Chemical Footprinting

6th Chemical Footprint Project Report Released

The use of hazardous chemicals creates direct risks for workers, communities, and our environment… investors need to understand how companies are meaningfully managing these risks. The Chemical Footprint Project is the first initiative to create a quantitative framework for investors to understand chemical risks (the financial risks hazardous chemicals pose to companies)  as well as the chemical opportunities (the financial opportunities available through the use of safer alternatives).

Matthew W. Patsky, CEO and Portfolio Manager, Trillium Asset Management, LLC, Chemical Footprint Annual Report 2016

The Chemical Footprint Project is designed as the first common standard to inform investors and companies of the 3 R risks (reputational, regulatory and redesign risks) in their portfolios and supply chains. It delivers data and metrics that can be used to report to major standards including SASB (Sustainability Accounting Standards Board). This is a major driver for investor participation in CFP.  CFP is supported by Signatories representing over $2.8 trillion in assets under management and over $700 billion in purchasing power. Businesses participating in the survey represent over $677 billion in annual revenue.

CFP provides a way for companies to holistically examine their chemical footprint, management strategies, and disclosure and verification processes with the goal of identifying and mitigating risks posed by hazardous chemicals. This process represents chemical management due diligence and a commitment to protect human and environmental health that is embedded within the company’s long-term strategy. Our goal is to continue to support CFP’s work and to engage companies on their responsibility to implement a safer chemical management system.

Mercy Investment Services 

CFP establishes quantitative metrics for organizations to measure their chemical footprint and substitute Chemicals of High Concern (CoHCs) with safer solutions. CFP engages investors, retailers, brands, suppliers, institutional purchasers, governments, and NGOs in the use of these metrics through two platforms:

• CFP Survey: a holistic framework that measures progress to best practices for Management Strategy, Chemical Inventory, Footprint Measurement, and Disclosure & Verification.
• Chemical Footprint Metric: quantitative measure of CoHCs that can be applied at different levels of analysis, including: product, packaging, manufacturing, supply chain, and facility. 

Investors utilize the CFP Survey because it is a measure of: 

• Quantifies a company’s “Chemical Risk” (the 3 R’s)

• Qualifies a company’s ability to capture market value through safer chemical use

• Evaluates a company’s commitment to public health and the environment