All ChemScore data are based on publicly available information. The data include production of synthetic chemicals by a company in the EU or US, but may also include production from company subsidiaries also operating in these regions.

Defining scope

• In ChemScore, “production” refers only to the number of hazardous chemicals a company places on the EU or US market (either produced or imported) — not the total production volume.
• Each company’s production of hazardous chemicals is weighted against its total revenue to provide a fairer, more comparable picture of performance across companies of different sizes.
• Some companies have business units unrelated to chemicals. However, their revenues are still included in our calculations, which can influence their overall score.
• Because ChemScore is a global benchmark, we account for uncertainties in production data outside the EU and US — where public information is limited. The points awarded for a low-hazard portfolio therefore reflect only EU and US market activity.

Read more about our methodology

Outside ChemScore’s scope

• Production outside the EU and US, as no reliable public data are available. However, we encourage companies to disclose this information voluntarily to improve their score in both category 1 (transparency) and category 3 (hazardous product portfolio).
• While pharmaceuticals as such are not in scope of ChemScore, the production of some precursors are. Pure pharmaceutical end-product companies are treated by investors as a separate sector and are therefore excluded from ChemScore. However, some companies with large pharmaceutical portfolios, such as Bayer and Merck, are still included in ChemScore due to other substantial, relevant business units.
• Production volumes and revenue for individual hazardous substances, which are not publicly available unless a company chooses to disclose them. Companies that do so are rewarded under ChemScore’s transparency criteria.
• Physical hazards such as explosiveness or flammability, which are outside the scope of ChemScore’s assessment.

What chemicals do we cover?

The number of industrial chemicals on the market is estimated to be in the realm of 300,000 globally. The number is so large, and growing so fast, that regulatory systems are overwhelmed. By necessity, ChemScore focuses on the groups of chemicals for which we have data on their likely impact on human health and the environment, and about which there is the most concern among regulators and scientists. These are as follows:

SIN List

The SIN List – short for Substitute It Now – is a list of very hazardous chemicals (nearly 1,500 substances) that are used in a wide variety of articles, products and manufacturing processes around the globe. The SIN List is developed by ChemSec, in close collaboration with scientists and technical experts. The list is based on credible, publicly available information from existing databases and scientific studies. The inclusion process relies on the same criteria as the EU’s legislative framework for chemicals: REACH. Therefore, a substance being put on the SIN List is a strong signal that it will be placed on the official EU REACH Candidate List, facing strict regulation in the EU.

Persistent chemicals

Persistent chemicals, such as PFAS, are particularly problematic since they break down extremely slowly. Instead, they accumulate in humans and/or the environment. Because of this, investors should be especially wary of persistent chemicals. Substances not considered a problem today might become huge liabilities in the future with regard to clean-up and compensation costs, as well as legal responsibilities. Production and use of PFAS are currently not regulated under any jurisdiction. However, some are included in the SIN List above, and in the list of persistent organic pollutants covered by the Stockholm Convention (see below).

Candidate List

REACH, the EU’s legislative framework for chemicals, is in many aspects the leading chemicals legislation in the world. The EU’s REACH Candidate List is the first step towards strict regulation of particularly hazardous substances, in legal terms called Substances of Very High Concern (SVHCs). When a chemical is included on the Candidate List, it triggers information requirements in the whole supply chain and also the “consumers’ right to know” principle. Inclusion on the Candidate List is also the first step towards Authorisation.

Authorisation List

A substance on the EU REACH Authorisation List is forbidden to use within the EU, unless the EU Commission has granted a company-specific authorisation. Applying for authorisation is time-consuming and costly, and the grant is time-limited. Without an authorisation, the chemical has to be phased out by the stated sunset date.

POP

The Stockholm Convention on Persistent Organic Pollutants (POPs) is a global environmental agreement to protect human health and the environment from the harmful impact of these chemicals. POPs remain intact in the environment for long periods of time, allowing them to become widely distributed geographically and accumulate in the fatty tissue of humans and wildlife. Given how far these chemicals can travel, no one government acting alone can protect its citizens or environment from POPs. In response to this global problem, the Stockholm Convention requires its parties to take measures to eliminate or reduce the release of POPs into the environment. POP substances are banned globally, unless specifically exempted in the Stockholm convention.

PIC

PIC, short for Prior Informed Consent, is one of the key provisions of the Rotterdam Convention to make the export of chemicals more transparent, since – often domestically restricted – hazardous chemicals are exported to poorer countries with less stringent chemicals regulation in place. For each PIC chemical (there are currently about 1,500), a guidance document is prepared to help importing governments assess the risks connected with the handling and use of the chemical, allowing them to make more informed decisions. All exporters are required to ensure that exports of PIC chemicals are not done in violation of the decision of each importing country.

HHP

Highly Hazardous Pesticides (HHP) are a number of hazardous chemicals and chemical groups (currently approximately 330) with known hazardous properties, intended for pesticidal purposes in agriculture and similar activities. These substances are among the worst ones, frequently produced and used worldwide. The HHP list has been drawn up by PAN (Pesticide Action Network International), and is based on publicly available sources from governments and international organisations.