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2018 REACH Landscape Won’t Be a Pretty Picture for Unprepared Companies
Productivity

2018 REACH Landscape Won’t Be a Pretty Picture for Unprepared Companies

By Sphera’s Editorial Team | April 28, 2017

Picture this: A global up-and-coming U.S. paint manufacturer wants to brush up on future regulatory requirements so it can be a true global player. Taking a paint-by-numbers approach to ensure it doesn’t miss anything, the company realizes exporting its products to Europe will become more challenging next year.

It’s not a reach to say the company is concerned about the Registration, Evaluation, Authorization and Restriction of Chemicals for Substance Volume Tracking, better known as REACH SVT. After all, in June 2018 the volume of a listed chemical that needs to be tracked drops from what many smaller companies might consider a robust 100 tons to a mere 1 ton. It sounds like a ton of headaches, too, trying to figure out whether the company will even exceed that 1-ton threshold.

After all, only a portion of a substance found in raw materials in a ton of paint may need to be tracked under REACH SVT. And what happens if the paint manufacturer assesses that it won’t reach the 1-ton requirement but then gets a sizable order from Spain in September that threatens to push the company over the top? Will the company have to turn down the order?

You quickly see the potential pain points for the paint company are seemingly endless.

 

Needing a Fresh Coat of Paint

As I mentioned in my previous post on the topic, many companies have real concerns about REACH SVT. How will they be able to track it? What if mistakes are made?

The upcoming heightened REACH threshold regulations might seem burdensome, but they are important rules that are designed to protect human health and the environment. Companies want to do the right thing and embrace this, but that doesn’t mean there aren’t potential headaches involved.

No company wants to pay penalties for not complying. Each country in the European Union sets its own penalties for noncompliance and some are quite steep. Take Belgium for example. According to the 2010 final report on REACH penalties, the maximum penalty in the Western European country for criminal sanctions—yes, criminal sanctions—related to SVT is a robust 55 million euros at the federal level. We’re not trying to be alarmist here, but the reality is that the way companies do any type of chemical business in Europe is going to change in 2018. Profoundly.

At Sphera, we’ve been planning for these changes for quite some time. In January, we released Essential 7.7.2. Its Chemical Inventory module has been enhanced to help companies stay in compliance with the 2018 REACH requirements. Our solution offers seamless integration with customers’ enterprise resource planning, or ERP, systems as well as recipe management and material databases. And most of all, it’s easy to use to get a quick and accurate projection of the amount of substances you will be sending to the European Union. No need to wait for the paint to dry if you will.

Using Sphera’s formidable palette of software solutions will allow companies to improve their substance portfolios to meet REACH registration requirements. It will also help companies save money by not having to have copious staff spend time with the tedious process of calculating and tracking the amount of substances that are being sent out when their products leave the warehouse. One person or a few people can simply enter the appropriate information into Essential and the software does the rest. Furthermore, Sphera analytics can help companies predict whether they might exceed the 1-ton threshold so they know whether to report the chemicals in their products to stay in compliance.

If you have any questions about REACH, please contact us through our website.  We look forward to working with you to meet your business objectives and help you get a better view of the whole canvas of regulatory requirements.

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Sphera is the leading provider of Environmental, Social and Governance (ESG) performance and risk management software, data and consulting services with a focus on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management and Product Stewardship.
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