H2 Compliance

A company is built on its’ confidential business information. Should this be compromised, it could lead to loss of business or of competitive advantage. REACH requires the sharing of information between companies which manufacture the same substance. Information sharing for the greater good is at the core of REACH.

This includes:

	Uses and applications.
	Previously undisclosed information on substance properties or behaviour.
	Tonnage bands.

The intentions of this information sharing are laudable; a clear understanding of substance effects leading to safer use of materials during manufacture and use. Equally laudable are the reduction of costs to close information gaps and the reduction of animal tests. Beneficially, if a company possesses credible test information, there will be a monetary benefit associated with this information.

Industry made its voice clearly heard during legislation drafting; we want to maintain our confidentiality but we also want low costs for compliance. Costs were reduced through the concept of “one substance one registration” but the consequence was enhanced information sharing through the SIEF structures. How these will work in practice is starting to emerge. Inevitably they will be heavily populated by lawyers and it will take some time for companies to become comfortable with the structure and concepts of sharing information. Firm contracts and protocols coupled with supportive and open minds will be the key for success. Dynamic leadership and flexibility of members will aid the agreement of information in advance of the deadlines which will come very quickly.

While SIEF will be the more contentious example of information-sharing, there are others too.

Manufacturer

	Will my customers tell me what they do with my substance?
	Will they provide me with sufficient information to enable me conduct an accurate exposure assessment?
	How can I be sure that my distributors engage with their customers?
	How can I be certain that the IT tools and systems used to move my information around are secure?
	Where will by data-set be retained? What are the measures to assure it’s protection.

Downstream User

	Given the novel way I use a substance, how can I keep my application confidential?
	The information my supplier needs to assess exposure will give away information to my competitors but I can’t afford the cost for self-registration.

These are all valid questions to be addressed. For a company, there will be no gilt-edged guarantees but careful selection of IT Tools, building of relationships in the supply chain and prudent measures will go a long way to mitigating the concerns.

"We don't make chemicals, so REACH doesn't affect my business". A common misconception. The majority of the manufacturing sector in Europe use chemicals of some description. Chemicals are typically used within the manufacturing process, facilities maintenance and water treatment, laboratories, janitorial and landscaping services, just to name a few.

If you are a downstream user of chemicals, REACH has the potential to affect your business.

The effect comes from vulnerabilities in the supply chain. Your suppliers may not be willing to go through the registration process, either due to financial constraints or the unwillingness to register a substance for your particular use. If these substances are critical to your business, you will either need to find and qualify a new supplier who is willing to register the substance, or re-design your process to eliminate the need for this substance. Such repurcussions are time and resource consuming and can have severe effects for your business and importantly, your customers.

Also remember that you are a supplier too. If your customers have registration problems in their supply chain, it has a potential to affect their businesses, potentially eliminating the need to purchase products and substances from your business. These often 'hidden' implications have the potential to cause dramatic effects on your entire supply chain.

Effective supply chain communication is a key action to minimise these hidden risks to your business. Businesses should formulate an upstream supplier questionnaire asking some of the following key questions:

	Will the substances in the product I use be pre-registered?
	What are the likely registration deadlines for the substances within the products?
	Will our identified uses and exposures be included in the registration dossier?
	Can we have confirmation that you will comply with REACH and continue our supply?