The Cost of Noncompliance: Why Proper SDS Management Matters

Back in November 2006, a massive explosion occurred at the CAI/Arnel ink and paint products manufacturing facility in Danvers, Massachusetts, due to a lack of proper chemical safety measures. A 10,000-pound mixture of flammable solvents overheated after steam heat to the mixing tank was inadvertently left on, causing vapors to accumulate in the unventilated building. The resulting explosion damaged over 16 homes and three businesses in the surrounding neighborhood, leading to the evacuation of 300 residents. Fortunately, no one was killed, but several people were treated for injuries.

Investigators from the U.S. Chemical Safety Board (CSB) determined that the facility did not comply with safety regulations, such as installing alarms, automatic shutoffs, the proper storage and use of flammable liquids/solids or adequate ventilation. The CSB's final report criticized CAI for failing to conduct hazard analyses and highlighted the facility's lack of compliance with both state fire codes and OSHA standards.

This incident highlights the critical importance of proper chemical management and hazard analysis. Beyond businesses’ responsibility to protect their workforce and the community, proper chemical and safety data sheet (SDS) management is essential for legal compliance, risk mitigation and maintaining a healthy and safe work environment. Without rigorous chemical management processes involving effective SDS management practices, industries worldwide expose themselves to potentially catastrophic outcomes.

Does my business need SDS management?

The question isn't whether SDS management is important—it's whether your business is required to comply. Any organization that stores, handles or uses hazardous substances is required by law to maintain an accurate and accessible SDS for each substance. This includes industries such as manufacturing, healthcare, construction and even retail—essentially, any sector where chemicals are present.

Why are SDSs necessary?

Safety data sheets play a crucial role in ensuring workplace health, safety and compliance. Here are some examples of why SDSs are required:

1. Protection

The primary purpose of SDSs is to protect employees by ensuring they’re aware of the risks associated with the chemicals they work with. When workers understand the potential hazards, they can take appropriate precautions, such as using personal protective equipment (PPE) or following specific handling procedures. Proper SDS management ensures that employees have access to this information, helping to prevent accidents and injuries.

2. Storage and handling

SDSs provide essential guidelines on the proper storage and handling of hazardous substances. This information helps organizations prevent accidents including chemical spills, fires or explosions, which can happen if substances are stored incorrectly or mishandled.

3. Emergency response

In the event of an emergency, such as a chemical spill or leak, having accurate and accessible SDSs is crucial. These documents outline the necessary steps for containing and mitigating the adverse effects of a hazardous substance. SDS management ensures we have the proper SDSs in place for our organization, so we are able to effectively outline emergency procedures.

4. Compliance

Regulatory compliance is a key reason for maintaining up-to-date SDSs. Local, national and international regulations mandate that hazardous chemicals be documented, handled and disposed of in specific ways to protect both people and the environment. Failing to comply with these regulations can result in severe penalties, legal action, reputational damage, serious injuries or even fatalities.

5. Thorough risk management

Accurate SDSs are essential for conducting comprehensive risk assessments. By understanding the risks associated with each chemical, businesses can identify potential hazards and implement measures to mitigate them. It is crucial that everyone is aware of the chemical risks and hazards to prevent accidents and ensure new or unfamiliar substances are handled safely.

Common SDS compliance violations

Despite the clear importance of SDS management, many businesses fall short in their compliance efforts. Here are some common violations:

1. Incomplete SDSs

Failing to maintain a complete set of SDSs for all hazardous substances is a common compliance issue. This can happen when new chemicals are introduced without adding the corresponding SDS to the database or when existing SDSs are not kept up to date.

2. Outdated or inaccurate SDSs

Chemical formulations and regulations change over time. Using outdated SDSs can lead to improper handling and storage practices, increasing the risk of accidents. Regularly updating SDSs is crucial for maintaining compliance and safety.

3. Failure to communicate hazards and risks

If employees are not adequately informed about the hazards associated with the chemicals they use, the risk of accidents and injuries increases significantly. Effective communication is critical for ensuring a safe workplace.

4. Lack of resources and documentation

Some businesses fail to allocate sufficient resources for SDS management, leading to disorganization and incomplete documentation. This lack of investment can result in serious compliance issues and increased safety risks.

The consequences of these violations can be severe. Regulatory bodies such as OSHA can impose hefty fines for noncompliance. Additionally, incidents that could have been prevented with proper SDS management, especially human incidents leading to injury or death, can result in lawsuits, financial losses and irreparable damage to a company’s reputation.

The Cost of Noncompliance

Given the complexity and importance of SDS management, relying on manual processes or outdated systems is a risky approach. Managing your SDSs as part of your EHS management processes helps you streamline all your risk management activities. Below, let’s look at the key ways implementing the right software solution can streamline and improve SDS management:

1. Efficiency

SDS management software simplifies the organization and updating of SDSs, enabling businesses to maintain accurate and complete chemical inventories. Automated alerts for expiring SDSs or changes in chemical formulations ensure that your records are always current. This streamlined approach reduces administrative burdens and enhances overall efficiency.

2. Track and search

With the right software, locating a specific SDS or information about hazardous substances becomes a quick and easy task. This capability is particularly valuable in large facilities or organizations with extensive chemical inventories, where manual searches would be time-consuming and error prone.

3. Compliance

Digitizing SDS management can help businesses stay ahead of regulatory changes by pre-screening chemicals against the latest regulations and organizational lists. Live updates ensure that all SDS documentation is up to date and compliant, and the system can trigger alerts if any discrepancies arise. This proactive approach significantly reduces the risk of noncompliance.

4. Transparency and control

Centralized SDS management offers visibility across all facilities, allowing businesses to access any SDS in one location. This transparency ensures that relevant information is always available to those who need it, improving control over hazardous substances and enhancing safety across the organization.

5. Information and communication

Effective chemical management software facilitates timely communication and training around chemical hazards. By integrating relevant risk assessments, job hazard analyses (JHAs) and process hazard analyses (PHAs) into the system, businesses can ensure that all employees are informed on the risks they may encounter, further reducing workplace hazards.

The cost of noncompliance with SDS regulations is too high to ignore. Beyond the financial penalties, businesses risk their employees' safety, their reputation and, potentially, their very survival. By investing in robust SDS management practices and leveraging the right software, businesses can ensure compliance, protect their workforce and minimize risks.

Want to learn more about how an investment in proper SDS management is an investment in the future safety and success of your organization? Learn more here.