Healthy Business Strategies for Transforming the Toxic Chemical Economy
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Healthy Business Strategies for Transforming the Toxic Chemical Economy HEALTHY BUSINESS STRATEGIES FOR TRANSFORMING THE Toxic Chemical Economy A Clean Production Action Report Tim Greiner Mark Rossi Beverley Thorpe Bob Kerr Clean Production Action CON T EN T S Mark Rossi, Beverley Thorpe Clean Production Action promotes the use of products that are 1 Executive Summary: safer and cleaner across their life cycle for consumers, workers and Healthy Business Strategies communities. Our mission is to advance Clean Production which we define as the design of products and manufacturing processes 4 Introduction: in harmony with natural ecological cycles, the elimination of toxic Creating a Competitive Advantage waste and inputs and the use of renewable energy and materials. 5 Toxic Chemicals in the Economy Pure Strategies, Inc. 9 Brands at Risk Tim Greiner, Bob Kerr Pure Strategies helps companies improve their environmental 10 From Toxic to Green Chemistry — and social performance using clean production tools, sustainable Taking Action materials, strong community relationships and transparent 15 Case Studies in Transforming measures of progress. the Toxic Chemical Economy 15 Kaiser Permanente: Healthy Patients, Workers Acknowledgements and Communities We wish to particularly thank the following 19 Interface Fabric: foundations for their generous support: Benign by Design • Panta Rhea Foundation 25 H&M: Fashion Chemistry • Marisla Foundation 30 Herman Miller: Healthy Chairs • Overbrook Foundation • Kendeda Sustainability Fund 35 Avalon Natural Products: Consciousness in Cosmetics We also wish to thank: 40 Dell, Inc.: Mainstreaming • Avalon Natural Products: Morris Shriftman the Precautionary Principle • Dell: Mark Newton and Bryant Hilton 45 Lessons for the Journey • Hennes & Mauritz AB: Ingrid Schullström and Elin Robling • Herman Miller: Scott Charon, Gabe Wing and Mark Schurman 47 Recommendations for • Interface Fabric: Wendy Porter Healthy Business Strategies • Kaiser Permanente: Tom Cooper, Lynn Garske and Kathy Gerwig 49 References Production Credits • Design: David Gerratt/NonprofitDesign.com A project of Clean Production Action June 2006 HEALTHY BUSINESS STRATEGIES FOR TRANSFORMING THE TOXIC CHEMICAL ECONOMY 1 EX ec U ti V E S U mmar Y Healthy Business Strategies usiness leaders are creating value by embedding concerns for human health and the environment into their products. Healthy business Bstrategies differentiate a company’s brand from its competitors — lowering costs, en- hancing consumer and employee loyalty and increasing market share by creating healthier products for people and nature. For these leading companies, using environmentally preferred chemicals and materials is a core value, not a secondary assignment relegated to the periphery of the company. Unfortunately, the dominant approach of businesses using toxic chemicals involves no strategy other than toxics ignorance and compliance. Toxics-ignorant firms forego strategic thinking on chemicals and know little about the chemicals and materials used in their product nor the hazards they pose. Toxics-compliant firms do the minimum required by law, seeking only to conform with regulations that govern worker health, handling and storage of and pollution con- trol of toxic chemicals. Firms operating in the toxics compliance and ignorance universe fail to anticipate market opportunities for healthy products and expend scarce resources combating chemicals restrictions and public demands for safer products. This report profiles six companies that are report synthesizes and presents a coherent crafting healthy strategies for using chemi- approach any firm can adopt to move beyond cals and materials in their products. This outdated toxics ignorance and toxics com- report does not address the totality of pro- pliance approaches and towards a fully ducer responsibility for each company’s integrated healthy business strategy. product life cycle such as end of life product management, energy use and social corpo- The Problem — Toxics Ignorance rate responsibility. This report does, how- U.S. laws do not protect people and the ever, provide detailed examples of how com- environment from toxic chemicals. Each of us panies are now integrating safer chemicals carries as many as 200 industrial chemicals in use into their policies and the recommenda- our bodies — chemicals that were invented tions and lessons resulting from this. This in the past 75 years. These chemicals aren’t HEALTHY BUSINESS STRATEGIES FOR TRANSFORMING THE TOXIC CHEMICAL ECONOMY 1 chemically conscious companies are already doing this by phasing out hazardous chemi- cals in everyday products such as furniture, electronics, cosmetics, fabric and clothing. The Solution — Healthy Business Strategies Six chemically conscious companies are pro- filed in this report (see Table 1). We selected these firms to represent large and small busi- ness in different sectors of the economy to show companies at different places on the path towards chemical consciousness. None of these companies have perfected the manu- facture and use of products made entirely only in 55-gallon drums in factories or in from green chemicals and some are further bottles in the cleaning cabinet at home. along than others. Our case studies highlight Companies use chemicals in the manufactur- the initiatives of these companies to trans- ing process for almost every product and as form the toxic chemical economy into a ingredients in the items themselves. Yet we healthy chemical economy — a market where know almost nothing about what chem- manufacturers make products entirely from icals are in everyday products and therefore chemicals and materials that are safe and little about the hazards they may pose. healthy for humans and the environment. We do know that some widely used chemi- All the companies highlighted here are aware cals last for decades, travel long distances of the dangers posed by toxic chemicals and from their point of origin, concentrate as are taking action to reduce their use. Although they move up the food chain and can cause their individual actions to address toxic chem- serious health problems for humans and icals vary, their best practices, when gathered animals. This is the outcome of the “toxic together, define the terrain of healthy chemical economy,” a market where chemical chemical strategies: manufacturers make highly hazardous chem- icals, product manufacturers add the chemi- • Identify all chemicals in their products. cals into their materials and products, and • Eliminate toxic chemicals. workers, communities, consumers, mothers, • Strive to manufacture and use only babies and the environment are exposed to healthy ingredients in their products. the chemicals. Studies documenting the pre- • Design new products. sence of these chemicals in human tissue, • Innovate — design new products and umbilical cord blood, breast milk, food and develop novel partnerships. dust are a sign that companies must change • Work collaboratively with environmental their product’s ingredients and governments advocates. must revamp laws to responsibly regulate • Take responsibility for products from the use of chemicals and catalyze the tran- cradle-to-grave. Require data from sup- sition to green chemistry. In fact, some pliers on chemicals and materials used 2 HEALTHY BUSINESS STRATEGIES FOR TRANSFORMING THE TOXIC CHEMICAL ECONOMY HEALTHY BUSINESS STRATEGIES FOR TRANSFORMING THE TOXIC CHEMICAL ECONOMY 3 EX ec U ti V E S U mmar Y Healthy Business Strategies Table 1: Company Innovation and Chemical Policy Highlights Company Industry Featured Innovation Chemical Policy Highlights Personal Care Reformulate line Eliminate known Avalon Products of cosmetic products and suspected hazards Adopted healthy chemicals Mainstream the precautionary Dell Electronics policies principle in the electronics industry PVC-free t-shirt Develop and enforce strict H&M Clothing Retailer and numerous other protocol with suppliers to eliminate clothing items hazards in products Office, Healthcare, Mirra® Chair— Use innovative eco-design protocol Herman Miller Education and Resi- Award winning design to guide product development dential Furnishings Terratex PLA®— Complete evaluation of chemicals Interface Fabrics and Carpet Award winning plant-based used to manufacture fabric office interior fabric Spur product development through Kaiser Permanente Health Care PVC-free carpet supplier partnership in products. Work with suppliers to create community and worker health and well- healthy ingredients. Design products to being. Like all businesses, our six case study be reused, recycled or composted. Take companies want to avoid “toxic scares” and products back at end-of-life. gain the long-term confidence of their • Adopt internal chemical policies, including customers. the use of lower threshold of scientific certainty when threats of serious or In all six cases, their work to reduce chemical irreversible damage to the environment hazards enhanced their brand reputation become apparent — also known as the with investors, customers and environmental precautionary principle. advocates. Some companies achieved con- • Support laws that promote green chem- siderable savings in the process. Others istry and eliminate toxic chemicals. launched new product lines that differenti- ated them from their competitors. In several Their motivations for taking action beyond cases, their innovations led to the creation of compliance initiatives range from: pure busi- new submarkets.