European Responsible Care Conference

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European Responsible Care Conference November
14-16, 2004 Rome The importance of Product
Stewardship to the Chemical industry Dr. Gernot
Klotz, Bayer AG Chair of CEFIC Responsible Care /
Product Stewardship Group
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Contents

• Outreach of Product Stewardship
• Balance of regulations and industry initiatives
• Responsibilities
• Conflict of interests in product use
• Benefits
• Pilotprojects
• Consequences

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Status quo and the future
product value chain
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Product Stewardship

• Customers
• define own requirements
• request high quality Product Stewardship

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Challenge to Product Stewardship are global
Product Stewardship in the chemical sector is
about balanced performance
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The three layers of Product Stewardship
Product Stewardship must be business case
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Product Stewardship and Shared
Producer Responsibility

• Business processes use shared responsibility
• Efficient Product Stewardship must follow this
  process

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Product Stewardship Conflicts of Interest

• Consumer Safety
• Example Children Safety Seats

mechanical properties crash safety
indoor emissions

• Chemical products are needed
• Zero Emission is not possible
• Therefore risk assessment is indispensable
• Health priorities must drive the process

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Product challenges

• in science (uncertainties, biomonitoring)
• in governmental policy (more laws, enforcement is
  less important)
• in the market place (down stream requests,
  non-harmonized global regulations as add-on,
  steadily changing framework)
• in public opinion (individual cases of poor
  Product Stewardship)
• pre-market costs rise (threat to innovation)

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What is Product Stewardship?
Product Stewardship is about ensuring the safe
transport from our sites as well as the safe use
and management along the product life cycle based
on shared responsibility

• Information needs for compliance with down stream
  regulations and consumer requests
• Risk based, relevant, targeted information by
  dialogue/cooperation
• Efficient and cost effective structures
• Provide solutions within respective
  responsibilities
• improvement of products and its uses

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Needs

• robust system
• focus on needs of various sectors
• recognized by customers and politicians
• regional and global outreach
• real downstream impact
• integrated into business processes

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Benefits

• improved cost-efficiency of internal management
• information on time as rapid response
• robust management of regulations
• transparency
• priorities / focus
• trust via dialogue / cooperation with customers
• public acceptance

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Pilot projects (examples)
national standards on material declaration in
products (D), dialogue with retailers (UK) and
many others
regional C4E (Product Stewardship with EE
industry), HERA Project and others)
global Global Automotive Stakeholder Group (GADS)
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GASG Organizational Structure
Steering Committee
Korea and China OEMs and organizations to be
contacted and included under Asia/Pacific
regional structure
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Consequences

• industry harmonized approach integrating Product
  Stewardship and product management activities
• must provide value in politics and business /
  two-track approach
• driven by businesses under global aspects

• long term multi-step approach
• in first step focus on reducing business risks
• PS must be open to Sector Groups

• systematic regular adjustment of approach to
  stakeholder expectations

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Work
ICCA Board
Global CEO Dialogue
ICCA Leadership Task Force on Product Challenges
CEFIC EU
Americas
Asia Pacific
Priority in CEFICRC Work

• continue and improve ongoing activities to
  improve performance of Resonsible Care in EU
• contribute and respond to ICCA initiative