Corporate supply chain practices are attracting increasing legal, regulatory, and consumer scrutiny.

Not only do people want to know what is in their products and how they are made, there is also a growing movement to understand the environmental impact of products and services. These trends mean companies need better visibility into their products and supply chains.

Many companies have incorporated strategies to increase the level of transparency within their supply chains, and in some cases these efforts are integrated into product quality. Consumers expect companies to address the following:

1. Social, environmental and labor standards.
2. Complete access to information available to the public.
3. Knowing chemicals in products.

Several trends are driving the increasing demand for more transparency:

NGO campaigns

NGO’s raise consumer awareness by launching campaigns that target companies or industries. You don’t have to look far to see the success of the Campaign for Safer Cosmetics, focussed on cosmetics without hazardous chemicals. Mind the Store targets big retailers to eliminate hazardous chemicals from their shelves and the GreenPeace Detox campaign is aimed at reducing hazardous chemicals in the apparel and footwear sector. Part of the Greenpeace approach is to ask brands to publicly disclose their supplier list and waste-water discharge data. Companies, fearful of negative publicity that can result from a campaign, act quickly to reduce risk.

Regulations

There are so many regulatory requirements for chemicals and it is a complex task keeping up to date with all of the changes. EU REACH is slightly different from REACH Korea and REACH China. States in the U.S., and even counties within states, cannot align on a common set of regulatory requirements. California recently introduced its Safer Consumer Products Regulations, an extensive set of regulations that affect just about every product category.

Retailers

Retailers are putting greater demands on their customers to disclose chemical ingredients. WalMart has its Sustainable Chemistry Policy and is working with its suppliers in some product categories to disclose chemical ingredients. Ashley Furniture, Macy’s and other large furniture stores have agreed not to sell furniture with brominated flame retardants.  Home Depot and Lowes will eliminate vinyl flooring products that contain phthalates.

Social media

Social media has changed the way we communicate. Data and messages are created in real time and can go viral instantly. It only takes a few people to spread information very quickly, and consumers are not afraid to share their point of view, whether good or bad. SC Johnson recently came under pressure and agreed to disclose fragrances from some of its products thanks to consumers, retailers and NGO’s using social media as a tool for change.

Several companies are actively creating strategies that increase their commitment to transparency as well as reducing hazardous chemicals in their products. Many companies care deeply about social responsibility and are leaders in their industry sector because quite simply, it is the right thing to do.

An important strategy is to clearly demonstrate a commitment, monitor results and drive towards continuous improvement.

Impact to your business

Questions to Consider:

• Does your company have a corporate social responsibility strategy that includes transparency?
• Does your company share potentially sensitive data?

For help with any issue associated with chemicals, contact Amanda Cattermole at (415) 412 8406 or Amanda@cattermoleconsulting.com. We can help you develop powerful solutions to protect your company and brand reputation that result in safer products manufactured in cleaner supply chains.

Tips and Insights contains information to help you make informed chemicals management decisions. Each post highlights a particular topic and includes questions for you to consider .