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Cognizant 20-20 Insights

GHS Compliance:
Challenges and Solutions
Identifying, collecting and communicating information on the hazards
posed by chemicals remains a major issue for global companies, one
that can be more easily handled via reclassifications using GHScompliant labels and material safety data sheets.
Every multinational corporation faces numerous
challenges when it comes to compliance with the
multiplicity of laws and regulations that apply in
each region or sovereign state. This is especially
true with chemical companies/manufacturers,
where compliance data originates in disparate
systems across the enterprise.
Modifications to existing regulations, or adoption
of new laws, can profoundly impact a corporation’s data management system and for many
companies, compliance is an organization-wide
transformational initiative. One of the most daunting aspects is the volume of additional chemical
data companies are now required to collect, track
and report in material safety data sheets (MSDS).1
An MSDS is nothing but a document that contains
information about the potential health and environmental hazards. MSDS are prepared by the
supplier or manufacturer of the product and are
intended to state the hazards of the product and
how to use it safely.
Many chemicals, no doubt, pose hazards
to humans and to the environment, from initial
production through final disposal. As a result of

cognizant 20-20 insights | december 2013

globalization, chemicals are routinely used by
people worldwide who speak different languages,
write in different alphabets and come from different living conditions and educational backgrounds. In some countries, a chemical may be
classified as hazardous, while in others it is not.
For decades, identifying, collecting and
communicating information on the hazards posed
by chemicals has been a major issue for local,
national, regional and international authorities.
Different jurisdictions developed distinct chemical
classification systems that had merits within their
local areas, but sometimes created confusion at
wider levels. The United Nations took on the task
of developing a universal method of chemical
labeling and hazard warnings for the use, transport and disposal of chemicals. The result is the
Globally Harmonized System of Classification and
Labeling of Chemicals, or GHS.
This white paper offers our perspective on GHS and
highlights the importance of reclassifications to
improve safety and global compliance with chemical handling and communications practices using
GHS-compliant labels and safety data sheets.
Defining GHS
GHS is a system for harmonizing hazard
classification criteria and chemical hazard
communication elements, worldwide. More than
65 countries are in the process of adopting GHS,
which offers a voluntary set of “building blocks”
can adopt
More than that each countryestablishes
as it sees fit. It
65 countries are classification criteria for
in the process of physical, health and envialong
adopting GHS, ronmental hazards, hazard
with
associated
which offers a communication elements,
voluntary set of notably pictograms, signal
and
“building blocks” words for usehazard statements
on labels and
that each country on MSDS. In a nutshell, it is
can adopt as an international plan that
the
it sees fit. will codifyand classification,
labeling
communication of chemical hazards across the board. In the
GHS context, harmonized means standardized.
For example, this means consumers in country A
will have access to and hopefully understand the
same information about chemicals and products
as those in Country B. The ultimate goal of GHS is
to avoid confusion and to inform safety.
Connecting GHS and HCS
The Occupational Safety and Health Act of 1970
established the Occupational Safety and Health
Administration (OSHA)2 within the U.S. Department of Labor. The original act included language
to the effect that employees should be apprised
of all hazards to which they are exposed on the
job. In the early 1980s, OSHA implemented this

instruction by enacting the Hazard Communication Standard (HCS) as 29 CFR3 1910.1200.
HCS became effective in 1986. A fundamental
premise of HCS is that employees who may be
exposed to hazardous chemicals in the workplace
have a right to know about the hazards and how
to protect themselves. For this reason, HCS is
sometimes referred to as the “worker right-toknow legislation,” or more often just as the “rightto-know law.”
Although the original HCS applied only to
the manufacturing industry, subsequent court
challenges have modified the scope of the law so
that today HCS applies to nearly all sectors of the
workforce.
HCS is now aligned with GHS. This will provide a common and coherent approach to classifying chemicals and communicating hazard
information on labels and safety data sheets.
Once implemented, the revised standard will
improve the quality and consistency of hazard
information in the workplace, making it safer by
providing workers with easily understandable
information on appropriate handling and safe
use of hazardous chemicals. This update will also
help reduce trade barriers and result in productivity improvements for businesses that regularly handle, store and use hazardous chemicals
while providing cost savings for businesses that
periodically update safety data sheets and labels
for chemicals covered under HCS. GHS classification and communication elements are the
program’s foundational elements, which ensure
the safe use of chemicals (as depicted in Figure 1).

The Chemical Safety Communications Continuum

Risk Management and
Safe Use of Chemicals

Hazard Communication
SDS and Labels

GHS Classifications

Figure 1

cognizant 20-20 insights

2
Sample GHS SDS Pictograms

Environment

Flame

Health Hazard

Figure 2

GHS Impacts: Updates for Existing SDS
and Labels
GHS adoption affects nearly every player in the
chemical lifecycle, with special responsibilities for
chemical manufacturers and employers who handle, use and store hazardous materials. Chemical
manufacturers must reclassify their chemicals
using GHS standardized classification criteria as
well as produce GHS-compliant labels and safety
data sheets (SDS).
GHS includes two key elements:

•	

Harmonized criteria for classifying substances and mixtures according to their
health, environmental and physical hazards.

•	

Harmonized hazard communication elements, including requirements for labeling
and SDS.

As corporations expand globally, creating compliant documents that meet multiple regulatory
agency requirements is more
of a challenge. In fact, GHS GHS requires
requires companies world- companies
wide to change their SDS worldwide to
and labels to provide the
appropriate signal words, change their
pictograms and hazard and SDS and labels
precautionary statements to to provide the
convey the hazards to users
(see Figure 2). The GHS stan- appropriate signal
dard definition for labeling is words, pictograms
as follows: “Label means an and hazard and
appropriate group of written,
printed or graphic informa- precautionary
tion elements concerning a statements to
hazardous product, selected convey the
as relevant to the target
sector(s), that is affixed to, hazards to users.
printed on or attached to

MSDS vs. SDS
MSDS Sections

SDS Sections

1. Product and company ID
2. Hazards identification
3. Ingredients information
4. First aid measures
5. Fire fighting measures
6. Accidental release measures
7. Handling and storage
8. Physical and chemical properties
9. Exposure and personal protection
10. Stability and reactivity
11. Toxicological information
12. Other information

1. Product and company ID
13. Disposal considerations
2. Hazards identification
14. Transportation information
3. Ingredients information
15. Regulatory information
4. First aid measures
16. Other information
5. Fire fighting measures
6. Accidental release measures
7. Handling and storage
8. Physical and chemical properties
9. Exposure and personal protection
10. Stability and reactivity
11. Toxicological information
12. Ecological information

Figure 3

cognizant 20-20 insights

3
immediate container of a hazardous product, or to
the outside packaging of a hazardous product.”4

•	 Improved comprehension of health and envi-

Most organizations use traditional MSDS for
hazardous substances that are accounted for
in their chemical inventory. Under alignment
with GHS, SDS remain the backbone of HCS
compliance. They do, however, get a name and
formatting change. GHS drops the M from MSDS
and calls them SDS. More importantly, SDS have
a standardized 16-section format with a required
ordering of sections to more finely describe and
communicate safety hazards and responses.

•	Facilitation

Figure 3 (previous page) offers a snapshot that
compares and contrasts the traditional MSDS
with the GHS-style SDS.
The shift to GHS-style SDS responds to the need
for a consistent format for a safety data sheet
that more easily informs exposed employees and
emergency responders to important, need-toknow information on hazardous chemicals.
Continuous compliance with the latest GHS regulation amendments may be a moving target but it
is critical to the competitiveness of global chemical makers. As a result, every company must
take a unique approach to MSDS authoring5 that
provides flexibility to create global-, regional- or
agency-compliant documents. This is of paramount importance to achieve legal compliance in
all key global markets.
Benefits of GHS

ronmental hazards.

of trade by removing barriers
created by various health and safety
requirements.

More than 65 countries are in the process of
adopting or have already adopted GHS; more
countries, no doubt, will follow suit. The deadline
– by the end of 2015 – may seem a long way off.
But factoring in the changes to the chemical classifications, GHS SDS and labels, compliance is
likely to come sooner than later. By acting now,
there should be plenty of time for manufacturers,
distributors and employers to transition safely
and efficiently to GHS compliance.

Looking Forward
As technology advances, especially in the software arena, the significant numbers of online
tools available to ensure MSDS compliance is
more than adequate. Nevertheless, keeping up
with dynamic complexities of global chemical
compliance can easily become a daunting task.
Companies should possess the ability to analyze
the effect on IT processes and have the agility to
respond to these impacts with viable solutions.
These IT processes should envision and facilitate a
single system for generating SDS around the world.
Taking this approach will improve SDS consistency
since one core set of data would be used for all
SDS. This would minimize the impacts on reviewing the GHS classifications and SDS contents.

Key benefits of incorporating GHS include:

•	 Reduced time and costs involved in meeting
multiple regulations for SDS and labels.

Quick Take
Making GHS Adherence Real
We are currently assisting a U.S. multinational conglomerate with operations in more than 65 countries
and global sales of more than $25 billion on GHS and SDS compliance. Since our client has a huge footprint and its products are sold in more than 100 countries, GHS adaptation is of paramount importance.
As the company’s technology partner, we have successfully consolidated and implemented GHS
and ensured compliant SDS for a significant number of countries. In this project, we have fine-tuned
numerous IT processes, which reduced operational latency and facilitated a smooth transition from
MSDS to GHS-compliant SDS. Our IT process improvements and systems integration effort greatly
reduced the overall cost associated with such a large transformational project. This company is now well
positioned to easily incorporate GHS across the globe to seamlessly facilitate its business.

cognizant 20-20 insights

4
Footnotes
	 http://en.wikipedia.org/wiki/Material_safety_data_sheet.

1

2

https://www.osha.gov/law-regs.html.

3

https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=standards&p_id=10099.

4

https://www.osha.gov/dsg/hazcom/ghs.html.

5

http://en.wikipedia.org/wiki/Material_safety_data_sheet#SDS_authoring.

References

•	 https://www.osha.gov/.
•	 http://en.wikipedia.org/wiki/Globally_Harmonized_System_of_Classification_and_Labelling_
of_Chemicals.

•	 https://www.osha.gov/dsg/hazcom/.

About the Authors
Rajeswaran Sadasivam is a Cognizant Associate focused on Java/J2EE projects. His interests revolve
around the design and development of enterprise applications. Rajeswaran has an engineering degree
in information technology and holds various software certifications including IBM Rational Solution
Designer, Sun Certified Java Programmer and Sun Certified Web Component Developer. He can be
reached at Rajeswaran.Sadasivam@cognizant.com.
Rahul Ramalingam is a Cognizant Specialist focused on Java/J2EE high-level system design
and application development and building enterprise software applications. He has an engineering
degree in computer science and holds various software certifications including IBM Rational Solution
Designer and TOGAF 8 Certified Enterprise Architecture Practitioner. Rahul can be reached at
Rahul.Ramalingam@cognizant.com.

About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process
outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered
in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep
industry and business process expertise, and a global, collaborative workforce that embodies the future of work.
With over 50 delivery centers worldwide and approximately 166,400 employees as of September 30, 2013, Cognizant
is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among
the top performing and fastest growing companies in the world.
Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

World Headquarters

European Headquarters

India Operations Headquarters

500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Fax: +1 201 801 0243
Toll Free: +1 888 937 3277
Email: inquiry@cognizant.com

1 Kingdom Street
Paddington Central
London W2 6BD
Phone: +44 (0) 207 297 7600
Fax: +44 (0) 207 121 0102
Email: infouk@cognizant.com

#5/535, Old Mahabalipuram Road
Okkiyam Pettai, Thoraipakkam
Chennai, 600 096 India
Phone: +91 (0) 44 4209 6000
Fax: +91 (0) 44 4209 6060
Email: inquiryindia@cognizant.com

©
­­ Copyright 2013, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is
subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.

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GHS Compliance: Challenges and Solutions

  • 1. • Cognizant 20-20 Insights GHS Compliance: Challenges and Solutions Identifying, collecting and communicating information on the hazards posed by chemicals remains a major issue for global companies, one that can be more easily handled via reclassifications using GHScompliant labels and material safety data sheets. Every multinational corporation faces numerous challenges when it comes to compliance with the multiplicity of laws and regulations that apply in each region or sovereign state. This is especially true with chemical companies/manufacturers, where compliance data originates in disparate systems across the enterprise. Modifications to existing regulations, or adoption of new laws, can profoundly impact a corporation’s data management system and for many companies, compliance is an organization-wide transformational initiative. One of the most daunting aspects is the volume of additional chemical data companies are now required to collect, track and report in material safety data sheets (MSDS).1 An MSDS is nothing but a document that contains information about the potential health and environmental hazards. MSDS are prepared by the supplier or manufacturer of the product and are intended to state the hazards of the product and how to use it safely. Many chemicals, no doubt, pose hazards to humans and to the environment, from initial production through final disposal. As a result of cognizant 20-20 insights | december 2013 globalization, chemicals are routinely used by people worldwide who speak different languages, write in different alphabets and come from different living conditions and educational backgrounds. In some countries, a chemical may be classified as hazardous, while in others it is not. For decades, identifying, collecting and communicating information on the hazards posed by chemicals has been a major issue for local, national, regional and international authorities. Different jurisdictions developed distinct chemical classification systems that had merits within their local areas, but sometimes created confusion at wider levels. The United Nations took on the task of developing a universal method of chemical labeling and hazard warnings for the use, transport and disposal of chemicals. The result is the Globally Harmonized System of Classification and Labeling of Chemicals, or GHS. This white paper offers our perspective on GHS and highlights the importance of reclassifications to improve safety and global compliance with chemical handling and communications practices using GHS-compliant labels and safety data sheets.
  • 2. Defining GHS GHS is a system for harmonizing hazard classification criteria and chemical hazard communication elements, worldwide. More than 65 countries are in the process of adopting GHS, which offers a voluntary set of “building blocks” can adopt More than that each countryestablishes as it sees fit. It 65 countries are classification criteria for in the process of physical, health and envialong adopting GHS, ronmental hazards, hazard with associated which offers a communication elements, voluntary set of notably pictograms, signal and “building blocks” words for usehazard statements on labels and that each country on MSDS. In a nutshell, it is can adopt as an international plan that the it sees fit. will codifyand classification, labeling communication of chemical hazards across the board. In the GHS context, harmonized means standardized. For example, this means consumers in country A will have access to and hopefully understand the same information about chemicals and products as those in Country B. The ultimate goal of GHS is to avoid confusion and to inform safety. Connecting GHS and HCS The Occupational Safety and Health Act of 1970 established the Occupational Safety and Health Administration (OSHA)2 within the U.S. Department of Labor. The original act included language to the effect that employees should be apprised of all hazards to which they are exposed on the job. In the early 1980s, OSHA implemented this instruction by enacting the Hazard Communication Standard (HCS) as 29 CFR3 1910.1200. HCS became effective in 1986. A fundamental premise of HCS is that employees who may be exposed to hazardous chemicals in the workplace have a right to know about the hazards and how to protect themselves. For this reason, HCS is sometimes referred to as the “worker right-toknow legislation,” or more often just as the “rightto-know law.” Although the original HCS applied only to the manufacturing industry, subsequent court challenges have modified the scope of the law so that today HCS applies to nearly all sectors of the workforce. HCS is now aligned with GHS. This will provide a common and coherent approach to classifying chemicals and communicating hazard information on labels and safety data sheets. Once implemented, the revised standard will improve the quality and consistency of hazard information in the workplace, making it safer by providing workers with easily understandable information on appropriate handling and safe use of hazardous chemicals. This update will also help reduce trade barriers and result in productivity improvements for businesses that regularly handle, store and use hazardous chemicals while providing cost savings for businesses that periodically update safety data sheets and labels for chemicals covered under HCS. GHS classification and communication elements are the program’s foundational elements, which ensure the safe use of chemicals (as depicted in Figure 1). The Chemical Safety Communications Continuum Risk Management and Safe Use of Chemicals Hazard Communication SDS and Labels GHS Classifications Figure 1 cognizant 20-20 insights 2
  • 3. Sample GHS SDS Pictograms Environment Flame Health Hazard Figure 2 GHS Impacts: Updates for Existing SDS and Labels GHS adoption affects nearly every player in the chemical lifecycle, with special responsibilities for chemical manufacturers and employers who handle, use and store hazardous materials. Chemical manufacturers must reclassify their chemicals using GHS standardized classification criteria as well as produce GHS-compliant labels and safety data sheets (SDS). GHS includes two key elements: • Harmonized criteria for classifying substances and mixtures according to their health, environmental and physical hazards. • Harmonized hazard communication elements, including requirements for labeling and SDS. As corporations expand globally, creating compliant documents that meet multiple regulatory agency requirements is more of a challenge. In fact, GHS GHS requires requires companies world- companies wide to change their SDS worldwide to and labels to provide the appropriate signal words, change their pictograms and hazard and SDS and labels precautionary statements to to provide the convey the hazards to users (see Figure 2). The GHS stan- appropriate signal dard definition for labeling is words, pictograms as follows: “Label means an and hazard and appropriate group of written, printed or graphic informa- precautionary tion elements concerning a statements to hazardous product, selected convey the as relevant to the target sector(s), that is affixed to, hazards to users. printed on or attached to MSDS vs. SDS MSDS Sections SDS Sections 1. Product and company ID 2. Hazards identification 3. Ingredients information 4. First aid measures 5. Fire fighting measures 6. Accidental release measures 7. Handling and storage 8. Physical and chemical properties 9. Exposure and personal protection 10. Stability and reactivity 11. Toxicological information 12. Other information 1. Product and company ID 13. Disposal considerations 2. Hazards identification 14. Transportation information 3. Ingredients information 15. Regulatory information 4. First aid measures 16. Other information 5. Fire fighting measures 6. Accidental release measures 7. Handling and storage 8. Physical and chemical properties 9. Exposure and personal protection 10. Stability and reactivity 11. Toxicological information 12. Ecological information Figure 3 cognizant 20-20 insights 3
  • 4. immediate container of a hazardous product, or to the outside packaging of a hazardous product.”4 • Improved comprehension of health and envi- Most organizations use traditional MSDS for hazardous substances that are accounted for in their chemical inventory. Under alignment with GHS, SDS remain the backbone of HCS compliance. They do, however, get a name and formatting change. GHS drops the M from MSDS and calls them SDS. More importantly, SDS have a standardized 16-section format with a required ordering of sections to more finely describe and communicate safety hazards and responses. • Facilitation Figure 3 (previous page) offers a snapshot that compares and contrasts the traditional MSDS with the GHS-style SDS. The shift to GHS-style SDS responds to the need for a consistent format for a safety data sheet that more easily informs exposed employees and emergency responders to important, need-toknow information on hazardous chemicals. Continuous compliance with the latest GHS regulation amendments may be a moving target but it is critical to the competitiveness of global chemical makers. As a result, every company must take a unique approach to MSDS authoring5 that provides flexibility to create global-, regional- or agency-compliant documents. This is of paramount importance to achieve legal compliance in all key global markets. Benefits of GHS ronmental hazards. of trade by removing barriers created by various health and safety requirements. More than 65 countries are in the process of adopting or have already adopted GHS; more countries, no doubt, will follow suit. The deadline – by the end of 2015 – may seem a long way off. But factoring in the changes to the chemical classifications, GHS SDS and labels, compliance is likely to come sooner than later. By acting now, there should be plenty of time for manufacturers, distributors and employers to transition safely and efficiently to GHS compliance. Looking Forward As technology advances, especially in the software arena, the significant numbers of online tools available to ensure MSDS compliance is more than adequate. Nevertheless, keeping up with dynamic complexities of global chemical compliance can easily become a daunting task. Companies should possess the ability to analyze the effect on IT processes and have the agility to respond to these impacts with viable solutions. These IT processes should envision and facilitate a single system for generating SDS around the world. Taking this approach will improve SDS consistency since one core set of data would be used for all SDS. This would minimize the impacts on reviewing the GHS classifications and SDS contents. Key benefits of incorporating GHS include: • Reduced time and costs involved in meeting multiple regulations for SDS and labels. Quick Take Making GHS Adherence Real We are currently assisting a U.S. multinational conglomerate with operations in more than 65 countries and global sales of more than $25 billion on GHS and SDS compliance. Since our client has a huge footprint and its products are sold in more than 100 countries, GHS adaptation is of paramount importance. As the company’s technology partner, we have successfully consolidated and implemented GHS and ensured compliant SDS for a significant number of countries. In this project, we have fine-tuned numerous IT processes, which reduced operational latency and facilitated a smooth transition from MSDS to GHS-compliant SDS. Our IT process improvements and systems integration effort greatly reduced the overall cost associated with such a large transformational project. This company is now well positioned to easily incorporate GHS across the globe to seamlessly facilitate its business. cognizant 20-20 insights 4
  • 5. Footnotes http://en.wikipedia.org/wiki/Material_safety_data_sheet. 1 2 https://www.osha.gov/law-regs.html. 3 https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=standards&p_id=10099. 4 https://www.osha.gov/dsg/hazcom/ghs.html. 5 http://en.wikipedia.org/wiki/Material_safety_data_sheet#SDS_authoring. References • https://www.osha.gov/. • http://en.wikipedia.org/wiki/Globally_Harmonized_System_of_Classification_and_Labelling_ of_Chemicals. • https://www.osha.gov/dsg/hazcom/. About the Authors Rajeswaran Sadasivam is a Cognizant Associate focused on Java/J2EE projects. His interests revolve around the design and development of enterprise applications. Rajeswaran has an engineering degree in information technology and holds various software certifications including IBM Rational Solution Designer, Sun Certified Java Programmer and Sun Certified Web Component Developer. He can be reached at Rajeswaran.Sadasivam@cognizant.com. Rahul Ramalingam is a Cognizant Specialist focused on Java/J2EE high-level system design and application development and building enterprise software applications. He has an engineering degree in computer science and holds various software certifications including IBM Rational Solution Designer and TOGAF 8 Certified Enterprise Architecture Practitioner. Rahul can be reached at Rahul.Ramalingam@cognizant.com. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 166,400 employees as of September 30, 2013, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 Email: inquiry@cognizant.com 1 Kingdom Street Paddington Central London W2 6BD Phone: +44 (0) 207 297 7600 Fax: +44 (0) 207 121 0102 Email: infouk@cognizant.com #5/535, Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 Email: inquiryindia@cognizant.com © ­­ Copyright 2013, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.