Why chemicals management and sustainability are top priorities for business
How the interplay between chemicals management and sustainability initiatives is driving business decisions
Chemicals management has become an increasingly complex, yet crucial, responsibility for businesses looking to meet global regulations to promote safer and more sustainable products. With growing local and regional regulatory requirements, consumer demand for safer products, and the horde of environmental issues triggered by material waste is reshaping how businesses approach their chemicals management and sustainability initiatives.
In this article, we detail the importance of sustainability within chemicals management and why companies are prioritizing this relationship in their processes, drawing upon the findings from our survey of 300 chemicals management professionals and follow-up report.
Why is sustainability so important in chemicals management?
Sustainability plays a vital role in many sectors, but within chemicals management, its importance is even more critical as it stands to protect both human health and the environment.
While this is especially relevant to companies that work directly with chemicals, even businesses that may not consider themselves as ‘working with chemicals’ are affected — such as those interacting indirectly with chemicals through their use of cleaning companies for corporate buildings, purchase of inks for office printers, or laminated ID cards for office entry, to name a few.
Chemicals are everywhere
Chemicals form the foundation for everything around us, from everyday products to manufacturing and industrial processes. It’s crucial to recognize when these substances might pose a threat. With growing awareness of the dangers of certain chemicals like PFAS, global authorities are introducing stricter regulations to monitor, moderate, and restrict certain substances. Consumer demand for safer and more sustainable products is increasing.
Regulatory initiatives such as the EU’s REACH regulation, Corporate Sustainability Due Diligence Directive (CSDDD), and TSCA’s Significant New Use Rules (SNUR) for PFAS are examples of regulations that place particular emphasis on sustainable chemicals. While these requirements increase the pressure on businesses to comply, they’re vital in promoting a safer and more sustainable future.
Why are companies prioritizing chemicals management and sustainability?
The adoption of chemicals management and sustainability initiatives is driven by the growing demand for safer products and processes. According to our survey of over 300 chemicals management professionals, here are the top reasons companies are integrating sustainability into their practices:
1. Staying compliant with chemical regulations
65% of survey respondents highlighted compliance with chemicals regulations as a top priority. Combining sustainability with chemicals management is crucial for meeting the regulatory demand for safer products and processes.
2. Protecting the environment, consumers, and workers
55% of respondents said that protecting the environment, consumer health and safety, and worker safety in the workplace is a vital goal, driving the search for more sustainable chemicals.
Harmful chemicals, or emissions from operations that use toxic substances, can have devastating impacts on our environment, polluting water, soil, and air. Similarly, consumers and worker exposure to dangerous chemicals negatively impacts health, bringing about a host of potential long-term illnesses.
3. Safeguarding the business from penalties and scandal
53% of respondents identified risk mitigation as a key concern. Legislation is evolving constantly, with additional chemical restrictions or bans forcing companies to quickly adapt products and processes to meet new regulatory requirements.
Failure to comply can lead to hefty financial penalties and a loss of reputation.
4. Achieving supply chain transparency
57% of respondents said that achieving supply chain transparency was an important goal. With a full view of chemicals used throughout the lifecycle of their products, businesses can conduct more effective chemical assessments to identify problem areas and source more sustainable alternatives — often before legislation demands it, keeping them ahead of compliance regulations.
5. Making safer and more sustainable products
49% of the professionals noted making safer and more sustainable products as a critical goal, highlighting the demand for products which don’t pose any harm to adults, children, or the environment.
Where is the pressure coming from?
Survey results indicate the largest motivators behind integrating sustainability into chemicals management practices, but where are the pressures coming from? According to our survey:
- 81% of chemicals management professionals say regulators are their main source of pressure;
- 60% pointed to consumer demand for safer products; and
- 47% mentioned competitors as a source of pressure.
This highlights that external pressure is felt more strongly than any internal demands. Pressure from the C-suite (11%) or employees (29%), were much lower.
These results highlight the complex interplay of factors driving business decisions and priorities in chemicals management and sustainability. While regulatory pressure is the strongest driver, consumer expectations, employee concerns, and competitor dynamics also influence sustainable initiatives within chemicals management strategies.
Learn how to bridge the gap: Download the full report now
Despite recognition of the drivers, a significant gap between chemicals management practices and sustainable chemistry initiatives remains, even as external pressures force businesses to rethink their approach.
For further insights into the challenges and solutions businesses face in this evolving landscape, read the full report: The risk-opportunity divide: Closing the chemicals management gap with sustainable chemistry.