February 17, 2009 Presented by: A.J. Guikema Tetra Tech REACH Update : Substances of Very High Concern (SVHCs)

Agenda 1.REACH registration is not a significant requirement for the footwear and apparel industry 2.SVHCs are a concern 3.Communication of SVHCs in articles is required by law 4.Other Substance communication issues

REACH registration will rarely apply to apparel or footwear Doesnt apply to articles… Doesnt apply to articles… Textiles Textiles Clothing/Footwear Clothing/Footwear Packaging Packaging ……except for intentional releases ……except for intentional releases Lotions, fragrances Lotions, fragrances …and for ensuring any EU suppliers register …and for ensuring any EU suppliers register Pigments, adhesives, etc Pigments, adhesives, etc

REACH registration will rarely apply to apparel or footwear Substance Information Exchange For a (SIEFs) Substance Information Exchange For a (SIEFs) Are getting into full swing right nowAre getting into full swing right now Have very few apparel and footwear membersHave very few apparel and footwear members Are comprised of a few key suppliersAre comprised of a few key suppliers

SVHCs Substances of Very High Concern Substances of Very High Concern Substances for potential inclusion in REACH Annex XIV, which will ban substances from the EU market. Substances for potential inclusion in REACH Annex XIV, which will ban substances from the EU market. SVHCs are considered to be: carcinogenic, mutagenic, or toxic for reproduction (CMR); persistent, bioaccumulative and toxic (PBT); very persistent and very bioaccumulative (vPvB); and, endocrine- disruptors SVHCs are considered to be: carcinogenic, mutagenic, or toxic for reproduction (CMR); persistent, bioaccumulative and toxic (PBT); very persistent and very bioaccumulative (vPvB); and, endocrine- disruptors Substances of equivalent concern…. Substances of equivalent concern….

SVHCs An SVHC goes through a 5 phase process, appearing on a series of lists E.g. progress of the 1 st wave through its 5 phases Registry of intent – website June 2008 Annex 15 list – 16 substances, June 30, 2008 Candidate list – 15 substances, October 28, 2008 Priority list – 7 potential substances identified, 1st list at the latest June 2009 Annex XIV – BANNED, date TBD Probably will still be able to import articles with banned substances Definitely will have to know about and communicated all Candidate List substances (if >.1% concentration in article)

The Candidate List as of Today (Feb 17 th )

Communication of SVHCs in Articles For a substance in an article: For a substance in an article: if the article is imported or produced in the EU, and the substance is on the Candidate Listand the substance is on the Candidate List and the substance is present in a wt/wt concentration in the article at greater than 0.1%and the substance is present in a wt/wt concentration in the article at greater than 0.1% then the substance must be communicated to recipients and consumers Ref: Article of the REACH Regulation For a substance in an article: For a substance in an article: if the article is imported or produced in the EU, and the substance is on the Candidate Listand the substance is on the Candidate List and the substance is present in a wt/wt concentration in the article at greater than 0.1%and the substance is present in a wt/wt concentration in the article at greater than 0.1% then the substance must be communicated to recipients and consumers Ref: Article of the REACH Regulation

Communication of SVHCs in Articles Communication to recipients Communication to recipients The obligation to provide available information on substances of very high concern to the recipients of the articles applies as soon as a substance has been included on the candidate list for authorization (1 st list was Oct 28, 2008) The obligation to provide available information on substances of very high concern to the recipients of the articles applies as soon as a substance has been included on the candidate list for authorization (1 st list was Oct 28, 2008) This is to be done at the time of shipment immediately after the substances has been included on the candidate list This is to be done at the time of shipment immediately after the substances has been included on the candidate list You have to be ready to communicate immediately upon release of the next list ! You have to be ready to communicate immediately upon release of the next list ! Ref: Article 33.1 of the REACH Regulation Communication to recipients Communication to recipients The obligation to provide available information on substances of very high concern to the recipients of the articles applies as soon as a substance has been included on the candidate list for authorization (1 st list was Oct 28, 2008) The obligation to provide available information on substances of very high concern to the recipients of the articles applies as soon as a substance has been included on the candidate list for authorization (1 st list was Oct 28, 2008) This is to be done at the time of shipment immediately after the substances has been included on the candidate list This is to be done at the time of shipment immediately after the substances has been included on the candidate list You have to be ready to communicate immediately upon release of the next list ! You have to be ready to communicate immediately upon release of the next list ! Ref: Article 33.1 of the REACH Regulation

Communication of SVHCs in Articles Communication to any consumer who asks Communication to any consumer who asks Clock starts ticking upon consumer request, response is due within 45 days Clock starts ticking upon consumer request, response is due within 45 days Consumer request may be sent to ANY actor in the supply chain, including retailers Consumer request may be sent to ANY actor in the supply chain, including retailers Non-Governmental Organizations (NGOs) will drive much of the effort Non-Governmental Organizations (NGOs) will drive much of the effort Ref: Article 33.2 of the REACH Regulation Communication to any consumer who asks Communication to any consumer who asks Clock starts ticking upon consumer request, response is due within 45 days Clock starts ticking upon consumer request, response is due within 45 days Consumer request may be sent to ANY actor in the supply chain, including retailers Consumer request may be sent to ANY actor in the supply chain, including retailers Non-Governmental Organizations (NGOs) will drive much of the effort Non-Governmental Organizations (NGOs) will drive much of the effort Ref: Article 33.2 of the REACH Regulation

Communication of SVHCs in Articles CONTENT TO BE COMMUNICATED -- Example from RIP 3.8

Communication of SVHCs in Articles Format for communications Format for communications WebsiteWebsite Explicit labeling (not on inside of package)Explicit labeling (not on inside of package) Label has URL - retailer downloads from webLabel has URL - retailer downloads from web Conclusion: This is an MSDS for articles and will be required globally (either by law or by contractual terms) Conclusion: This is an MSDS for articles and will be required globally (either by law or by contractual terms) Format for communications Format for communications WebsiteWebsite Explicit labeling (not on inside of package)Explicit labeling (not on inside of package) Label has URL - retailer downloads from webLabel has URL - retailer downloads from web Conclusion: This is an MSDS for articles and will be required globally (either by law or by contractual terms) Conclusion: This is an MSDS for articles and will be required globally (either by law or by contractual terms)

For a substance in an article: For a substance in an article: if the article is imported or produced in the EU, and the substance is a SVHC (substance of very high concern)and the substance is a SVHC (substance of very high concern) and the substance is present in a wt/wt concentration in the article at greater than 0.1%and the substance is present in a wt/wt concentration in the article at greater than 0.1% and the substance amounts to greater than 1 metric ton per yearand the substance amounts to greater than 1 metric ton per year and exposure to humans or to the environment cannot be excludedand exposure to humans or to the environment cannot be excluded then the substance must be notified to the EU Chemicals Agency. Ref: Article 7.2 of the REACH Regulation For a substance in an article: For a substance in an article: if the article is imported or produced in the EU, and the substance is a SVHC (substance of very high concern)and the substance is a SVHC (substance of very high concern) and the substance is present in a wt/wt concentration in the article at greater than 0.1%and the substance is present in a wt/wt concentration in the article at greater than 0.1% and the substance amounts to greater than 1 metric ton per yearand the substance amounts to greater than 1 metric ton per year and exposure to humans or to the environment cannot be excludedand exposure to humans or to the environment cannot be excluded then the substance must be notified to the EU Chemicals Agency. Ref: Article 7.2 of the REACH Regulation FYI, coming in 2011: Notification of SVHCs in Article

Other Substance issues SIN (Substitute It Now) List – SIN (Substitute It Now) List – Released Sep 17, 2008 Released Sep 17, 2008 ECHA director showed up for unveiling, SIN may influence future selection for SVHCs ECHA director showed up for unveiling, SIN may influence future selection for SVHCs Currently 300 substances Currently 300 substances No force of law No force of law Brand image affected, NGOs campaign Brand image affected, NGOs campaign Incorporate into RSL? Incorporate into RSL?

What to do and what to worry about SVHCs (Candidate List) and SIN List substances are both important to track SVHCs (Candidate List) and SIN List substances are both important to track RSL Status – Integrate into current process, i.e. format, content RSL Status – Integrate into current process, i.e. format, content Have to ask suppliers and have to tell customers Have to ask suppliers and have to tell customers Proprietary concerns?Proprietary concerns? Keeping up to date real-time?Keeping up to date real-time?

Questions? A.J. Guikema, Tetra Tech A.J. Guikema, Tetra Tech