Horizon scanning and the future Lasse Musakka CEO and Partner, REACHLaw LTD Emerging environment, health and safety issues related to regulatory challenges and compliance 1.Trends & issues in the past, now, and in the future: A framework 2.Analysis of current business challenges & potential roadmap 3.Our solutions and offering 4.How to proceed ?

Basic rules for worker’s safety Investments in production infrastructure Basic rules for product safety Investments in research and product development Detailed regulations on specific areas, responsibility on industry Investments in EHS&compliance monitoring, skills, resources and processes Overall sustainability goals & policies covering all functions “Re-thinking” strategy, investments in best practices Globalization (countries in different phases) Past: Driven by authorities (and ethics of the company) Now and future: Driven by authorities investors, customers (and ethics of the company) In place Ongoing Still a brand issue ? Drivers Actions Companies: Cost ? Is this really our core business ? Factory / product level issues Corporate level issues EHS trends: simplified framework

EU-ETS (implementing Kyoto protocol and CDM & JI) Directive 2003/87/EC EU-ETS (implementing Kyoto protocol and CDM & JI) Directive 2003/87/EC Now: Drivers created by authorities…. EOL vehicles Directive 2000/53/EC EOL vehicles Directive 2000/53/EC Health and Safety signs at work Directive 1992/58/EC Seveso II Directive 96/82/EC Seveso II Directive 96/82/EC Detergents Directive 648/2004 Detergents Directive 648/2004 Cosmetic Products Directive 76/768/EEC Cosmetic Products Directive 76/768/EEC Biocidal Products Directive 98/8/EC Biocidal Products Directive 98/8/EC Ecolabel Award scheme 1980/2000 Young people at work Directive 1994/33/EC Biological agents at work Directive 2000/54/EC Aerosol Dispensers Directive 75/324/EEC Aerosol Dispensers Directive 75/324/EEC Export / import Regulation 689/2008 Export / import Regulation 689/2008 Pregnant and breastfeeding women at work 1992/58/EEC Pregnant and breastfeeding women at work 1992/58/EEC VOCD Directives 1999/13/EC & 2004/42/EC VOCD Directives 1999/13/EC & 2004/42/EC IPPC Directive 2008/1/EC DSD / DPD Directive 67/548/EEC & 1999/45/EC Chemicals Agents Directive 1998/24/EC Chemicals Agents Directive 1998/24/EC Hazardous waste Directive 91/689/EC Hazardous waste Directive 91/689/EC Plant protection Products Directive 91/414/EEC Plant protection Products Directive 91/414/EEC Ambient air Directive 1996/62/EC Ambient air Directive 1996/62/EC Batteries Directive 91/157/EEC Batteries Directive 91/157/EEC RoHS Directive 2002/95/EC WEEE Directive 2002/96/EC WEEE Directive 2002/96/EC Water Framework Directive 2000/60/EC General Product Safety Directive 2001/95/EC Ozone depleting substances Regulation (EC) No 2037/2000 Ecolabel Regulation 66/2010 Ecolabel Regulation 66/2010 Protection of mothers Directive 92/85/EEC PPE Directive 89/686/EEC PPE Directive 89/686/EEC Waste Framework Directive 2006/12/EC & 2008/98/EC EU indicative occupational exposure limit values Directive 2000/39/EC Exposure to carcinogens and mutagens at work 2004/37/EC REACH Regulation 1907/2006 CLP Regulation 1272/2008/EC

And becoming global…. Turkey Regulation on the Inventory and Control of Chemicals (2008) Turkey Regulation on the Inventory and Control of Chemicals (2008) EU REACH and CLP (2006/2008) USA TSCA and Safe Chemicals Act of 2011 South-Korea ”K-REACH” (2013) South-Korea ”K-REACH” (2013) Japan Chemical Substances Control Law (2009) Japan Chemical Substances Control Law (2009) China ”China REACH” (2010), ”China GHS” (2011) China ”China REACH” (2010), ”China GHS” (2011) Malaysia Notification and Registration of Environmentally Hazardous Substances ( ) Malaysia Notification and Registration of Environmentally Hazardous Substances ( ) Taiwan Existing Substance Nomination and New Chemical Notification (2009) Taiwan Existing Substance Nomination and New Chemical Notification (2009) Vietnam Chemical Law (2007), Chemical Safety Decree (2008) Vietnam Chemical Law (2007), Chemical Safety Decree (2008) Philippines Inventory of Chemicals and Chemical Substances Philippines Inventory of Chemicals and Chemical Substances India Hazardous Substances Rules (Draft) India Hazardous Substances Rules (Draft) Russia GHS 2011, registration of SDSs South-Africa Hazardous Chemical Substances Regulations (HCSR) 1995 South-Africa Hazardous Chemical Substances Regulations (HCSR) 1995 Canadian Environmental Protection Act (CEPA 1999) New Zealand Hazardous Substance and New Organism Act (1996), NZ-EPA (2011) New Zealand Hazardous Substance and New Organism Act (1996), NZ-EPA (2011) Brazil GHS implemented for substances in 2011 Brazil GHS implemented for substances in 2011 Mexican Official Standard NOM- 002-SCT/2011 (Haz Chem Transport) Argentina GHS equivalent SDS requirement s IRAM Argentina GHS equivalent SDS requirement s IRAM Australia National Industrial Chemicals Notification and Assessment Scheme (NICNAS) Australia National Industrial Chemicals Notification and Assessment Scheme (NICNAS)

Now: From urgent actions to IT supported processes Drivers last years REACH and other global Chemical regulations have been a new, real, operational burden in chemical industry, knowledge and resources have been necessary Drivers last years REACH and other global Chemical regulations have been a new, real, operational burden in chemical industry, knowledge and resources have been necessary Drivers now …together with new environmental compliance requirements, they are now not only oprational burden but a real cost issue, which requires efficient processes, resources and tools in several functions like in supply chain management, compliance management, IT etc. Drivers now …together with new environmental compliance requirements, they are now not only oprational burden but a real cost issue, which requires efficient processes, resources and tools in several functions like in supply chain management, compliance management, IT etc. Problems to be solved last years Surviving in short term REACH by 1.Getting basic understanding about requirements and operational tactics 2.Staying compliant, getting registrations done by own or external resources to maintain market access Problems to be solved last years Surviving in short term REACH by 1.Getting basic understanding about requirements and operational tactics 2.Staying compliant, getting registrations done by own or external resources to maintain market access Problems to be solved now 1.Still surviving in short term with new and more complex operational tasks, e.g. REACH authorization, new global and country specific regulations 2.Getting a efficient compliance organisation up and running 3.Getting cost efficient best practices, processes and tools in place in several functions Problems to be solved now 1.Still surviving in short term with new and more complex operational tasks, e.g. REACH authorization, new global and country specific regulations 2.Getting a efficient compliance organisation up and running 3.Getting cost efficient best practices, processes and tools in place in several functions

Examples of offering and solutions (as task outsourcing or as continuous service): Manufacturer Non EU Suppliers Authorities EU Suppliers eSpheres HSE Cloud Solution related services: e.g. Compliance 360 Benchmark Stakeholders (investors, public) EU markets / customers Non EU markets / customers Supplier’s compliance Data quality & automation Data quality & automation REACH Services registration (RR & LR), autorization, SDS Sustainability reporting Management of global regulations

How to proceed… Getting a scope and a roadmap with “Compliance 360 Benchmark” … Compliance issues on a corporate level is a wide area, the elephant must be eaten in pieces … To be able to get to an acceptable ROI, you need to start with the right things – Status of current compliance & prioritized development needs, cost reduction opportunities Compliance 360 Benchmark is a tool – For getting an overall picture of the current status of corporate level compliance, performance and scoping the coming work, and benefits in financial and other terms – It is based on our experience on best practices of how companies are able to take care of corporate level compliance – It covers the following dimensions: Level of compliance (risks) - overall performance, Costs level – skills resources in place, Processes – IT support, Performance SC downstream - Performance SC upstream – The ”Compliance 360 Benchmark” is a pre-defined project – We would be pleased to present this for you in detail ! Overall compliance SC Downstream IT support Capabilities & resources Overall performance SC upstream Internal processes Cost efficiency

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