The world’s largest chemicals group, BASF, will phase out PFAS by 2028, ChemSec can reveal, as it joins a raft of major companies turning their back on controversial “forever chemicals.”

According to the ChemScore index, published yesterday, one-third of major chemicals manufacturers say they intend to exit highly persistent chemicals, the toxic group to which PFAS belong.

“Considering the need to maintain high safety and environmental standards, BASF calls for substituting the use of PFAS in industrial equipment,” BASF said in a statement.

The German conglomerate, with sales of €65 billion last year, said it will phase out products (excluding crop protection) formulated with PFAS, opting instead to provide innovative alternatives to customers.

BASF says it adopted this position in May 2023. Although the company does not provide a clear exit date, its sustainability manual indicates the phase-out must take place within five years, or by 2028.

Investors welcome phase-out moves

“PFAS pollution is a growing concern among investors with significant long-term implications. Ceasing production and substituting safer alternatives is an essential first step companies must take not only to safeguard ecosystems and public health, but also to mitigate long-term risks to shareholder value arising from regulatory tightening, compliance obligations, and potential litigation exposure”, said Tsitsi Griffiths, Manager – Engagement for investors EOS at Federated Hermes and steering committee member for the Investor Initiative on Hazardous Chemicals (IIHC).

The IIHC, with 75+ investors and over $23 trillion under management or advice, has made the substitution of PFAS and all persistent chemicals a key demand on the industry.

“PFAS pollution is a growing concern among investors with significant long-term implications”

Tsitsi Griffiths, EOS at Federated Hermes

Rachel Crossley, Head of Stewardship in Europe for BNP Paribas Asset Management, said:

“ChemSec’s finding that one-third of ChemScore companies have indicated a willingness to consider phasing out, reducing or avoiding persistent chemicals is an encouraging development, one that the IIHC has been pressing for. We urge other companies to follow suit to reduce the substantial and mounting risks they and their investors face associated with these chemicals.”

Eugenie Mathieu, Senior Analyst at Aviva Investors and IIHC chair, said:

“We welcome BASF’s decision to phase out PFAS, which sends a strong and positive signal to the market. With producers and users of persistent chemicals facing increased litigation and regulatory risks, we look forward to continuing to engage with the rest of the chemicals industry to follow BASF’s lead in phasing out its use of PFAS, which we believe can support long-term performance, lower risk, and improve the investment case for the sector.”

Ecolab follows broader trend

US-based Ecolab, with $16 billion in sales last year, will exit PFAS by 2026, ChemSec can also reveal. Taken together with the ChemScore results, this demonstrates that BASF’s move is part of a broader trend among big chemical producers.

“By end of 2026, all chemical products manufactured by Ecolab with intentionally added PFAS will be removed from our global portfolio,” the company said in a statement.

As public health concern has grown over PFAS, the company is often asked about its use of these chemicals, the statement says. It “states publicly a position that we have been willing to share directly with customers for some time”, Ecolab told ChemSec via email.

Ecolab and BASF are following in the wake of scandal-hit 3M, a central player in PFAS manufacture, which announced in 2022 it would exit the chemicals by the end of this year. 3M told ChemSec it is on track to stop production in 2025, but the company still generates major revenue from products containing PFAS.

“In these times of political retreat from sustainability, Ecolab is an American company with good sustainability DNA, that is not afraid to do the right thing, is blunt and outspoken in public, and is moving forward. Some investors tell us: ‘You can’t achieve anything on sustainability in the US’. The example of Ecolab shows that this is false,” said Sonja Haider, Head of Sustainable Finance at pollution watchdog ChemSec, the International Chemicals Secretariat.

ChemScore 2025 reveals trend

The finding that chemical giants intend to exit PFAS and other persistent chemicals is one of many in this year’s ChemScore index of sustainable chemicals management, published today. ChemScore reports that 13 (33%) of the major listed chemicals manufacturers have stated publicly their general intention to phase out, reduce or avoid chemicals that are highly persistent in the environment.

“Quitting PFAS is now an established trend among major producers. From our extensive communication with these companies through the ChemScore index, we are aware they are putting exit plans in place, although not all of them are yet public,” Ms Haider said.

Chemours and Solvay have closed PFAS manufacturing plants this year in France, while Arkema is closing two fluorinated gas workshops at its plant in Lyon.

“World-leading companies deciding to exit PFAS sends a very strong signal”

Anne-Sofie Bäckar, ChemSec

Several companies have recently updated their chemical management and PFAS positions, giving them a higher score in ChemScore. A good result in the index is helpful information for investors in assessing financial and non-financial risks.

“PFAS pollution is one of the biggest pollution crises of our time. An essential first step is to cease production and substitute PFAS with safer alternatives. World-leading companies deciding to exit PFAS sends a very strong signal,” said Anne-Sofie Bäckar, Executive Director of ChemSec.

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