PFAS: A growing risk for the environment and its impact on businesses

Per- and polyfluoroalkyl substances (PFAS), a large group of human-made chemicals often referred to as “forever chemicals,” are a growing concern to businesses and insurers alike. PFAS (pronounced P-fass) are at the center of substantial litigation alleging bodily injury or property damage, partly spurred by increased government scrutiny. Discussion of the issue can be found on major news outlets and across the internet as research continues on PFAS.

Because of their widespread use in hundreds of familiar products, most of us have been already impacted by PFAS to varying degrees. In North America, a Health Canada study found 98.5 percent of Canadians have PFAS in their blood, echoing a U.S. Centers for Disease Control report with similar results.1,2  

What are PFAS?

PFAS represent a class of over 4,000 chemicals with a carbon-fluorine bond structure. These carbon-fluorine bonds, among the strongest in organic chemistry, are what make the compounds so useful for industrial applications. They are also the reason that the aptly named forever chemicals are extremely persistent and mobile in the environment.

Soon after their accidental discovery in the 1930s, PFAS came into wide use for their water-, heat- and oil-resistant properties. They are now widely used across many industries and products — including food packaging, activewear, cookware, construction coatings, adhesives, etc. Perhaps of most relevance to property owners is the use of PFAS in firefighting foams. Aqueous firefighting foam (AFFF) has been a major source of groundwater contamination in the areas around oil refineries, airports, chemical plants, military bases and firefighting training centers. Disposal of AFFF-contaminated debris after a fire could contaminate municipal landfills as well.

Human health and environmental impact: Our current understanding

Although most North Americans have some level of PFAS in their systems, the communities closest to major sources of its production and use are most impacted. Not only is the regulation of PFAS still in development, but our understanding of the risk also continues to evolve. Until relatively recently, the risk to human and environmental health was not recognized nor understood. With recognition that a risk exists, our understanding has begun to grow, but the risk associated with the type and amount of PFAS in a person’s system is still not well understood. While science races to understand the risk posed by PFAS, governments are struggling to impose guidelines and dictate controls.

Research has linked PFAS to myriad health issues, such as low-infant birth weight, cholesterol increases, cancers and thyroid problems.3 The compounds have even been implicated in worsening our susceptibility to severe COVID-19 and in reducing the effectiveness of vaccines.4 Much like mercury or DDT, PFAS build up, or bioaccumulate, in the bodies of humans and the animals they consume. PFAS are highly mobile in the environment — spreading quickly through water and being taken up by both flora and fauna. Because PFAS are very chemically stable, they don’t break down in the environment or in the body.

Remediation options for PFAS

Unlike some common pollutants, PFAS do not degrade naturally in the environment. The use of conventional treatment options has proven inefficient and costly. Further, the presence of other contaminants in the soil and groundwater — as can be the case with a longtime industrial site — can complicate PFAS remediation. The most prevalent method has been ex-situ pump and treat systems, which can be expensive and challenging where contamination is often widely distributed across a site.

Not all remediation options are appropriate for all kinds of PFAS. Treatment largely depends on the type of PFAS present, as long-chain varieties have longer half-lives than short-chain compounds. In-situ, the creation of barriers can be an option to contain the PFAS’ plume and prevent its migration offsite. This can be used in conjunction with other options, such as excavation and disposal. Of course, the disposed-of soil or groundwater will have to be addressed. Evidence indicates that even incineration may not prove to be a viable solution.    

Ramifications for insurers and their customers

One difficulty for insurers and insureds alike is that the testing of PFAS was not a required part of the due diligence ahead of a real estate transaction. In the U.S. alone, a project to map the contamination has found thousands of sites known to be impacted. The production of the most commonly studied and most worrisome long-chain PFAS compounds — namely, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA) — was largely phased out in North America and Europe years ago. It is important to note, however, that they may still be imported to the U.S. and Canada for certain essential uses.5 Meanwhile, their production has since increased in Russia, India and China, offsetting global reductions.

In developed economies, other PFAS compounds were introduced to replace PFOS and PFOA. Short-chain PFAS or GenX compounds were originally thought to be safer than their long-chained predecessors. Recent studies have cast doubt on their supposed safety, finding they potentially cause similarly adverse health impacts in animals.6 This is why some experts are calling for greater international coordination in regulating PFAS production and use. Further, there will have to be a market shift to a full product lifecycle approach, and a switch to PFAS-free products and technologies. Many companies have begun their journey to eliminate PFAS from their products and properties. Where alternatives do not already exist, such as replacements for foam fire protection, scientists and engineers are working to develop new solutions.

As for the historical pollution, the legacy of PFAS will weigh on some companies and consumers. The pervasiveness of the issue and the potential harms it causes are pushing regulators, property owners, companies and entire industries to take immediate action. Manufacturers, retailers, importers and even municipalities have been caught up in recent PFAS claims. In these early days, it is difficult to say who in the supply chain will be immune to its product and environmental liabilities. As legal action and regulatory focus increases globally, Zurich Insurance Group is currently engaging major stakeholders in a dialogue on the issue. We continue to work with the assistance of our Risk Engineers to better assess, mitigate and manage the risks associated with PFAS.  

References

1. “Fifth Report on Human Biomonitoring of Environmental Chemicals in Canada.” Health Canada. November 2019.
2. “PFAS.” Agency for Toxic Substances and Disease Registry. U.S. Centers for Disease Control and Prevention. 8 December 2020.
3. “Our Current Understanding of the Human Health and Environmental Risks of PFAS.” U.S. Environmental Protection Agency website. Accessed 4 April 2022.
4. “What Are the Health Effects of PFAS?” Agency for Toxic Substances and Disease Registry. U.S. Centers for Disease Control and Prevention. 24 June 2020.
5. Interstate Technology and Regulatory Council (ITRC). PFAS Technical and Regulatory Guidance Document and Fact Sheets: PFAS-1. May 2021.
6. “Fact Sheet: Draft Toxicity Assessments for GenX Chemicals and PFBS.” U.S. Environmental Protection Agency (EPA). November 2018.

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