Chemical Footprinting Has Arrived
In a world where chemical regulations and market demands for safer chemicals are on the rise, how can investors know which firms are most at risk from these emerging trends and which are best positioned to capture new markets with safer products? How can institutional purchasers know which suppliers are taking the systematic steps necessary to identify and reduce chemicals of high concern in products and supply chains? And how can companies demonstrate to purchasers and investors their leadership in chemicals management when they lack an objective, third-party metric that recognizes their efforts?
The first annual Chemical Footprint Project report, released this week, highlights the financial risks that companies face due to chemicals of high concern (CoHCs) to human health and the environment in their products and supply chains. The report features key findings from the 2015 survey, including an assessment of how companies manage the potential liabilities posed by hazardous chemicals and opportunities for improvement. These financial liabilities include “the three R’s” of: regulatory risks (costs of current and future regulations); reputation risks (costs of being exposed publicly with hazardous chemicals in products or supply chains); and redesign risks (costs related to not redesigning or reformulating products before regulations change or markets shift).