Formatted Title
The PFAS Risk Management Strategy for Stakeholders
Background/Objectives
Per- and polyfluoroalkyl substance (PFAS) risk management is not a new topic but is becoming ever increasingly a concern for all stakeholders including suppliers, customers, insurers, and investors as regulations and bans on PFAS develop. All stakeholders have a risk relating to brand, product, operations, and legacy liability and could result in significant unexpected capital expense. Regulations are driving some PFAS obsolescence in the market. There is a push for PFAS-free products, however, it may take years for research and development to find alternatives that meet the required performance standards. Performance standards that people have come to rely on for safety, avert climate change, and energy reduction will be difficult if not impossible to meet. Especially, when it took over 50 years to develop the societal benefits that some PFAS brings. Regulations are driving many PFAS into obsolescence in the market. This presentation covers what can you communicate to business stakeholders to manage the PFAS risk with respect to brand, product, operations, and legacy liability.
Approach/Activities
A PFAS Risk Management Strategic Plan for Businesses
To say that an abrupt change on the availability of certain products will have a ripple effect to the supply chain is an understatement, maybe more like a tidal wave or tsunami. The products you come to depend on your processing may no longer be available. The replacement products will have a high demand and fewer producers. Stakeholders in a business will have their unique risk and influence on PFAS on the supply chain including the suppliers, the customer.
What can you do to support business stakeholders? This talk will discuss the steps to the development of PFAS Risk Management Strategic Plan for businesses.
- Step 1 - Desktop PFAS Screening – How is this done?
- Step 2 - Supply Chain Vendor Collaboration – Consider intentional and unintentional PFAS?
- Step 3 Responding to Regulations – What are the regulations and how to respond?
- Step 4 – Research and Development - Required Performance Standards versus Safety, Climate Change and Pollution Regulations, Consider raw materials, processing aids and facility maintenance.
These steps are not sequential, however, understanding where you have PFAS risks is fundamental. If you think your business does not have a PFAS risk, think again. The more we look for PFAS in supply chains, the more we find, especially since the United States (U.S.) with Environmental Protection Agency (EPA) has rescinded the de minimis waiver in late 2023 allowing for more transparency
Results/Lessons Learned
There are tools to support businesses manage PFAS risks. Organizations that are using them and taking these proactive approaches to confront PFAS in their supply and production chains, as well as remediating past environmental impact, reduce their risk of potential PFAS-related litigation, non-compliance, supply chain shortages, negative brand recognition, operational interruptions, and product performance issues.
The rate of litigation has increased in recent years as regulations tighten and more is learned about the long-term impact of these chemicals. Even corporations that don’t manufacture PFAS are at risk if they handle and dispose of PFAS-containing products. Those that don’t act are scrambling to make a sudden adjustment to processing changes or may have their product rejected at borders. Because PFAS has been used in a wide spectrum of applications across multiple industries, it is advisable for organizations to proactively assess their risk level for PFAS.