Chemicals are the building block of everything we produce. They are embedded all throughout global supply chain, from packaging to manufacturing to cleaning processes to finished products.
As scrutiny around environmental and health impacts has intensified, however, companies that have failed to manage their chemical use responsibly have faced growing regulatory, financial and reputational damages.
ChemSec has long been focused on this space, working with companies, investors and policymakers around the world, with the goal of combatting the chemical pollution crisis. This has given us a unique insight into the shifting expectations companies are seeing — as well as the gaps they still need to close.
So, here are six actions companies should take to improve their chemical management and create a future-proof business:
1. Establish full visibility across the supply chain
Modern supply chains rely on chemicals at nearly every stage of production, often hidden in raw materials, packaging or outsourced manufacturing processes. Without complete visibility, chemical sourcing becomes a high-stakes version of supply chain whack-a-mole, where companies risk toxic chemicals suddenly popping up without their knowledge.
Building a transparent, traceable supply chain helps identify chemical risks early and ensures regulatory compliance. This includes mapping suppliers, verifying material disclosures and prioritising third-party certifications.
Where does the buck stop? Even fully compliant companies may face reputational damage if they supply their product to an organisation that uses chemicals irresponsibly. Remember: it’s not just about who a company buys from, it’s also about who they are willing to sell to. Choose smart business partners or risk potentially going down with the ship.
Benchmarking chemicals against tools like the SIN List can help flag substances likely to be restricted in the near future.
2. Monitor regulatory shifts at all levels
From global PFAS bans to changing chemical safety frameworks (like REACH and TSCA), chemical legislation is constantly evolving.
National and regional policies increasingly target substances once considered standard. Staying informed on chemical regulations is critical to maintaining market access and avoiding disruptions. No one wants to discover a product is non-compliant only after it ships!
To future-proof your business means building internal capacity or establishing partnerships to track legislation and assess risk proactively. This could mean hiring a compliance officer, collaborating with sector leaders or following relevant authority websites (like ECHA).
But the first step should be subscribing to ChemSec’s newsletter to stay updated on industry trends and regulatory shifts.
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3. Respond to changing consumer expectations on safety and sustainability
Public awareness of toxic chemicals in everyday products continues to rise with consumers now expecting safer, more sustainable alternatives.
Data shows that health and environmental considerations are influencing purchasing decisions more than ever. According to Eurobarometer, more than four in five Europeans (84%) are worried about the impact of harmful chemicals present in everyday products on their health. A similar number of respondents are worried about the impact of such chemicals on the environment.
“Consumers may be willing to pay up to 12% more for sustainable products.”
Why does that matter? More than two-thirds of Europeans say that they consider the chemical safety of products when making purchases. Moreover, studies have shown that consumers may be willing to pay up to 12% more for sustainable products.
Organisations that embed chemical safety into product design and marketing strategies are better positioned to meet this demand. Striving for an Ecolabel is a great place to start.
4. Assess and address environmental and human health impacts
Chemical use has consequences well beyond the point of sale. Improper handling, emissions or disposal can lead to significant harm to ecosystems, communities and workers.
A thorough impact assessment is not only a compliance measure, but a strategic must. Companies that quantify and reduce their chemical footprint also reduce legal risks, avoid future liabilities and strengthen long-term adaptability.
There is no “canary in the coal mine” for hazardous chemicals. By the time companies realise they have a disaster on their hands, it may already be too late. Clear oversight at every stage, from sourcing to disposal, ensures a more responsible approach to chemical management.
5. Demonstrate accountability to investors and insurers
Financial stakeholders increasingly expect companies to disclose and take care of chemical risks. Insurers are re-evaluating portfolios in light of substances like PFAS, while investors are using ESG metrics to inform decisions.
Transparent reporting, third-party benchmarks (e.g. ChemScore) and public commitments to safer chemicals can influence access to capital and lower insurance premiums.
Chemical accountability is becoming a financial performance indicator, and demonstrating leadership in chemical transparency signals long-term stability and strategic foresight. Plus, it beats scrambling to explain outdated practices during an investor Q&A.
6. Innovate toward safer, smarter chemical use
The push for safer chemistry is driving innovation across sectors. Regulatory clarity, shifting market demands and technological advances are creating new opportunities for redesigning products and processes.
Companies that proactively replace hazardous chemicals with safer alternatives can future-proof their business and gain a competitive edge. ChemSec’s Marketplace, for example, highlights safer alternatives already available across sectors.
The future is in your hands
Chemicals are no longer an invisible part of doing business. They are a measurable source of risk, but they also present companies with opportunities.
As regulatory attention grows and public expectations shift, chemical management is increasingly tied to business resilience, credibility and long-term value. While not every company will lead the way, those that act early will be better positioned to navigate uncertainty and adapt to changing demands.
Responsible chemical use is not just about compliance. It’s a strategy for long-term success and a future-proof business.
