Research among professionals to explore the readiness of the chemical industry for REACH Chemical...

Research among professionals to explore the readiness of the chemical industry for REACH

Chemical Industry REACH Research

July 2009

Reference Number: 5023

Prepared by:Jessica Hall, Reed Business Insight

On behalf of:Mark Radvanyi, Head of UK/ I Media and Analyst Relations, Accenture

Agenda

2

Background and Research Objectives

Methodology

Main Findings

• Respondent profile

• Company and REACH program characteristics

• Becoming REACH compliant

• Maintaining operational REACH compliance

Conclusion

Appendix

More about Reed Business Insight

3

Background

REACH is a new European Union regulation concerning the Registration, Evaluation, Authorisation and restriction of CHemicals. It came into force on 1st June 2007 and replaces a number of European Directives and Regulations with a single system

Research ObjectivesTo understand…

how different companies within the chemical industry have set-up their REACH programs

the progress, challenges and emerging solutions with regards to becoming compliant with all REACH requirements

the progress, challenges and emerging solutions with regards to staying operationally compliant with all REACH requirements

4

Methodology

• An online self-completion survey was emailed to the ICIS database of chemical industry professionals

• Potential respondents were encouraged to forward the survey to others in the company responsible for REACH

• A free prize draw to win an iPod Touch was offered to boost response

• Over 301 responses to the survey with 134 fully completed

• Results shown are based on those answering each question

• Fieldwork took place between 8th June and 26th June 2009

Respondent profile

6

Annual revenue of companies

Base: All respondents (126)

What is your company’s annual revenue?

7

Number of employees


How many employees does your company have?

8

Type of chemical company

Base: All respondents (128)What type of chemical company do you represent?

Spontaneous mentions: Chemical converter, Advanced composites manufacturer, Mineral oils, Licensing and catalyst supply, Injection moulder, white goods production , commodity polymers trading

9

Job title

Base: All respondents (134)Which of the following job titles best reflects your position ?

Spontaneous mentions: Regional Procurement, Technical staff, Product manager, REACH Data Manager, Senior Research Scientist/REACH coordinator, Product Engineer, Assist. Quality Assurance manager

10

Organisation headquarters based in…


Where are your organisation’s headquarters?

Company and REACH program characteristics

12

Just over a quarter of respondents work for companies deriving more than half their revenue from EU based clients


Approximately what proportion of your company’s revenue derives from clients based in the EU region?

13

The majority of companies have pre-registered in excess of 1000 substances for REACH


How many substances have you pre-registered for REACH?

14

Though not all anticipate registering all the substances pre-registered


What percentage of your pre-registered substances do you anticipate that you will register? (Please type your answer below and if this is not 100% please give reasoning)

• 31% of respondents said they would register 100% of the substances they had pre-registered

Due to cost and work required, we will register the most important products for now

75% - We have decided to attempt to obtain certification from suppliers for substances sourced outside of EU

90 to 95% Some products are in a development status and will be registered only when we will obtain approvals from customers.

30% - the rest should be registered by our suppliers.

50%. We pre-registered chemicals that we thought had potential. But considering the costs involved, we will probably have to scale back.

85, due to high registration cost complexity

“

”

15

The approach to REACH is largely centralised


As a company do you take a centralised or decentralised approach to the REACH challenge?

16

72% have a REACH team. Half work for companies where the REACH team includes representatives from safety, health & the environment


If your company has established a designated REACH team, which functions are represented in this team?

17

Over a third have a formal steering committee for REACH. A third of these committees report to the CEO

Base: All respondents (233 / 81)

Is there a formal business-led steering committee for REACH? / What is the highest organisation level represented in the steering committee?

Spontaneous mentions: Plant manager, General manager, Purchasing Director

18

Lowest levels of REACH awareness are thought to be at board level


How would you rate the level of awareness of REACH related issues at each of these levels in your company?

19

Key findings

• Companies have typically pre-registered over 1,000 substances• However it is expected that some of these may not be registered• Two-thirds of companies take a primarily centralised approach to

overall REACH governance• 7 in 10 companies have an established REACH team • The REACH team is most likely to include representatives from safety,

health & environment, regulatory affairs and sales & marketing• Over a third have a formal steering committee • More than half of these committees report to the CEO or a board

member• Business unit led, function EVP/SVPs are perceived to have the

highest levels of REACH awareness and board level the lowest• However it appears that awareness could be improved at every level

Becoming REACH compliant

21

Companies have made most progress with pre-registering substances and building an inventory


How would you rate the progress of your company with regard to:

22

Related costs are likely to be the biggest challenge faced in becoming compliant


What are the biggest challenges you face in becoming REACH compliant: (Please mark the top 3 only)

Spontaneous mentions: Problems and bugs with REACH IT, Unclear/ different understanding of REACH regulations within the supply chain

Passing on costs to customers!

23

From verbatim comments, cost is a critical challenge especially for the smaller businesses. Many respondents do not know how they will overcome the challenges facing them

For your main challenge please elaborate and describe how you foresee managing and overcoming it.

Will likely drop some products

For small and medium sized chemical formulators exporting to the EU, REACH forms a significant cost management challenge. The more successful you are the higher the cost

We will have to make commercial decisions over whether to continue selling certain chemicals

A clear picture of total cost involved is missing. Therefore for some products we cannot decide to actually import & market in Europe, effectively having to change our business strategy.

I don't. The cost to register the business we have in Europe far exceeds the value of these sales. Once the final deadline arrives we will be forced to stop selling into Europe.

Our only chance to overcome this challenge is if sales exceed costs. Very close at this point. Otherwise, we withdraw from the market.

“

”

24

Time, communication and involvement with SIEFs/Consortia were also frequently mentioned as being difficult challenges

SIEF Formation and Consortia is a complete mess, cumbersome, expensive and totally unnecessary. The whole process is on the verge of collapse.

For your main challenge please elaborate and describe how you foresee managing and overcoming it.

Dependence on communication of data within supply chain. Possible solution: Involving other functions in managing the flow of information in the supply chain (Marketing and Sales)

It is the timeline that makes the cooperation within the SIEF a challenge.

We are afraid of how we can establish consortium to collect all necessary safety data and how we can share the related costs with each company.

Timeline set by EU: so many unknowns remain, that it is impossible to foresee the consequences. Moving production outside of Europe shall certainly be an option.

REACH puts additional pressure on critical internal resources for product safety and compliance. Many of those resources do not reside in the EU, so there are additional challenges in communication and managing work.

Communication through sales and purchase dept.

“

”

25

Email is the most likely method of communication with the supply chain


Supply chain communication: How do you anticipate communicating within your supply chain?

Spontaneous mentions: Mail, Face-to-face presentation, REACH IT

26

Third party support will be used by over half. It is likely to be used for specialist tasks


Do you anticipate using any third party support in the registration effort?

Of those who expect to use third party support, it will be used for:• Specialist tasks and specific expertise 44%• Program management and communication 7%• Address peak loads in administrative / repetitive tasks 6%

27

Nearly half of the SIEFs/consortia respondents participate in have identified participants and structure


In general, how much progress has been made in the SIEFs/consortia in which you participate?

28

Some respondents are unsure which tasks will be supported using a REACH IT solution. Communication within supply chain is the most likely


Which tasks will you support using a REACH IT solution?

29

Key findings

• 62% of companies have completed pre-registering substances• Just over a third have also completed a substance inventory and a further

25% have this process underway• Most other areas of preparation for REACH have not been started or are in

the early stages • Cost is likely to be the biggest challenge facing companies in becoming

REACH compliant• The implications of related costs are not fully known but include increased

prices and changes to business strategy• The timeline and communication within companies and with the

SIEFs/Consortia are also challenges for many• Communication within the supply chain is likely to be by email• Over half of companies expect to use some third party support in the

registration effort• Tasks to be supported with a REACH IT solution may not have been fully

decided but pragmatic IT solutions are expected to be used in most cases (see appendix)

Maintaining operational REACH compliance

31

Relatively few companies have completed activities for maintaining compliance but more than half have started


What is the status of your activities related to maintaining operational REACH compliance in the future?

32

Management of REACH data & documents and related costs are likely to be the biggest challenges faced


What are the biggest challenges you see for ensuring operational compliance i.e. staying REACH compliant: (Please mark the top 3 only)

Spontaneous mentions: Motivation, All of the above

33

Many companies are yet to determine which tasks will be supported using a REACH IT solution



34

Key findings

• Most companies have started activities for maintaining REACH compliance but very few have completed these

• Around a quarter of companies have not started any activities for maintaining compliance

• Related costs are also a key challenge for maintaining compliance, as is the management of data and documents

• Over a quarter believe that the authoring, distribution and storage of SDSs will be supported with a REACH IT solution

• However companies are largely yet to decide which tasks will require support from an IT solution and which solutions will apply

Conclusion

36

Overall summary

• Preparation for REACH is underway with teams being established and pre-registration of substances largely complete

• However awareness of REACH related issues could be improved at most levels in companies

• In addition, many respondents have concerns over the challenges they face with becoming REACH compliant

• Few solutions to the main challenges (managing costs, achieving compliance within the timeframe given, communication) are currently established

• IT solutions will play a role in the tasks required for becoming and staying REACH compliant but many companies are yet to determine which solutions will apply

• It is likely that pragmatic IT solutions will be used in many cases

AppendixIT solutions respondents expect to use for tasks relating to REACH

38

Becoming Reach Compliant: Tasks respondents expect to be supported using a REACH IT solution



39

IT solutions: those who expect to support communication within supply chain with a REACH IT solution

Which of the following IT solutions will you be using for communication within supply chain?

IT solutions that will be used:

• Pragmatic IT solutions 77%• Changes to existing systems 35%• Off-the-shelf software product 16% (Respondents mentioned: SIEFReach, SAP REACH

Compliance, Axapta REACH add-in, IUCLID)• Others 7%

Base: All respondents (43)Caution: this question was only asked to a proportion of the sample so the base is low

40

IT solutions: those who expect to support the management of substance inventory and regulatory content with a REACH IT solution

Which of the following IT solutions will you be using for management of substance inventory and regulatory content?


• Pragmatic IT solutions 69%• Changes to existing systems 49%• Off-the-shelf software product 13% (Respondents mentioned: AXAPTA)• Others 10% (Respondents mentioned: SAP EH&S, In house programs)


41

IT solutions: those who expect to support collaboration within the industry with a REACH IT solution

Which of the following IT solutions will you be using for collaboration within the industry?


• Pragmatic IT solutions 71%• Changes to existing systems 29%• Off-the-shelf software product 9% (Respondents mentioned: SIEFREACH, REACH LINK for SIEF IT, IUCLID 5.1.1) • Others 11% (Respondents mentioned: SIEF management software and Internet)


42

IT solutions: those who expect to support management of records and documents with a REACH IT solution

Which of the following IT solutions will you be using for management of records and documents?


• Pragmatic IT solutions 71%• Changes to existing systems 34%• Off-the-shelf software product 11% (Respondents mentioned: AXAPTA, IUCLID) • Others 20%: (Respondents mentioned: SAP EH&S, In house programs)


43

IT solutions: those who expect to support interfacing with REACH tools with a REACH IT solution

Which of the following IT solutions will you be using for interfacing with REACH specific IT tools?



• Pragmatic IT solutions 81%• Changes to existing systems 31%• Off-the-shelf software product 3% (Respondents mentioned: IUCLID) • Others 13% (Respondents mentioned: SAP EH&S, in house)

44

IT solutions: those who expect to support exposure scenario development with a REACH IT solution

Which of the following IT solutions will you be using for exposure scenario development?



• Pragmatic IT solutions 52%• Changes to existing systems 38%• Off-the-shelf software product 19%• Others 10%:

Caution: this question was only asked to a proportion of the sample so the base is low

45

IT solutions: those who expect to support workflow management for registrations with a REACH IT solution

Which of the following IT solutions will you be using for workflow management for registrations?





46

Maintaining operational compliance: Tasks respondents expect to support using a REACH IT solution



47

IT solutions: those who expect to use REACH IT for authoring and distribution of REACH compliant SDSs


Which of the following IT solutions will you be using for the authoring and distribution of REACH compliant SDSs?


• Pragmatic IT solutions 61%• Changes to existing systems 47%• Off-the-shelf software product 8% (Respondents mentioned: Shepherd) • Others 6%:


48


Which of the following IT solutions will you be using for the storage of SDSs (suppliers and internal) and their accessibility by your companies workers?


• Pragmatic IT solutions 60%• Changes to existing systems 54%• Off-the-shelf software product 11% (Respondents mentioned: SAP EH&S) • Others 6%:


IT solutions: those who expect to use REACH IT for the storage of SDSs

49

IT solutions: those who expect to use REACH IT for substance volume tracking


Which of the following IT solutions will you be using for substance volume tracking?


• Pragmatic IT solutions 54%• Changes to existing systems 75%• Off-the-shelf software product 8% (Respondents mentioned: SAP EH&S) • Others 4%:


50

Which of the following IT solutions will you be using for operational compliance of purchasing processes?




IT solutions: those who expect to use REACH IT for the operational compliance of purchasing processes

51

Which of the following IT solutions will you be using for operational compliance of purchasing processes?




IT solutions: those who expect to use REACH IT for operational compliance of marketing and sales processes


More about Reed Business Insight

53 53

Why work with Reed Business Insight?

Reed Business Insight is the independent market research division of Reed Business Information which provides business market expertise through innovative research solutions

The close relationship with market-leading brands gives us the ability to reach specialist segments of our extensive database of business decision-makers via a range of research techniques

Our team of market research professionals have a wealth of experience across different business markets and can help you gain a valuable insight into your market place, allowing you to make informed business decisions and keep you one step ahead of your competitors

Through our market-leading brands we can also provide access to research on industry trends and market intelligence within business markets

All research commissioned by clients is undertaken on a strictly confidential basis

The Reed Business Insight team believe passionately about the services we offer clients and take great pride in the research that we undertake to make sure that it is reliable, cost effective and actionable

We are a friendly team that we hope you’ll enjoy working and discussing your research findings with

54

What research services do we offer?

Web site development

achieve through your What do you want to

website? Market Structure

Are there any opportunitiesto increase

market share?Do you have any

competitiveintelligence?

Buyer BehaviourWhat factors drive

purchasing decision?What makes clients

choose you rather than another supplier?

AdEffectivenessHow much ROI isyour campaign

providing?What is the impact

of your ads?

CustomerSatisfactionHow do you ensure

customer retention?How do you promote

repeat purchase?

ProductDevelopmentHow do you alignyour customers'

needs to your R&D?

Brand PerceptionWhat do people

think of your brand?How do you compare with

your competitors?

INSIGHT

55

Meet the project team

Diane Lewis, Head of Research. After graduating in Statistics from Bath University, Diane gained her first business-to-business research experience at BUPA. She now has 15+ years experience in research & is a full member of the Market Research Society. Diane is responsible for directing a high performance Research team and works across the whole portfolio of business markets, specialising in Property, IT, Road Transport & Travel . Tel: +44 (0208) 652 8065, email: [email protected]

Nick Watt, Senior Research Manager. Nick is a full member of the Market Research Society and since graduating in Business Studies from Kingston University, has been practising market research for over 10 years. Nick is responsible for the day-to-day management of the Insight business and specialises B2B, quantitative and qualitative research, with particular experience in the hospitality, IT, agricultural and road transport industries . Tel: +44 (0208) 652 8015, email: [email protected]

Jan De Iulio, Key Account Manager. Jan will be your first point of contact and will help to identify your information requirements and guide you through the research process ensuring that any work undertaken fully meets your business objectives. Jan has worked in media and provided customers with marketing solutions for 20 years. Tel.+44 (0208) 652 8564, email: [email protected]

Jessica Hall, Senior Research Executive. Jessica has gained several years of research experience since graduating from the University of Nottingham with a degree in English. She previously worked for Research International and TNS where she provided ad hoc and continuous research solutions for global clients. Her experience includes projects in innovation, brand and ad tracking, customer satisfaction and market strategy. Tel: +44 (0208) 652 3429, email: [email protected]

56 56

Terms & conditions

In these terms of business “the Company” means Reed Business Information Limited and “the Client” means the company, organization or individual which has signed a Reed Business Insight proposal or quotation (‘Proposal’) for market research services (‘’Services’).

All Services shall be provided by the Company upon and subject to these terms of business. No variation of or addition to these terms of business shall be effective unless specifically expressed and accepted by the parties in writing. Any variation or extension of the Services not covered in the Proposal will be the subject of a separate proposal or arrangement. The contract between the Company and the Client for the provision of Services shall incorporate these terms of business and shall be governed by and construed in accordance with the Law of England. The parties submit to the exclusive jurisdiction of the English Courts.

Reports, surveys, forecasts and recommendations (‘Work Products’) delivered by the Company to the Client pursuant to the Services are the property of the Client and the Company shall keep confidential the content of all Work Product and shall not disclose or make use of any Work Product other than as authorized in writing by the Client. Unless otherwise agreed between the parties the Company will retain materials relating to the Services (including but not limited to questionnaires, tapes, discs and returns) for no more than one year from the date of the completion of the Services.

The Company shall use all reasonable commercial efforts to provide the Services in accordance with the Proposal but gives no warranty as to the accuracy of any Work Product or its suitability for any particular purpose. The Client acknowledges that delay by the Client in providing information or comment may cause the Customer to incur unbudgeted costs and agrees to pay any such costs reasonably specified and invoiced by the Company.

Copyright and other intellectual property rights (‘IPR’) in Work Product and any material provided by the Client (‘Client Material’) will belong to the Client. IPR in any pre-existing materials that belong to the Company and are used by the Company in providing the Services and preparing the Work Product shall continue to belong to the Company.

The Company and the Client each warrants to the other that it is entitled to authorise the other to use its trademarks as envisaged by the Proposal. All rights granted in trademarks are non-exclusive and neither party shall use the other’s trademarks except as authorized by the Proposal and these terms of business. All goodwill shall accrue to the owner of the relevant trademark

57 57

Terms & conditions

The amount payable by the Client for the Services and the Work Product are as set out in the Proposal. Unless otherwise specified in the Proposal the Client will pay 100% of the amount due within 28 days of the date the Proposal is signed or accepted by the Client. This payment is non-refundable in the event of cancellation by the Client of the Services. Any expenses incurred by the Company relating to viewing facilities, special accommodation, recruitment lists and other data obtained from third parties and any other significant specific request or requirement by the Client will be payable in addition as set out in the Proposal.

Invoices are payable within 28 days from the date of invoice. Payments set out in the Proposal exclude VAT which will be payable by the Client at the prevailing rate. The Company may charge interest on unpaid amounts at the rate of 4% above the base rate of National Westminster Bank plc from time to time.

Either the Client or the Company may by written notice terminate the provision of Services pursuant to any Proposal in the event that the other is in material breach of the terms set out in the Proposal or these terms of business or if the other goes into liquidation or becomes insolvent. This right of termination is in addition to any other rights or remedies of either party.

Except in the event of death or personal injury caused by its negligence the Company’s liability to the Client in respect of the provision of the Services is limited to the amount paid by the Client for the Services.

The quotation supplied in these proposals or letter of offer will be valid for 8 weeks from the date of issue. If the project is commissioned after this period the Company reserves the right to amend its quotation. [Put in Proposal]

If after agreeing fieldwork dates the final research specification is not agreed by the due date the Company reserves the right to revise the quotation and/or timing.

100% of the agreed fee becomes due for payment on the commissioning of the project. Any expenses will be invoiced at the completion of the project and payment will be expected at or before the end of the month following the receipt of the invoice save in particular cases where previously agreed in writing The Client shall make pre-payments for special projects.

Date post:	11-Jan-2016
Category:	Documents
Upload:	sarah-elliott
View:	212 times
Download:	0 times

Research among professionals to explore the readiness of the chemical industry for REACH Chemical...

Documents