Lanxess has a very large production of hazardous chemicals – surpassed only by BASF in the ChemScore ranking. Data tells us that it is producing 88 highly hazardous chemicals, including 17 persistent chemicals, which leaves the company without…
Lanxess produces/uses 88 highly hazardous substances – 81 SIN List chemicals, 15 PICs, and 10 HHPs – 22 of which are included on the EU’s REACH Candidate List. 7 of these highly hazardous substances are either banned or severely restricted, with set dates when production needs to cease (6 Authorisation List substances, and 1 POP). The company produces 17 persistent chemicals. 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 43 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.
Lanxess 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. However, it does not exclude substances with toxic properties from its new products. Lanxess actively markets safer alternatives on ChemSec Marketplace, but not on its own website. The company has no true circular product, process or innovation. Lanxess use biobased resources. However, the company uses them to produce hazardous materials. It does, however, source and treat recycled materials in a sustainable way, which is one of the key elements of a circular economy. Lanxess is actively reducing the hazardous waste it generates.
The German company does not produce only sustainable products. Nor does it have a phase-out strategy for hazardous substances that go beyond regulatory compliance. It does not share chemical safety information on its website, but is following a credible code of conduct standard. Lanxess 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). Lanxess has a circular economy program in place, but it is lacking objective and measurable circular economy targets.