Greening the supply chain: protecting consumers - and retailers - through an improved REACH
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1 Greening the supply chain: protecting consumers - and retailers - through an improved REACH Michael Warhurst EU Chemicals Policy WW European Policy ffice, ussels Contents Why is WW interested in chemicals? Problems with greening the supply chain REACH - how can it help? ptimising REACH - improvements needed Realism on impact assessment of REACH REACH priorities for retailers and the supply chain? Conclusions
2 Why is WW interested in chemicals? The problems caused by toxic chemicals are a global priority for WW Wildlife - and humans - throughout the world are contaminated by industrial chemicals And there is considerable evidence of wildlife (and human) impacts. WW is working to support a more sustainable production and use of chemicals We consider that REACH is a key part of this work WW has therefore launched an international campaign in favour of a strong REACH: Contamination - part of the problem A growing number of industrial chemicals are known to contaminate wildlife and people, for example: ominated flame retardants Contaminating people and wildlife across the world Two phased out in Europe (penta and octa) Deca is in increasing use, despite contamination of polar bears, birds of prey and people Even though industry claimed it wouldn t accumulate The EU decided in May not to phase out Deca, in the face of aggressive industry lobbying Perfluorinated chemicals (PCs) Including PS (Scotchguard) PA (used in teflon manufacture and telomers (used in coatings, break down into PA) Contamination by PS and PA exists across the world PS has been voluntarily phased out, PA and telomers are in widespread use MacDonalds have admitted using telomers in their food packaging
3 My perfluorinated chemicals rom WW s sampling of the blood of 47 people for 101 chemicals. All 45 samples (including mine) analysed for PCs contained these 7 PCs: PHxS, PA, PNA, PS PSA, PDA, PUnA All unregulated in EU A liability in future? Perfluorooctanoate (PA) - S Perfluorooctane sulfonate (PS) My PDBEs 34%of samples contained Deca, including one with the highest concentration ever published. 2,2',3,4,4',5',6-Heptabromodiphenyl ether (BDE183) 2,2',4,4'-Tetrabromodiphenyl ether (BDE 47) 2,2',4,4',5,6'-Hexabromodiphenyl ether (BDE154) 2,2',4,4',5-Pentabromodiphenyl ether (BDE 99) 2,2',4,4',5,5'-Hexabromodiphenyl ether (BDE 153) 2,2',4,4',6-Pentabromodiphenyl ether (BDE 100)
4 Current problems with greening the supply chain Poor information flow Difficult for downstream users and retailers to find put what chemicals are in the products they buy Difficult for producers to find out how their chemicals are used Lack of good quality safety information on chemicals Lack of information on alternatives Hard to make decisions on substitution due to pervasive lack of safety data on existing chemicals Even if information exists, it may be difficult to get hold of, as there is no single source A system biased against new substances New substances require safety data, existing substances don t, so new substances are penalised. Slow regulatory action on the worst chemicals Very slow processes to evaluate and restrict existing chemicals do not protect consumers or users REACH - how can it help? Improved transparency and communication through the supply chain: n chemical properties flowing down the supply chain, creating a more educated market n chemical uses, flowing up the supply chain, giving suppliers a better understanding of what services are needed Easier introduction of new chemicals onto the market, and removal of the perverse subsidy on older chemicals An authorisation system which will promote - and sometimes oblige - substitution of chemicals with the worst properties Strengthening this will increase the driver for green chemistry REACH will ensure safety information is available on alternatives Producer responsibility on the chemical industry, providing protection for downstream users Improved public confidence in the use of chemicals, leading to improved investment and recruitment.
5 ptimising REACH - improvements needed ur highest priority is to improve the authorisation procedure We must ensure that it is an effective method to identify the worst chemicals and then push for their phase out wherever safer alternatives are available. An increase in openness and transparency Provision for information flow in the article supply chain In current REACH text information flow ceases once chemical or preparations enter article, e.g. fabric Consumer Right to Know Improved control of chemicals in imported articles See next page A restoration of recently removed safety tests for 1-10t chemicals, and independent auditing of registration dossiers Chemicals in imported articles (comes in at REACH+11 years) The current text will allow articles to be imported into Europe containing unregistered chemicals. It only requires notification if there is a known release of a dangerous chemical which is present in more than 1 tonne per article, and which may cause harm to human health or the environment. This approach will be unworkable E.g. Enforcement will be tied up in arguments about the definition of individual articles E.g. red chairs vs blue chairs A more workable and enforceable approach: Importers must register if >1 tonne in all the articles they import consistent with legislation on imported substances and preparations We would expect importers to operationalise this in a straightforward way: Specifying to suppliers to use chemicals registered in REACH (& listed in internet database) If not possible, should start dialogue with importer re registration This solution could also resolve concerns in current text re registration having happened up the supply chain
6 Realism on impact assessment of REACH (I) Which policy would cause: very large costs leading to redesign and reequipping of large sectors of vital industry...,smaller firms going out of business...and an effect on inflation and employment nationally and internationally According to CEIC??? Answer: Phase out of CCs in order to protect the ozone layer These impacts did not happen Industry has a long history of exaggerating impacts of future legislation see WW Cry Wolf report, on the DetoX campaign web site: Realism (II) Many claims have been made about the costs of REACH Notably by BDI/ADL (Germany) & Mercer (rance) These studies have been heavily criticised by economists, and are extremely misleading. They have been extremely politically effective, and are still used Commission impact assessment: Direct costs of REACH to the chemicals industry of 2.3 billion over an 11 year period 0.5 per person per year for the EU the amount the European Chemical Industry spent in 1999 on environmental improvements relating to waste. Costs to downstream users are estimated to be between billion, including 2.3 billion passed on from the chemical industry. Many other assessments now exist too some even mention health and environmental benefits! general message - REACH costs are small compared with other cost variabilities e.g. oil, exchange rates
7 REACH priorities for retailers and the supply chain? Ensure producer responsibility remains in place With no data no market - CEIC is undermining this: CEIC paper: Do: ensure that the registration system becomes a pure database, with no banning of substances Ensure decision making is not captured, and enforcement capacity exists at Member State level Ensure balance maintained between Agency and Member States Improve Authorisation: So it can deal with all chemicals of very high concern So it pushes substitution Improve information flow, including from substances in articles Improve process for dealing with substances in imported articles Don t lobby for them to be ignored Remember your interests are not the same as the chemical industry s Conclusions The current regulatory system makes it very difficult to green the supply chain E.g. Lack of information flow, new substances penalised REACH has the potential to improve this, but needs to be improved to ensure that: The worst chemicals are identified and then phased out if safer alternatives are available. Improving controls on chemicals in imported articles To create an more open and transparent system, maximising information flow to all parties. E.g. information flow on substances in articles The REACH debate has been distorted by exaggerated impact studies - it is time to return to the real world. Retailers and downstream users need to be aware of that their interests differ from the chemical industry s If REACH is not effective and precautionary, NGs will need to start a campaign for a new chemicals policy It is crucial to finish REACH, so we can all benefit from the improvements it should bring.
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