INTERNATIONAL COUNCIL OF CHEMICAL ASSOCIATIONS 01-2001 INTERNATIONAL MANAGEMENT OF CHEMICALS THE CONTRIBUTION OF THE INTERNATIONAL COUNCIL OF CHEMICALS ASSOCIATIONS (ICCA) BACKGROUND The countries of the world took a significant step forward towards a better global future when they came together in Rio de Janeiro 1992 and adopted Agenda 21. This global endorsement of Sustainable Development and the protection of the environment formally recognised that societies have a vital role in protecting their environmental relationships, just as they do their social and economic relationships; and that all three of these fundamental dimensions are interrelated. The chemical industry supports the goal of Sustainable Development and has a vital part to play in attaining that goal. The chemical industry is a key industry. Its products and services are instrumental in meeting the needs of mankind. A major contribution of the chemical industry to advancing sustainable development and to further improving the health, safety and environmental performance of its operations and products is the global extension of its improvement in the management of health, safety and environmental (HSE) risks whilst also meeting customer and public demands for economically viable new products that can be handled safely. Striving for such improvement is not only good business practice but represents a practical contribution towards sustainable development, and drives chemical manufacturers and suppliers to establish integrated Product Stewardship programmes. Product Stewardship is the responsible and ethical management of the health, safety and environmental aspects of a product throughout its entire life cycle. It is Responsible Care applied to products. Chapter 19 of Agenda 21, "Environmentally Sound Management of Toxic Chemicals" recognises the need for co-operative government, industry and public actions to ensure that the countries of the world make further progress in their efforts in each of the six programme areas. ICCA takes the view that the Intergovernmental Forum on Chemical Safety (IFCS) should play a leadership role as a deliberative body through which the stakeholders can better understand and identify possible international problems associated with chemicals, prioritise those problems, and then recommend the most reasonable strategy approach to deal with high priority international chemical issues. 1 The independence of the IFCS is a fundamental prerequisite of this approach, as is its role as an open forum rather than an implementing or decision-making organisation. The chemical industry also supports the Inter-Organisation Programme on the Sound Management of Chemicals (IOMC), an international mechanism to promote and to improve co-ordination of policies and activities of the participating organisations. Moreover, ICCA recognises and is further supporting the role of the United Nations Environment Programme (UNEP) in chemicals management. The recently adopted Rotterdam Convention on Prior Informed Consent (PIC), and the finalisation of the Convention on Persistent Organic Pollutants (POPs) are remarkable milestones in the cooperation between UNEP, Governments, Industry and NGOs. It is clear that various organisations and fora are involved in and dealing with chemical safety issues at the global level. In this respect, it is vitally important to clarify which issues are really of global concern and which fora are responsible for leading such issues globally. It is also critical to recognise that the ultimate goal of chemical safety related activities is to ensure that chemicals can be handled safely from production, processing and use to disposal at global level. This is why the chemical industry is committed to providing the necessary information for the safe intended and foreseeable use of its products. The ICCA High Production Volume (HPV) Chemicals Initiative is aimed at producing an internationally agreed and harmonised data and information package, which will be made publicly available. It is ICCA's clear view that risk management measures have to be based on a sound scientific risk assessment, as the key principle. Any risk reduction measures only based on intrinsic properties are not justifiable, and therefore not acceptable to industry. A science based, precautionary approach to risk management is fundamental to our health, safety and environmental protection efforts and should guide application of Principle # 15 of the Rio Declaration. ICCA, through Responsible Care , encourages companies to work towards characterising products with respect to their hazards and their risks and, in concert with their customers, taking appropriate risk management actions. Via ICCA, the chemical industry has launched its Long Range Research Initiative (LRI) to contribute to the improvement of scientific knowledge in environmental and human health and also to the further improvement of risk assessment. In this context, 18 LRI projects were initiated in 2000. It is ICCA's belief that LRI will also contribute to an enhancement of the reputation of the industry in line with Responsible Care . The Round-Table Meeting of Ministers and industry leaders in Stockholm in January 1996, (so-called "Stockholm statement") acknowledged the need for a co-operative approach to international management of chemicals that focuses on identifying, understanding and systematically reducing risks associated with chemicals based on the 2 application of sound scientific principles, common rules and harmonised methods and criteria. The member associations of the ICCA and the companies that they represent are committed to improving and extending the quality of their communication with the public and other concerned parties. The chemical industry sees this communication process as a cornerstone between risk assessment and risk acceptance and is committed to continuous improvement of sound product stewardship and chemicals management to ensure the safe use of chemicals. The following brief summary reflects ICCA’s view of the priority items in Chapter 19, Agenda 21, and the industry’s contribution to achieving the goals of Chapter 19. Detailed information is presented in the papers attached to this document. Programme Area A Expanding and Accelerating International Assessment of Chemical Risks Programme Area A plays a crucial role in and is a fundamental element of Chapter 19 according to its close linkages to other Programme Areas like Area B, C and D. It is through this that countries will elaborate data and information necessary for assessing chemicals and to set up the basis for the exchange of information. Furthermore, countries will establish the processes and standards by which they will judge chemicals warrant global attention and the risk posed by those chemicals. The involvement of industry in existing national and international programmes in providing data for an internationally acceptable risk assessment is key to the fulfilment of Programme Area A. In ICCA’s view, there are three main areas which need to be developed further under Programme Area A: 1. strengthening co-ordination and co-operation between governments and regional and international organisations and fora; 2. improving the current data base of existing chemicals and making the information publicly available; 3. developing principles for mutual recognition of assessments on chemicals worldwide. Co-ordination and mutual recognition should be focused on an internationally acceptable risk assessment of chemicals in order to achieve a sound scientific basis for selection of risk management options at the national, regional or international level, including developing countries. This would also lead to recognition of the broad range of chemical assessments being undertaken at an international level. Co-ordination and co-operation between all committed stakeholders is also necessary for developing commonly agreed criteria and procedures for: internationally acceptable risk assessment; selection of the most efficient risk management options; 3 mechanism for implementing risk management measures at a regional or international level. At its Board of Directors Meeting in Prague in early October 1998, ICCA established a framework for a series of major actions and a programme to develop further its cooperation with international authorities. Part of this framework is the ICCA global initiative on High Production Volume (HPV) Chemicals. The goal of this initiative is to prepare harmonised, internationally agreed data sets and initial hazard assessments under the Screening Information Data Set (SIDS) Programme of the OECD (Organisation for Economic Co-operation and Development). The improvement of the current data base of approximately 1,000 HPV chemicals based on information gathering and validation, and where necessary by additional testing until the end of 2004 is the key element of this programme and has to be considered as the first step under this initiative. In regard to the mutual recognition of assessments on new chemicals, industry proposed a vision to the February 1998 OECD Chemicals Committee Joint Meeting, namely that OECD member countries mutually accept new chemicals notification decisions from all other member states by the year 2005 as a first step. This procedure would be implemented and controlled through trade agreements. Moving towards mutual recognition of notification decisions could be done in a step-wise procedure: In conclusion, it is industry’s strong belief that there are means to strengthen and accelerate assessment of chemical risks in a manner consistent with both the spirit and direction of Chapter 19. Programme Area B Harmonisation of Classification and Labelling ICCA strongly supports and actively contributes to Governmental, Inter-Governmental and NGO work in the field of the Harmonisation of Classification and Hazard Communication of chemical substances and preparations. The harmonisation of classification systems should reflect and be based on the most upto-date scientific knowledge and principles, in order to gain world-wide acceptance of harmonised classification criteria. Existing data collected in accordance with such harmonised criteria and methods should be accepted. To provide demonstrable benefit to all concerned parties, harmonisation should involve a balanced approach which would minimise the reclassification of existing substances and preparations and take into account the significant downstream effects of hazard classification on existing regulatory requirements. 4 A harmonised system for the classification of chemicals is necessary to ensure consistency of hazard information and the provision of safe handling and use advice on chemical products. Any initiative resulting in the removal of existing ambiguities and inconsistencies in hazard communication has the full support of ICCA. A uniform global system will also assist developing countries to obtain relevant and compatible information on chemicals, which will aid the fulfilment of the objectives of Programme Area C. If the goals of Chapter 19 of Agenda 21 are to be achieved, there should also be a commitment from countries with existing systems to adopt the Globally Harmonised System (GHS) within an agreed timeframe. It is equally important to ensure that there is consistency of application of the agreed methods and criteria to substances and preparations in existing expertly classified systems and databases. Industry has endeavoured to play an active and constructive role in the development of Programme Area B. It is important that industry is allowed to continue with this proactive role. Therefore, in the implementation of the GHS, provision must be made for industry to be able to participate fully and effectively. This needs to recognise that industry has a global dimension with differing views and opinions in the same way as governments have. For industry to be able to participate effectively, its representation in the implementing body must reflect its geographical spread. Programme Area C Information Exchange on Toxic Chemicals and Chemical Risks ICCA supports programmes to ensure that governments have the information necessary to provide for protection of health and the environment against risks associated with chemicals. Much information is already developed and provided by industry, such as Material Safety Data Sheets (MSDS), and labelling of products. Industry has also elaborated a wealth of data and information under existing chemicals assessment programmes. Substantial work has already been done and remains necessary under the OECD HPV chemicals programme (which will be accelerated by the ICCA High Production Volume Chemicals Initiative). All this information is or will be made available globally via the International Programme on Chemical Safety (IPCS), the United Nations Environment Programme (UNEP), the Food and Agriculture Organisation (FAO) or by industry itself. Pollutant Release and Transfer Register (PRTR) programmes provide information on releases of substances to the environment and on offsite transfers of the substances for final disposal. These emission inventory programmes - which can be either government or industry initiatives - collect a range of information on substances on a regular basis to allow tracking progress over time. 5 ICCA supports emission reporting, believing that these programmes can provide valuable information that can help document and stimulate reduction in emissions from production and processing sites and communicate information to key audiences. All ICCA members support the reporting provisions of Responsible Care worked closely with governments to develop national emission reporting programmes. These programmes vary considerably and there are ways to improve them, but the basic concept and guiding principles of the programmes are sound. The value of a well-designed emission-reporting programme is that it provides useful information that increases awareness about emissions. Industry gains knowledge needed to document and stimulate emissions reduction. Governments gain awareness and understanding about national, regional and local emissions. The public gains awareness about emissions in their communities. Emission reporting programmes should be effective, manageable and concentrate on reporting requirements that provide real benefits without imposing unnecessary costs on government, industry and society as a whole. The global chemical industry, through ICCA, welcomes the Rotterdam Convention on the Trade in Hazardous Chemicals also known as "PIC Convention" . The Rotterdam Convention is a legally binding instrument replacing the present voluntary PIC scheme in which some 145 countries participate. It is a means for formally obtaining and disseminating the decisions of importing countries as to whether they wish to receive future shipments of chemicals banned or severely restricted by governments of countries participating in the scheme. The chemical industry is particularly pleased with the clear definitions, the maintenance of the existing scope, the risk-based approach and the transparent procedure that have been agreed upon. Since the Convention corresponds to a large degree with the scope and obligations of the voluntary PIC procedure, ICCA hopes that this will ensure a broad participation in the scheme. ICCA considers that the PIC Convention constitutes a very useful element in the safe management of chemicals, especially in developing countries, but has all along stressed that it cannot substitute for an effective national chemical regulatory programme. In ICCA’s view, there is also a need to develop more effective means to communicate in an open and transparent process with stakeholders and the public. The communication process should be used to provide information not just on chemicals and risks, but also on any industry initiative or action related to the sound management of chemicals. Programme Area D Establishment of Risk Reduction Programmes The "Stockholm" statement has acknowledged that risk management includes a range of risk reduction measures, from product information to legally binding use restrictions. 6 Risk reduction measures can be implemented on the basis of non-regulatory and/or regulatory instruments. It is ICCA’s view that non-regulatory, voluntary mechanisms such as Responsible Care - have a proven role in reducing risks, without the high costs of a strict government regulatory regime. The chemical industry’s commitment to Responsible Care requires a continuous improvement in the reduction of health, safety and environmental risk that may be posed by its products. This is achieved by establishing Product Stewardship programmes. The fundamental feature of Product Stewardship is its emphasis on managing the entire risk of products throughout their life-cycle, rather than on manufacturing and specific siterelated issues. Based on Product Stewardship, which is Responsible Care applied to products, ICCA associations and their member companies are involved with a number of voluntary risk reduction initiatives, including global dissemination of the chemical industry’s developing and applying leading-edge technology to increase efficient use of resources and reduce environmental impact, as they invest in new chemicals facilities in developing as well as developed nations. The global chemical industry has supported the development of a Convention on Persistent Organic Pollutants (POPs) throughout the process of its negotiation. This has included participation in the development of UNEP Governing Council Decision 19/13c and the subsequent negotiating process until the Convention’s finalisation on 10 December 2000. ICCA's support for the development of a POPs Treaty is consistent with the chemical industry's commitments to Responsible Care. The POPs Treaty needs to be workable and based on science. It needs to promote actions that are feasible, and that will lead to realistic and meaningful levels of environmental improvement. Much progress has been made by Governments of the world in developing a Convention consistent with these objectives, all of which are supported by the chemical industry. To ensure that this instrument contributes to the reduction and/or elimination of risk without imposing unnecessary social or economic consequences, harmonised criteria and procedure should be used to identify POPs pollutants. The POPs criteria should be based on risk-and risk reduction measures, and be the least restrictive necessary to reduce the specific risk. In its position paper "Principles for Risk-Based Decision-Making" ICCA has laid down key elements and principles for sound scientific risk-based management of chemical products. This also includes the application of the Precautionary Principle embodied in Principle 15 of the Rio Declaration, which provides for cost-effective measures to prevent health and environmental degradation, where the weight of plausible scientific evidence establishes that serious or irreversible damage to health or the environment is likely to be caused by the activity or chemical in question. ICCA also supports paragraph 7 44 of Chapter 19 of Agenda 21, which calls for a wide range of risk management options for sound chemicals management, including consideration of bans or phase-outs of a particular application of a particular chemical, when risks are unreasonable and otherwise unmanageable. This applies not only to POPs, but to all chemicals. Programme Area E Strengthening of National Capabilities and Capacities for Management of Chemicals ICCA associations and their member companies are aiding countries by advancing industry safety, health and environmental practices through global implementation of Responsible Care around the globe, providing manpower and financial resources for education, training, etc. ICCA has also provided manpower and financial resources to allow the UNEP Actions Programme for Emergencies at the Local Level (APELL) to mobilise country resources to prevent accidents which may result from chemical manufacturing operations. This programme has significantly enhanced national accident prevention efforts. The American Chemistry Council (ACC), in consultation with other ICCA associations, has also developed a Guidance Package for the Sound Management of Chemicals to promote greater understanding regarding the assessment and use of chemicals, and to encourage sound regulations where needed. Industry also supports the United Nations Institute for Training and Research (UNITAR) activities in developing National Profiles as the main basis for capacity building in developing countries, and the UNEP awareness - raising activities on POPs in the regions of the world. A number of member companies of ICCA associations are providing resources to national or regional projects in capacity building of various OECD member countries or countries with economies in transition. In principle, the global chemical industry, working through the ICCA, is prepared to further promote and to support capacity building activities in developing countries and countries with economies in transition such as: training programmes for regulatory authorities and local chemical industry with focus on chemical safety; developing chemical safety information instruction tools and producing guidance tools for the safe handling of chemicals; making available experienced advisors to help countries to develop National Chemical Safety Programmes; developing programmes in line with Product Stewardship principles in collaboration with national chemical federations and public authorities. 8 Programme Area F Prevention of Illegal International Traffic in Toxic and Dangerous Products Industry, as represented by ICCA, the Global Crop Protection Federation (GCPF), and the International Council on Metals and the Environment (ICME), is concerned about illegal international traffic in toxic and dangerous products. Industry supports the starting point for discussions as being the definition of illegal traffic as contained in Programme Area F of Chapter 19, viz. "Illegal traffic refers to traffic that is carried out in contravention of a country's laws or relevant international legal instruments." This part of the definition is very clear, in that it refers to existing national legislation and relevant international conventions, such as the Rotterdam Convention. The industry supports this as the basis for consideration of activities related to "illegal international traffic". However, industry believes that there is a need for further discussion and clarification related to the definition of terms like "compliance" and "enforcement". The participants in the UNEP Workshop on Enforcement and Compliance with Multilateral Environment Agreements (MEAs) in July 1999 agreed broadly that the concept of compliance dealt with states' obligations under MEAs and whether they were fulfilling them, whereas enforcement referred to the actions that states undertook within their national territories. Industry recommends that these definitions be adopted as the framework for discussions on illegal international traffic. Finally, industry supports the recommendations given in I.2 of IFCS/Forum III/10w to obtain further information regarding the nature and scope of the problem. We believe that these recommendations are the first step towards achieving the desired results from recommendations 19.69 - 19.74 of Chapter 19, regarding activities to be undertaken by governments, regional commissions and international organisations related to the issue of illegal international traffic. However, the focus should remain on assessment, as is described in the subject paper, and an ad hoc working group, if created, should be disbanded ("sunset") at the conclusion of the assessment. The industry is willing to co-operate with the IOMC, as appropriate, to facilitate the assessment process outlined. Global Benefits of Chemicals The chemical industry is one of the basic industries, consisting of diverse companies that transform raw materials and intermediate chemicals through chemical reactions to make products for consumers and other industries. From medicines to textiles to high-tech electronics, chemicals are used to make the goods that improve everyday life. 9 Most chemicals are useful and beneficial to mankind. From the basic "building block" chemicals to the highly refined "speciality" chemicals, they advance the standard of living and serve critical roles in the production of goods and the provision of services. Most prescription and non-prescription pharmaceutical products are made by chemical synthesis; even products derived from natural sources and fossil and renewable energies require chemicals in their isolation, purification and preparation. Chemicals play an indispensable role in modern health care products: surgical sutures, equipment, and sterile gowns; X-ray and mammography films; cleaning and sterilising preparations; sterile packaging, gauze and dressings; and electronic instruments. Chemicals also play a critical role in boosting crop yields through the use of fertilisers, herbicides, and pesticides. Beyond the farm, chemicals reduce food spoilage and extend shelf life through sterilising agents, preservatives and packaging. Products of the chemical industry make modern homes safer and more comfortable, durable and energy efficient - from paints and varnishes to insulating materials, sealants and caulk, casings for windows and doors, carpets, countertops, plumbing pipes and equipment, roofs and electrical insulation and fixtures. Chemistry makes possible the synthetic fibres that are fulfilling more of the world’s clothing needs. In addition, dyes and fabric treatments are the products of chemistry. Computers, calculators and other electronic equipment could not be made without the use of chemicals in making microprocessors, circuit boards, and compact discs. 10