ECHA, US Commerce Department Officials Remind Companies about REACH Registration

May 20th, 2008

Geert Dancet, executive director of European Chemicals Agency (ECHA), is wrapping up a U.S. tour this week. He is here to raise awareness among U.S. exporters to the European Union (EU) about the REACH pre-registration period, which begins June 1 and runs through December 1.

Dancet is here to emphasize to manufacturers the importance of compliance with REACH, the EU law requiring companies to prove that chemicals that are sold and produced in the EU are safe to use or handle. It is designed to collect information on chemical substances (on their own, in mixtures and in articles) used in any of the European Union jurisdictions. Data will be used to evaluate chemicals’ environmental and human health effects; how they can be used safely; and whether a substance considered by regulators as dangerous can be replaced with a safer substance.

During the pre-registration period, companies are required to report to EHCA substances that are manufactured in, or imported to the EU in annual quantities of 1 metric ton or more per company.

The U.S. Department of Commerce recently signaled plans to help small and medium-sized companies understand what they need to know about REACH and make executives aware of the time frame for REACH compliance.

“Our objective is to make sure small- and medium-sized exporters can stay in the market,” said Rosemary Gallant, a Commerce representative. That is appropriate, since the EU is a market where many U.S. businesses have a significant customer base, partnerships or supply chain relationships. Not meeting REACH requirements opens exposure to significant business risks, including lack of continued access to the EU market.

Companies affected by REACH are advised to check now with EU suppliers. It is imperative that they ensure that substances they depend on will be pre-registered and subsequently registered by suppliers or further up the supply chain.

Companies also need to ensure that their EU-based importers are taking REACH compliance seriously and are acting accordingly. They are likely to need considerable support from their US suppliers. If a company has a question regarding its REACH-affected supply chain continuity, managers may need to consider identifying alternative sources for materials needed for manufacturing.

While some chemical companies outside of Europe have expressed concern about the potential impact of REACH mandates, it’s likely that their desire to continue doing business in EU jurisdictions will eventually assure compliance with the law. The good news is that some companies see REACH compliance as an opportunity to demonstrate how their products are consumer-friendly and their manufacturing practices represent best practices for environmental stewardship.

Even though there is no existing U.S. mandate that is similar to REACH, many companies are proactively responding to increasing demands for Corporate Sustainability Reporting to investors, NGOs and community organizations. Right now, companies’ CSR disclosures typically include information regarding greenhouse gas emissions, worker health and safety management and fair labor practices. However, REACH could prompt responsible companies to expand their CSR reporting to promote the fact that their use of chemicals meets rigid third-party standards that are deemed safe for consumers.

This is another example of the shift among businesses to use socially-responsible and environmentally-friendly practices as a competitive differentiator.

ESS is making the transition to address REACH more efficient with a roadmap and powerful software tools that help streamline REACH compliance. In addition, we are working on further enhancements to our software solutions to improve companies’ ability to execute efficient REACH compliance. Our upcoming enterprise software release includes new tools that provide the ability to export chemical substance information directly from ESS’ chemical inventory database into IUCLID 5, the international database for efficient REACH registration. This will reduce complexities of REACH compliance and make it easier for our customers to leverage existing information to address emerging REACH requirements.

Tags: chemicals corporate social responsibility csr echa eu european chemicals agency iuclid 5 reach rosemary gallant

Entry Filed under: Sustainability, Corporate Responsibility, EHS/HSE Technology