6th CFP Report Released
December 02, 2022
12/8/2014 TriplePundit Blogs Press Releases
Chemicals of concern are an increasing problem in today’s marketplace leading not only to environmental pollution and human health issues, but also a slew of hidden business liabilities and risks. Managed incorrectly, the costs can be quite high in terms of fines, lost market share and tarnished brand reputation. Consider these two examples:
Businesses from across sectors are beginning to pay more attention to this issue including major players such as Target and Wal-Mart Stores that both recently created programs to address chemicals of concern. Still, progress is slow and stymied by a variety of factors, making it difficult for investors to identify the real leaders. Fundamentally, companies cannot manage what they don’t measure and we lack a common sustainability metric for chemicals management. Without this information, socially responsible investors cannot adequately assess the full sustainability commitment and potential of a company
In response to this problem, a group of corporate, NGO and investment firm leaders recently released a new program to identify corporate leadership in chemicals management. The Chemical Footprint Project (CFP) provides the first-ever common metric of its kind for benchmarking companies’ use of chemicals of high concern, and how they are responding to the increasing market demand for safer products. This independent, non-profit, third party and open source assessment tool will create a credible system of public recognition for commitment to addressing issues of chemical-related health and environmental impacts.
Not only does CFP establish a standardized system of measurement so critical to facilitating legitimate comparisons, the Assessment Tool also provides a common set of questions for investors to ask of companies. The Assessment Results provide a barometer of how well companies manage chemical risk – identifying best in class performers – making it easier to identify and reward companies that systematically improve their chemical safety. Additionally, when fully operational, CFP will provide Chemical Footprint data to investors at their fingertips.
Similar to Carbon Footprinting, Chemical Footprinting can apply to any business sector. What does this mean for responsible investors? Simply put, more data = better investment decisions. Here’s how:
The CFP will take responsible investing to the next level. It’s the right thing to do because it protects human health and the environment, and creates shared value for consumers, communities, and companies.
Written by: Susan Baker, Constantina Bichta, Jeremy Cote, Richard Liroff
Susan Baker and Jeremy Cote are with Trillium Asset Management; Constantina Bichta is with Boston Common Asset Management; and Richard Liroff is with the Investor Environmental Health Network
Originally posted in TriplePundit