REACH, the European Community Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemical Substances, is one of the Community’s most complex environmental regulations. Not only does it have huge implications for the chemical production industry worldwide, but it also has important consequences for companies importing into the EU and professional downstream users. This regulation covers chemical products such as paints and varnishes, as well as substances found in children’s toys, jeans and cosmetics. Although REACH came into force on 1 June 2007, few companies outside the chemicals industry are fully aware of its implications.
REACH entails major changes in mindset and ways of working with regard to chemical substances. The regulation states that, in principle, companies must manage the risks of all chemical substances and preparations that they produce in quantities greater than 1 ton, and/or where they import, process, use or distribute these substances and preparations in the EU. The legal burden of proof has also shifted: whereas the government used to have to prove that a substance was harmful, that responsibility now lies with businesses. If they fail to register a substance in time, they may no longer market that substance or products containing it. No data, no market.
Impact assessments indicate that REACH will lead to cost increases and portfolio rationalisation. Companies that offer or process non-registered chemical substances after 2010 may suffer image and reputational damage. Some substances will be withdrawn from the market. REACH’s administrative burden may place an extra 4-20% burden on top of the costs of producing certain substances. This could very well lead to business continuity risks.
If your company works with substances that have to be registered, but is able avoid the additional costs, you will enjoy a better market. It will be easier for you to differentiate yourself from your competitors by capitalising on changes in the market. REACH will also help drive innovation in corporate social responsibility and sustainable technology.
To embed REACH in your organisation, you will need to make a number of important strategic decisions regarding issues such as:
PwC’ experts can help you optimally prepare for and implement REACH. We identify the opportunities for your business, help organise your administration, and support the actual implementation. Together with you, we investigate the best solutions with regard to working together in consortia and representation for the registration process.
PwC’s REACH services aim to draw on the full benefits of the new rules and market conditions for your business, managing your threats and opportunities. We identify the specific business issues you face, and support you in addressing and resolving them.