Chemicals are used in the creation and manufacture of many everyday objects. All sectors of activity are concerned, from food and health to housing and textiles.
In recent years, however, pollution from "eternal chemicals" and single-use plastics have been denounced for their harmful effects on the environment.
Governments around the world now recognize that better regulation is needed to manage chemicals and hazardous waste, which will have significant financial repercussions for the companies that manufacture and use them.
Published in 2020, the EU Strategy for Sustainable Chemicals is considered to be the biggest shake-up in decades for the chemical industry. The strategy is part of the Green Pact for Europe, a set of cross-sectoral policy initiatives aimed at achieving a green transition and carbon neutrality by 2050. Among these measures, the following are worth noting:
- Ban the most harmful substances in consumer products and phase out PFAS
- Improving risk assessments by taking into account the cocktail effect of chemicals
- Create a simpler procedure based on the "one substance, one assessment" principle
- Promoting the resilience and sustainability of chemical supply chains
- Tighten global standards and invest only in chemicals that are safe and sustainable
This strategy concerns a third of the substances commonly used in everyday life. According to market estimates, the substances that will be banned by 2040 represent 70 billion euros in sales, or around 12% of the European chemicals market, while other products will be reformulated or more strictly regulated.
Companies that have already started to reduce hazardous substances, are working on safer solutions and are managing the impact of their operations are viewed positively.
Good governance and transparency are also sought-after criteria, as they help to mitigate risk. Companies that fail to keep pace with market developments are likely to face higher adaptation costs in the future, and lose market share.
(Source Allnews)