In an effort to both streamline and tighten environmental regulations, the European Union (EU) released a directive for the Registration, Evaluation, and Authorization of Chemicals (REACH). Every company manufacturing chemicals within the limits of the EU or importing/exporting chemical substances to European countries must comply with REACH to be allowed to land and sell their goods. REACH replaces 40 existing directives.

The central element of the legislation is a completely new system of restriction for new and existing chemical substances marketed in quantities of more than one ton/legal entity/year. Each chemical manufacturer engaged in European business is obliged to prove safety of use of their chemicals and to deliver data to the newly founded European Chemicals Agency (ECA). The result for a company is: no market without data and reporting.

With this new legislation, the rapid delivery of accurate data has become a business-critical process for companies doing business in the EU. The amount of information to be submitted to the ECA and related timeline depends on the amount of a substance shipped per year by an enterprise -- and there is an expectation that thresholds and substance requirements will be reevaluated and adjusted regularly.

For many chemical companies, compliance with REACH represents a significant administrative hurdle. SAP can help. SAP's solution for REACH compliance helps customers address critical business requirements around REACH legislation, including:

• Simple, transparent, and secure product registration at minimized costs, with focus on substance rather than material level
• Management of critical timelines
• Internal and external stakeholder coordination
• Determination of exposure testing and reporting requirements for dossier submission
• Integration of business processes and alignment of business objectives

SAP's solution for REACH compliance is integrated with SAP's holistic approach toward corporate governance, risk, and compliance management.