHS) and Sustainability management systems, focusing on the decision to build in-house solutions versus purchasing commercial EHS software. It outlines three strategic approaches: DIY EHS-led tools, internal IT-led custom software, and EHS software from specialist vendors. The report details the capabilities required for modern EHS work, which extend beyond simple incident tracking to include complex needs such as industrial hygiene, chemical management, and ESG reporting. It presents a five-year total cost of ownership comparison for a hypothetical company with $1.5 billion in revenue and fifteen operating sites, highlighting the hidden costs associated with DIY and IT-led builds. The analysis concludes that EHS software is generally more cost-effective, safer, and capable than building custom solutions, emphasizing the importance of considering long-term operational costs and compliance risks.