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What's Next for Responsible Distribution?

Changes are coming for Responsible Distribution early next year.

Just as the chemical distribution industry – and indeed, our membership – continues to evolve and adapt with the times, it’s important that our trusted environmental, health, safety, and security program does the same.

The next iteration of Responsible Distribution will break from tradition in 2023 and no longer run in three-year “Cycles”. Instead, to align with other management systems and make onboarding easier for new members, the specifications will only be updated when changes are merited and not necessarily every three years. Companies participating in Responsible Distribution will plan to use their three-year verification anniversary date when planning their next verification—no different than the schedule companies are already following.  

Perhaps the most notable update will be the introduction of a dedicated sustainability code.

It’s an issue that has become a crucial – and challenging – aspect of chemical distribution. With customers, suppliers, and our communities wanting an increased focus on this topic, chemical distributors are increasingly incorporating sustainability into their strategies and working practices. Its inclusion in Responsible Distribution will help meet these changing demands.

As a result, all 7th Cycle’s Code VI (Waste Management & Resource Conservation) and VIII (Community Outreach) requirements will be combined to create the new Code VI: Sustainability. The amended code will cover environment, labor and human rights, ethics, and sustainable procurement, allowing all companies to create a tangible structure and framework around sustainability.

By creating the new sustainability code, NACD is returning to a 12 code management system. The 7th Cycle Code XIII: Security will move up to fill the void in Code VIII. There are no changes to the security code requirements; this is a change in numbering only. All existing codes were reviewed, and additional guidance and conformance examples were provided for increased clarity.

Here’s what the Code structure will look like starting in 2023:

  1. Senior Management Commitment and Risk Management
  2. Compliance Review and Training
  3. Carrier Selection and Private Fleet
  4. Handling and Storage
  5. Job Procedures and Training
  6. Sustainability
  7. Emergency Response and Public Preparedness
  8. Security
  9. Product Stewardship
  10. Internal Audits
  11. Corrective and Preventative Actions
  12. Documents and Records Control

In addition, we are pleased to announce that NACD has been in discussions with EcoVadis. We’re working closely to ensure members participating in that sustainability rating program will now get recognition and credit for what they’re doing in Responsible Distribution. It means that those currently achieving a bronze or higher rating with EcoVadis will help satisfy the requirements of Code VI: Sustainability.

Our new sustainability code will also position companies better for Global Reporting Initiative (GRI) – an independent organization that helps businesses assess their impacts and take responsibility for them.

NACD will be rolling out these changes and providing further updates in the coming months. New resources are being developed, including a new Code Coordinator Manual, a revised Gap Assessment Tool, Starter Kit, and more. Dedicated training will also be available soon, including periodic webinars and new courses for NACD U.

To find out more,  join us at 2022 ChemEdge Trade Show and Conference and the Pre-Conference Responsible Distribution Workshop in Indianapolis, IN. On August 15, we’ll be running a Candidacy Class for those new to NACD and Responsible Distribution. This session is free to attend, however, additional registration is required. The August Responsible Distribution Workshop, on August 16, will focus on reviewing all of these changes and deep dive into the requirements of the new Sustainability code.

Find out more about 2022 ChemEdge here. If you missed our recent webinar, Sneak Peek Beyond the 7th Cycle, and want to discover how Responsible Distribution is changing, watch the recording here.

 

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