Key Insight: EPR is a UK regulatory framework that makes producers financially and legally responsible for the end-of-life management of the packaging they place on the market, shifting the cost and accountability for recycling and waste from taxpayers to brands themselves. By incentivising better packaging design, increased recyclability, and transparent reporting, EPR drives more sustainable supply chains and pushes businesses to innovate toward a circular economy while preparing for compliance and cost impacts ahead of full implementation.
EPR stands for Extended Producer Responsibility and legislation is aimed at encouraging responsible use of resources when it comes to packaging and end of life waste materials management. But what is the detail behind this new legislation and how can you prepare your business for its impact?
Following the introduction of the Plastic Packaging Tax in April 2022, EPR is the next regulation aimed at driving more sustainable practices for those UK organisations importing or supplying packaging. Full implementation is now expected by 2027, however, all obligated companies will need to record and retain their data going back to 2023.
The UK Government has made a pledge to achieve net-zero carbon emissions by 2050 and the Plastic Packaging Tax and EPR are key drivers to achieving this target. The UK was one of the first large economies to commit this pledge into law. Margret Bates, Head of the UK Extended Producer Responsibility for Packaging Scheme Administrator, DEFRA described this action by saying “With net-zero, some people may not understand what it means – it basically means let’s stop screwing up the planet”*
In 2022 (the most recent figures available) carbon emissions in the UK were recorded at 406.2 million tonnes so there is work to be done.
So how will EPR help to support efforts towards a net-zero UK?
Do you meet the criteria of a packaging producer? Packaging is defined as any materials used to enclose, protect, present, handle or deliver goods. These products would include boxes, bags, pallets, pallet wrapping, parcel tape and even the clothes hangers sold as part of an item of clothing.
The finer details continue to evolve and impact thresholds are still subject to change. In fact, the original thresholds have been lowered so the EPR legislation will impact more organisations.
Partner Wastepack Group have provided the latest detail on this. Under EPR proposals packaging producers are responsible for the full net cost of managing the packaging they place on the market. The legislation impacts a variety of businesses that supply or import packaging across the UK. With a new lower threshold than its predecessor legislation, EPR is set to capture data from smaller organisations as well.
If a business has an annual turnover exceeding £1m and they supply and/or import over 25 tonnes of packaging under EPR packaging activities in a calendar year they will have reporting obligations.
Under EPR there are two key thresholds which determine whether an organisation that supplies/imports packaging under the EPR packaging activities is obligated as a ‘Small Producer (SP)’ with annual reporting only requirements, or as a ‘Large Producer (LP)’ with biannual reporting and financing requirements from 2025.
The Wastepack Group have been working with our customers since the initial announcements of legislation change, right through to successfully submitting packaging data for Large Producers.
These thresholds are subject to change so bookmark this page to check back for the latest information
A modulated fee structure will be implemented which ‘rewards’ brands for producing easy to recycle and sustainable packaging. Brands producing difficult to recycle or packaging that cannot be recycled will be charged more.
And to make this clear to consumers and to recycling teams, a new mandatory labelling system will be introduced that states simply ‘Recycle or ‘Do not recycle’
Consumers can then see clearly which waste packaging belongs in their household recycling bin and more than that, which brands they buy are actively trying to produce greener packaging – or not!
EPR and PRN’s (Packaging Recovery Notes) and PERNs (Packaging Waste Export Recycling Notes) will all work side by side in efforts to reduce waste and increase collection rates.
The current system of PRN’s can leave a financial shortfall in the cost of collecting packaging waste. EPR is designed to fill this gap.
EPR closes the gap between the brand and the waste created after the consumer has finished with the packaging. Brands such as Coca Cola and PepsiCo have been identified as two of the worst offenders of plastic pollution and allegedly responsible for up to 25% of packaging found on UK beaches.
Currently brands contribute less than 10% of the cost to deal with this type of waste, with councils and taxpayers picking up the bill. EPR will ensure producers will be held accountable for the pollution they create.
Brands will be forced to take responsibility for end-of-life management on their products.
So if you’re an online retailer for example, you could run an audit on all the packaging used to send out your products. This would generally just include all primary (materials in direct contact with your products) and secondary packaging (these would be the presentation products and void fill) as tertiary packaging is rarely seen by the consumer.
There will always be opportunities to improve the materials used and swap out for more sustainable and easier to recycle alternatives.
How much a supplier or importer will pay will vary depending on the type of packaging they use such as paper, plastics and metals and the volume of packaging produced and the ease of recycling it.
The current household collection, sorting and recycling costs in the UK are calculated at around £1.2 billion a year but the final modulated fees have yet to be revealed by DEFRA. But it is very likely that for those companies producing products that end up in household bins, there will be a significant increase in their costs from 2024 onwards.
It appears to have been a torrid start to the scheme so far with a reported shortfall of tens of millions of pounds according to The Grocer. The money raised from EPR for kerbside collections and recycling has resulted in a funding black hole and the potential for even larger invoices being issued. It brings into question whether the EPR reporting is being fully understood by large producers and if the pricing thresholds were set correctly to have resulted in such a funding shortfall.
There has never been a more important time to review your packaging with your suppliers to reduce and mitigate your waste.
EPR Frequently Asked Questions
Concerned about how EPR will affect your business? We help businesses every day to reduce their packaging waste, mitigate their liabilities and drive better outcomes for themselves and the environment.
We’re here to help you navigate through the complexities of EPR, and there has never been a better time to get started.
Simply email us at [email protected] for comprehensive and individual advice and support for your circumstance.
