The Clap
3M (NYSE:MMM) intends to stop producing PFAS, a widely used chemical used in many tech devices and components, by 2025 as these chemicals are suspected to cancer, heart problems, and more.
What
Perfluoralkyl and polyfluoroalkyl substances (PFAS) have been found in large concentrations in drinking water, soil, and food, a strong indicator that these chemicals do not break down quickly.
3M’s current annual sales for PFAS amount to $1.3bn, which represents around 3.7% of the company’s revenues.
So What
Regulators are adding more pressure on the company to eliminate the production of these chemicals, suing 3M and other large chemical companies to recover clean-up costs.
Now What
The phasing out process of PFAS is expected to cost the company between $1.3bn – $2.3bn over the years until 2025.
