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  • March 31, 2025
  • 3E

Managing Substances of Concern with Full Material Disclosure: Ensure Compliance & Visibility


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Managing Substances of Concern Through Full Material Disclosure (FMD)

Full Material Disclosure (FMD) is the next step in achieving true transparency – having comprehensive data available on products and the chemicals and substances they contain. According to the Taskforce on Nature-related Financial Disclosures (TNFD), a total of 416 organizations have committed to disclosing their material nature-related issues to investors and other stakeholders based on the TNFD recommendations, signaling more widespread adoption of full material disclosures.

But why is FMD important?

Consider the landscape for chemical compliance and the complexity of regulations and reporting to reveal the value of Full Material Disclosure.

What Are Substances of Concern (SOC) in Regulatory Compliance?

Substances of Concern (SOC) are chemicals and materials that are believed to have negative impacts on human health and/or the environment. SOCs may be carcinogenic, mutagenic, toxic, or result in reproductive harm or bioaccumulation. With tens of thousands of chemicals being used in modern manufacturing today, it’s impossible to evaluate every substance for toxicity. When regulatory agencies understand that a substance could be harmful, it is added to the “substances of concern” list, which often means that production, use and disposal of these substances is subject to control and rules. Some examples of widely known substances of concern are asbestos, formaldehyde and benzene.

Considering the multiple SKUs and complex products that contain components from suppliers around the world, understanding which SOCs may be in your products can seem like an overwhelming task. Government regulatory bodies and NGOs alike are continually adding to their lists of “Chemicals of Concerns” and “Chemicals of Very High Concern” and requiring that companies identify, report on, and label the SoCs in their products. Failure to comply can result in fines and can halt the sale of a product in a particular region. SoC lists differ by region, by industry, and by regulatory body making it difficult for companies to understand which substances must be reported on. FMD overcomes that challenge by reporting on all substances.

CONTINUE READING ON: www.3eco.com
                   

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