The EPR is designed to transfer the responsibility and the full net cost of managing packaging once it becomes waste; collection, sorting, treatment, as well as the actual recycling of packaging, from the taxpayer to brand owners and producers. The aim is that the direct cost of specific packaging recycling should be met by those placing the packaging onto the UK market.
Producers and importers will continue to fund the actual recycling of their packaging waste through purchasing of Packaging Recovery Notes (PRNs). The EPR will fund the collection, treatment and sorting costs of packaging waste through direct payments from those producers.
The main aim of EPR is to transfer the cost to producers in order to incentivise more sustainable packaging choices. EPR will also support local authorities by funding more effective management of packaging waste and will help the UK meet their objectives under the Circular Economy Package (CEP).
You need to take action if all of the following apply:
Small organisations
Definition: If your annual turnover is between £1m-£2m and you supply less than 25m tonnes of packaging, OR, your packaged goods are less than £1m and you supply between 25-50 tonnes of packaging or packaged goods.
Large organisations
Definition: If your annual turnover is £2 million or more AND you are handling and supplying more than 50 tonnes of empty packaging or packaged goods in the UK.
Source: Packaging waste - prepare for extended producer responsibility
Under EPR, responsibility will now sit with one company. Producers will fund the full net cost of the collection, sorting and treatment of packaging waste. These costs are roughly estimated to be around £1.4bn.
EPR is changing the way that costs of compliance and recycling are currently spread throughout the supply chain. Under the current producer responsibility system, these costs are shared throughout the supply chain, with a percentage responsibility allocated at different points. For the part of EPR that funds the recycling process, the biggest change is in the percentage responsibility for PRNs. It is estimated that once the costs are spread amongst those obligated under the new EPR, the costs to these businesses is likely to exceed 5 times their current cost obligation, if not more.
It is estimated that EPR could generate up to £1.8bn. £1.2bn of which will be passed to Local Authorities to fund the collection, treatment and sorting of packaging waste.
EPR means businesses now have to collect more complex data on their packaging, likely introduce a new reporting format and submit data more frequently. It will take time to gather this data, so the sooner you start the better.
Ensure you are capturing the data you need in an easy to use format, automated wherever possible. Our team can help you streamline your compliance process under EPR.
With the right solution, compliance and compliance reporting can quickly become second nature. Segura provides the transparency you need by capturing your packaging data and providing automated reporting.
"The Segura platform gives us a deeper insight into our suppliers and the products and components they are providing us. This enables us to minimise risk and ensure products continue to comply with ever-tightening legal requirements. Segura’s ability to centralise all of our data and evidence onto a single platform allows the various teams to use the same robust data to underpin their decision-making, and provides the business and consumers with the confidence that we are working towards the same goals.”
Segura Systems is a UK-based SaaS company enabling ethical, sustainable and efficient multi-tier supply chains.
Segura provides n-tier mapping, transparency, traceability, visualisation, compliance and reporting. Segura sits in the centre of your supply chain management structure creating a central repository for all your supply chain, ESG-related data and evidence, including from third-party data sources.
To learn more why not contact us today.