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From what I remember, that binary is used by the "Event Module" module in SunMC, an internal module that's slotted into your Agent but hidden from view in the Console. I believe it hooks into the kernel events exposed by "syseventd" and gives other SunMC modules a data feed from Solaris.
So "emd" is a little bit of wiring that funnels kernel updates into SunMC, so other modules can read and act on that info.
But I haven't looked at that stuff in awhile. If "emd" it's acting up you should open a support ticket with Oracle and have them take a look.