1-2. The Core of Chemical Management: Practical Compliance and Violation Cases under the PRTR Act (Chemical Substances Control Law)

The PRTR Act (Act on Confirmation, etc. of Releases into the Environment of Chemical Substances, commonly known as the "PRTR Act") is a law that requires companies to track the amount of specific chemical substances they handle that are released into the environment and transferred to the government, and to report this to the government. Its purpose is to reduce the environmental risks posed by harmful chemical substances and to strengthen chemical substance management by sharing information between businesses, governments, and the public. As it applies to a wide range of industries, not just manufacturing and chemical-related businesses, it is a law of great importance in terms of compliance.

In terms of practical measures, the first important thing is to understand the target substances and quantities. There are over 400 types of target chemical substances stipulated by the PRTR Law, and businesses that handle more than 1 ton of these per year (0.5 ton for Specified Class 1) are required to report. In reality, chemical substances are used not only in the manufacturing process, but also in a variety of other situations such as painting, cleaning, and maintenance, so creating an accurate inventory is essential. Supply chain management, including subsidiaries and outsourced companies, is particularly important, so it is not enough to simply tally up data for your own company.

Next, it is necessary to establish a method for calculating the amount of emissions and transfers. Emissions must be calculated separately for the atmosphere, water, soil, and transfers off-site (such as outsourcing to a waste disposal company). Calculations can be made using actual measurements or coefficients or estimation formulas. Many companies choose the latter, but even in this case, they are required to keep supporting documentation. Since transparency and validity of the calculation process are important in audits and administrative investigations, it is necessary to establish an internal double-checking system.

The most common violations are cases where the amount of targeted substances handled was underestimated and reporting was neglected. For example, there was a case where the total amount of solvents used at a factory exceeded the threshold, but some of the use was mistakenly assumed to be "exempt because it was a small amount" and therefore not reported. There was also a case where the waste disposal contractor's management was insufficient, making it impossible to grasp the amount of material transferred during the disposal process, resulting in incomplete reporting. All of these cases were subject to administrative guidance and improvement orders, resulting in a significant loss of social credibility.

Furthermore, in recent years, it has been pointed out that violations of the PRTR Act risk lowering ESG ratings and investor trust. Inadequate chemical substance management can easily lead to doubts about a company's stance on occupational safety and environmental protection, and globally expanding companies often face severe criticism from their overseas headquarters and business partners.

The measures that companies should take are basically four points: (1) comprehensively updating the list of target substances, (2) establishing an accurate calculation process for the amount of emissions and transfers, (3) information sharing with SDS and waste management, and (4) thorough in-house education. In particular, insufficient education for on-site personnel can lead to false reporting, so training at least once a year and the development of manuals are essential.

Compliance with the PRTR Law is not just an obligation, but also a great opportunity to improve the level of chemical substance management. Highly transparent reporting and thorough risk management will directly lead to a stronger corporate compliance system and increased credibility.