Hazardous substances and the environment – the basics

Many businesses use or produce substances that are hazardous to human health and the environment. There are also many substances that, while not dangerous to people, can have a devastating effect on the environment.

If your business does produce hazardous substances, there are ways in which you can reduce your environmental impact, and increase profits too.

This guide shows you how to identify, use, store, transport and dispose of hazardous substances. It also provides guidance on how to adopt a more sustainable, environmentally friendly approach to hazardous substances.

Assessing your business for hazardous substances

You should assess whether your business uses or produces substances that are hazardous to the environment. You could do this as part of the health and safety risk assessment you are legally required to carry out. Read our guide on managing the risks in your business.

By extending your risk assessment to cover substances hazardous to the environment, you can help to ensure that you aren’t prosecuted for causing pollution.

Types of hazardous substances

Different business sectors use or produce different types of hazardous substances. However, common ones include:

  • chemicals
  • oil and fuels
  • batteries
  • adhesives
  • paints
  • cleaning agents
  • pest control products
  • electrical equipment with hazardous or radioactive components
  • biological agents, such as bacteria and other micro-organisms
  • waste
  • by-products from using energy, such as gas or fumes from soldering, hot oil or metal-plating

Please note that this list is not comprehensive. You should remember that most substances could cause significant harm to water in the environment, such as ponds and rivers, if their concentration is high enough. There are also some substances that pose no risk to human health, such as milk and other foodstuffs, which can cause significant damage to the environment.

Once you have assessed what hazardous substances are used or produced by your business, you can start reducing the risk that they pose to the environment. The best solution is to avoid using or producing hazardous substances. Where this is not possible, you should decide how to keep the risk to a minimum. If your business activities pose an imminent threat to the environment, you must notify the relevant enforcing authority and take steps to prevent the damage. Where damage has already occurred you must take remedial action to repair the damage.

For information on responding to pollution incidents, see our guide on environmental responsibilities.


Businesses that commonly use or create hazardous substances

While many kinds of work involve hazardous substances, some types of business are more likely to pose a risk than others. For example:

  • construction and building trades produce dust and fumes, and use hazardous materials and chemicals
  • manufacturing businesses are likely to carry out work that involves hazardous substances or produces hazardous waste
  • cleaning businesses often use products which are harmful if they are allowed to enter the environment
  • medical and care businesses can produce large quantities of clinical waste
  • car body shops use paints and adhesives, and need to dispose of hazardous waste such as batteries and oil-contaminated materials
  • surface-engineering operations may create dust problems, while many processes use hazardous substances
  • delivery and transport businesses may produce dust, fumes and carbon-dioxide emissions, as well as any hazardous substances they are carrying
  • agricultural businesses use fertilisers and pest control products, and there may be the risk of disease, including those that pass from animals to humans, such as bird flu

While some businesses, such as retail and hospitality, are relatively low risk, you should check your business processes thoroughly. Even office-based businesses may be able to reduce the use of or risks posed by hazardous substances, for example from cleaning products and electrical equipment.

See the page in this guide on the business benefits of reducing your use of hazardous substances.

The legislation that applies will vary depending on the type and quantity of hazardous substances you use. See the page in this guide on how to comply with hazardous substances legislation.


Comply with hazardous substances legislation

If your business uses or produces hazardous substances there are a number of legal requirements you may need to comply with.

You are required to identify where your activities pose an imminent threat to the environment or where actual environmental damage has occurred. Where damage has already occurred you must take remedial action to repair the damage.

If you use substances that pose a risk to human health, you must make sure you control exposure to these substances. See our guide on how to manage harmful substances safely.

If you use hazardous substances such as solvents you may require an environmental permit (formerly a pollution prevention and control permit). This permit will contain conditions that control your use of hazardous substances.

See our guide: environmental permits and licences – an overview.

Civil sanctions for businesses that commit certain environmental offences (including under hazardous waste regulations) can be imposed by the Environment Agency and Natural England as an alternative to criminal prosecution, and can be significant.

Sanctions can include compliance, restoration or stop notices as well as fixed fines and variable fines of up to £250,000.

You can find information about environmental enforcement on the Department for Environment, Food and Rural Affairs (Defra) website- Opens in a new window.

Separate rules still apply to specific substances:

Separate rules apply to the disposal of hazardous waste.

See the page in this guide on disposing of hazardous substances.


Comply with the Registration, Evaluation and Authorisation of Chemicals (REACH) Regulations

If you manufacture, import or use more than one tonne of chemicals per year, it is likely that you will be affected by the Registration, Evaluation and Authorisation of Chemicals (REACH) Regulations. The rules also affect businesses that recover chemical substances from waste.

Under REACH, most chemicals now need to be registered with the European Chemicals Agency (ECHA) unless they are exempt or have been pre-registered. If you have a registration duty and did not register or pre-register the relevant substance by 1 December 2008, you cannot legally place it on the market.

If you manufacture, import or recover chemicals from waste you should:

  • Create a list of all the substances your business imports, uses or recovers.
  • Contact the suppliers of any substances you use or import to find out whether REACH affects the supply of these substances.
  • Withdraw any substances from the market that need to be registered but have not been either pre-registered or fully registered. They cannot be put on the market until they have been registered in full with ECHA.
  • Check if any special provisions apply to your substance or its use.

If you use chemicals you should ask your suppliers whether the supply of any of these substances will be affected by REACH.

Obligations for waste recovery businesses

Waste is specifically excluded from the provisions of REACH. However, as soon as the waste ceases to be legally defined as waste – for example, when the waste is processed to recover the chemicals contained within it – the provisions of REACH will apply.

Recovery operators responsible for re-introducing substances to use are classed as “manufacturers” under REACH and as such may be required to ensure that those chemicals have been pre-registered or registered.

For more information about REACH, read our guide on registration, evaluation, authorisation and restriction of chemicals (REACH).


Storing hazardous substances

If you use or handle substances that pose a risk to human health, you must make sure you comply with the Control of Substances Hazardous to Health (COSHH) Regulations 2002. These regulations require you to control exposure to hazardous substances.

Read guidance on the COSHH regulations on the Health & Safety Executive website- Opens in a new window.

You should also assess the risks of storing and handling substances hazardous to the environment as well as human health. For instance, consider the effects of a leak to the air, water and surrounding land. This can help you to avoid being prosecuted for causing pollution.

Simple steps to control the risks of hazardous substances include:

  • storing chemicals according to the manufacturer’s instructions on the safety data sheet
  • keeping the minimum quantity of hazardous substances necessary
  • storing incompatible substances separately
  • preventing release or leaks
  • training employees to store and handle hazardous substances properly
  • labelling storage containers properly
  • storing flammable substances in suitable containers away from sources of ignition, such as boilers and heaters
  • placing stores of liquid above ground where they’re unlikely to be damaged, for example away from driveways
  • maintaining gauges, valves and pipework
  • having procedures for dealing with emergency leaks
  • using a secondary containment system such as a drip tray or bund (a storage area designed to prevent liquids escaping)
  • monitoring oil use – unexpectedly high use may indicate a leak

For more information on storing hazardous substances, see our guide on chemical storage.

If your business has oil storage containers you may need to comply with certain legal requirements. See our guide on storing oil.


Transporting hazardous substances

There are various risks involved when transporting hazardous substances. These include damage in transit, loss and theft, fire, explosion, leaks and spills. Many goods are not dangerous themselves, but contain harmful substances which could cause harm to the environment, people or both.

Special rules apply if you transport goods classified as dangerous. The first step is to identify the risks involved and classify your goods.

You should then ensure loads are secure, weight is distributed evenly and you put suitable warning signs on vehicles. If you are transporting dangerous goods by road or rail, you must:

  • use suitable packaging which is labelled so that anyone in contact with it can take appropriate precautions
  • use the appropriate vehicle, container, tank or wagon according to the classification of the goods
  • display certain information, if required, about the goods on the vehicle or container
  • follow proper procedures when goods are being loaded and unloaded

Road vehicles must carry specified types of safety equipment, such as fire extinguishers. You may also need a qualified dangerous goods safety adviser. All drivers must have suitable training, not just to drive their vehicle, but also on what to do if an accident occurs. Drivers need to hold an ADR training certificate.

You can read about carriage of dangerous goods requirements on the Health & Safety Executive (HSE) website- Opens in a new window.

If you transport other people’s waste, or your own construction or demolition waste, you must register with the Environment Agency as a waste carrier. See our guide on waste carriers, brokers and dealers.

If you transport dangerous goods by sea you must comply with the International Maritime Organisation’s Dangerous Goods Code. Read about transporting dangerous goods by sea on the Marine and Coastguard Agency (MCA) website- Opens in a new window.

If you transport dangerous goods by air you must comply with the International Air Transport Association’s Dangerous Goods Regulations Manual. Read about transporting dangerous goods by air on the International Air Transport Association (IATA) website- Opens in a new window.

There are some exceptions to the rules, for example small quantities of certain types of dangerous goods are exempt from most regulations.


Disposing of hazardous substances

If you dispose of substances that pose a risk to human health or the environment you must comply with certain legal requirements. You can check whether your waste is classified as hazardous on the Environment Agency website- Opens in a new window.

Your business is responsible for its waste until it has either been disposed of or fully recovered. You must dispose of hazardous waste at a site that is authorised to accept it. Use an online waste directory to find sites authorised to take your waste on the NetRegs website- Opens in a new window.

If you use another organisation to collect hazardous waste from your premises you must check that they are authorised to carry it. Check your waste carrier is registered on the Environment Agency online database- Opens in a new window.

If you produce hazardous waste in England and Wales you must register with the Environment Agency. However, some businesses that produce less than 500 kilograms of hazardous waste in any 12-month period (less than 200 kilograms in Wales) are exempt – this includes offices and shops.

As a producer of hazardous waste you must keep the paperwork (called consignment notes) for movements of hazardous waste from your premises for three years.

If your hazardous waste is being sent to a landfill, you or your waste contractor must treat it.

You should try to keep your production of hazardous waste to a minimum as it is becoming increasingly expensive to dispose of it. You could also look at ways of reusing, recovering and recycling hazardous waste. See our guide on managing your hazardous waste.


The business benefits of reducing your use of hazardous substances

The business benefits of a sustainable approach to using hazardous substances include:

  • Compliance with your business’ legal obligations. Compliance helps minimise the likelihood of costs and damage to your business. You will also avoid the risk of prosecution or civil sanctions which can include compliance, restoration and stop notices as well as variable fines of up to £250,000.
  • Cost benefits. Using fewer hazardous materials saves you money, while creating less hazardous waste can reduce the costs of waste disposal.
  • Marketing benefits. A sustainable approach can strengthen your image and help you win business.

One of the key principles of sustainability in business is simply consuming less. This is particularly important for hazardous substances because they have a worse effect on the environment than other resources. Read our guide on the benefits of improving your environmental performance.

A simple review of your business processes could help reduce your business’ impact on the environment and benefit your bottom line. For example, could you reduce the amount of hazardous substances you buy and use every day?

As well as using fewer hazardous substances, could you replace hazardous raw materials with a more sustainable option? See our guide on how to reduce the environmental impact of your supply chain.

Find out if you can reduce the amount of hazardous waste you create in your business processes, for example cutting down on processes that produce harmful by-products or recovering waste to reuse. See our guide on waste reviews, policies and action plans.


Every effort has been made by the author(s) to ensure this article’s accuracy but it does not constitute legal advice tailored to your circumstances. If you act on it, you acknowledge that you do so at your own risk. We cannot assume responsibility and do not accept liability for any damage or loss which may arise as a result of your reliance upon it.