Large retailers restrict chemical use

Retail power peaks

29 May 2008 00:00 [Source: ICB]

Some of the biggest retailers are banning or restricting chemicals they judge to be harmful. But are they more concerned about public relations than customer safety?

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Rachel Uctas/London

PUBLIC IMAGE can make or break a retailer, and when it comes to safety concerns, no company wants to be associated with a chemical that has been the subject of negative press.

So major retailers are increasingly phasing out products containing controversial ingredients, such as bisphenol A (BPA), polyvinyl chloride (PVC), and phthalates.

Without waiting for regulators to address such concerns, these new safety restrictions are based solely on the judgment of individual retailers. Huge retailers such as Wal-Mart, Target and Toys"R"Us in the US, and Boots, Marks & Spencer and IKEA in Europe have huge clout, and their actions can have far-reaching impacts on the chemical markets.

Child safety is at the forefront of every parent's mind, so if there are any safety concerns, proven or suggested, retailers have to show that they care. Phthalates in children's toys are currently being shunned by some influential US retailers, despite lack of legislation. Mindful of their image, some large retail chains are increasingly looking at phasing out phthalates. US companies have looked on as the use of phthalates in the manufacture of children's toys has been banned in Europe, and some have decided to impose their own ban as a retailer, in the absence of similar legislation in the US.

Toys"R"Us is keen to show its commitment to safety. "By the end of 2008, juvenile products sold in any Toys"R"Us or Babies"R"Us in the US must be produced without the addition of phthalates, which have raised concerns about infant safety," a company statement says. The chain has also begun to replace PVC and phthalate use in its own-brand juvenile products.

"We have made it very clear to manufacturers that we need not wait for the finalization of the much-needed tighter federal standards that are currently pending in welcome legislation before the US Congress," Jerry Storch, chairman and CEO says.

Wal-Mart now also requires suppliers to produce toys without phthalates.

The EU has banned the use of di-n-butyl phthalate, di-2-ethylhexyl phthalate and benzyl butyl phthalate from children's toys and childcare articles, and di-isononyl phthalate (DINP), di-isodecyl phthalate (DIDP) and di-n-octyl phthalate from items that children are likely to put in their mouths. This has not led to a decrease in plasticizer use as a whole, but has caused a shift in the type of phthalates most commonly used. The market has undergone a shift, in that DINP and DIDP, have replaced di-2-ethylhexyl phthalate in many instances. At the end of the 1990s, di-2-ethylhexyl phthalate accounted for 50% of the plasticizer market. Today, it has just 18%, while DINP and di-2-ethylhexyl phthalate now account for over 60%. The actual consumption of plasticizers remains fairly steady.

THE LONG REACH OF REACH

Tim Edgar, deputy director of the European Council for Plasticisers and Intermediates (ECPI), traces the origin of European retailer concerns back to the introduction of Registration, Evaluation, and Authorisation of Chemicals (Reach). Under Article 33 of Reach, if a consumer requests information from a supplier of an article that contains a substance of concern, it must be forthcoming within 45 days.

REPUTATION COUNTS

The ECPI has been in discussions with retailers in Europe with the aim of preventing knee-jerk reactions. Edgar says: "The initial reaction of retailers is that they want nothing to do with these chemicals." This is largely due to "reputational concern - they don't want NGOs [nongovernmental organizations] appearing in their shops suggesting that articles on the shelves may be unsafe."

However, following dialogue with the chemical industry, fears can often be allayed. Edgar points out that prior to Reach, retailers "had never before had to be concerned about the products on their shelves," whereas now there is an increased awareness.

Big retailers have drawn up strict guidelines regarding chemicals. In the UK, Marks & Spencer has reinvented itself as the greenest option, being one of the first retailers to start phasing out the use of phthalates and PVC. By the end of 2002, the UK chain had replaced 99% of PVC packaging in food products, and it is now only used in a few specific applications.

In assessing the chemicals it uses in its products, Marks & Spencer has an approach that it terms "science on tap, not on top" which it says helps it to balance views and advice. Chemicals are placed in one of the following categories:

No concerns - no action required
Banned - either altogether or in certain uses
Being replaced - a lower level of concern leading to phase-out
Monitoring - when no definite evidence yet suggests a chemical should be replaced or banned, but there are some concerns or scientific research which need to be monitored

Wal-Mart is another market leader that has spoken out against the use of certain chemicals in its products, setting out a document known as the "Preferred Chemical Principles," in October 2006. This was an attempt to encourage suppliers to develop substitutes for "chemicals of concern." The first chemicals on the list were the nonylphenol ethoxylates (NPEs) propoxur and permethrin. Since then it has also announced that suppliers should look for alternatives to BPA.

Toys"R"Us, too, has reduced the number of products containing BPA, and plans to eliminate baby bottles containing BPA by the end of this year.

BPA producers are concerned about actions like this that seem to be driven primarily by image concerns rather than by scientific consensus.

However, to add fuel to the fire of public concern, Canada is proposing to withdraw baby bottles containing BPA from the market completely.

Trade groups like the American Chemistry Council are going all out to counteract the adverse effects of these bans and to respond to recent news coverage on BPA in the US that has cast further shadows over the chemical.

Trade groups also point out that the chosen alternative chemicals may not have been subject to such vigorous testing and scrutiny as the substance they are replacing.

But does the consumer really care about all this wrangling? Edgar is doubtful: "The average consumer doesn't walk into the shop and look at the label, so this is being led by the brand owners and retailers looking at their reputation."

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