How the CSRD Drives Transparency in Chemical Management: Challenges and Opportunities

The Corporate Sustainability Reporting Directive (CSRD) is transforming the way companies report on their environmental and social impacts, placing a particular emphasis on transparency. For companies handling chemicals, this means providing detailed disclosures on how they manage hazardous substances and mitigate risks to human health and the environment. Chemical management, especially the handling of Substances of Very High Concern (SVHCs), has become a focal point of sustainability reporting under the CSRD. As businesses adapt to these new requirements, they face both challenges and opportunities in improving transparency, compliance, and sustainability. This article explores how the CSRD is driving transparency in chemical management, the obstacles companies must overcome, and the opportunities that arise from enhanced transparency.

Why Transparency in Chemical Management is Essential Under the CSRD

The CSRD significantly expands the scope and depth of sustainability reporting. One of its core objectives is to increase accountability by requiring companies to be more transparent about how their operations impact the environment and society. Chemical management plays a crucial role in this, particularly for industries that rely on hazardous substances. The directive mandates that companies disclose:

1. The types and quantities of chemicals used in their operations, particularly those classified as hazardous or SVHCs.
2. The environmental and health risks associated with these chemicals, including their potential to pollute air, water, and soil.
3. The measures taken to mitigate these risks, such as safety protocols, substitution of hazardous chemicals, and responsible disposal practices.

For companies dealing with chemicals, transparency is not only a regulatory requirement but also an opportunity to build trust with stakeholders, enhance brand reputation, and contribute to global sustainability goals.