Product manufacturers have the greatest ability, and therefore the greatest responsibility, to secure the safety and reduce the environmental impact of their products. As demonstrated by rapid growth of regulations around the world and increased consumer awareness to product safety and environmental issues, it is clear that consumers as well as government agencies are taking such accountability seriously.

Companies are strategically redefining the way they design their products, ensure compliance, evaluate their supply chain, and handle the "end-of-life" of their products. Reducing the use of toxic substances, designing for reuse and recyclability, minimising packaging, enforcing proper safety labeling and handling, optimising supply network and production processes in terms of environmental footprint, and creating takeback programs are just a few of the many initiatives companies are undertaking to ensure safety and further embrace product stewardship.

SAP Solutions for Product Safety and Stewardship

Initiatives related to product safety and stewardship often fall within three common scenarios:

• Ensuring product compliance – With regulations such as RoHS¹ and REACH² directly affecting the marketability of products, companies are investing in "greener" products as part of their product compliance, sustainability, and overall positioning campaigns. And with impact of GHS³ and REACH on HCS⁴, TSCA⁵ and similar regulations, environmental, health, and safety teams are also reexamining the adequacy and efficiency of their product safety compliance operations in terms of labeling, handling and reporting. Regulations on packaging, batteries, and WEEE⁶ are also increasing compliance reporting demands. This scenario helps to provide a systematic approach to product compliance and to bring together operational controls and compliance visibility within a single comprehensive, global compliance framework to protect revenue and brand by minimising non-compliance risk.
• Providing supply network traceability – In several industries, material and product traceability is regulated and tied to a company's license to operate and can significantly contribute to reduced fall-out of a recall. SAP's supply network traceability scenario helps companies to enable end-to-end traceability and condition monitoring – from manufacturing through distribution to the product getting into the customer's hands.
• Understanding product environmental footprint – Various companies, especially those with strong brand orientation, have also begun to determine the environmental footprint of their products. This can include water and greenhouse gases such as carbon. Dealing with these challenges requires the development of completely new ways of thinking and information management, based on concepts such as life-cycle assessment. To help companies leverage their existing SAP infrastructure, SAP is working with leading organisations to implement solutions for modeling, calculating, simulating, and reporting of carbon footprint.

1. Restriction of Hazardous Substances
2. Registration, Evaluation and Authorization of Chemicals
3. Globally Harmonized System of Classification and Labeling of Chemicals
4. Hazard Communication Standard (29 CFR 1910.1200)
5. Toxic Substances Control Act of 1976
6. Waste Electrical and Electronic Equipment