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Hazardous substance management simply explained

Published Jul 14, 2025
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What is hazardous substances management?

Hazardous substance management involves all the measures needed to ensure safe, compliant, and efficient handling of hazardous substances within a company. This includes identifying and classifying dangerous materials, implementing protective measures, providing regular employee training, and updating safety-related information—such as safety data sheets or operating instructions.

Effective hazardous substance management not only ensures compliance with legal requirements but also protects employees, simplifies processes, and enhances overall safety in the company.

In this article:

Why is hazardous substances management important?

The key goal of hazardous substance management is to ensure the safe handling of health- and environmentally hazardous substances in daily operations, thereby protecting people, the environment, and facilities.

A structured hazardous substance management approach is crucial to:

  • prevent workplace accidents and occupational diseases: Clear guidelines and protective measures ensure safe handling of hazardous substances.
  • create safe working conditions: Employees work in an environment where contact with dangerous substances is controlled and minimized.
  • comply with legal requirements: Companies meet legal obligations such as hazardous substances regulations, GHS, or REACH.
  • secure product quality and processes: Improper handling of hazardous substances can lead to batch recalls, production stops, or damage to reputation.

Which laws govern hazardous substances management, and what do they mean for companies?

Hazardous substance management in companies is clearly regulated by law. Both national and European regulations dictate how to handle hazardous substances with the aim of protecting employees, the environment, and the organization.

These laws impose specific obligations on companies, including:

  • Conducting a risk assessment
  • Creating and maintaining a hazardous substance register
  • Providing and updating safety data sheets
  • Developing operating instructions
  • Conducting regular training for employees
  • Documenting and complying with reporting obligations (e.g., REACH)

These obligations apply regardless of whether companies manufacture, process, or merely store hazardous substances.

Key legal foundations at a glance

Occupational Safety and Health Act (ArbSchG):

The Occupational Safety and Health Act requires employers to conduct a risk assessment. Section 5 stipulates that all workplace hazards, including those from hazardous substances, must be systematically identified and minimized.

Hazardous Substances Ordinance (GefStoffV):

The Hazardous Substances Ordinance specifies requirements for handling dangerous substances. It prescribes, among other things:

  • when and how to maintain a hazardous substance register
  • what protective measures are necessary
  • what contents must be included in an operating instruction
  • how employees are to be instructed

REACH Regulation (EC) No. 1907/2006

The REACH Regulation governs the registration, evaluation, authorization, and restriction of chemicals at the EU level. For companies, this means they must determine if substances require registration and fulfill any reporting obligations.

CLP Regulation (EC) No. 1272/2008

The CLP Regulation covers the classification, labeling, and packaging of chemicals according to the globally harmonized system (GHS). It defines the hazard symbols, signal words, and pictograms required on packaging.

Biocidal Products Regulation (EU) No. 528/2012

The Biocidal Products Regulation manages the market placement and use of biocidal products, such as disinfectants. Often, specific approvals and safety measures are required here.

Sources & further information:

What is the role of a hazardous substances officer?

In Germany, a hazardous substance officer is not legally required, but in practice, it is advisable, especially with high volumes of chemicals or increased potential dangers.
If no officer is appointed, the responsibility falls to the employer or a qualified individual (e.g., a safety specialist).

Responsibilities of a hazardous substance officer:

  • Performing risk assessments
  • Planning and monitoring protective measures
  • Providing employee training on storage, handling, and emergency procedures
  • Creating and maintaining the hazardous substance register
  • Communicating with authorities, e.g., during inspections or audits

In modern companies, many of these tasks are digitally supported, for example, with the Yaveon ERP solution, which makes handling hazardous substances more efficient.

How does hazardous substances management work in a company? An overview of the typical process

Hazardous substance management is more than just documentation. It is a structured process that covers everything from procurement to disposal. This process systematically helps meet legal requirements and ensures safety in the workplace. 

The hazardous substance management process step by step: 

  1. Procurement and registration: New substances are identified, evaluated, and recorded in the hazardous substance register.
  2. Risk assessment: Risks to employees are identified, and appropriate protective measures are established.
  3. Classification & labeling (e.g., according to GHS/CLP): Proper labeling ensures visibility and legal compliance.
  4. Creation of hazardous substance inventory and operating instructions: All information is centrally documented and made accessible. 
  5. Storage & daily handling: Safe storage conditions and proper handling are essential.
  6. Employee training & instruction: All employees receive regular training and awareness sessions.
  7. Documentation, monitoring & updates: Regular inspections ensure long-term legal compliance.
  8. Disposal or decommissioning: Hazardous substances must be disposed of environmentally and properly. 

Tip: Many of these process steps can be digitally mapped using modern ERP solutions like Yaveon 365. 

Gelbe Warnzeichen auf schwarzen Fässern in Reihe.

Hazardous substance information directly in the ERP system

With Yaveon 365 HazMat Connect, you can access your hazardous substance information from the HSM system directly in Business Central. 

What exactly is included in hazardous substances management?

In addition to the process, there are key components that every company must have:

Hazardous substance registry

The registry lists all hazardous substances in the facility, including their properties, areas of use, and quantities. It serves as a central directory for operational hazardous substance monitoring.
According to Section 12 of the Hazardous Substances Ordinance, it must include at least the following information:

  • Name of the hazardous substance as per the safety data sheet
  • Hazard characteristics
  • Application areas within the facility
  • Usage quantities

Safety data sheets (SDS)

They contain all relevant safety information about a hazardous substance, including:

  • Classification and labeling
  • Storage, handling, and disposal instructions
  • Protection and emergency measures
  • Transport requirements

SDSs form the basis for registries, operating instructions, and training sessions.

Operating instructions

They summarize the most important information for handling a specific hazardous substance on one to two pages:

  • What hazards exist?
  • What protective measures are necessary?
  • Who should be informed in an emergency and what actions should be taken?

Personal protective equipment (PPE)

Protective equipment safeguards employees from health risks when handling hazardous substances. This includes:

  • Protective gloves
  • Respiratory protection
  • Safety goggles or face shields
  • Protective clothing or suits
  • Safety shoes

The selection of PPE depends on the type and risk of the particular substance.

Labeling according to GHS/CLP

Every hazardous substance must be clearly labeled with hazard symbols, signal words, and safety instructions. The CLP Regulation provides the legal framework for this. This allows employees to quickly recognize the substance they are working with.

Storage and disposal

Hazardous substances must be properly stored and disposed of with a focus on health protection, environmental compatibility, and orderliness. Possible storage solutions include:

  • Drip trays
  • Hazardous substance cabinets
  • Gas cylinder containers
  • Designated storage areas

Disposal must also be documented and carried out in compliance with regulations.

Hazardous substance training & instructions

Employees must receive regular training, such as on:

  • Hazards and protective measures
  • Proper storage and disposal
  • Appropriate emergency behavior
  • Use of PPE

Training sessions are legally required and must be documented, ideally supported digitally by software.

What is the difference between hazardous substances and hazardous materials?

The terms hazardous substance and dangerous goods are often used interchangeably, but they mean different things:

  • Hazardous substances are materials or mixtures that pose a risk to health or the environment due to their properties. They are particularly relevant in internal operations, such as storage, processing, or disposal.
  • Dangerous goods refer to hazardous materials or products that are transported, such as by road (ADR), rail (RID), or air (IATA-DGR). There are specific regulations for packaging, labeling, and accompanying documentation.

Example: A highly flammable substance is considered a hazardous substance while stored in a warehouse. Once it is shipped, it becomes a dangerous good and is subject to dangerous goods regulations.

Hence, it is important to monitor both areas and ideally manage them in an integrated manner.

Modern ERP solutions like Yaveon 365 can assist in this: They centrally and compliantly record information on both hazardous substances and dangerous goods.

How is hazardous substances management implemented in practice?

Hazardous substance management in many companies is still associated with manual efforts: Excel lists, folders, paper-based instructions. Suitable software not only provides an overview but also saves time and ensures compliance with legal requirements.

These are some features of ERP-supported hazardous substance management:

  • Hazardous substance management directly in the ERP system – centralized, up-to-date, and accessible at any time
  • Automatic synchronization with safety data sheets – no outdated information
  • Classification and labeling according to GHS/CLP – compliant and error-free
  • Automated and reliable checks for quantity-based reporting requirements (e.g., REACH)
  • Quick generation of operating instructions – at the push of a button, based on centralized data
  • Dangerous goods labeling and transport documents (e.g., ADR)
  • Dangerous goods inspection before shipment
Gelbe Warnzeichen auf schwarzen Fässern in Reihe.

Hazardous substance information directly in the ERP system

With Yaveon 365 HazMat Connect, you can directly access your hazardous substance information from the HSM system in Business Central. 
Autor Stefan Klammler

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