PPG Industries

Grade summary

PPG Industries produces 28 SIN List substances (including three persistent chemicals), 15 of which are officially recognised as chemicals of high concern by the EU. The company has a method in place to screen and assess the sustainability of its products and includes intrinsic hazards of ingredients in the screening process. It also has a phase-out strategy for some hazardous substances. The company follows several voluntary standards of good conduct, but has nonetheless been involved in a couple of environmental violations over the last ten years, including several decades of illegal discharges of untreated chemicals into a river.

Opportunities for improvement

1. Dramatically reduce both the volume and the number of hazardous chemicals that the company produces. PPG Industries has the second-worst score when it comes to hazardous product portfolio and should start to reduce the production of harmful substances, and eventually phase them out, to avoid being caught out by stricter regulations.
2. Phase out persistent chemicals from its product portfolio. PPG Industries currently has three substances in its product portfolio belonging to the group of chemicals dubbed “forever chemicals”. Financial impacts such as liability costs and loss of trust by investors can be severe due to the long-lasting impacts that persistent chemicals have on human health and the environment.
3. The company should publicly commit to phase out more hazardous chemicals. Publicly announced phase-out plans with clear deadlines shows determination and a serious will to move forward in a sustainable direction.

Category breakdown

PPG Industries produces 28 SIN List substances, 15 of which are included on the REACH Candidate List and four of which are also found on the REACH Authorisation List. The company produces three persistent chemicals. Persistent chemicals are particularly problematic since they do not break down, but instead accumulate in humans and/or the environment. Because of this, persistent chemicals should be of extra concern for investors. Substances which are not considered a problem today could become huge liabilities in the future.

PPG Industries has a method in place to screen and assess the sustainability of its products and includes intrinsic hazards of ingredients in the screening process. The company does not follow the principles of green chemistry or use the GreenScreen assessment tool, nor does it exclude substances with toxic properties from new products. It does, however, actively market safer alternatives on its website.

The company shares chemical safety information on its website and has a phase-out strategy for some hazardous substances. PPG Industries is a member of Responsible Care and follows voluntary standards such as a Code of Conduct and a Supplier Code of Conduct.

A couple of years ago, PPG Industries was held accountable for discharging untreated chemicals into the Allegheny River over a period of several decades. Last year, the US Department of Environmental Protection announced a settlement agreement with the company, which included a 1.2 million USD fine. Back in 2010, the United States government imposed a 3.75 million USD fine against a subsidiary of the company called PPG Paints Trading (Shanghai) for illegally selling products to a nuclear site in Pakistan. The subsidiary pleaded guilty to the conspiracy.

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