Walgreens

Policy:Adopted a retailer safer chemicals policy

10 out of 23.5 points

In 2018, Walgreens Boots Alliance issued a Chemical Policy Statement describing its new “chemicals management program that assesses and restricts the use of certain chemicals or ingredients in products sold in our stores and online.” The company stated it was taking action because of customer concerns and Walgreens’ own research, saying, “As a consumer-facing company we are aware that there is customer concern about the safety of certain chemicals that are not restricted by law. Additionally, our own product safety analysts may come to a different, stricter conclusion than some regulatory bodies.” The policy applies to all of its stores.

Walgreens Boots Alliance is applying the policy initially to Walgreens- and Boots-owned brand and exclusive consumer retail-formulated products in the baby, beauty, personal care, and household cleaning product categories. The company intends to work with its suppliers to eliminate the chemicals on its (B)RSL from these products by the end of 2021 and plans to report on its implementation publicly going forward.

In its 2019 corporate social responsibility report, published in February 2020, it shared progress: “Since launching the RSL in calendar 2018 we are well on track to eliminate the listed substances from in-scope products by the end of 2021. In fiscal 2019, 100 percent of Boots UK and Global Brands-owned brand products in the categories covered by the RSL and more than 98.5 percent of Walgreens-owned brand products in these categories were in compliance with the RSL.” This is positive news and suggests the company should be even more ambitious to target a larger list of chemicals of high concern (CHCs) for reduction and elimination in both private-label and brand-name products.

The company also states it “has created a list of chemicals that we are monitoring and that, over time, we are looking to prohibit and/or restrict across our product portfolio. This list will be used to update our Restricted Substances List.” However, the company has not disclosed this list, known as its Walgreens Boots Alliance Chemical Stewardship List.

In its 2019 CSR report, the company states it “has adopted a new CSR commitment to reduce the negative impact of plastics in our owned brands, which include our global health and beauty brands, as well as a wide range of Walgreens and Boots UK house brand retail products.” However, this initiative does not clearly imply that Walgreens is planning to restrict plastics of environmental health concern (PEHCs), such as PVC or polystyrene. The company also states it is “working to reduce negative impacts of product packaging, including using recycled/recyclable packaging, eliminating chemicals of concern from packaging and other steps.” However, the company does not provide further details on “eliminating chemicals of concern from packaging” in the rest of its report or its Chemical Policy Statement.

The company has not developed a publicly available manufacturing restricted substance list (MRSL) or beyond restricted material list (BRML) for PEHCs, and the policy does not appear to apply, as specified in the criteria, to packaging or operations. The company’s policy does not appear to apply to beauty products of environmental justice concern (BPEJC).

Glossary of Terms

Oversight: Established management responsibilities and incentives

3.75 out of 5 points

In September 2015, Walgreens established the new role of senior manager, product sustainability, within the Product Integrity & Corporate Social Responsibility Department. The responsibilities of this role are focused on three key areas of product sustainability: formulation, packaging, and vendor practices. The key component of the formulation pillar is the development of a safer chemicals policy as well as developing a product transparency program. A significant portion of this position’s performance metrics are dependent on this individual issue. In addition, senior leadership created a Corporate Social Responsibility (CSR) Committee, chaired by the co-chief operating officer, that agrees on CSR targets, measures progress toward achieving them, oversees CSR policy statements, and formally approves the annual CSR report.

Walgreens did not provide further information on financial incentives for senior management to implement its safer chemicals policy, so we are only awarding partial credit for this component.

Glossary of Terms

Accountability: Ensures supply chain accountability

5 out of 15 points

According to staff, Walgreens trains vendors on its safer chemicals policy through its supplier portal, SupplierNet, and this training is required. Staff also mentioned that vendors are notified if the formulation they enter into WERCSmart has any chemicals on Walgreens’s BRSL.

Walgreens stated in 2020 it also includes “Chemical Policy and RSL compliance information in our “Business Award Letter” (i.e. terms & conditions contracts)” and provided documentation of this for our review.

In its 2019 CSR report, Walgreens states, “We require vendors for our owned brand products – which include health, beauty, home products, food, paper goods and other categories – to use a safety testing lab that we select. These vendors agree to and are responsible for rigorous product testing on a regular cadence to help ensure they meet regulatory requirements and our own high standards related to safety.” However, the company doesn’t clearly tie “our own high standards related to safety” back to its safer chemicals policy, so no credit is awarded for this effort.

Walgreens has not disclosed that it conducts its own testing, or requires suppliers to conduct testing in third-party laboratories and provide results to the retailer, to ensure suppliers comply with its safer chemicals policy or BRSL.

Glossary of Terms

Disclosure: Requires suppliers to report use of chemicals in products to retailer

7.5 out of 17.5 points

In 2018 Walgreens staff stated, “all [owned-brand] vendors are required to register and disclose all ingredients to the WERCS… which allows for full ingredient screening against our RSL.” The disclosure includes fragrance components, but not impurities. Extra credit is awarded for the disclosure applying to multiple major product categories.

Glossary of Terms

Action: Reduced or eliminated chemicals of high concern (CHCs) or plastics of environmental health concern (PEHCs) within the last three years

6 out of 26 points

In its 2019 CSR report, the company reported for the first time the percentage of its private-label suppliers that are in compliance with its BRSL: “Since launching the RSL in calendar 2018 we are well on track to eliminate the listed substances from in-scope products by the end of 2021. In fiscal 2019, 100 percent of Boots UK and Global Brands owned brand products in the categories covered by the RSL and more than 98.5 percent of Walgreens owned brand products in these categories were in compliance with the RSL.”

In early 2021, the company shared that it had ceased the sale of a men’s hair dye product containing lead.

Walgreens reported in 2018 that it reformulated most of its owned-brand sunscreens, including all of its baby, kid, and moisturizing sunscreen lines, to be paraben-free and oxybenzone-free. The company stated it offers 20 paraben-free sunscreen formulations (83% of all sunscreen formulations) and 15 oxybenzone-free sunscreen formulations (62% of total). The company has not disclosed updated percentages for 2020.

However, Walgreens has not publicly documented progress on reducing chemicals of high concern (CHCs) in beauty products of environmental justice concern (BPEJC), or plastics of environmental health concern (PEHCs), beyond regulatory compliance in the last three years.

Glossary of Terms

Safer Alternatives: Evaluates safer alternatives, avoids regrettable substitutes

4.5 out of 16 points

In its policy, Walgreens states, “In moving to eliminate these substances [chemicals on its BRSL], we encourage suppliers to select ingredients identified as Safer Chemicals by the U.S. Environmental Protection Agency (EPA) Safer Choice program, or to use EPA Safer Choice criteria or ChemSec safer alternatives marketplace to evaluate and select safe substitutions.”

Glossary of Terms

Transparency: Demonstrates a commitment to transparency and public disclosure

13 out of 20 points

Walgreens published its safer chemicals policy and BRSL on its website in 2018.

According to its safer chemicals policy, “Walgreens Boots Alliance encourages all suppliers of formulated products to endeavor to publicly disclose intentionally added ingredients (either on package labelling or digitally).” Staff added that they are also encouraging the disclosure of fragrance components. The company also discusses these goals with vendors and is working on figuring out incentives for this disclosure.

The company set a goal to disclose ingredients on household cleaners and reported in its 2019 CSR report, “We are pleased to report that we have met our public commitment to list the ingredients in all owned brand household cleaners on their respective product labels by the end of calendar 2019. All new and reordered products that are in scope and placed on the market beginning January 1, 2020, will have their ingredients disclosed on product labels.”

The company also shared in its 2019 CSR report: “WBA is committed to increasing product transparency for consumers and is evaluating methods for standardized, consumer-friendly, enhanced labeling information. Our goal is to provide a public-facing transparency methodology allowing consumers to have more access to ingredient and material level information as well as education and information on disposal of packaging.”

The company was awarded 1.5 points for its efforts to encourage suppliers to publicly disclose ingredients because, although the company encourages this disclosure either on-pack or online, instead of “on-pack and online” as required by this point level in the rubric, the company goes beyond this point level by encouraging suppliers to disclose fragrance components instead of using generic terms. Extra credit was awarded for Walgreens setting a deadline for disclosures on the product labels of owned brand household cleaners and for disclosing ingredients internationally.

Glossary of Terms

Third-party Standards: Promotes credible third-party standards for safer products

3 out of 8.5 points

In its policy, Walgreens states that the company “will work to enable consumers to make informed choices by encouraging suppliers to obtain credible certifications (including third-party certifications such as EPA Safer Choice and Cradle to Cradle Certified) and will make it easy for consumers to find these more sustainable products.” However, this information does not appear readily available in search features on the Walgreens website.

In 2018, staff shared that Walgreens discusses the goals of credible certifications with suppliers, and the company is working on identifying incentives for suppliers in this area. The company has not disclosed progress in how it has been implementing this over the last two years.

Glossary of Terms