ASrIA - Best Practice Examples

The importance of chemical substances to Boots's overall business is highlighted in its recognition of "the use of chemicals as a key sustainable indicator for the company." The company already made its overall chemicals policy clear by releasing 'Boots Chemical Strategy' in March 2003. The company aims to commit itself to taking a precautionary approach to the use of chemicals, ensuring that it only uses chemicals with a proven safe history of use. Based on this strategy, regular updates on the development and the application of its precautionary approach are provided to the 'Environmental Working Party' and its sub-group 'Chemicals Working Group'.

The company has also published its 'Priority Substances List', which is regularly updated to include details of chemicals of concern, the action being taken and timetables for achievement. According to the list, out of 15 chemical substances mentioned as of December 2006, the company is actively seeking an alternative to replace Bisphenol-A, BFRs, PVC, phthalates and VOCs within 2007.

Dell, one of the major computer makers in the world, has responded proactively and systematically to both increasing global legislative on the use and management of hazardous substances and increasing consumer awareness. Dell's Chemicals Management Program not only complies with upcoming as well as existing legal requirements but also meets key stakeholders requirements, which often turn out to be tougher than the legal standards.

Dell's 'Chemicals Use Policy', last updated in December 2005, clearly re-enforces its precautionary measures to eliminate substances of concern, by (1) maintaining a 'Restricted Substance Program' which includes more than 50 substances and compounds, (2) tight management from the outset of the product design process to the supply chain, and (3) actively seeking viable alternative substances. The Chemical Use Policy also demonstrates Dell's commitment to eliminating all remaining uses of brominated flame-retardants (BFRs) by 2015. As for polyvinyl chloride (PVC), the material is already on the Restricted Use List and a phase-out plan will be annually reviewed until it is completed.

H&M, one of the leading European apparel makers based in Sweden, is known to have a long history of maintaining environmental practices across the company and its supply chain. Its 'Code of Conduct' requires its suppliers to comply with the relevant legislation in the countries where they operate and at the same time encourages them to assume greater responsibility for the environment than is strictly required by the law.

As a heavy consumer of chemical substances across its manufacturing lines, the company considers reviewing and restricting the use of hazardous chemicals as a core element of its environmental policy. As a result, it maintains the 'H&M Chemicals Restrictions' a list that all suppliers must sign up to. Examples of substances on the list of restricted chemicals include metals such as cadmium, lead and mercury, certain dyes, PVC, formaldehyde and brominated flame-retardants. Regular testing is carried out in external laboratories to ensure that suppliers comply with the company's chemical restrictions. H&M's chemical requirements are based on the most stringent of all available. The chemical restrictions have been updated six times since 1995, most recently in 2005.

Marks & Spencer, one of the biggest retailers in the UK, has maintained a strict approach on chemicals through the following actions: (1) providing a 'Clothing Environmental Code of Conduct' for its suppliers on dyeing, printing and finishing; (2) implementing 'Chemicals Strategy'; and a (3) 'Prohibited List on Pesticides'. This move was the first among major retailers of clothing products in the UK and set an example in the sector to take greater responsibility for the products they sell. The use of 56 textile chemicals known to be harmful has been forbidden, while many other chemicals are strictly monitored to ensure safe levels.

As an example, due to concerns over the harmful effects of PVC (polyvinyl chloride), 99% of PVC packaging on M&S food products has been replaced with safer alternatives. On pesticides, the company has decided to ban or replace 79 types of pesticides after consultation with suppliers and environmental groups, among which 60 have already been replaced and 19 are in the process of being phased-out.

Samsung Electronics has a firmly established, so-called "product environment" strategy, under which its policy on target substances is carefully managed. Its policy on the use and phase out of target substances is well detailed in a list called 'Identification and Management of Target Substances' and the Samsung Electronics Standard for the Control of Substances with Environmental Impacts within Products (SEC Standard 0QA-2049, latest updated in September 2006).

The list identifies substances, categorized as Class III, that are not yet restricted by law but whose use in Samsung's products is monitored and reported by suppliers in order to develop appropriate measures for future restrictions and phase out programmes. PVC and brominated flame-retardants (BFRs) are representative examples as Class III substances. The company has set targets to completely phase out PVC in all applications from January 2011. Although the company has made some progress, Samsung is still identifying the most suitable alternatives for each application and plans to eliminate use of BFRs as of January 2010. Meanwhile, the company has not yet announced plans on phthalates and chlorinated flame-retardants.

SC Johnson's Greenlist^TMprocess is a good example of how a company whose products are based on chemicals ingredients can systematically address their impact on human health and the environment and how to manage the risk profile accordingly. The Greenlist^TM was developed in 2001 to formalize the classification of raw materials used in the company's products based on the impact they have on the environment and human health with a rating from 3 to 0 - 3 being "Best", 2 "Better", 1 "Acceptable" and 0 "Restricted". It provides ratings for more than 95 percent of the raw materials the company uses. The company believes that the Greenlist^TMprocess enables it to track the environmental profile of their raw materials used with the scores provided and set new goals.

Equally important, SC Johnson has been able to use insights from the Greenlist^TM process to identify and promote ingredients that are more environmentally sustainable in its supply chain. This allows consideration of more sustainable resources, including renewable materials, and helps identify suppliers that demonstrate a higher level of environmental responsibility.

The global nature of Sony's markets and its extensive supply chains and instances of sales loss in recent years have urged the company to enhance its management systems to facilitate the control, reduction or elimination of a range of hazardous chemical substances. Sony has established its own global standards called "Management Regulations for Environment-Related Substances to be controlled that are included in Parts and Materials" (SS-00259). SS-00259 has been established taking into account all applicable local and regional laws and regulations and has been applied to all Sony products globally, including its supply chains from their procurement processes (under Sony's Green Partner Environmental Quality Approval Program & OEM Green Partner Environmental Quality Approval Program). It is also noteworthy that the Sony group considers chemical substance management as an important part of the quality control/quality assurance processes.

Sony has continued to seek technologically and economically viable alternatives to certain materials and substances, such as biobased plastics. It has succeeded in eliminating PVC from packaging materials and is striving to gradually replace PVC used in other areas. As for brominated flame-retardants (BFRs), it is working towards eliminating them from its products, and BFRs-free PC models were already starting to be released as of the 1st and 2nd quarters of fiscal year 2006.

In a move to drive the development of more sustainable products, Wal-Mart revealed its chemical policy for product ingredients in October 2006.

The company established its "Preferred Chemical Principles" as a clear set of preferred chemical characteristics for product ingredients. The first three of these priority chemicals were selected via meetings with suppliers, NGOs, government officials, academics and experts in the field. These three include two pesticides: propoxur and permethrin (both used in household insect control products) and an ingredient in some cleaning products: nonyl phenol ethoxylates.

Wal-Mart plans to expand the initiative to 17 additional chemicals that will be required to meet the Wal-Mart Preferred Chemical Principles. The company adopted a three-stage process to drive innovation and inspire suppliers to find substitutes or new product formulations for chemicals of concern. The three stages include:

Awareness - where suppliers will be given a period to identify for Wal-Mart any of their products that currently use one of the priority chemicals as ingredients,
Development of an Action Plan - where suppliers communicate to Wal-Mart their plans regarding the Priority Chemicals in their products, and
Recognition and Reward - where Wal-Mart acknowledges the suppliers who participate in this effort