Action points 🔍

1. Increase transparency

Although Nippon Paint has responded to our request for more information regarding the company’s chemicals management, much is still unknown about Nippon Paint’s production and use of hazardous chemicals. To demonstrate a commitment to transparency, Nippon Paint should disclose both the share of revenue and production volume of products that are, or contain, hazardous chemicals. This information should cover all operations, including subsidiaries, worldwide. Sabic provides a good example, as it has disclosed its full chemicals portfolio, including production volumes and locations.

2. Map and phase out persistent chemicals

According to public registries in the EU/US, Nippon Paint is not responsible for placing any persistent chemicals on these markets. However, the company might be using persistent chemicals, bought from other producers within the EU/US. They should, like Sika and LyondellBasell, disclose the share of revenue generated by products containing PFAS or other persistent chemicals. If that figure is 0%, the company should, like Sasol, clearly state that they do not buy or produce any PFAS, then expand that to include all persistent chemicals.

3. Develop safer solutions

Nippon Paint currently lacks a strict policy for limiting hazardous chemicals in its new product development. As a result, both its existing and future product lines are dependent on substances that run the risk of becoming regulated. Therefore, Nippon Paint may face growing challenges in maintaining profitability in the long term. The company should set a 2030 target for the share of revenue generated by products free from hazardous chemicals and develop a strategy to achieve it. A first step should be to, similarly to Lanxess, publicly state that it will not develop or market new end-products containing more than 0.1% of substances that have the characteristics of a Substance of Very High Concern (SVHCs).