MATERIAL COMPLIANCE IN BUSINESS PRACTICE

KNOW, MONITOR AND ADHERE TO SUBSTANCE RESTRICTIONS THROUGHOUT THE SUPPLY CHAIN 

Implementing material compliance in companies is a challenge. Legal requirements are increasingly demanding, while necessary technical knowledge gets more complex and more specific. You also need to collect the data required. Depending on the sector, this can be difficult, as it is not gathered in any other context. The initial investment is high. And since requirements are continually evolving, becoming and remaining compliant is a dynamic, ongoing process.

And the same challenges arise in the business practice of (global) suppliers, along with additional requirements from customers, if they supply regions or sectors where further specific provisions apply. A well thought-out approach to material compliance helps companies answer customer queries directly or automatically, check new legal requirements for their products, and be clear about whether they are meeting requirements. This allows them to be more effective and proactive, rather than reacting to queries on a case-to-case basis.

COMPANIES ON THE WAY TO MATERIAL COMPLIANCE

What exactly does material compliance management mean for companies?

First, a brief definition: Material compliance management refers to the process of adhering to provisions and standards that relate to materials used in products. It includes monitoring and controlling substances that are used in production

This allows you to ensure that the substances used in products meet statutory requirements and do not pose a risk to the environment or human health.

So effective material compliance management helps companies guarantee that they are adhering to all applicable laws and provisions relating to materials and their use in products. This reduces the risk of legal consequences such as fines, penalties, or even production or sales bans.

BENEFITS OF MATERIAL COMPLIANCE MANAGEMENT

Minimize risk

Monitoring and controlling materials that are used in products allows companies to identify and minimize potential risks. This not only protects users from hazardous substances, but also reduces the risk of product defects, recalls or legal disputes, which might arise if material requirements are not met.

Protect your company’s reputation

Solid material compliance management helps companies protect their reputation and gain their customers’ trust. Users are increasingly aware of environmental and health matters and prefer products that are safe and environmentally friendly. Guaranteeing material compliance helps companies demonstrate their commitment to being sustainable and responsible.

Improve efficiency and save costs in the long term

By checking material composition and using suitable materials, companies can reduce costs and improve production efficiency. Using environmentally friendly or recycled materials, for example, can help conserve resources and reduce waste. In addition, companies avoid potential penalties or losses due to not adhering to material requirements.

Act sustainably and protect the environment

Material compliance management plays a role in sustainability and environmental protection. By using environmentally friendly materials and reducing harmful substances in products, companies can reduce their ecological footprint and protect the environment. This is increasingly appreciated by customers, investors, and society in general.

IMPLEMENTING MATERIAL COMPLIANCE SUSTAINABLY

HOW CAN YOU EMBED MATERIAL COMPLIANCE IN YOUR COMPANY?

Companies must understand and adhere to the laws and provisions governing materials and their use in products.

This includes, for instance, provisions restricting certain hazardous substances, such as REACHor RoHS for electronic products in the European Union.

Even though material compliance management means keeping track of lots of different things, the following seven steps depict a secure process.

PROCURE INFORMATION

Companies must find out about the relevant international substance laws that currently apply in the countries where they are active or market their products.

CREATE A SUBSTANCE INVENTORY

In the long term, it is useful to document information about substances used in a structured manner, so substances can be identified and summarized in a list. This can take the form of a substance inventory, for instance.

ASSESS RISKS

Based on their substance inventory and the legal requirements, companies should perform a risk assessment to identify potential dangers or risks related to the substances used.

DEVELOP A STRATEGY

Unternehmen sollten Strategien entwickeln, um die Anforderungen des internationalen Stoffrechts zu erfüllen – von dem Umgang mit Beschränkungen, der Überwachung von Verbotslisten, Informations- und Registrierungspflichten oder der Zusammenarbeit mit Experten.

SUPPLY CHAIN MANAGEMENT

Effective supply chain management plays an important role in ensuring that the material composition of the delivered components meets legal requirements. It is also helpful to organize customer requests, so you can answer them efficiently.

DOcUMENTATION

In some cases, companies are legally obliged to archive information. So it is advisable to implement a comprehensive documentation system to record information on adherence to international substance legislation provisions. This covers storage of information as well as regular reporting.

STAFF TRAINING

It is critical to sensitize and train staff in all relevant departments in order to ensure that they are informed about international substance legislation and can apply the necessary measures.

WELL THOUGHT-OUT MATERIAL COMPLIANCE MANAGEMENT AS AN EARLY-WARNING SYSTEM

A well thought-out approach to material compliance management can serve as an early-warning system. An up-to-date substance inventory can help you check substances that are to be prohibited. So you can check the extent to which you are affected and establish your position in advance of any public consultations.

Gathering information and training staff ensures that less information and fewer valuable ideas get lost. Compliance can be confirmed more efficiently, freeing up capacity to keep up with new developments in the world of legislation. And you avoid being taken by surprise by customers with questions about legal requirements that are already in place or coming up soon.

PRACTICE-DRIVEN MATERIAL COMPLIANCE EXPERTISE

Legal Specialist Inken Green

Product & Material Compliance Expert

and a member of IPA Fraunhofer’s Expert Forum on Global Environmental Compliance

B.A. Linda Kritzler

Material & Environmental Compliance Consultant

and a member of IPA Fraunhofer’s Expert Forum on Global Environmental Compliance

Questions we’ve advised companies on in the past:

How can we make material compliance provisions and supplier information easily accessible to all in our company?

Expert tip

Integrating material compliance into your processes early on reduces risk and unnecessary expense for products that are not allowed to be used in your products.

“Globalnorm’s expertise and commitment regarding all material compliance matters have significantly advanced our company and helped us understand the regulatory requirements in this area. The material compliance consulting provided goes far beyond merely fulfilling requirements. It creates trust and certainty.”


A. Rösslein, Expert Product Compliance, Stäubli Electrical Connectors AG

HERE’S HOW WE HELP YOU WITH MATERIAL COMPLIANCE THROUGHOUT THE SUPPLY CHAIN

Efficient knowledge management:
We help you determine and understand the statutory requirements that apply in your target markets and keep them up to date.

Material check and substance inventory:
We support you in identifying and documenting the materials used in your products.

Targeted decision-making:
We advise you on risk assessment and how to develop a material compliance strategy.

Effective process optimization:
We guide you through the implementation of helpful material compliance processes, including documentation and staff training.

Smart supplier management:
We help you execute efficient supplier surveys and handle customer requests.

CONTACT OUR MATERIAL COMPLIANCE EXPERTS

USE OUR COMPREHENSIVE MATERIAL COMPLIANCE EXPERTISE

Don’t hesitate to get in touch with our material compliance experts if you have questions or want to discuss a particular concern.

Please describe what you want to talk about in as much detail as necessary and as briefly as possible. You can also attach related files if required.

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Legal Specialist
Inken Green

Product & Material Compliance Expert

B.A.
Linda Kritzler
Material & Environmental Compliance Consultant

Dipl.-Ing. (FH)
Michael Loerzer

Regulatory Affairs Specialist

LET US HANDLE IT!

Our team of experts can also provide specialist support for your material compliance challenge.

Please send your request using the form here, or give us a call:

+49 30 3229027-50

CURRENT KNOWLEDGE ON MATERIAL COMPLIANCE
News
EU: The new Battery Regulation 2023/1542

Valid from February 18th 2024

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EU: New substances in the focus of the REACH regulation

Lead in PVC, formaldehyde and others

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USA: New reporting and recordkeeping requirements for asbestos under TSCA

9 months deadline

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EU: New guideline on WEEE exemption for appliance parts

And new complaint form

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