Hazardous Product Portfolio
Hazardous chemicals have severe negative implications on human health, pollute the environment and create loss of biodiversity. The production of hazardous chemicals is a strong indicator for exposure to financial risks due to regulatory measures, the potential of future litigations due to workers’ health, consumer exposure and potential accidents and spills, as well as customers’ needs for non-toxic or low-toxicity products. A product portfolio with a low hazard profile is considerably less susceptible to all these issues. This category assesses the total production of hazardous chemicals by each company, weighted on the basis of the company’s total revenue. Lower production of hazardous chemcials gives a higher category score.
Note: The total revenue of each company is used for weighting of the score even if some companies have business units that are not related to chemicals.
What chemical data is included?
All information in ChemScore builds on information in the public domain, such as production of industrial chemicals in the EU and US, including the production of all their respective subsidiaries on these continents. EU production data comes from the European Chemicals Agecy (ECHA) and US data from US EPA Chemical data reporting under TSCA. Production here refers to the number of individual chemicals, not the volume.
What is not included?
- The production of hazardous chemicals outside the EU and US cannot be obtained from public sources. The ranking in this category is therefore only based on the portion of sales in EU and US markets.
- The production of pharmaceuticals. As this sector is treated by investors as a separate sector it is not included in ChemScore.
- The production of pesticides used in agriculture.
- Information about the specific production volumes (tonnes/ year) and revenue for each hazardous substance, since this is not publicly available.
To obtain the final score in this category, each hazardous chemical in a company portfolio is counted and multiplied by its negative hazard mark, to give a total hazard mark. It is necessary to balance different companies global production patterns (in the EU or US, where data is publicly available vs. rest of the world) to achieve a fair ranking. Hence, a revenue multiplier was applied based on the share of production (0- 100%) in the EU/US, as indicated in the companies’ financial reports. This means that the higher the share of production of chemicals within the EU and US, the more favourable the multiplier. All chemical producers included in ChemScore have been encouraged to share information with ChemSec about its full production outside the EU and US, and has thus been able to affect its score in a positive way.
Criteria in this category:
- Number of SIN List chemicals produced
- Number of EU REACH Candidate List chemicals produced
- Number of chemicals produced on EU’s REACH Authorisation List
- Number of persistent chemicals produced on the SIN List