Toxics

Regulation of production and consumption of dangerous toxics

International agreements have banned or are phasing out a number of particularly dangerous or toxic chemicals. Examples of these include:

• The Montreal Protocol on Ozone Depleting Substances (ODS) and its related amendments and revisions, prohibits the production and use of ozone-depleting substances such as chlorofluorocarbons, hydrochlorofluorocarbons, halons and methyl bromide.
• The Stockholm Convention on Persistent Organic Pollutants (POPs) since May 2004 bans twelve persistent organic pollutants (POPs), including dieldrin, chlordane, heptachlor and PCBs. POPs are toxics that remain intact in the environment for long periods, become widely distributed geographically, accumulate in the fatty tissue of living organisms and are toxic to humans and wildlife. Discussions are continuing to include more POPs in the convention. WWF has recommended another 20 POPs for inclusion, some of which were listed under the Stockholm Convention during the latest conference in May 2009. Governments added nine new chemicals under the international treaty and decided to further reduce global DDT reliance.
• Other agreements ban toxics intended for use in warfare, and pesticides that are classified as highly or extremely hazardous. In addition, widely adopted action plans require the phasing-out or the strict regulation of other chemicals such as DDT, dioxins and furans, leaded petrol and asbestos.

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Impact assessment of new and existing toxics

Assessments will lead to a more precautionary approach to the introduction, manufacture and use of toxics in products where impacts are uncertain.

• Following the United Nations Conference for Environment and Development (UNCED) in Rio de Janeiro in June 1992 and the establishment of the Intergovernmental Forum on Chemical Safety (IFCS), the Bahia Declaration on Chemical Safety was announced in October 2000. This declaration included the commitment of the partners to strengthen efforts for implementation of a Globally Harmonised System (GHS) for classification and labelling of chemicals. At the World Summit for Sustainable Development in Johannesburg in August 2002, the implementation framework of GHS was agreed upon.
• In February 2006, the International Conference on Chemicals Management (ICCM) adopted the Strategic Approach to International Chemicals Management process (SAICM), a policy framework for international action on chemical hazards. SAICM recommends measures to help participating countries achieve safe and sustainable use of toxics in a timely and efficient manner.
• In June 2007, the European directive Registration, Evaluation and Authorisation of Chemicals (REACH) entered into force. The simultaneously established European Chemicals Agency (ECHA) and REACH aim to protect humans and environment from chemicals whilst not undermining the EU chemical industry.

Management of chemical by-products and waste

The international community increasingly requires the sound management of chemicals and their by-products and waste so as to minimise risks to public health and the environment.

• The Johannesburg Plan of Implementation, agreed upon at the 2002 World Summit on Sustainable Development, set the goal of achieving sound chemical management throughout the world by 2020 To meet this target, the SAICM process will set detailed goals and standards for chemical safety.
• Under the Basel Convention, governments have agreed to "minimise the generation and ensure adequate disposal of hazardous wastes and other wastes".Stockpiles and waste containing listed toxics under the Stockholm Convention must be managed in a way that is "protective of human health and the environment".
• Hazardous waste and certain toxics and pesticides cannot be exported to developing countries except in limited circumstances, and only with the prior informed consent of the importing country, according to the Rotterdam Convention.
• The FAO International Code of Conduct on the Distribution and Use of Pesticides includes sections on the storage and disposal of pesticides.

Specific sector standards

Many relevant initiatives regarding the production and usage of toxics exist, of which just a few are mentioned here:

• The UN Food and Agriculture Organisation (FAO) publishes and regularly updates a list of banned substances for the agricultural sector, which is rigorously implemented by many countries. FAO also issued the International Code of Conduct on the Distribution and Use of Pesticides, setting out voluntary, internationally accepted standards for the handling, storage, use and disposal of pesticides. Furthermore, FAO developed the Pesticide Stock Management System (PSMS), an application to help reduce the creation of obsolete pesticides and enable countries to plan strategies for responding more effectively to pest outbreaks.
• The Responsible Care initiative was developed in 1985 by the chemical industry to address broad stakeholder concerns surrounding chemical production and improve the chemical industry's reputation. Part of the Responsible Care programme are the global initiative on High Production Volume (HPV) chemicals in 1998, launched by the global chemical industry, through the International Council of Chemical Associations (ICCA), as a first step towards producing harmonised data sets on the intrinsic hazards of approximately 1,000 HPV substances. Another initiative under Responsible Care is the Long-Range Research Initiative (LRI), launched in 1999, which funds independent research in order to improve the risk assessment of chemicals in relation to public health. The Responsible Care Global Charter and Global Product Strategy (GPS) has been in development since 2004.
• Since August 2006 Greenpeace International has been publishing the Green Electronics Guide every quarter. The guide ranks the leading mobile and PC manufacturers on their global policies and practice on eliminating harmful chemicals and on taking responsibility for their products once they are discarded by consumers. Many of the companies have changed their policies in response to this publication.
• The Electronic Industry Citizen Coalition (EICC) adopted a Code of Conduct in 2004 that establishes standards to ensure that working conditions in the electronics industry supply chain are safe and that business operations are environmentally responsible.
• The International Oeko-Tex Association tests textile products for harmful substances according to Oeko-Tex Standard 100, which provides a scientifically founded evaluation standard for the human ecological safety of textiles. Other textile standards, such as GOTS, IVN, and Organic Exchange (also) ensure the use of organic fibres and thus preventing consumers for getting in contact with residues of harmful pesticides used during production.

Toxics regulation and management is changing continuously. All stakeholders involved in the production and usage should meet the standards set by the precautionary approach and increasing concerns of long-term impacts on human health, reproduction and the environment.

Banks involved in investments in the toxics industry as well as sectors using significant amounts of toxics, such as agriculture, the textile industry and the electronics industry, should ensure that the companies they invest in are following standards set forth above. For an issue that is dominated by uncertainty about future impacts, the precautionary principle should be overarching. This means that toxics can only be used in production processed when their safety is proven scientifically.

The following elements should be incorporated in a bank's policy:

The bank will only invest in companies that:

• Ban a number of particularly dangerous or toxic chemicals following the standards listed under 'selected standards and initiatives'.
• Use the precautionary approach as a principle before the introducing, manufacturing and using toxics in new products.
• Ensure effective assessment of the long-term impacts of toxics on public health and the environment.
• Comply with REACH, both inside and outside Europe.
• Use and manage chemicals and their by-products and waste sustainably, so as to minimise risks to public health and the environment.
• Prevent export of hazardous waste and certain toxics and pesticides to developing countries, and ensure the prior informed consent of the importing country.

The bank will:

• Pay close attention to sectors using significant amounts of toxics, such as agriculture, the textile industry and the electronics industry by using specific sector standards.
• Promote social and environmental certification according to standards set by multi-stakeholder initiatives of products and production systems in which toxics are needed.