In a move that might surprise some investors, 3M (NYSE:MMM) disclosed it will stop manufacturing and using polyfluoroalkyl substance (PFAS). The so-called “forever chemicals” derived from PFAS once seemed promising for their wide range of applications. Yet, as 3M announces the discontinuation of PFAS products, MMM stock traders seem mildly irked at this development.
Apparently, forever chemicals were meant to be versatile. Per Reuters, they could be used in cell phones, semiconductors and other products. However, these chemicals have reportedly been associated with a range of illnesses. These include low birth weight, heart problems and even cancer.
The problem is that the chemicals don’t break down quickly. They’ve been detected in “dangerous concentrations” in food, drinking water and soil. So, 3M said it will stop using PFAS by the end of 2025. The company cited “accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment,” as well as “changing stakeholder expectations.”
What’s Happening with MMM Stock?
Financial traders seemed mildly annoyed, but not devastated by the development concerning forever chemicals. As of 10:30 a.m. Eastern, MMM stock was down less than 1%.
Perhaps investors weren’t too bothered because they felt 3M is making the right move by discontinuing PFAS use. After all, as Reuters observes, investors who manage $8 trillion in assets wrote to 54 companies “urging them to phase out their use” of PFAS-related products.
Thus, 3M might be able to avoid a whole lot of legal complications and reputational damage by phasing out PFAS. Still, some 3M investors may be disappointed by today’s announcement. In particular, they might worry that forever chemicals won’t continue to provide a revenue source for 3M.
That’s a reality MMM stock traders will have to live with. Clearly, 3M is putting safety first — or at least, putting its reputation first — and that’s not necessarily a bad thing for the company and its stakeholders.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
