REACH and climate change

The chemicals industry is highly regulated and must comply with a wide range of rules regarding the production, transportation, storage and disposal of its products. These regulations pose substantial challenges and are likely to continue evolving. REACH and climate change regulations pose immediate challenges to the industry, while many companies are now taking steps to reduce dependence on carbon-based energy sources.

In the 12th Annual PwC CEO survey, 58% of chemical CEOs report that they are making strategic investments in response to the threat of climate change. The impact of carbon emission regulation, along with the broader impacts of climate change, has prompted many in the industry to improve their energy efficiency and the sustainability of their energy supply. While initiatives such as the European Emission Tradings Scheme (EU ETS) are often viewed as a regulatory burden, the climate change agenda offers also positive business opportunities in reputation management, market positioning, and revenue generation through established carbon trading markets.

There’s no question REACH will have a major impact on every aspect of your company operations, from managing REACH consortia in the economic downturn to sustaining access to the EU market. When developing a REACH compliance strategy, companies must take action to safeguard their supply chains by engaging in discussions with their suppliers and customers. Compliance is likely to be costly and burdensome as 30,000 existing chemicals must be registered during the next 11 years. But continued collaboration will be essential to establish stable guidelines and minimise the administrative and financial burden of compliance.

How PricewaterhouseCoopers can help you

PwC’s chemicals teams work to help clients develop a strategic approach to environmental issues. We help you to understand and manage the regulatory requirements, and identify and capitalise on the opportunities to develop a long-term sustainable business.

PwC can provide businesses with a method for determining how REACH compliance will impact company operations. We support our clients with consortia financial management services, the PwC REACH Trustee to manage REACH compliance in complex supply chains and SIEF strategy and registration support..

Climate change has emerged as one of the most important political and business issues of our time. PwC has been working with policy makers and companies since 1997, helping to analyse issues and develop practical solutions for our clients. With a network of more than 150 professionals around the world, PwC offers a broad range of advisory, assurance and professional services that collectively guide clients through the complexities of climate change and emissions trading.