A new corporate benchmarking tool has been unveiled by environmental NGO ChemSec, that measures the carbon footprint of the world’s 35 largest chemical companies.
As reported by Bio Market Insights, the new tool, called ChemScore, has shown that European chemical manufacturers top the sustainability list.
Investors can access ChemScore’s data on how well a company is performing based on the amount of hazardous chemicals are produced and how the company is making the transition to greener and safer alternatives.
“For investors, a better understanding of companies’ involvement in hazardous chemical production is crucial. Many of these chemicals not only pose a threat to human health and the environment, but they also threaten the return of an investment,” said Anne-Sofie Bäckar, Executive Director at ChemSec.
There are four criteria in which the 35 largest publicly-traded chemical companies are assessed:
- The total production of hazardous chemicals
- Efforts to develop and market safer chemicals
- The company’s transparency and commitments to phase out certain substances
- The company’s track record with accidents, controversy, fines, and liability.
The top spot on ChemScore’s new ranking system is held by Dutch chemical company CSM, followed by other European manufacturers, who are then followed by a mix of US and Asian companies.
The new tool has been developed with input from chemical industry representatives, as well as consultants from the investment community, including Aviva Investors, which is a global asset manager with £346 billion in assets under management.
Eugenie Mathieu, Senior ESG Analyst with Aviva Investors, said that getting an understanding of which companies are taking a lead on the sustainable management of chemicals, or conversely, falling behind on their commitments is a vital part of a larger sustainability solution.
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