Grade summary

Like last year, DIC Corporation ends up in the bottom ten of the ranking. It gets zero points in the Product Portfolio category, due to its production of 17 hazardous substances, including two persistent ones, and because the majority of its production takes place outside of the EU and the US, where there is no available data. The company also receives zero points in the Lack of Controversies category for its track record of accidents. DIC has an environmental product assessment in place, but we could not identify a dedicated hazard screening. In DIC’s Vision 2030, circular economy plays a role. The company seeks to significantly increase its use of biomass plastics and recycled materials for food packaging products.

How did we come to this score?

Opportunities for improvement 

1. Map and phase out persistent chemicals
   DIC produces or uses two persistent chemicals, one more than last year. These substances are also known as “forever chemicals” due to the fact that they do not break down in nature. Instead, these chemicals — which are linked to many negative health effects — build up over time. The consequences of these substances are becoming increasingly detrimental, not only for human health and the environment but also for investors. Investors risk stranded assets now that the regulatory speed is accelerating, and are also exposed to significant liability risks since more chemical companies are being sued for contamination. DIC should therefore make sure to identify all uses, and publish volumes and percentage of total revenue of its persistent substances. The company should also publish a time-bound phase-out plan of both persistent chemicals and an annual progression report to go with it.
2. Reduce hazardous portfolio
   Scientists agree that chemical pollution has crossed a planetary boundary and become an urgent global problem. This threatens the stability of global ecosystems upon which humanity depends, by damaging the biological and physical processes that underpin all life. DIC has 17 hazardous chemicals in its product portfolio, one more than in 2021. A paramount improvement point for the company is to reduce this number. The company should therefore make sure to identify all uses, and publish volumes and percentage of total revenue of its hazardous substances. DIC should also publish a reduction road map of each hazardous chemical and an annual progression report. If the company continues to produce any hazardous substance, it needs to present a rationale for its essential use, motivate the production volume and state how much money it spends on research and development to find a safer alternative.
3. Market sustainable products/safer alternatives
   DIC markets some “environment-friendly” products on its website but does not advertise any safer alternatives from its portfolio on any third-party verified platform. Safer alternatives replace the use of hazardous substances and are important to put an end to chemical pollution. The company should, therefore, start producing safer alternatives or market existing ones on an independent third-party platform. A good place to advertise is ChemSec’s Marketplace, where buyers and suppliers can find and market safer alternatives.

Category breakdown