Transitioning to a Toxic Free Future: IEHN Investor Guidance on Safer Chemical Management

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Chemical pollution has now crossed a planetary boundary, posing escalating risks to human health, ecosystems, and long-term economic stability. For investors, the widespread use of hazardous chemicals across consumer products and supply chains presents a growing set of material financial, regulatory, legal, and reputational risks. Litigation against chemical manufacturers continues to mount—PFAS-related liabilities alone are projected to rival the scale of the historic Tobacco Master Settlement—while chemical and plastics regulations are accelerating across jurisdictions.

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At the same time, consumer-facing brands represent a critical leverage point for investor engagement. Heightened consumer awareness, combined with expanding disclosure expectations and supply chain scrutiny, has created both risk and opportunity for companies that proactively adopt safer chemical management practices.

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To support investors in navigating this landscape, the Investor Environmental Health Network (IEHN) has developed new Investor Guidance on Safer Chemical Management for Consumer-Facing Brands, outlining best-practice expectations, milestones, metrics, and engagement strategies. As the Guidance notes, “the business case for strong chemical management is clear: it can enhance safety, reduce operational and legal risks, improve regulatory compliance, strengthen brand value, and ultimately contribute to improved financial performance.”

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This session will introduce ICCR members to IEHN’s new Guidance and explore how it can be applied in investor engagements to drive meaningful corporate action.

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During the session, participants will:
• Learn about IEHN’s new investor guidance, including recommended practices, metrics for tracking progress, and real-world examples of corporate leadership.
• Hear case studies of investor-led engagements that have influenced corporate policies and performance on chemical management.
• Examine the intersections between hazardous chemicals and ICCR priority issues, including human rights, environmental justice, climate change, biodiversity loss, and plastics.
• Identify gaps, opportunities, and next steps for coordinated investor engagement, including ways ICCR members can align strategies and collaborate across committees.

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The session will be designed to encourage dialogue and peer exchange, offering members practical tools and insights they can immediately apply in upcoming engagements with portfolio companies.

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Agenda:

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• Introduction of hazardous chemicals as a material issue and presentation of the IEHN Investor Guidance – Larisa Ruoff, Sustainability Group of Loring, Wolcott & Coolidge

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• Demystifying the complexities of safer chemical management for companies – Stacy Glass, ChemFORWARD

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• Investor case studies demonstrating the applicability of the IEHN Investor Guidance – Laura Krausa, CommonSpirit Health; Marcy McCullaugh, Parnassus Investments; and Caroline Boden, Mercy Investment Services

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• Short breakout discussion with attendees about the barriers to engaging on chemical management, additional resources needed, and opportunities to integrate this issue into related engagement topics such as biodiversity and nature, climate change, environmental justice, and human rights.

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Resources:

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IEHN Investor Guidance documents: Safer Chemical Management Recommendations for Consumer-Facing Brands and Resources & Best Practices

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Chemicals & Biodiversity Investor Statements

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ChemFORWARD and Know Better Do Better Collaborative

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• 2024 Baseline Metrics Report
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• 2025 Progress Report
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The Investor Working Group on Environmental Justice (IWGEJ)

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Environmental Justice in 2025: What Asset Managers Need to Know (ICCR blog)

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