Survey reveals only 45% of companies met recent GHS compliance deadline

Loftware, a global leader in enterprise labeling solutions, has released a report highlighting the state of readiness in the chemical industry for the Globally Harmonized System of Classification (GHS) and OSHA’s Hazard Communication Standard (HCS).

GHS, first adopted in 2002 by the United Nations, was designed to ensure safe production, transport, handling, use and disposal of hazardous materials. Following GHS, HCS was later introduced by OSHA to bring US regulations into alignment with the international guidelines. The survey, which polled approximately 150 professionals from global chemical companies, including regulatory, supply chain, operations and IT, was conducted to determine whether or not companies are managing to meet the complex set of requirements for the labeling of chemicals and chemical products defined by the GHS.

The report showcases that of all the companies impacted by GHS regulations, less than half (45%) were able to meet the recent June 1, 2015 deadline for compliance. Additionally, 65% need at least another six to 12 months before they will be able to achieve compliance. The survey indicates this is largely due to a lack of awareness regarding the specific requirements, with more than 43% reporting awareness as a major obstacle in meeting GHS labeling requirements.

“With GHS, companies face more regulations in chemical labeling than ever before and it seems clear that the majority of companies still don’t have the correct labeling systems in place to accommodate this new level of complexity,” said Deborah Grant, Loftware industry manager. “Today’s labeling must be both dynamic and data-driven to maximize flexibility, ensure accuracy without replication of data, and provide speed and scalability to meet GHS labeling standards.”

Now that the deadline has passed, businesses continue to face obstacles. Nearly two-thirds (59%) of respondents answered that they are still not able to meet all six of the necessary elements of a GHS label. The results of non-compliance are considerable, with 72% of those surveyed believing the inability to meet these standards may result in loss of customers, regulatory and customer fines, disruptions to their business and delays in the supply chain.

Of those respondents that have yet to complete their requirements, 35% report a need to still configure their barcode labeling software solutions, 32% need to ensure enterprise applications have the necessary data and 24% have yet to finalize their business plans for GHS labeling.

Click here for a copy of the full GHS Readiness Survey Report.