US industrial conglomerate 3M [MMM:US] announced that it will stop the manufacturing and use of perfluoroalkyl and polyfluoroalkyl substances (PFAS), widely known as “forever chemicals”, across its product portfolio by the end of 2025, as reported by Reuters on December 20. 3M declared that the decision is based on careful consideration and a thorough evaluation of the evolving external landscape, including multiple factors such as accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations. At present, 3M’s net sales of manufactured PFAS are around USD1.3bn a year, representing around 3.7% of the firm’s annual revenue. 

PFAS are a group of chemicals that have been widely used in consumer and industrial products ranging from semiconductors to airplanes. However, these matters do not break down quickly and have in recent years been found at dangerous concentrations in drinking water, soils, and foods. Hence, the legal pressure on the damage caused by PFAS is increasing. In November, California’s attorney general sued 3M, DuPont de Nemours Inc [DD:US], and several other companies to recoup the staggering clean-up costs from PFAS, claiming that these firms keep selling products containing PFAS despite that they know these products could lead to cancer, developmental defects, and other health problems. In addition, five European countries, including Denmark, Germany, Norway, Sweden, and the Netherlands are enacting a proposal to restrict the use of PFAS, which they plan to introduce by January 2023.

Sources:

https://www.reuters.com/business/3m-stop-making-forever-chemicals-take-up-23-bln-charge-2022-12-20/

https://www.reuters.com/business/environment/california-sues-3m-dupont-over-toxic-forever-chemicals-2022-11-10/

https://www.esgtoday.com/3m-to-end-manufacturing-of-forever-chemical-pfas-by-2025/

https://news.3m.com/2022-12-20-3M-to-Exit-PFAS-Manufacturing-by-the-End-of-2025