In their latest industry report RiskMetrics screened 13 American, European and Japanese big players in the Household product and cosmetic sector. Besides other environmental, social and governance criteria RiskMetrics treated the issue of chemical safety as the most important and weighted it heavily.
Upcoming legislation as the TCSA reform in the US, Chinese regulations, bans in certain US States and the implementation of REACH in Europe will force companies to reformulate their products when using substances of very high concern. Consumer awareness and therefore risking reputation loss is also an increasing motivator for an anticipatory approach.
Once again the SIN-list has been used by RiskMetrics as a tool to measure the company´s exposure to chemical safety risks. An oversight on product content and initiatives to phase-out of SIN-list chemicals have been the two major issues.
Some of the rated companies are innovators: they are phasing-out hazardous substances and reformulating their products already, whereas others resist and haven´t even started.
A risk of loosing reputation or even damage a brand can also arise from the growing gulf between marketing claims of environmental friendly products, representing only 5% of product manufactured, and the rest of companies‘ product portfolio.
To implement a sound chemical management companies have to tackle the lack of transparency down the supply chain and the various product formula used in different countries.
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