Chemical Risk is Business Risk: Is Your Company Prepared?

Oct 22, 2026
Key Summary
  • Chemical risk is business risk: PFAS and other hazardous chemicals create financial, regulatory, and reputational exposure.
  • Safer alternatives start here: The updated guide helps electronics manufacturers identify chemicals of concern and evaluate safer options.
  • Early action builds resilience: Safer chemistry protects workers, reduces risk, and strengthens competitiveness.

By Dr. Kelly Scanlon, Senior Director of Sustainability Strategy, Global Electronics Association

The Global Electronics Association and the Clean Electronics Production Network have released an updated Guide to Safer Alternatives in Electronics Manufacturing, a practical resource for companies working to reduce chemical risk in their products and processes.

The updated Guide comes at an important time. At two recent events I attended, the Economist Enterprise panel The Chemical Conundrum: Finding Value in Safer Products at Climate Week NYC 2026 and the Chemical Watch Regulatory Summit North America 2026, speakers made the same point again and again: chemical risk is business risk. Hazardous chemicals can create financial exposure even when their use is perfectly legal, and companies that wait to act may find themselves unprepared.

It was notable that chemical safety had a place on the Climate Week agenda, a sign that it is becoming part of the broader conversation on sustainability and business resilience.

The updated Guide is designed to help electronics businesses get ahead of that risk. It helps companies:

  • Identify chemicals of concern in their products and processes
  • Assess potential safer alternatives
  • Move toward putting those alternatives in place
  • Share knowledge and resources across the supply chain

Here's what the recent events showed about why and how the updated Guide matters.

Legal today does not mean risk-free tomorrow

Economist panelists described PFAS and similar chemicals as material business risks. Being compliant today does not protect a company from future regulation, reputational damage, or other consequences.

The Chemical Watch summit reinforced this. PFAS risk has grown well beyond cleanup costs and it now includes product recalls and the liability and reputational damage that can follow.

How the Guide helps: Replacing hazardous chemicals with safer alternatives reduces exposure to these risks at the source. The guide gives companies a framework for evaluating alternatives before regulation or liability forces a rushed, costly change.

Investors want better information

Economist panelists also pointed to gaps in the financial data on chemical risk. Without better information, investors often learn about a company's exposure only after a controversy hits the news. Companies that can show how they're managing chemical risk have a chance to stand out.

How the Guide helps: A structured approach to assessing and substituting chemicals gives companies a clear, credible story to tell investors, customers, and other stakeholders about how they are managing risk.

Early action starts with knowing your products

The Economist panel's advice was to make decisions grounded in well-established science and to address potential harm before it becomes a problem. They summed up the approach simply: know what's in your products, set targets, and carry out the plan.

For electronics manufacturers, the first step can be the hardest. Complex global supply chains make it difficult to know exactly which chemicals are in products and processes.

How the Guide helps: The Guide offers a practical starting point for identifying chemicals of concern, setting priorities, and evaluating safer options with confidence, while drawing on resources shared across the electronics supply chain.

Get ahead of the risk

Replacing hazardous chemicals with safer alternatives is one of the most effective ways to reduce risks to human health and the environment. It is also a smart business decision. Safer chemistry can protect workers, lower compliance costs, reduce future liability, and strengthen competitive advantage.

Companies that act early will be better prepared for whatever comes next, whether that's new regulation, investor scrutiny, or customer demand.

Explore the updated Guide to Safer Alternatives in Electronics Manufacturing