The ChemScore ranking, which scores the world’s top chemical producers on their work to reduce their hazardous chemical footprint, will have a new iteration in 2021.
And starting right now, access to the existing 2020 version is free of charge.
Created by the NGO ChemSec, the new ChemScore ranking will be released in the autumn of 2021. The new version will have a greatly increased scope and cover new, important aspects of chemicals and sustainability, such as a specific circular economy criterion. It will also be possible to follow the progress of each company year by year – and more companies will be included. Having rated 35 companies in the 2020 edition of ChemScore, ChemSec aims to expand its ranking and rate 50 chemical companies in the 2021 version.
Enables evaluation of chemical producers’ circular economy endeavors
“We know that many investors are looking for ways to properly evaluate how far ahead companies are in their circular economy ambitions. We are confident that we can deliver a credible picture of this and couple it with the already unique scope of ChemScore – namely which chemical companies are sitting on large portfolios of toxic chemicals and which are not”, says Anne-Sofie Bäckar, Executive Director at ChemSec.
Aviva Investors, a global asset manager with £355 billion in assets under management, who played an integral role in developing the first iteration of ChemScore, will continue to support the project.
“As an active and responsible investor, we place a great deal of importance on ensuring companies adhere to sustainable and transparent business practices. Unfortunately, hazardous chemicals is an area where company transparency is still very weak, despite substantial legal and reputational risks which, in turn, can result in material financial risk. Having better data, to distinguish which companies are leading on green chemistry and reducing their risks from those who are not, is therefore vitally important. We actively incorporate the results from ChemScore into company evaluations and investment decisions and look forward to the wider scope that ChemScore will offer in 2021”, says Eugenie Mathieu, Senior ESG Analyst with Aviva Investors.
Access to current ChemScore ranking is now free of charge
After its release in June 2020, ChemScore caught many people’s attention. During the autumn, ChemSec reached an agreement with a funder who will finance the new iteration, which also enables ChemSec to make the 2020 version free of charge. This means that starting now, everything on the ChemScore website is free to access.
Released barely more than six months ago, it is still the only ranking that gives investors and other stakeholders an understanding of how the production of toxic chemicals fits – or rather doesn’t fit – into the larger sustainability puzzle.
About the ChemScore ranking
Through ChemScore, investors are shown the best and worst performers in the chemical industry. The 35 largest stock-listed chemical companies (based on their 2018 revenue) are ranked in four different categories:
- Hazardous Product Portfolio – each company’s total production of hazardous chemicals, weighted on the basis of the company’s total revenue. Lower production of hazardous chemicals gives a higher category score.
- Development of Safer Chemicals – the strategy towards safer products, including design stage, marketing of safer products, R&D and green chemistry.
- Management & Transparency – the companies’ transparency with product ingredients, and public commitments to phase out certain substances.
- Controversies – the companies’ track record of accidents and controversies, such as fines and liability cases.