Circular Economy

7 ways chemical management is becoming safer and more transparent

Oil Refinery, Chemical & Petrochemical plant at sunset: Solutions for safe chemical management need scaling.

Solutions for safe chemical management need scaling. Image: Getty Images/iStockphoto

Ismahane Remonnay
Head of Anticipation & Risk - Strategy, Veolia
Eeva Leinala
Principal Administrator, Environment Health Safety Division, Organisation for Economic Co-operation and Development (OECD)
Madeleine Sophia Brandes
Lead, Business Engagement, World Economic Forum
This article is part of: Centre for Nature and Climate
  • Thousands of substances carry complex risks to health and the environment, demanding coordinated, cross-border action.
  • Chemical safety is now gaining global attention.
  • Shared knowledge, trust-building, innovation and trade-linked management solutions can drive a safer, circular and transparent chemical economy.

Plastic pollution has dominated recent debates but an equally urgent challenge is capturing focus: transparent and safe chemicals management, thousands of which are used and embedded in various products.

The recent UN Plastics Treaty talks in Geneva concluded without an agreement, underscoring not only the unresolved plastics crisis but also the broader need for global chemical governance.

Chemicals enable countless functions in sectors ranging from electronics to agriculture, but some have properties that can pose serious risks when mismanaged. Growing evidence links some substances to cancer, reproductive harm and environmental damage, with public scandals such as lead in paint and per- and polyfluoroalkyl substances (PFAS) in water systems underscoring the costs of inaction.

Beyond health and environment, chemicals can also present a barrier to circularity. Many industries are unable to safely reuse or recycle materials because of unknown or hazardous chemical content.

Moreover, the very additives and treatments that make products more durable, stain-resistant or flame-retardant can also interfere with recycling technologies – contaminating material streams, lowering quality or preventing recovery altogether.

As a result, chemicals designed to enhance performance can sometimes end up undermining circular economy goals.

With global chemical production set to double by 2030, risks and complexity are rising. Once seen as a compliance issue, chemical safety is now a public health priority and a driver of industrial innovation. Emerging initiatives, including the new Intergovernmental Science-Policy Panel on Chemicals, Waste and Pollution, to regional bans and national restrictions, create a rare opportunity to align efforts and coordinate action.

Advancing safe and sustainable chemistry will require collective leadership, transparency, careful selection and science-based collaboration.

The chemicals regulatory landscape

The chemicals policy landscape is highly complex – fragmented across global, regional and national levels. Global efforts, such as the Global Framework on Chemicals, the UN Basel-Rotterdam-Stockholm Conventions and UN Plastics Treaty, seek alignment, while regional and national frameworks, such as the European Union’s REACH and in many OECD countries, are stricter. Yet, many countries still lack basic regulations for industrial and consumer chemicals.

Recent actions, from the EU’s proposed PFAS restrictions to US state-level PFAS litigation, highlight both momentum and complexity. Rising concern over plastics has also drawn broader attention to chemical safety, creating a valuable entry point into this larger challenge.

This moment presents a unique opportunity to accelerate a comprehensive chemical transition where chemicals are safe by design, traceable and responsibly managed throughout their entire lifecycle.

Have you read?

Solutions already underway

Forward-thinking companies, governments and organizations are already moving toward safer chemistry – not only to manage risk but to build competitive advantage. Leading examples include:

Substitution and phase-outs

Companies such as LG Chem and Syensqo are actively investing in alternatives to hazardous substances while maintaining the same functionality and performance.

Detection and treatment

Companies are developing new tools to assess and manage chemical risks. Clariant’s Portfolio Value Programme and BASF’s TripleS use portfolio analysis to evaluate safety and sustainability, while the World Business Council for Sustainable Development’s Portfolio Sustainability Assessment Framework 2.0 provides collective guidance.

On the treatment side, firms such as Xylem, Veolia and Oxyle are pioneering technologies to remove PFAS from wastewater.

Transparency tools

Transparency is improving across sectors. The International Council of Chemical Associations’ Plastic Additives Database tracks chemicals in plastics, while the automotive industry’s International Material Data System sets a benchmark for supply chain visibility.

In 2024, the EU’s Ecodesign for Sustainable Products Regulation introduced a Digital Product Passport, which will progressively require chemical disclosures for packaging, textiles, construction and other sectors from 2027 to 2030.

Education and talent development

As the first and most powerful tool for prevention, education is shifting toward safer innovation. Beyond Benign is integrating green chemistry into curricula, while industry-academia collaborations, such as Veolia’s work with Chimie ParisTech and Chimie Pékin, are embedding sustainability principles into scientific training.

Investor engagement

The Investor Environmental Health Network and the Investors Initiative on Hazardous Chemicals reflect growing financial sector interest in chemical safety, transparency and reputational risk.

Chemicals management capacity building

ICCA’s “30 by 30” goal to support national chemical safety roadmaps can be linked with the World Economic Forum’s Global Plastic Action Partnership (GPAP) and its 25 National Plastic Action Partnerships (NPAPs) to scale implementation and local impact.

Tools such as the IOMC Toolbox help countries build chemical management systems, while the Global Framework on Chemicals Fund – currently about $28 million, largely from Germany – supports developing nations through capacity building for safe and sustainable chemical and waste management.

Urgent priorities for global alignment

To advance safe and sustainable chemical management, there are four immediate priorities:

  • A shared knowledge base and global roadmap: With multiple policies underway, the international community requires a unified platform to coordinate knowledge and efforts, pool resources and build upon existing work. This includes harmonizing definitions, mapping chemical use, creating a global inventory linked to available data and providing clear guidance for substitution and safety by design.
  • Trust and collaboration: Addressing chemical management complexities requires rebuilding trust. Industry, regulators, advocacy groups and the public must collaborate to strike a balance between functionality, safety and accountability. Even basic definitions can spark disagreement, making patient, deliberate trust-building essential. Initiatives such as the Latin American Regulatory Cooperation Forum demonstrate how regional collaboration can accelerate science-based regulation, enabling targeted, context-appropriate solutions that endure across political cycles.
  • Mainstreaming education and capacity building: Integrating safe chemistry into university, technical and public-sector training is essential to avoid past mistakes and equip the next generation to lead.
  • Global trade and supply chain alignment: Safe chemical management must be embedded in global trade and supply chains. A “chemical” or “product” passport – covering materials, substances and products – would ensure traceability and accountability. Gradually linking customs and trade measures to chemical safety could incentivize safer alternatives, align trade with health and environmental goals and support fair competition.

Key upcoming milestones that aim to advance these agendas include the International Union for Conservation of Nature Biodiversity Congress, the Forum’s Annual Meeting 2026 in Davos, Switzerland and the Global Framework on Chemicals Conference in November 2026.

These platforms offer vital opportunities to advance global collaboration for safe and sustainable chemistry. Success will depend on sustained resources and institutional support, as without a well-funded, credible body to coordinate and drive action, momentum risks stalling.

Ensuring lasting impact is now the ultimate test of global leadership.

Discover

What is the World Economic Forum doing about plastic pollution?

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

Plastic Pollution

Share:
The Big Picture
Explore and monitor how Plastic Pollution is affecting economies, industries and global issues
World Economic Forum logo

Forum Stories newsletter

Bringing you weekly curated insights and analysis on the global issues that matter.

Subscribe today

More on Circular Economy
See all

Circular Transformation of Industries: The Art of Scaling Circular Supply Chains

2:43

GPAP Community Scene-Setter for SDIM25

About us

Engage with us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2025 World Economic Forum