What is Full Material Disclosure?
A full material disclosure (FMD) is a comprehensive list of all the ingredients and substances within a particular product. It does allow for proprietary protections in some cases, as long as hazard information about the chemical can be shared. Depending on the industry, it can go by many different names, such as material transparency or chemical reporting, and also has different expectations as to whether those disclosures are only to a customer or shared publicly.
Why all the attention on Full Material Disclosure?
As companies continue to face new and constantly changing regulations and diverse customer requests, many are turning to FMD to be proactive in approaching regulatory needs and risk reduction in their supply chain. The substances restricted by REACH and California Prop 65 are constantly changing, furthering the need to have measures in place to effectively manage your supply chain.
Benefits of Full Material Disclosure?
Within companies, various employees are gathering material data in different systems and spreadsheets to complete individual reports and meet business needs. The benefits that come from gathering such data is often wasted as it is not available to be used to its full potential throughout an organization. The ability to reduce risk, select better materials, fill data gaps, and identify compliance status are just a few of the ways in which FMDs can change the way we manage supply chains.
Normally, compliance reporting is conducted by working with suppliers to have them check off a list whether their substance is compliant or not. This means every time regulatory lists change, more work is required from companies and their suppliers. Reporting fatigue is a real problem and suppliers can become discouraged to disclose information about their chemicals. FMDs can change the game by significantly reducing how often you ask your suppliers for data, and it can help you establish a mutually beneficial form of communication and data exchange. FMDs also allow you to screen against lists as they change and monitor lists that are leading indicators of changes rather than going back to your supplier for more data. This can help reduce company risk because you know what to expect and can better prepare for whatever regulatory changes may be on the horizon.
FMDs give you back the control of your own data in ways that allow you to quickly respond to customer demand and industry trends. For instance, flame retardant regulations are quickly changing and with FMDs, you can be armed with the data that you need to see how that might affect your products. Having all your chemical data at your fingertips better prepares you for changes and sustainability efforts across the board.
How can Toxnot help?
Toxnot's platform is built for leveraging FMDs and other supply chain data for compliance, sustainability, and risk-reduction. You can store, collect, and report out on the data that you receive from your suppliers and make it available to all relevant stakeholders within Toxnot. Our product can help you streamline your data management to save time and effort for you and your suppliers.
