EPR (Extended Producer Responsibility) is aimed at closing the gap between brands and the resulting packaging waste after the consumer has finished with it. It’s the next piece of ‘green’ legislation following the Plastic Packaging Tax aimed at driving more responsible packaging solutions, but this will come at a cost. At this time, the complete picture of financial impact is unknown but as a total, is estimated somewhere in the region of £2 billon.
1. Costs – brands will need to cover the full costs of the collection, sorting and recycling of their packaging waste after the consumer is finished with it. This will very likely increase operational costs. Understanding the liability thresholds will help in financial preparation.
2. Re-thinking Packaging – innovation will most certainly play a role in reducing EPR liability by developing packaging that is more recyclable or reusable.
3. Supply Chain Reviews – brands may need to revisit supply chains to confirm that their own suppliers meet EPR obligations.
4. Reporting – this has been a requirement since 2023 so brands should already be tracking and reporting on their waste management, with first fees expected in 2025.
