National Standard for
Environmental Risk Management
of Industrial Chemicals
Information Paper on the pathway for design and
implementation of the National Standard
December 2015
CONTENTS
Purpose ....................................................................................................................................... 3
Overview of Timeline for Implementation ................................................................................. 4
1
2
3
Context................................................................................................................................. 5
1.1
Industrial Chemicals ....................................................................................................... 5
1.2
Current arrangements for managing industrial chemicals ............................................... 6
1.3
Problems with the current arrangements ........................................................................ 7
1.4
Previous Consultation .................................................................................................... 7
The National Standard ........................................................................................................ 8
2.1
Schedules under the Standard ....................................................................................... 8
2.2
Outcomes-based risk management conditions ............................................................. 10
2.3
Scheduling and Decision Making Process .................................................................... 11
2.4
Benefits of the National Standard ................................................................................. 13
Next Steps.......................................................................................................................... 15
Appendix A - Glossary of Terms ............................................................................................. 16
2
PURPOSE
The Commonwealth and state and territory environment ministers have agreed to implement a
National Standard to enable a nationally consistent approach to environmental risk management
of industrial chemicals across Australia.
The primary purpose of this paper is to outline the key steps involved in the implementation of the
National Standard, including opportunities for consultation and input into the detailed design and
intended operation of the National Standard.
This document recaps the context of the reforms to environmental risk management of industrial
chemicals, including the reform parameters agreed to by Australia’s environment ministers. The
paper also provides an overview of the proposed design and scheduling and decision-making
processes under the National Standard, in accordance with the policy intent set out in the
Decision Regulation Impact Statement, which has been considered by Ministers. As part of this,
the paper invites preliminary feedback from industry and community representatives in response
to a small number of questions posed which will help inform subsequent stages of the detailed
design of the Standard and noting that further and more substantive consultation will be
undertaken during 2016.
A Brief History of the reforms to establish a National Standard
In August 2008 the Australian Government’s independent research and advisory body, the
Productivity Commission, released a Research Report on Chemicals and Plastics Regulation.
The report highlighted a number of issues with the current Australian framework for managing
risks to the environment posed by industrial chemicals. In November 2008, the Council of
Australian Governments agreed to the recommendations made and tasked environment ministers
with implementing the reforms relating to environmental risk management.
Two Regulation Impact Statements (RIS) - a Consultation RIS, and later, a Decision RIS - were
prepared to support the policy. The RISs considered approaches to manage the risks posed to
the environment from industrial chemical use.
The Consultation RIS was publicly released in 2013. Feedback on the Consultation RIS informed
the development of the Decision RIS. The Decision RIS presented options for consideration by
Environment Ministers. The Decision RIS also detailed the impact each option would have on the
community, industry and governments.
Environment Ministers from the Commonwealth and all states and territories met in July 2015 and
have agreed to establish a National Standard for environmental risk management of industrial
chemicals. In accordance with the preferred option outlined in the Decision RIS (option 2), the
Standard will be established by the Commonwealth and implemented by each state and territory.
The preferred option in the Decision RIS sets out the parameters for the reforms agreed to by
Ministers and enables the Commonwealth and state and territory environment agencies to
commence work on the detailed design and implementation of the reforms, allowing for
consultation and engagement with industry and community representatives as part of this phase.
For more detailed information on the context and parameters of the reforms agreed to by
Ministers, please refer to the Decision RIS1.
1
The Decision RIS is available on the Office of Best Practice Regulation website
3
OVERVIEW OF TIMELINE FOR IMPLEMENTATION
The National Standard, its Schedules, criteria for chemical scheduling, decision-making and
scheduling processes, and management conditions are expected to be developed in detail during
2016. The final Standard will then be considered by Australia’s environment ministers, which is
anticipated to occur in late 2016.
The Commonwealth and states and territories will be actively seeking feedback and input on the
design and proposed functioning of the Standard to ensure it is fit-for-purpose and to ensure the
objectives of the reforms are met.
The diagram below overviews the key steps involved in the implementation of the National
Standard. The shaded box in the diagram highlights where we are in the process currently, and
summarises the key opportunities to have your say on the detailed design of the Standard over
the coming period.
Figure 1: Timeline for the Reforms
Page 15 of this paper contains further information on how you can provide input at this stage of
the process and/or if you would like to register your interest to be kept informed about
subsequent consultation processes on the implementation of the Standard.
4
1
CONTEXT
The sections below provide the context for reforming Australia’s approach to the management of
risks to the environment posed by industrial chemicals. The context together with the case for
reform, options considered and impact analysis are canvassed in the Decision RIS which can be
accessed on the Office of Best Practice Regulation website for more information. Definitions for
many of the terms used in this paper are included in Appendix A - Glossary of Terms on page 16
of this document.
1.1
Industrial Chemicals
Industrial chemicals have a range of uses. They are used in every workplace and household in
the country. Industrial chemicals are any chemical that is not used in medicines (human and
animal), pesticides, foods and food additives, or chemicals used for therapeutic reasons.
Therefore, industrial chemicals are used in everything from mining and manufacturing processes,
to domestic and cosmetic products. The diagram below outlines industrial chemical uses in
Australia.
Figure 2: Examples of industrial chemical uses in Australia
Most industrial chemicals are not harmful to the environment or human health. However, there
are some chemicals that can result in significant harm if not managed appropriately. In Australia
there are examples where industrial chemicals have contaminated the environment. One historic
example of this is the release of waste containing toxic chemicals, known as dioxins, into Sydney
Harbour many years ago. Because of this contamination, the New South Wales government
recommends that people do not eat any fish caught in waterways to the west of the Sydney
Harbour Bridge.
In general, contamination occurs when chemicals are not properly managed. It may also be the
case that people using the chemicals do not know the possible adverse effects they can have on
the environment. The latter is the case for the contamination of Sydney Harbour.
5
Removing chemicals from the environment and cleaning contaminated sites can cost hundreds of
millions of dollars. Industry and governments have spent almost $200 million trying to remediate
Sydney Harbour.
Chemicals can enter the environment at any stage during their lifecycle. The lifecycle of a
chemical includes all stages of a chemical’s useful life, from manufacture to disposal. The
lifecycle is outlined in the diagram below.
Figure 3: Chemical lifecycle and exposure
The extensive use and distribution of industrial chemicals in Australia means that chemicals are
being released to the environment from many locations across the nation every day. Chemicals
are released from industrial, commercial and domestic sources. Without appropriate
management, industrial chemicals could end up in our waterways, the air we breathe or our
drinking water and food we eat. This can be harmful to the environment and everything living in it,
including people.
1.2
Current arrangements for managing industrial chemicals
All levels of government share responsibility for managing industrial chemical safety in Australia.
The Commonwealth is responsible for undertaking national risk assessments of chemicals and
setting management standards. States, territories and local governments are responsible for on
the ground management of chemicals at locations such as industrial sites, sewage treatment
plants and landfills.
The National Industrial Chemicals Notification and Assessment Scheme (NICNAS) aids in the
protection of the Australian people and the environment by assessing industrial chemicals to
identify any risks they may pose to the environment and human health. The NICNAS is a
statutory scheme administered by the Australian Government Department of Health.
Following risk assessment, recommendations may be made as to the most appropriate way to
manage chemicals. These recommendations are made to government agencies responsible for
managing the risks. Risk management agencies (the risk managers) are responsible for
reviewing and implementing management recommendations. In reviewing recommendations, risk
6
managers consider the scientific evidence, as well as engineering, economic, social and political
factors, when choosing options for risk management. Risk managers are also responsible for
compliance and enforcement activities.
1.3
Problems with the current arrangements
The current Australian framework for managing risks to the environment from industrial chemicals
is fragmented and inconsistent. The framework is generally ineffective for consistently managing
hazardous chemicals. It is inefficient for businesses, difficult for the community to engage with
and duplicative.
Under the current arrangements, each jurisdiction implements risk management
recommendations for the environment in different ways. Some jurisdictions, for different reasons,
may also choose not to manage certain chemicals. In other jurisdictions, risk management
recommendations are only partially addressed. When jurisdictions decide to manage a chemical,
there are often differences in their approaches. This inconsistency can be confusing and costly
for businesses that operate across borders. These businesses have to abide by different rules
and regulations in each jurisdiction.
The current system may also not be able to effectively protect the environment into the future.
Between 25 and 45 chemicals that are newly introduced into Australia each year may have the
potential to harm the environment if they are not properly managed. There are also approximately
38,000 industrial chemicals on the Australian Inventory of Chemical Substances (AICS) that are
allowed to be used in Australia and have not been assessed for their risks to the environment or
human health. NICNAS is leading work to review chemicals that are on the AICS. It is expected
that a portion of these chemicals may require some level of management to protect the
environment.
For more information on these issues, please refer to the Decision RIS.
1.4
Previous Consultation
The reform of Australia’s approach to environmental risk management of industrial chemicals has
been developed in consultation with a wide range of stakeholders including governments,
industry and the community, over a number of years.
A Consultation RIS was released in April 2013. PricewaterhouseCoopers facilitated public
consultation. This consultation included public forums, focus groups, one-on-one meetings and
written submissions. Feedback from the Consultation RIS informed development of the Decision
RIS. The feedback received on the Consultation RIS resulted in the proposal to develop a
National Standard, canvassed in detail in the Decision RIS. The Decision RIS was developed in
cooperation with states and territories and with ongoing engagement with industry.
The process for assessing the risks of chemicals at the Commonwealth level is also currently
under review. The risk assessment reforms are being led by NICNAS. The Department of the
Environment is working closely with NICNAS to ensure the objectives of both reforms are met
and to ensure they are implemented in an integrated manner. For more information on these
reforms, please see the NICNAS website.
7
2
THE NATIONAL STANDARD
This section outlines, at an overarching level, the proposed design of the National Standard and
associated processes, consistent with the information and policy intent set out in the Decision
RIS agreed to by Environment Ministers. Initial feedback is invited in relation to aspects of the
Standard that will assist with more detailed design and inform subsequent consultation
opportunities.
The National Standard, or Australian Chemicals Environment Standard (ACE Standard), as it
is currently proposed to be known, will enable a nationally consistent approach to managing the
risks that industrial chemicals may pose to the environment. The ACE Standard will address the
problems with the current framework to manage chemical risks. The ACE Standard will outline a
single, national decision on the management of risks that a chemical poses to the environment.
The objectives of implementing the ACE Standard are:

to achieve better protection of the environment through improved management of the
environmental risks posed by industrial chemicals

to provide a nationally consistent, transparent, predictable and streamlined approach to
environmental risk management of industrial chemicals for governments, industry and the
community.
The ACE Standard will consist of a number of groups (Schedules) into which chemicals can be
categorised. This concept is similar to other chemical management regimes such as the Standard
for Uniform Scheduling of Medicines and Poisons that is in place to protect public health.
Industrial chemicals will be assigned to a particular Schedule under the ACE Standard based on
their level of concern to the environment. Determining the level of concern that a chemical poses
to the environment involves consideration of the harm that the chemical could cause to the
environment (hazards), the likelihood the chemical will cause harm from its use (risk), and any
other relevant impacts the chemical’s use may have on society (socio-economic considerations).
To prevent significant harm to the environment, management responses for chemicals of concern
will be proportionate and appropriate.
Each Schedule under the ACE Standard will outline a set of conditions that describe how
chemicals in that Schedule should be managed. Not all conditions will be appropriate for every
chemical in the Schedule. Therefore, along with a Schedule recommendation, a risk assessment
report will also recommend the most appropriate management conditions for the chemical. The
aim of having management conditions is to prevent chemicals being released to the environment
at levels that could cause harm to the environment. Conditions for the management of chemicals
in each Schedule will be publicly available.
Chemicals that are of high concern to the environment will have more stringent requirements for
management compared to chemicals of lower concern to the environment, which may not need
any management. This is because release of higher concern chemicals could cause significant
and long-lasting harm if released to the environment.
Further details of the ACE Standard and preliminary proposals for the Schedules and
categorisation processes are outlined below.
2.1
Schedules under the Standard
The ACE Standard includes three general categories– High, Intermediate and Low Concern.
These categories are proposed to be broken down into a number of discrete Schedules.
8
The level of concern a chemical poses to the environment, and therefore the likely level of risk
management required, increases proportionately from Schedule 1 to 8. Schedules 1 and 2 are
proposed to be for Low Concern chemicals. Schedule 3, 4, 5 and 6 are proposed to be for
Intermediate Concern chemicals. Schedule 7 and 8 are for High Concern chemicals.
Based on a review of the chemicals that have previously been introduced into Australia and the
chemicals on the Australian Inventory of Chemical Substances, the majority of chemicals
introduced into and used in Australia each year are expected to be Low Concern chemicals. Very
few chemicals are High Concern chemicals.
Although Low Concern chemicals will require minimal (or no) risk management, it is intended that
they will still be Scheduled under the ACE Standard. This will improve transparency and allow
businesses and the community to identify chemicals that have been determined to be Low
Concern to the environment. This information is intended to support businesses and the
community to make informed decisions about the chemicals and products they use and buy.
The diagram below provides an indicative overview of the ACE Standard and Schedules. A
Discussion Paper for more detailed consultation and feedback is due for release in March 2016.
The Discussion Paper will outline the ACE Standard in more detail and seek input on the
development of risk management conditions for each of the Schedules.
Figure 4: Indicative presentation of the Schedules under the ACE Standard
9
Chemicals will be scheduled under the ACE Standard based on their concern to the environment
for a particular use and volume. Therefore, a chemical with several different uses and different
assessed risks may be assigned to different Schedules. To help businesses and the general
public engage with the Standard, the following information will be published in a database online:

The chemical name/identifier

The Schedule the chemical is assigned to

The risk management conditions applicable for the chemical’s use

The use of the chemical as published in the NICNAS risk assessment

The volume of the chemical as published in the NICNAS risk assessment

The chemical hazards, if any, as published in the NICNAS risk assessment

The date of the decision

Any other key information that led to the decision.
Businesses and the public will be able to use this information to better understand risks
chemicals may pose to the environment from their use and the management of chemicals in
Australia. Businesses will also be able to use the information to make informed judgements about
chemicals they use and possible scheduling outcomes based on the scheduling of similar
chemicals.
Section 2.1 - We welcome your initial feedback
Q 2.1 – 1. A list has been provided above that outlines the information that will be publicly
available along with a scheduling decision. Is there any other relevant information that should be
made publicly available regarding a decision under the ACE Standard?
Q 2.1 – 2. More detail will be provided regarding criteria for scheduling in a Discussion Paper that
will be released in March 2016. Are there any initial comments you would like to make on the
proposed Schedules outlined under the Standard, noting these may change during the
development of appropriate management conditions?
Q 2.1 – 3. Are there any comments you would like to provide on the proposed name of the
National Standard, that is, the Australian Chemicals Environment Standard?
2.2
Outcomes-based risk management conditions
The ACE Standard will specify risk management conditions that are outcomes-based but remain
specific enough to be achievable and measurable. Outcomes-based conditions outline the end
result that a person or business must achieve. Examples of possible outcomes-based conditions
are:

Do not dispose of the chemical to sewer in concentrations greater than [x units]

Do not allow wildlife to access the chemical in concentrations greater than [x units]

Do not release the chemical directly to surface waters
10
Outcomes-based conditions under the ACE Standard, whilst outlining the end result that a person
or business must achieve, are intended to be measurable, achievable and relevant. Outcomesbased conditions will allow businesses to determine how best to meet the required environmental
outcome for a particular chemical. This approach encourages innovation and allows businesses
to identify the most cost-effective solution for their situation.
For example, a chemical condition stating that a chemical is not to be disposed to sewer in
concentrations greater than [x units] is the outcome that needs to be achieved. Businesses will
need to determine ways to ensure that the maximum concentration that enters the sewer is not
greater than the specified value. There may be a number of approaches that businesses could
use to achieve this limit. This is in contrast to outlining exactly how a chemical should be treated
to achieve this concentration limit.
Each Schedule under the ACE Standard will contain a number of different chemicals. There are
likely to be some differences in these chemicals both in terms of their characteristics as well as
how they are used. Risk management conditions for each chemical will be chosen from a list of
standardised conditions for each Schedule following the risk assessment. While the conditions
under the ACE Standard will be standardised, flexibility will be retained to include specific details
based on the risk assessment, as is the case with the examples given in the first two dot points
above.
Risk management conditions will be developed with the support of an independent expert
consultant. The consultant will develop the conditions in cooperation with the Commonwealth,
state and territory governments. The consultant will also engage businesses and the community
during the development of these conditions.
2.3
Scheduling and Decision Making Process
The intended scheduling and decision-making processes under the Standard are outlined in the
diagram below.
Figure 5: Scheduling and Decision Making Processes
NB: Requests for review by the Advisory Committee can be made by industry, the community,
governments or the Decision Maker.
11
2.3.1
Risk Assessment
NICNAS will continue to be responsible for risk assessment of industrial chemicals. Only
chemicals with a completed environmental risk assessment will be scheduled under the
Standard. Once an assessment is complete, a recommendation for the most appropriate
Schedule and risk management conditions for the chemical will be made. Recommendations will
be based on the chemical’s properties, hazard characteristics and release of the chemical to the
environment. Recommendations will be made using a set of predefined criteria that will be
publicly available and have regard to the legislation under which NICNAS operates.
2.3.2
Consultation
The consultation period for the ACE Standard will integrate with the NICNAS consultation
process. The NICNAS processes are currently the subject of public consultation as part of the
NICNAS reforms. Recommendations can be considered during the consultation period. If the
recommendations are not consistent with the criteria for scheduling, or they are not appropriate
for the chemical, a request can be made for the risk management approach to be reviewed by the
Advisory Committee.
2.3.3
Advisory Committee
The ACE Standard will have an Advisory Committee made up of independent experts proposed
to be in the fields of industrial chemistry, ecotoxicology, ecology, environmental risk
management, policy and/or social and economic impacts of chemical use. The Advisory
Committee is proposed to be appointed by the Federal Environment Minister or their delegate.
The Advisory Committee will review risk management approaches for all chemicals
recommended for the High Concern Schedules. High Concern chemicals may need more
bespoke risk management approaches taking into account social and economic impacts of their
use in Australia. The Advisory Committee will recommend scheduling and management
conditions to the Decision Maker for these chemicals. To streamline scheduling of chemicals
under the ACE Standard, the Advisory Committee will not review Low and Intermediate Concern
chemicals unless a formal request to do so is made by industry, governments or the community.
The Advisory Committee will also review any chemical if requested by the Decision Maker.
The Advisory Committee is expected to meet four times per year on specified dates, likely to be
in the middle of each financial quarter. Therefore, chemicals reviewed by the Advisory Committee
may take up to four months to schedule under the ACE Standard. If there are no chemicals that
need to be reviewed by the Advisory Committee, they will not meet.
Section 2.3 – We welcome your initial feedback
Q 2.3 – 1. Are there any other areas of expertise that may be useful to include on the Advisory
Committee?
2.3.4
Decision Maker
The Decision Maker for the ACE Standard is intended to be a delegate of the Federal
Environment Minister. The Decision Maker makes the final decision on all chemicals scheduled.
The Decision Maker will also have the power to request that risk management recommendations
are reviewed by the Advisory Committee and the power to amend the management conditions
under the ACE Standard.
12
For chemicals that have a completed risk assessment, it is proposed that the Decision Maker will
consider chemicals for scheduling once per month. Chemicals will likely be sent to the Decision
Maker on the first of each month, or following business day. A decision on chemical scheduling
will be made within two weeks of receipt by the Decision Maker. Therefore, chemicals not
reviewed by the Advisory Committee may be scheduled in less than 45 days following completion
of the risk assessment.
Mechanisms will be in put in place to enable scheduling decisions to be reviewed.
2.3.5
Implementation
After a decision has been made, chemicals will be scheduled under the ACE Standard. The ACE
Standard will record all scheduling decisions and management conditions.
In line with the agreement of Ministers on the Decision RIS, jurisdictions will adopt and implement
scheduling decisions under the ACE Standard. Jurisdictions will give effect to these decisions by
referencing the Standard in their own legislation. They will be responsible for compliance and
enforcement of activities conducted in their jurisdictions.
2.3.6
Secretariat
A Secretariat within the Australian Government Department of the Environment will manage the
daily operation of the ACE Standard and ensure information is efficiently disseminated to the
Advisory Committee and the Decision Maker. The Secretariat will also be the point of contact for
industry and the public.
2.4
Benefits of the National Standard
2.4.1
Benefits to the Community
As noted in the Decision RIS, the ACE Standard will benefit the community in the following ways:

Improved protection of the environment from harmful chemicals

Improved protection of human health from reduced risk of exposure to chemicals

Reduced risk of contamination of the environment from harmful chemicals in urban and
regional areas

Improved general awareness of chemical use and impacts on the environment

Improved access to information allowing the general public to make informed decisions
regarding chemical use
2.4.2
Benefits to Industry
As noted in the Decision RIS, the ACE Standard will benefit businesses in the following ways:

Improved transparency and predictability: Greater access to information will allow businesses
to make informed decisions regarding chemical use and management

Reduced administrative and compliance costs: It is intended that businesses will only need to
understand one approach to risk management rather than up to eight different requirements
across all jurisdictions
13

Streamlined scheduling and decision-making process that support clarity and prevent
significant delays in time to market
For a full summary of all impacts, including expected costs and benefits of the reform for
government, industry and the community, please see the Decision RIS.
14
3
NEXT STEPS
The Standard and associated processes will be developed in detail during 2016. If you would like
to continue to be engaged during the design phase of the process, please note your interest and
provide your contact details in the Cover Sheet with your submission (refer to the Department’s
website for further details) or email Chemicals.Management@environment.gov.au.
The table below outlines the indicative dates and key milestones for implementation of the ACE
Standard.
Table 1: Key dates for implementation of the Standard
Key Dates
Milestones
December 2015
Consultant to be engaged to develop the risk management conditions
under the Standard.
5 February 2016
Due date for any feedback you wish to provide on this Paper
March 2016
A Discussion Paper will be released for interested stakeholders to
comment. The Paper will include a detailed design of the Standard, the
Schedules, criteria for scheduling chemicals under the Standard, and the
processes for scheduling and decision-making. The paper will also seek
input on risk management conditions appropriate for each Schedule.
March to August
2016
Meetings and discussions with key stakeholders will be held regarding
the design of the Standard and the risk management conditions that will
be associated with each of the Schedules.
April 2016
Workshop(s) on the design, processes and management conditions
under the Standard will be held for stakeholders to coincide with the
release of the Discussion Paper.
July 2016
Public release of a draft report outlining proposals for the final design of
the Standard and associated processes. Feedback will be invited on the
report before it is finalised.
August 2016
Due date for submissions on the draft report outlining the design of the
Standard
Late 2016
Final Standard considered by Environment Ministers
2017 - 2018
Drafting and enactment of Commonwealth, state and territory legislation
for the Standard; Preparations made for the commencement of
operations of the Standard
2018
The Standard is expected to be in full operation in all jurisdictions
15
APPENDIX A - GLOSSARY OF TERMS
ACE Standard
A standard is a set of established requirements in relation to, in this
case, environmental risk management of industrial chemicals. The
ACE Standard will establish a standard set of risk management
conditions for industrial chemicals according to a chemical’s level
of concern to the environment.
Chemical Substance
For the purposes of this paper, a chemical substance describes a:

chemical element, including a chemical element contained in a
mixture, or

compound, polymer or complex of a chemical element,
including such a compound, polymer or complex contained in a
mixture, or

substance of unknown or variable composition, complex
reaction products or biological materials (UVCB), or

naturally-occurring chemical
but does not include:

an article, or

a radioactive chemical, or

a mixture.
The use of ‘Chemical’, ‘Chemical Substance’ or ‘Substance’ in the
context of the paper refers to those with industrial uses (see
Industrial chemical).
Concern
Concern is a measure of the potential consequences of a chemical
substance being approved for use in Australia.
Potential consequences of a chemical substance’s use could be
positive or negative. They include considerations of the risk defined
by the risk assessment, the inherent hazard characteristics of a
chemical substance or its degradation products, and any relevant
social and economic impacts related to a chemical’s use.
Decision Maker
The person with responsibility for scheduling or listing decisions
made under the ACE Standard and the risk management
conditions assigned to an assessed industrial chemical. The
Decision Maker is proposed to be the delegate of the Federal
Environment Minister.
Exposure
(environmental)
Exposure is the amount of chemical released to the environment
and the route by which it is released. Environmental exposure
assessments in assessments prepared by NICNAS characterise
either the extent to which organisms may be exposed to a
chemical stressor, or the concentration of a chemical in various
environmental compartments (e.g. water, soil, air), which may then
16
have the potential to affect organisms. The three main steps to an
exposure assessment are;

Release estimation

Consideration of the environmental fate and partitioning
behaviour

Derivation of a predicted environmental concentration.
Additional information on environmental exposure assessment is
presented in the Environmental Risk Assessment Guidance
Manual for Industrial Chemicals2.
Hazard
(environmental)
The environmental hazards of a chemical are those characteristics
of a substance, whether they be measured, observed or
calculated, that have the potential to cause harm to an organism,
or any other aspect of the environment, for example, the ozone
layer. A chemical’s properties, and therefore hazards, are
characteristics that generally do not change, unless new data
becomes available.
Industrial chemical
Under the Industrial Chemicals (Notification and Assessment) Act
1989 (Cth), an industrial chemical is any chemical that has an
industrial use (s 7(1)). The term 'industrial use' is defined to mean
a use other than an excluded use (s 7(2)). The term 'excluded use'
is defined in s 7(2). Therefore, an industrial chemical is any
chemical that is not:
Risk (environmental)

An agricultural chemical or a constituent of an agricultural
chemical; or

A veterinary chemical or a constituent of a veterinary chemical;
or

A therapeutic chemical or an ingredient or component in the
preparation or manufacture of goods for therapeutic use; or

A food intended for consumption by humans or animals or a
constituent in such food; or

A food additive in food referred to above.
Risk is the likelihood that the hazard will be capable of causing
harm to the environment. It is based on the hazard of a chemical
and its level of exposure for a specific use and location. Risk is
analysed during the risk assessment process and can be
represented simplistically as:
Risk = Hazard × Exposure
2
The Environmental Risk Assessment Guidance Manual for Industrial Chemicals can be found at
http://www.scew.gov.au/resource/chemical-risk-assessment-guidance-manuals
17
Risk assessment
Risk assessment is the systematic scientific evaluation of potential
adverse effects resulting from exposure to a hazardous agent or
situation. Risk assessment requires the integration of both
quantitative as well as qualitative scientific information.
Risk management
Risk management refers to the process by which policy actions are
chosen to control hazards identified in the risk assessment stage.
Risk managers consider the scientific evidence and risk estimates
– as well as economic, social and political factors – in evaluating
options for risk management and choosing one of those options.
18