Grade summary

Wanhua Chemical shows a strong upward trend in its performance, moving from a low starting point to a C- grade with 13 points. This marks a notable improvement over the past years. The company has reduced its SIN List substances by four compared to the previous year and does not produce any persistent chemicals. However, only a quarter of its sold production is in the EU and US markets, affecting transparency.

The company has established robust monitoring systems for water resources and energy consumption for their products. Its life cycle process safety management system includes hazard analysis, standards, and control. However, the company lacks clear cut-off criteria for harmful chemicals in new products. Wanhua Chemical promotes green innovation products in the packaging business but does not advertise safer alternatives on ChemSec’s Marketplace. While the company uses recycled materials, the absence of information regarding hazardous chemicals prevents it from receiving points for this.

How did we come to this score?

Opportunities for improvement

1. Reduce hazardous portfolio
   Scientists agree that chemical pollution has crossed a planetary boundary and become an urgent global crisis, threatening both ecosystems and human health. Since Wanhua Chemical has 12 hazardous chemicals in its product portfolio, a key improvement point for the company is to reduce this number. Wanhua Chemical should therefore identify all uses, as well as publish the share of revenue and production volume of hazardous chemicals (or products that contain them).It should also publish a reduction road map of each hazardous chemical together with an annual progression report. Ideally, the company should commit to having a toxic-free product portfolio within the next decade. If the company decides to continue producing a hazardous substance, it needs to present a rationale for its essential use and prove that no feasible alternatives are available at present. In such a case, the company should also state the share of the R&D budget spent on finding a safer alternative for that particular substance.

2. Market safer alternatives
   Wanhua Chemical does not have any safer alternatives evaluated by independent third parties in its product portfolio. Safer alternatives replace the use of hazardous substances and are crucial in order 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.

3. Increase circularity
   The chemical industry finds itself at the beginning of the value chain. Therefore, it has a responsibility to act fast against the ever-growing scarcity of our planet’s resources. But Wanhua Chemical receives zero points for circularity since we were unable to identify any circular products, processes or strategies. Nor did we see a decrease in hazardous waste or increased use of recycled hazard-free feedstock or biobased material. Wanhua Chemical should start by identifying its current production and use of circular products and processes, and then specify the share of revenue that is derived from such products. The company should also develop and present a circularity strategy, including a commitment to increase the share of revenue derived from circular products.

Category breakdown