Why ChemSec engages in dialogue with investors

At ChemSec we see the investor sector as a new and important stakeholder in promoting the production and use of safer chemicals. This is why for the last few years we have increasingly been in dialogue with the investment community. Many financial investors are asking for more information about the underlying future risks embedded in the chemicals sector. This information has often been found to be well hidden, scarce, and sporadic.

Investors have the power to require transparency

Our experience is that investment professionals have an interest in more information about which chemicals are regarded as hazardous and the outlook of future legislative regulations, as well as which companies produce the most hazardous substances, which companies restrict their use in their products, and who is producing safer alternatives.

The answers to some of these questions are not publically disclosed today, such as which chemicals are produced in which quantities by which companies. Here the investment community has an important role to play, having the power to require those answers in order to make investments, and hence encourage more transparency and better decision-making.

Investing in companies, not chemicals

In our dialogue with the investment community, ChemSec started by offering the SIN List as a tool to investors. The SIN List is the most comprehensive list of substances likely to face future regulation in the EU. Today, several investment firms and rating agencies use the SIN List in their investment analysis. However, investors do not invest in substances, they invest in companies.

So we developed the SIN Producers List, presenting the companies in Europe and USA producing or importing SIN List chemicals, according to the publicly available information from registration dossiers submitted to the European Chemical Agency. We needed to initiate a legal process in order to make the European Chemicals Agency disclose the current figures regarding which companies are producing SIN List chemicals and in which quantities.

Both the SIN List and the SIN Producers List has proven to be useful and appreciated tools for identifying industrial chemicals and producers likely to face future restrictions through REACH.