REACH

New chemicals policy in the European Union

In the European Union (EU) chemical manufacturing is the third-largest industry, including 31,000 companies employing 1.9 million people.¹ Chemicals are important to the EU economy.

Use of these substances may pose risks. Recorded incidents of allergies, some cancers and reproductive disorders are on the rise in Europe, and chemicals may be a cause. In addition, studies show that some animals (frogs, birds, fish) suffer infertility and gender changes, related to certain chemicals affecting hormones.² 

More than 100,000 chemicals were on the EU market in 1981 - of which 30,000 are manufactured on a regular basis - and we know very little about them; information on 99% of these is insufficient today.³
 
To lessen risk and improve transparency, the European Commission has developed a regulatory system called REACH: Registration, Evaluation and Authorization of Chemicals. The intent is to better protect human health and the environment, while enhancing competition by fostering innovation and ensuring high safety standards for chemicals.

Requirements

REACH requires EU chemical producers and importers (volume over 1 ton per year) to register their raw materials with a new EU Chemicals Agency. They must submit information on properties, uses and safe handling. Working together and sharing data among companies is encouraged, for the betterment of the industry.

For substances with high health risks, further evaluation will take place. Also, scrutiny of animal testing will ensure this practice is kept to a minimum.

Special authorization for chemicals that cause cancer, mutations or reproductive issues will be required. This should encourage substitution of safer alternatives. For certain dangerous substances the EU will allow restricted use, but REACH will provide clearer procedures.

Initially proposed in October 2003, REACH legislation (no. 1907/2006) took effect in June 2007. The first step is pre-registration, from June 2007 to December 2008, and has no fees. Once pre-registration is closed, cost will vary depending on manufacturing tons per year and size of company.

Impact

Under REACH Quaker's role is primarily that of user of chemicals. Raw material manufacturers are responsible for registration, so Quaker’s main task is to coordinate with suppliers on affected materials. We invested important resources to put into conformity our raw materials and range of products. Quaker may decrease suppliers or find safer alternatives. If some substances are discontinued, we will have to re-formulate products.

While this is currently an EU legislation, it may be a matter of time before it spans the globe.
REACH already impacts Quaker beyond Europe. Both Epmar and AC Products, our subsidiaries in California (US), export products to Europe and therefore must comply with REACH.

We don’t know how REACH will affect industry prices, but we expect supplier costs to influence Quaker costs. However, the full implications will not be apparent until after the regulations are implemented.

Fact 1:  We need chemicals and a strong industry   Fact 2:  Chemicals can pose risks, but information is sketchy   Fact 3:  Current legislation does not provide the necessary level of protection   Fact 4:  We need REACH to be able to use chemicals safely   Fact 5:  REACH is the result of a comprehensive consultation process   Fact 6:  The costs under REACH are manageable

Environment Fact Sheet

¹  “Fact and figures – The European chemical industry in a worldwide perspective,” January 2005, European Chemical Industry Council (www.cefic.org/factsandfigures/).

^{2, 3} “Environment Fact Sheet: REACH,” 2006, European Commission.