By Gregg Wartgow, Special to the Association of Equipment Manufacturers --
A major shift in the field of environmental, health, and safety (EHS) is creating a new level of risk for companies that need to report EHS data, along with new opportunities for those that get it right.
“The future is data,” said Doug Parker, founder and CEO of Ecolumix, a data intelligence company specializing in corporate EHS performance. “Consumers are making more of their purchasing decisions based on either real or perceived environmental performance. Companies that can innovate and demonstrate their environmental performance will have an advantage in the years ahead.”
Parker spoke at AEM’s Annual Conference in November. He explained how EHS data in the digital age is influencing both public sentiment and manufacturer EHS reporting processes.
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Truthful Transparency
Today’s consumers have a higher expectation with respect to a company’s EHS disclosures. First of all, heightened concerns over the environment and public health are directing more attention toward EHS reporting. Secondly, with EHS data more abundant and readily available than ever, the transparency bar has been raised.
Parker said the bar started moving roughly a decade ago. Just prior to that, a certain non-governmental organization (NGO) brought forth a claim saying a certain group of companies was polluting water and negatively impacting drinking water. The NGO claimed it had evaluated all of the EHS reporting from this group of companies, and ultimately concluded that the group was in gross violation of Clean Water Act provisions.
“The real story here is how long it took the NGO to come to that conclusion,” Parker said. First of all, the NGO had to submit Freedom of Information Act (FOIA) records requests. Once in possession of the requested records, a team of analysts had to make copies and read through all of the documents. Parker said it was a yearlong effort. Today, with the help of AI, that same process could likely be completed in days, if not hours.
The advent of AI isn’t the only new development over the past decade. Parker said the EPA’s shift to electronic reporting has ushered in a game-changing evolution from paper to data. Additionally, OSHA requires that injury and illness reporting be made available to the public, as well as incident logs for companies in high-hazard industries.
“As a result of these changes, a company’s information is all out there now,” Parker pointed out.
Additionally, due to a recent U.S. Supreme Court decision, private citizens can use a company’s EHS data, or perhaps even their own, to bolster their arguments in a court of law. In June of 2025, the Supreme Court declined to review two cases that would have narrowed citizen suit authority. That decision has paved the way for something known as an environmental citizen suit, which is an authorized legal action through both the Clean Water Act and Clean Air Act.
“This means citizens have the ability to enforce environmental laws if the EPA isn’t doing its job,” Parker explained. There are prerequisites, however, including the need to demonstrate that harm has been inflicted by the company’s actions, and that the company’s actions are more systemic than anomalies. Regardless, Parker believes environmental citizen suits will become more common moving forward.
Technological innovation is further emboldening private citizens and NGOs to become enforcers of environmental laws, according to Parker. First, the cost of pollution-monitoring equipment is significantly lower than in the past. “That has made it relatively easy for people living near factories, for example, to conduct their own air and water monitoring,” Parker said.
Equipped with the latest pollution-monitoring equipment, NGOs in particular are becoming awash in credible EHS data. According to Parker, some NGOs are now assembling data teams with artificial intelligence (AI) capabilities because data is the backbone of any litigation, permit challenge, or public affairs message they pursue.
“The future is data. Consumers are making more of their purchasing decisions based on either real or perceived environmental performance. Companies that can innovate and demonstrate their environmental performance will have an advantage in the years ahead.” -- Doug Parker
How Do Manufacturers Respond?
Use data and technology to their advantage. Manufacturers must first recognize that data is not only the future for activists and NGOs, but also manufacturers. AI in particular can be a game-changing tool in a manufacturer’s EHS reporting arsenal.
“Environmental data is built for AI because there is so much of it,” Parker said. As an example, Parker said the government conducted a study examining hazardous waste inspections. Using a subset of AI, machine learning, they analyzed thousands of variables to determine what to inspect. Using this AI-driven model, they discovered violations 50% of the time. In the past, relying on spreadsheets and human analysts, they only discovered violations 28% of the time.
“AI can help inspectors find more violations faster,” Parker said. “The good news is that companies can do this, too. They can use AI to identify problems and patterns so they can be proactive about fixing them.”
Bring EHS and sustainability closer together. Another thing manufacturers should do is break down their EHS and sustainability silos. While the two disciplines are as different as they are similar, Parker said creating synergies will enhance transparency, foster more favorable public sentiment, and reduce risk.
“You can think of EHS as the rulebook,” Parker said. “With sustainability, you still have to follow the rules, but you can also measure your impact and how it’s being reduced. Sustainability is also a competitive advantage. In fact, it’s becoming more of a ‘have to have’ today.”
Manufacturers must ensure that EHS and sustainability data are on the same page, which accentuates the importance of both teams working together. For example, when a sustainability report makes a claim that isn’t substantiated by the company’s publicly available EHS data, that throws up a red flag for regulators and NGOs alike.
“The best data a sustainability team has is the company’s EHS data,” Parker emphasized.
Measure where your company stands. Manufacturers must understand the industries they are in and how they stack up from an EHS standpoint. According to Parker, regulators, NGOs, and even the media tend to target the lowest performers. “You don’t have to be faster than a bear, just faster than the slowest person you are with,” Parker related. “You won’t know unless you measure your EHS performance.”
Know your suppliers. Manufacturers should also reevaluate how their suppliers are vetted. Many suppliers are overly fatigued from having to continuously provide sustainability-related data to their customers — especially when the requirements vary from one customer to the next. Parker said it’s a good idea to simply focus on suppliers’ EHS data because it’s already accurate and readily available.
In today’s data age, EHS reporting accuracy and transparency are more important than ever. It’s up to an individual company to determine if that presents more of a risk, or more of an opportunity.
