3M has said it will stop making “forever chemicals” by the end of 2025, citing pressure from regulators and investors over the accumulation of the long-lived substances in the environment.
The US conglomerate on Tuesday said it would exit manufacturing of so-called Pfas and work to discontinue use of these chemicals across its product range in a move that would cost the company up to $2.3bn in pre-tax charges. Pfas chemicals are used in products including mobile phones and non-stick frying pans.
3M’s decision follows recent moves by the US Environmental Protection Agency to tighten rules regarding the use and disposal of Pfas chemicals, which would hold polluters more accountable for cleaning contaminated sites.
Environmental campaigners said 3M’s decision represented one of the first examples of a big player in the US chemicals industry phasing out the manufacture and use of Pfas.
Pfas chemicals are known as “forever chemicals” because they do not break down easily, accumulate in the environment over long periods of time and can remain in people’s bodies for a lifetime.
The Centers for Disease Control and Prevention has labelled them a “public health concern”. Studies have found the chemicals are a possible human carcinogen and can affect people’s immune systems.
Minnesota-based 3M faces billions of dollars in lawsuits from individuals and states alleging that Pfas contained in its products has contaminated rivers and caused health problems including cancer. It has also been targeted by an investor-led campaign aimed at forcing the chemicals industry to phase out use of Pfas chemicals.
Mike Roman, 3M chief executive, said it was a moment that demands innovation. “While Pfas can be safely made and used, we also see an opportunity to lead in a rapidly evolving external regulatory and business landscape to make the greatest impact for those we serve,” he said.
Last month, investors managing more than $8tn in assets wrote to 54 global chemical companies urging them to phase out use of the chemicals. Led by Aviva Investors and Storebrand Asset Management, the investors also called for greater transparency, including disclosure of the volume of hazardous chemicals they produce.
Patrik Witkowsky, sustainable finance adviser at ChemSec, a non-governmental organisation lobbying to increase regulation of hazardous chemicals, said 3M’s decision to exit Pfas was a “big moment” for the chemicals industry.
He said only four of the 54 largest publicly traded chemical companies in the world had announced public phaseout plans of hazardous chemicals. These are Solvay, Indorama, Sabic and Yara.
Wolfe Research said 3M’s exit was inevitable in light of growing actions to bar Pfas products in many jurisdictions over the next decade.
“These actions are relatively immaterial in a purely financial sense [for 3M]. But it does mark further downside pressure to estimates and a reminder of long-tail Pfas remediation and compensation risks,” Wolfe Research said in a note.
