Conducting business responsibly

Product Stewardship

Product stewardship for Covestro means the comprehensive evaluation of health, safety and environmental risks. We want to ensure that our products are safe throughout their entire life cycle – from research, production, marketing and use by the customer through to disposal.

For more information, see section “Product Stewardship” in the GRI Supplement

Monitoring the quality of our products and their suitability for particular applications is anchored in the operational units. Safe transportation, training for specifically regulated applications and marketability are centrally managed at Covestro. The obligation to report to the Board of Management is also allocated to these central offices.

The safe use and application of our products has high priority. It is therefore important to convey product safety information transparently and comprehensively. In addition to the legally required documentation, we also provide further information. What’s more, we offer corresponding training in line with the of the International Council of Chemical Associations (ICCA). Furthermore, experts in all areas of the company work closely with suppliers, customers, industry associations and the public. Covestro aims to ensure the effective communication and observance of health, safety and environmental information along the supply chain.

Management of product stewardship

Product stewardship involves both compliance with statutory requirements and voluntary commitment. Here we also take into account the precautionary principle as explained in Principle 15 of the Rio Declaration of the United Nations and communication COM(2000) 1 of the European Commission.

The precautionary principle is an important means of protecting consumers and the environment within the context of risk management. It may be applicable if, according to an objective and comprehensive scientific evaluation, material or irreversible harm to people and the environment may occur, but the risk of this cannot be established with sufficient certainty. In this, we follow the general principles of the European Commission for application of the precautionary principle. These include especially the proportionality of the measures taken, examination of the benefits and costs of all relevant options, and review of the measures taken in light of new scientific developments.

In particular, arbitrary decisions cannot be justified by invoking the precautionary principle.

As a contribution to the safe handling and use of chemicals, risk assessments are carried out applying recognized scientific principles such as those described by the European Chemicals Agency (ECHA) in its Guidance on Information Requirements and Chemical Safety Assessment. A determination is made based on a hazard assessment and exposure estimation as to which additional information is required for the risk characterization of a product.

A product safety assessment at Covestro takes place in several steps. First, we identify chemicals that are subject to statutory regulations and document the corresponding regulation. We then examine the risk potential of our products.

Should the assessment or new findings reveal that it is not safe to use a certain chemical, we take the necessary steps to mitigate risks. Such steps can range from technical measures such as protective gear and revised application recommendations to the withdrawal of support for a certain application and substitution of a substance. In this case, an adequate replacement must be sought which can be produced in a technically and economically feasible way.

Finally, we produce the legally required material safety data sheets, technical information sheets and labeling for the chemicals. We also compile these documents for chemicals that are not subject to this legal obligation, whereby we go beyond the statutory requirements. All product groups undergo this process.

All information about the safe and compliant use of our products is documented and analyzed, and thus provides a jumping-off point for further improvements. This includes product monitoring and reporting on product-related and compliance incidents. Our global regulations contain rules and guidance on when and how this information is to be used.

Fundamentally, the optimization of products and processes is an ongoing task of the chemical industry and is integral to our commitments as part of the . We also participate in the further development of scientific risk assessments through our involvement in associations and initiatives.

International associations such as the European Chemical Industry Council (CEFIC) and the International Council of Chemical Associations (ICCA) are working to improve the scientific assessment of chemicals and research new testing methods. Moreover, they monitor implementation of legal regulations. Covestro is actively involved in industry association activities. We also endorse the initiatives of the World Health Organization (WHO) and the EU to improve health and the environment, for example with the further development of human biomonitoring through an alliance with the German Chemical Industry Association (Verband der Chemischen Industrie, VCI) and the German Federal Ministry of the Environment.

Implementation of regulations and voluntary programs pertaining to chemicals

Covestro adheres to the applicable regulations pertaining to chemicals, such as the regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals () in Europe and the Toxic Substances Control Act (TSCA) in the United States. These regulations are aimed at protecting human health and the environment from the risks posed by chemicals and shape our activities as a manufacturer, importer and user of chemicals. We have established internal regulations to adequately address the scope and complexity of the relevant requirements.

Substances registered according to REACH are assessed by regulators. This can result, for example, in additional testing requirements, new risk management measures, or inclusion in the REACH authorization procedure. A number of Covestro substances are also affected by this procedure, which restricts the use of particularly hazardous substances or can lead to their replacement or prohibition. The planned restriction on diisocyanates currently being discussed in EU committees is one example of a potential restriction. Although diisocyanates will still be available on the market, their use in the workplace will require specific training and the implementation of (risk) management measures in the future. Following a special examination of diisocyanate applications, it is possible to be excluded from this restriction. Covestro supports this measure and advocates a practical and effective arrangement, for example regarding the preparation of training materials.

Covestro continues to pursue the goal of completing the assessment of the hazard potential for all substances used around the world in quantities exceeding one metric ton per annum by 2020. We thus exceed statutory requirements. In addition, we ensure that substance assessments comparable to those meeting the high standards of REACH or the TSCA will also be applied at Covestro sites that are not subject to these regulations. The relevant procedure is established in the Group Regulation “Product Stewardship” in the annex entitled “Substance Information and Availability.” In accordance with the European guideline on the classification and labeling substances (CLP Regulation), we revised our assessment procedure last year and added new endpoints of particular relevance for the application of Covestro products. This results in a temporarily lower assessment rate; however, actively addressing the matter will ultimately allow us to further improve our substance information availability in the long term. When it comes to purchased substances, we are dependent on information provided by our suppliers. In this regard, however, we expect that the availability of data will also continue to be limited in the future, particularly outside of the EU.

Another example of our commitment to Responsible Care is the worldwide support we provide for customers for safely handling large quantities of reactive products through tank-farm safety assessments.

We support the Global Product Strategy (GPS), a voluntary commitment by the chemical industry initiated by the ICCA. Its objective is to improve knowledge about chemical products, especially in emerging and developing countries, and thus increase safety in the handling of these products. The ICCA has established an information portal through which summarized details on products are made available. GPS is accessible at Covestro through the Product Safety First internet portal and is available worldwide. On this website, we inform customers and other interest groups about safety-relevant properties and the safe handling of our products.

Substances that are the subject of public debate

Covestro is following the scientific discussion about the chemical bisphenol A (BPA), a main feedstock for various plastics. Critics, but also some authorities, are concerned that risks could result for users and the environment if traces of BPA are released from products. At this time, these concerns are primarily being addressed under the European chemical regulation REACH.

Based on numerous scientifically valid and high-quality studies, Covestro is confident that BPA can be safely used in its intended areas of application. In the case of food safety, for example, this is supported by the latest evaluations from the responsible European and American authorities, namely the European Food Safety Authority (EFSA) and Food and Drug Administration (FDA). Reflecting this conviction, Covestro is actively working within the framework of regulatory processes to dispel uncertainties and answer open questions.

We continue working to make the discussion more objective based on all of the scientific data and in cooperation with the PlasticsEurope association, the American Chemistry Council (ACC) and the China Petroleum and Chemical Industry Federation (CPCIF). Covestro is involved in the debate, providing information to customers and the public through associations and the Covestro website.

GPS/Global Product Strategy
Initiative of the International Council of Chemical Associations (ICCA) with the aim of anchoring uniform global standards for product safety in the chemical industry
Responsible Care initiative
Initiative by the German Chemical Industry Association (VCI) aimed at continuously improving health, environmental protection and safety in its member states
REACH Regulation
Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation (EC) No. 1907/2006 which came into force in 2007 and harmonizes EU chemicals legislation