Just barely escaping ChemScore’s bottom five, DIC Corporation produces 17 hazardous substances, one of which is persistent. The production of problematic chemicals is one reason for the poor score, but also the fact that there’s no available data…
DIC Corp produces/uses 17 highly hazardous substances – 15 SIN List chemicals, 4 PICs, and 3 HHPs – 3 of which are included on the EU’s REACH Candidate List. None of these highly hazardous substances are either banned or severely restricted (no Authorisation List substances, and no POPs). The company produces 1 persistent chemical. Persistent chemicals are particularly problematic, since they do not break down, but instead accumulate in humans and the environment. Because of this, persistent chemicals should be of extra concern for investors; substances that are not considered a problem today could become huge liabilities in the future.
Please note that there is no available data for the 80 percent of the company’s production that takes place outside of the EU and US. Lower EU/US production means higher uncertainty with regard to the total production of hazardous chemicals, which will have a negative impact on the company’s score in this category.
DIC Corporation has a method in place to screen and assess the sustainability of its products and includes the intrinsic hazards of ingredients in the screening process. It does not, however, exclude substances with toxic properties from its new products. DIC Corporation actively markets safer alternatives on its own website, but not on ChemSec Marketplace. The company has no true circular product, process or innovation. DIC Corporation uses biobased resources without occupying extra land or competing with food production. It does not source and treat recycled materials in a sustainable way, which is one of the key elements of a circular economy. DIC Corporation is actively reducing the hazardous waste it generates.
The Japanese company does not produce only sustainable products, and it does not have a timed phase-out strategy for hazardous substances that go beyond regulatory compliance. It does not share chemical safety information on its website, but it is following a credible code of conduct standard. DIC Corporation responded to ChemSec’s attempts to communicate around its ChemScore ranking. However, the company does not share any information about what kind of chemicals it produces in regions with low regulatory demands for transparency (e.g. Asia). DIC Corporation does not have a circular economy program in place, and it is lacking objective and measurable circular economy targets.