Tough reporting rules makes compliance key issue for chemicals industries

Wide-ranging and overlapping regulations across multiple jurisdictions present potentially massive compliance headaches for companies working in the chemicals industry, especially as regulators increasingly focus on environmental reporting linked to the lifecycle of some products.

Companies in the sector also face “disproportionate” compliance requirements because the desired environmental and health benefits that underscore the legal duties may be negligible, according to experts. 

“For a long time, environmental reporting felt like something companies did off to the side. Maybe you had a glossy sustainability report with photos of smiling employees, and you maybe shared a few emissions numbers,” says Tara Jacola, vice president of regulatory consulting at compliance solutions provider 3E. “For many, it wasn’t central to how the business operated. That is all changing—fast.