PFAS – the “forever chemicals”

In 2020, the German Environmental Agency tested more than 1,000 children and found per and polyfluoroalkyl substances (PFAS) in every single one. One in five children between the ages of 3 and 17 had concentrations so high that damage to their health could no longer be ruled out.¹

Environmental protection authorities around the world are starting to impose stricter regulation on the usage of these substances. As investors, we see opportunities in the field of testing and surveillance of the environment and public health as well as in cleanup, decontamination, and remediation of polluted sites.

PFAS are a family of manmade fluorinated organic chemicals, including PFOA perfluorooctanoic acid (PFOA) and (perfluorooctanesulfonic acid (PFOS). They are also known by the older abbreviation PFC (perfluorinated chemicals). These substances comprise a group of more than 4,700 industrial chemicals used in numerous industrial processes and consumer products since the 1940s. Since they are resistant to oil, water, dirt, and heat, they are found in a range of consumer and industrial products.²

Because PFAS are very stable and durable, these compounds are persistent in the environment and do not break down in typical environmental degradation processes. Since they can only be destroyed at temperatures exceeding 1,000 degrees Celsius, they are referred to as “forever chemicals”. Their wide use in products such as water and stainrepellants, teflon, nonstick cookware, pizza boxes, lithiumion batteries, ski waxes³, firefighting foam and outdoor gears, to name a few,⁴ is of concern because PFAS can accumulate in wildlife and in human bodies.

While long chain PFAS are absorbed in soils and sediments and can accumulate in organisms, shortchain PFAS are highly water soluble and very mobile.⁵ They can contaminate food, soil and drinking water sites. Some PFASs are so volatile that they can even be transported over long distances and thus accumulate in remote and pristine areas such as the Arctic.⁶

According to the US Environmental Protection Agency (EPA), there is scientific evidence that exposure to PFAS can lead to adverse health outcomes. People can get exposed to PFAS in different ways, such as through drinking water or food. These chemical substances can accumulate and stay in the body for a long time. PFAS are generally rapidly absorbed into the organism, especially via the intestine and the respiratory tract, are placental and pass into breast milk.

People most at risk of adverse health impacts are those exposed to high levels of PFAS and vulnerable population groups such as children and the elderly. Throughout life, people and animals accumulate PFAS in their bodies. Its level may increase up to the point where they start to suffer from adverse health effects.⁷ Figure 1 summarizes current knowledge of the impact of PFAS on human health.

Figure 1: Effects of PFAS on human health

Several research projects are being conducted worldwide on the occurrence, analysis, and remediation of PFAS. Residues of these substances are widely spread in the environment,⁸ as shown in the two examples below: Switzerland and the US.

Figure 2: Concentration of PFAS in groundwater and wastewater content in various watercourses

More than 80% of drinking water in Switzerland is obtained from the groundwater. The National Groundwater Monitoring project NAQUA of the Bundesamt für Umwelt (Federal Office for the Environment) provides a nationally representative picture of groundwater quality.

PFAS were detected at 21 of the 49 monitoring sites sampled, most of which are recharged in large part by the infiltration of river water. PFAS concentrations never exceeded 100 nanogram per liter, except at one site (see Figure 2).⁹ The researchers concluded that according to the current state of knowledge, such concentrations do not constrain the use of groundwater as a drinking water resource.¹⁰

According to the Swiss chemicals industry, no PFAS containing substances are manufactured in Switzerland, but they are imported from abroad and are further processed.¹¹ This would explain why major sources of PFAS in Swiss groundwaters come mainly from the urban drainage system. From there they enter the rivers and lakes via wastewater treatment plants and finally get into the groundwater.¹²

In the US, researchers from the Environmental Working Group (EWG) and North eastern University found locations contaminated with PFAS, including some drinking water sites, in 49 states. Figure 3 shows that the drinking water sites in the states of California, Michigan, and New York are particularly affected.

Figure 3: PFAS contamination in the US

The enormous number of known PFAS makes the risk assessment of individual substances and the environmental monitoring very challenging. We expect that stricter PFAS regulation is going to be implemented in almost every country in the world, based on 1) new scientific discoveries, 2) sophisticated testing and surveillance capabilities and 3) rising public awareness about PFAS contamination of food, soil, and water. We also believe that new or additional regulations will focus on further limiting PFAS use by e.g. restricting PFAS in products, banning PFAS in firefighting foam, addressing PFAS in drinking water, surface water and groundwater, restricting use of bio solids and restricting disposal. Finally, we expect detailed specifications for the production within the manufacturing industry and further guidelines for cleanup, remediation, and decommissioning of polluted sites.

In our opinion, PFAS are an important topic within the security and safety theme, affecting also health protection and environmental security areas. In the near term, we think the dynamics on the regulatory level will intensify, which will lead to stricter environmental protection regulation. Based on these underlying trends, we are shareholders of leading companies in the environmental and health testing, environmental surveillance and in the field of cleanup and decontamination of polluted sites as well as disposal and remediation of hazardous waste.

¹ Umweltbundesamt (2020): Kinder und Jugendliche haben zu viel PFAS im Blut, media release, 06.07.2020, https://www.umweltbundesamt.de/presse/pressemitteilungen/kinder-jugendliche-haben-zu-viel-pfas-im-blut, accessed on18.02.2021.
² The Environmental Protection Agency provides a good overview and introduction about PFAS. https://www.epa.gov/pfas, accessed on 14.02.2021.
³ The International Ski Federation has decided to ban the use of PFAS in ski waxes in competitions from the 2020/2021 season. FIS Ski Council (2020): Fluorinated Wax Ban implementation to begin in 2021-22 season. Press release, accessed on 14.02.2021.
⁴ A detailed overview of PFAS contaminated products provides Glüge et al. (2020): An overview of the uses of per and polyfluoroalkyl substances (PFAS), 30 October 2020, in: Environmental Science: Processes & Impacts, https://pubs.rsc.org/en/content/articlepdf/2020/em/d0em00291g, accessed on 18.02.2021.
⁵ Ökotoxzentrum (2020): Per und polyfluorierte Alkylverbindungen (PFAS) in der Umwelt, 9.07.2020, https://www.oekotoxzentrum.ch/media/195068/2020_pfos_de.pdf, accessed on 14.02.2021.
⁶ PFAS substances have also been detected in animals in the Arctic regions, such as in fishes, whales, birds, caribous, and polar bears as well as in phytoplankton, lichens, mosses and grasses (source: Umweltbundesamt (2020): Schwerpunkt PFAS: Gekommen um zu bleiben, 2020/1, https://www.umweltbundesamt.de/sites/default/files/medien/2546/publikationen/uba_sp_pfas_web_0.pdf, accessed on 14.02.2021
⁷ EPA (2021): Basic Information on PFAS, URL: https://www.epa.gov/pfas/basic-information-pfas, accessed on 14.02.2021.
⁸ As references for further readings about the situation of PFAS in Europe, North America or Asia see e.g.: Boulanger et al. (2004): Detection of Perfluorooctane Surfactants in Great Lakes Water, in: Environmental Science Technologies 38: 4064–4070; Hoehn et al. (2007): Natural attenuation of downwelling streams for perfluorochemicals and other emerging contaminants, in: Water Sciences Technologies 55, 11: 59–64; Yamashita et al. (2005): A global survey of perfluorinated acids in oceans, in: Marine Pollution Bulletin 51: 658–668; Pistocchi, Loos (2009): A Map of European Emissions and Concentrations of PFOS and PFOA, in: Environmental Sciences Technologies 43, 24: 9237–9244; Jin et al. (2009): PFOS and PFOA in environmental and tap water in China. Chemosphere 77:605–611; Thompson et al. (2011): Concentrations of PFOS, PFOA and other perfluorinated alkyl acids in Australian drinking water, in: Chemosphere 83:1320–1325; Liu et al. (2021): Per and polyfluoroalkyl substances (PFASs) in Chinese drinking water: risk assessment and geographical distribution, in: Environmental Sciences Europe, 33, 6 (2021).
⁹ According to an article in Beobachter, a Swiss magazine, this addressed site is located in Laufen BL. The reason for high PFAS concentration is due to an old training ground for the local fire brigade near the water source. Past exercises with PFAS containing fire extinguishing foam led to the pollution of the ground water. (source: Beobachter (2021): PFAS: Dieses Gift ist überall, in: Beobachter 4/21, p. 22.
¹⁰ Reinhard (2010): Perfluorierte Chemikalien im Grundwasser: Grundlagen und Pilotstudie Schweiz, in: gwa 2010/11, p. 967 978, https://www.bafu.admin.ch/dam/bafu/de/dokumente/grundwasser/fachinfo-daten/perfluorierte_chemikalienimgrundwasser.pdf.download.pdf/perfluorierte_chemikalienimgrundwasser.pdf, accessed on 15.02.2021. A new campaign is planned for 2020, the results are still pending.
¹¹ Bundesamt für Umwelt (2009): Substance flow analysis for Switzerland: Perfluorinated surfactants perfluorooctanesulfonate (PFOS) and perfluorooctanoic acid (PFOA), 22/2009, https://www.bafu.admin.ch/dam/bafu/en/dokumente/chemikalien/uw-umwelt-wissen/substance_flow_analysisforswitzerland.pdf.download.pdf/substance_flow_analysisforswitzerland.pdf, accessed on 15.02.2021.
¹² Bundesamt für Umwelt (2019): Perfluorierte Chemikalien im Grundwasser, 13.9.2019, https://www.bafu.admin.ch/bafu/de/home/themen/wasser/fachinformationen/zustand-der-gewaesser/zustand-des-grundwassers/grundwasser-qualitaet/perfluorierte-chemikalien-im-grundwasser.html, accessed on 15.02.2021.
¹³ EPA (2019): EPA’s Per- and Polyfluoroalkyl Substances (PFAS) Action Plan, February 2019, https://www.epa.gov/sites/production/files/2019-02/documents/pfas_action_plan_021319_508compliant_1.pdf, accessed on 17.02.2021.
¹⁴ The EPA provided an update on 19.01.2021. The media release is available under the following https://www.epa.gov/newsreleases/epa-delivers-results-pfas-action-plan, accessed on 18.02.21.
¹⁵ Bank of America Merrill Lynch (2019): How “super” is Superfund?: PFAS legislative risk update, 20.11.2019, p. 4.
¹⁶ European Environment Agency (2019): Emerging chemical risks: PFAS, 12.12.2019, https://www.eea.europa.eu/themes/human/chemicals/emerging-chemical-risks-in-europe, accessed on 18.02.2021.