Procurement Glossary
REACH: EU chemicals regulation for safe Procurement and compliance
November 19, 2025
REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) is the central EU regulation for the regulation of chemicals and their safe use. For purchasers, this means comprehensive compliance obligations when procuring chemical substances and products. The regulation has a significant impact on supplier selection, product evaluation and risk management. Find out below what REACH covers, what obligations exist and how you can successfully manage compliance risks.
Key Facts
- REACH has applied to all chemicals from 1 ton per year and manufacturer since 2007
- Obligation to register with the European Chemicals Agency (ECHA) for producers and importers
- Candidate list of substances of very high concern (SVHC) is continuously expanded
- Information obligations along the entire supply chain up to the end consumer
- Violations can lead to sales bans and substantial fines
Contents
What is REACH? Definition, scope and objectives
REACH stands for Registration, Evaluation, Authorization and Restriction of Chemicals and is the EU Regulation 1907/2006 on the Registration, Evaluation, Authorization and Restriction of Chemicals.
Core elements of the REACH Regulation
The regulation comprises four central pillars that regulate the entire life cycle of chemical substances:
- Registration: Registration of all chemicals from 1 ton/year with the ECHA
- Evaluation: Chemical safety testing and risk assessment
- Authorization: Authorization procedure for substances of very high concern
- Restriction: Prohibitions or restrictions on the use of hazardous chemicals
REACH vs. other chemical regulations
In contrast to national regulations, REACH creates a uniform EU-wide standard. While RoHS directives apply to specific electronic products, REACH applies to all chemical substances and mixtures across all industries.
Importance of REACH in Procurement
For procurement organizations, REACH means a fundamental change in supplier evaluation. Procurement procurement requires systematic testing of the REACH conformity of all chemical inputs and a Restricted Substances List to minimize risks.
Implementation, obligations and evidence
The practical implementation of REACH requires structured processes for the identification, evaluation and documentation of all relevant chemicals in the supply chain.
Registration obligations and deadlines
Manufacturers and importers must register all substances from 1 tonne per year with the ECHA. Registration includes extensive dossiers with substance properties, intended uses and safety data sheets.
- Complete technical dossiers for quantities over 10 tons/year
- Chemical safety reports from 10 tons/year
- Updating in the event of quantity or usage changes
Information obligations in the supply chain
Suppliers must inform customers about SVHC substances above 0.1 percent by weight. Due diligence processes ensure that all necessary information is provided in good time.
Authorization procedure for SVHC substances
Substances of very high concern on the candidate list require authorization for specific uses. Companies must develop substitution plans or demonstrate the socio-economic benefits.
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Compliance KPIs & evidence for REACH
Effective REACH management requires measurable key figures to monitor compliance performance and continuously improve processes.
Compliance rate and completeness
The REACH compliance rate measures the proportion of compliant suppliers and products. The target values are 100% for critical substances and at least 95% for all other materials.
- Share of registered substances in total volume
- Completeness of the safety data sheets
- Timeliness of SVHC notifications
Response times and process efficiency
Average processing times for REACH inquiries, substitution projects and compliance updates show the efficiency of internal processes. Benchmark values are a maximum of 5 working days for standard requests.
Cost efficiency and ROI
REACH compliance costs are compared with the risks avoided. Key figures include costs per tested substance, substitution costs and fines saved. Life cycle assessments evaluate the long-term cost impact of substance changes.
Risks, dependencies and countermeasures
REACH violations can lead to considerable legal, financial and operational risks, which must be minimized through systematic risk management.
Legal and financial risks
Violations of REACH regulations lead to fines of up to several million euros, sales bans and product recalls. There is also the threat of civil liability claims for damage to health or the environment.
- Fines of up to 50,000 euros per violation in Germany
- Product liability for inadequate risk communication
- Reputational damage due to public enforcement measures
Supply chain risks and dependencies
Complex supply chains make full REACH compliance difficult. Missing or incomplete information from upstream suppliers can lead to unintentional violations. ESG risk ratings help with systematic supplier assessment.
Operational countermeasures
Preventive measures include regular supplier audits, automated compliance checks and emergency plans for substance substitutions. A Supplier Code of Conduct defines binding REACH requirements for all business partners.
Practical example
An automotive supplier implements a digital REACH management system to evaluate 15,000 chemical components. The system automatically analyzes safety data sheets, compares them with the current SVHC list and creates compliance reports. When a new SVHC substance is identified in sealing materials, a substitution project is started immediately. Within 6 months, the changeover to a REACH-compliant alternative substance takes place, thus avoiding supply interruptions.
- Automated substance evaluation reduces testing time by 80%
- Early warning system prevents compliance violations
- Proactive substitution ensures delivery capability
Current developments and effects
REACH is constantly evolving, with new substance evaluations, extended candidate lists and stricter enforcement measures that pose new challenges for Procurement .
Extension of the SVHC candidate list
The ECHA regularly expands the list of substances of very high concern. The current focus is on endocrine disruptors, persistent organic pollutants and nanomaterials. Purchasing organizations must continuously adapt their material substitution.
Digitalization and AI-supported compliance
Artificial intelligence is revolutionizing REACH management through automated substance identification, risk assessment and compliance monitoring. Machine learning algorithms analyze safety data sheets and identify potential compliance gaps in real time.
Stricter enforcement and controls
National authorities intensify REACH controls with coordinated EU-wide enforcement projects. Whistleblower systems and increased market surveillance significantly increase the risk of infringements being detected.
Conclusion
REACH is one of the most comprehensive chemical regulations in the world and requires purchasing organizations to have systematic compliance processes in place. The continuous development of the regulation and stricter enforcement make proactive management essential. Digital tools and AI-supported solutions offer new opportunities for efficient REACH compliance. Companies that invest in robust systems at an early stage secure long-term competitive advantages and minimize legal risks.
FAQ
What does REACH mean for importers of chemicals?
Importers are considered manufacturers and must register all imported substances of 1 ton or more per year with the ECHA. They require complete technical dossiers and must forward safety data sheets to downstream users. Without a valid registration, import is prohibited.
How often is the SVHC candidate list updated?
ECHA updates the SVHC list at least twice a year, typically in June and December. Companies then have 6 months to comply with new information obligations. Continuous monitoring of the list is therefore essential for compliance.
What are the penalties for REACH violations?
In Germany, fines of up to 50,000 euros per violation can be imposed. In the case of intentional or negligent violations, additional prison sentences of up to one year may be imposed. Serious cases can lead to sales bans and product recalls.
How can small companies ensure REACH compliance?
Small companies should focus on their role in the supply chain and systematically record all chemicals used. Industry associations often provide support and guidance. Working with specialist consultancies can be cost effective.
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