Nov. 4, 2009 (PR Newswire) --

FALLS CHURCH, Va., Nov. 4 /PRNewswire/ -- A new survey released today by CSC (NYSE: CSC) and Chemical Week magazine found that over the next five years regulatory compliance will advance from being perceived as a small cost of doing business to a major driver of competitive advantage. The survey, conducted by CSC and Chemical Week, queried senior compliance and sustainability officers at leading global chemical companies as well as five executive interviews to identify their focus on preparedness for compliance with industry regulations.

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The survey revealed that sustainability programs have helped respondents refocus product development efforts, enhance their brand value, and become more competitive. In fact, approximately 75 percent of respondents said they are re-tooling their product development efforts in response to pressures from current and expected regulatory programs. "The most common business area that will be affected by regulatory complexity and change will be in product development. Most companies are gearing up for this challenge and view it as a business differentiator," said Chuck Deise, vice president and chemical sector leader, CSC.

"Akzo Nobel primarily is responding to this increasing regulatory complexity by adapting its product portfolio to greener products. The company currently classifies 18 percent of its products as 'ecopremium,' but targets an increase to 30 percent in 2015," said Andre Veneman, director/sustainability for Akzo Nobel, recently rated by the Dow Jones Sustainability Index as the most sustainable major chemicals company. "One of the big challenges is to develop ecopremium products with a lower environmental footprint." Using this strategy, Akzo Nobel is exceeding current regulatory requirements and anticipating future regulations. By working on this kind of activity now, future regulations "will not be so challenging," Veneman says.

"You can't just talk about a product being greener, it's got to be looked at from an environmental, economic, and social perspective, and you have to look at the 'footprint' value. We are trying to take a holistic approach to this. We are looking at a product's impact on climate change and resource utilization as well," said David Kepler, board member and head of Health, Safety and Environment at Dow Chemical.

Preparing for Regulations

Eighty percent of respondents confirmed the need for a universal set of capabilities to manage the increasing complexities of the regulatory environment.