Chemical safety rules are not a burden on businesses, but deliver a substantial net benefit, a new report has concluded.

The bigger picture, published by the chemical safety think tank ChemSec, concludes chemical regulation creates opportunities for many progressive companies. It uses case studies to show these companies are not only opting for safer chemicals, but are finding the alternatives are frequently better too. ChemSec said the Europe-wide REACH chemical safety framework “offers an opportunity for Europe’s economy to keep evolving; the question is in which direction.”

Anne-Sofie Andersson, the director of ChemSec, commented: “Do we really want to accommodate laggard companies that aim to keep using hazardous chemicals, which in turn will work against the purpose of circular economy, or do we want to look to the future and stimulate innovative businesses creating safe products fit for a new economy?”

The report notes that using hazardous chemicals is itself a costly option. Frida Hök, ChemSec’s policy advisor, said: “We urge policy makers to include several aspects in their assessments whether to regulate a chemical or not, similar to the way progressive companies do when they assess the benefits of substitution.”

She added: “They do not just consider chemical prices in a straightforward per kilo comparison, rather they look at the bigger picture and include more parameters, like costs of waste handling, worker safety, consumer satisfaction, to name a few. Combining all these factors makes it clear that substitution can give a competitive advantage on the market, making it economically beneficial.”

The report features the case of US firm Lumber Liquidators, whose share price plummeted when it was found their products contained high levels of carcinogenic formaldehyde, leading to the resignation of the company CEO in May 2015. Further revelations this week about formaldehyde emissions from Lumber Liquidators products saw the share price sink still further.

• The bigger picture: Assessing economic aspects of chemicals substitution, ChemSec, February 2016.