IngredientDisclosure:CaliforniaSB258andRETAILERREQUIREMENTS!!!Jim Jones Executive Vice President Strategic Alliances and Industry Relations March 7, 2018

Retailer Requirements: Walmart In2014Walmartpublishedanumberofchemicalsustainabilityrequirementsincludingexpectationsrelatedtoingredientdisclosure.

•  Theyexpectedthatby2015suppliersofformulatedproductwouldhaveon-linedisclosureofallingredients.

•  Theyrequiredproductsin“Aisle13”todisclose“onpack”certain

ingredientsbyJanuary1,2018.

Walmart’s 2014 on pack requirements:

•  Scope:Aisle13includeshouseholdcleaningproducts,includingantimicrobialproductsaswellasindoorpestcontrolproductssuchasrodenticidesandcrackandcreviceproducts.

•  WalmartindicatedatthetimethatWERCSmartwouldinthefutureflagtosuppliersiftheirproductshad“prioritychemicalsforsuppliers”.ThusputtingsuppliersonnoticethattheyhadaproductthattriggeredWalmart’son-packrequirement.

•  Walmarthasidentifiedapproximately3700chemicalsontheirprioritychemicalslist.

Walmart “on pack”

•  ThechangestoWERCSmartwerenevermadeandbythesummerof2017itwasclearthatsupplierswerenotpreparedtomeettheJanuary2018deadline(WERCSmartidentifiesWalmart“highprioritychemicals”butnotprioritychemicals).

•  HCPA(thenCSPA)andaworkgroupofmembercompaniesworkedwithWalmarttoidentifyapathforward.

•  LastNovember,Walmartreleasedanupdateoftheironpackrequirements.

Walmart’s revised on pack requirements

•  SupplierscanrelyonCASB258listofchemicalsorWalmart’slistofprioritychemicals(CAhasabout1300fewerchemicals).

•  SuppliersshouldstartonpackdisclosureJanuary2018butcanusea“rollingrefresh”tomeettherequirement.SuppliersshouldprovideWalmartwiththeirrefreshschedule.

•  ProductsthatcomplywithCA258on-labelformatandcontentwillmeetWalmart’sexpectations.

Walmart’s revised on pack requirements

•  Scope:AlthoughHCPAproposednarrowingthescopeofWalmart’sdisclosurerequirementstoalignwithCalifornia’s,Walmartmaintaineditsexistingscopewhichincludespesticidesin“Aisle13”.

•  Walmartwillrequireonpackdisclosureof“prioritychemicals”forpesticideproductsinAisle13whenacompanyotherwisechangestheirlabelinawaythatrequiresEPAreviewandapproval.

•  HCPAhasbeenworkingwithEPAtodevelopapathforwardforpesticideproductswithinWalmart’sscope.

Thank You

JimJonesjjones@thehcpa.org202833-7309