To encourage Nutrien and Corteva to improve transparency and continue innovation toward reduction of hazardous chemicals.
Summary:
Top chemical manufacturing companies including 3M, DuPont, and Corteva have been paying billions of dollars to clear up legal challenges around the health hazards of “forever chemicals.” The total fines of US$13 billion for the three companies alone were 9% of market capitalization at the end of 2024. [1] In order to help companies reduce their legal and reputational risk, as well as to combat the long-term impacts of these chemicals on people and the environment, NEI is urging some of its portfolio companies to take action.
We joined the Investor Initiative on Hazardous Chemicals (IIHC) in 2024. Our goal is to encourage the companies we invest in to map out and investigate their potential exposure to hazardous chemicals including per-and polyfluoroalkyl substances (PFAS) in their value chain, increase transparency in their supply chain, and contribute to innovations toward safer alternatives. PFAS are known as “forever chemicals” because they are extremely difficult to break down. Once in the body, there is no known way for them to be removed. They are linked to higher cholesterol, compromised immune systems, and cancer, among other health concerns. [2]
Through the IIHC, NEI is the engagement lead investor for Nutrien and a supporting investor for the engagement with Corteva. We met with both companies in the first quarter to follow up on a letter sent by the IIHC in November 2024, and we expect to continue to meet with them annually.
Corteva Agriscience, formerly part of DowDuPont before that company was split apart, is among companies historically named in U.S. lawsuits over contamination by PFAS, usually in connection with drinking water. To our knowledge, Nutrien does not have exposure to PFAS, but the regulatory and legal risk in the sector is increasing, which is why we are proactively engaging the company. It is worth noting the many challenges chemical manufacturers face due to regional differences—how hazardous chemicals are defined, permissible amounts, disclosure requirements, legal implications—there is no standardization across jurisdictions.
Our three engagement objectives are aligned with the IIHC’s stated requests of companies. We want them to increase transparency by disclosing share of revenue and production volume of hazardous chemicals (or of products that contain them); we want them to publish a timebound plan to phase out their use of such chemicals that includes a realistic roadmap with key performance indicators; and we want them to develop safer solutions with a published 2030 target and strategy. [3]
One of our reference points for engagement with chemicals companies is the ChemScore Report, produced by the International Chemical Secretariat, known as ChemSec. ChemSec is a non-profit organization that advocates for the substitution of toxic chemicals with safer alternatives. Their report ranks the world’s top 51 chemical producers on their work to reduce their chemical footprint. [4] Our initial view after reviewing their ChemScores and meeting with both companies is that Nutrien and Corteva are doing the work required to develop safer solutions, but that there is much more to be done.
For example, Nutrien has a program in place to assess their products and that they are confident their main fertilizer products do not include PFAS. If a product were discovered to contain PFAS, they would work with the supplier on a reformulation and/or shelve the product. Nutrien works to align its products to its sustainability commitments and is also a member of Change Chemistry, a group that is trying to make “safer and sustainable chemistry widely available in the marketplace.” [5]
Next steps: We will be reviewing Nutrien’s just-published 2024 sustainability report to assess progressive disclosure on hazardous chemicals. We will also continue to meet with peers at the IIHC to discuss engagement results and planned actions for the rest of the year.
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1. 3M Settlement with Public Water Suppliers; DuPont Settlement
