As we head into 2026, Environmental, Health, and Safety (EHS) leaders face a long road of challenges defined by regulatory uncertainty, emerging technologies, and economic volatility. Chad Mathews, Southeast Regional Director and EHS Audit Practice Director for EHS Consulting Services, shares his top predictions for what businesses should expect in the year ahead and how to prepare.
1. Regulatory uncertainty will intensify
Federal efforts to reduce regulatory burdens, especially in energy, chemical manufacturing, and power generation, will continue. But don’t expect uniformity. States like California, New York, Illinois, and Washington are poised to tighten requirements, creating a patchwork of compliance obligations.
What this means for businesses:
- National organizations must decide to either standardize to the most stringent rules or tailor strategies state by state: both options can be challenging.
- Supreme Court rulings could overturn long-standing precedents, adding another layer of unpredictability.
- Compliance teams will need agility and foresight to manage this unpredictability.
2. AI in EHS: Promise vs. reality
Artificial Intelligence is the buzzword of the decade but in EHS, it’s still early days. Expect fits and starts as companies experiment with AI tools for hazard recognition, predictive analytics, and compliance monitoring.
His takeaway?
- AI adoption will accelerate, but true integration is 3 to 5 years away.
- Current use cases like computer vision for hazard detection are promising but not yet robust.
- Organizations should invest strategically, avoiding overreliance on immature platforms.
3. Economic pressures will shape EHS priorities
The economy is sending mixed signals: hypergrowth in sectors like data centers contrasts with cost-cutting in manufacturing and tech. This volatility directly impacts EHS budgets and staffing.
Expect to see:
- Resource constraints leading to gaps in training, recordkeeping, and compliance.
- Increased risk of regulatory agency fines due to high turnover and reduced oversight.
- Companies balancing innovation with cost control, often delaying EHS upgrades.
4. Compliance wild card
When asked what will drive audit findings in 2026, Chad’s answer is clear: it will not be just one issue, but rather systemic gaps caused by overworked teams and shrinking budgets.
What can you do?
- Reinforce training and documentation now.
- Monitor for long-term compliance gaps before they become costly liabilities.
- Audit with trusted third-party experts now to identify and resolve issues before regulators do.
2026 will challenge EHS leaders to navigate uncertainty, embrace technology wisely, and maintain compliance amid economic pressures.
Read more from our EHS team in Cost center to value driver: The hidden ROI of EHS and EHS consultants: Your secret (and strategic) weapon. Also check out The strategic value of focused audits in EHS programs to learn how to reduce EHS audit overload.
