Extended Producer Responsibility: what food manufacturers need to know

With a raft of upcoming legislation on packaging & waste in the UK, experts at Biffa outline what the Extended Producer Responsibility on packaging means for manufacturers and what they need to do to comply fully with its requirements​

UK businesses are facing a tsunami of policy reform in the coming months and years. The UK’s resources and waste strategy is rolling out in the form of legislation such as the already live Plastic Packaging Tax, the imminent Simpler Recycling for businesses, and impending policies such as the Deposit Return Scheme, and packaging Extended Producer Responsibility (pEPR). 

pEPR is a policy which holds producers responsible for the collection, sorting, recycling, or disposal of their product packaging. The policy is due to be introduced in 2025, with producers required to report their packaging data from 2023.

UK businesses who handle packaging will need to fund the total cost of managing packaging waste (from production to removal) in addition to their current liability. This means paying for all packaging they introduce to the UK market, plus additional fees for waste disposed of by household consumers. For example, a baked beans manufacturer must cover the costs of the pallet and shrink-wrap used to send its beans safely to the supermarket, along with the additional household fees for the tins their customers recycle at end of life.

Inspiring a more circular economy

Harriet Martin, Biffa EPR expert at Biffpack, explains that the new rules aim to inspire a more circular economy for packaging by creating accountability for materials, as well as encouraging brands to think more sustainably about the lifecycle of their packaging post-purchase. “For the first year of the scheme, data must be recorded by volume in kilograms,” she says. “As EPR evolves, Biffa anticipates reporting requirements expanding – for example, to consider the amount of raw materials versus recycled content in packaging, and how easy it is to recycle branded packaging.”

To be an effective and progressive policy, EPR should drive the food and drink industry towards a vision of a truly circular economy where all plastic packaging is 100% recycled and recyclable, adds Chris Hanlon, commercial director, Biffa Polymers. “DEFRA’s recycling targets illustrate the pathway of progress that legislation needs to follow,” he notes. “Addressing the challenges will be critical to helping the UK improve recycling to meet these goals.

“In recent years we’ve seen almost total standardisation in the shape and size of milk bottles at major supermarkets, and the removal of coloured plastics from beverage containers like water bottles. Simplifying the components used in both these products makes recycling them much easier and has significantly improved bottle recycling rates.”

There is enthusiasm now to replicate this success on other packaging products which cause problems at recycling plants, adds Hanlon. “For example, fabric conditioner bottles, plastic bags, food trays and yoghurt pots. These are similar in that they vary in shape and colour, are sometimes comprised of layered materials, and face residual product contamination.”

Submitting EPR data

Meanwhile, Carla Brian, head of project partnerships at Biffa, outlines the schedule involved: “EPR sets the stage for a national overhaul of the packaging industry, but data gathering is the first and most important step in getting the policy off to a strong start. All businesses obligated under EPR will need to submit their data in two phases. The first phase involves reporting data from January to June, starting on July 1, 2024. The second phase requires reporting data from July to December, starting on January 1, 2025, based on the size of the business.” 

Notably, the data required is much more detailed than any waste reporting required before, adds Brian. “Businesses face a challenge in understanding where to start, and how to implement, a collection strategy within their operations – especially now that time is of the essence,” she says.

“Data reporting is naturally a priority for producers as the first submission deadlines draw near, but it’s important not to lose sight of the bigger picture. EPR will change packaging in the UK in ways that extend beyond data collection. How we act on that data will be crucial to successfully realising a UK circular economy.

“Early adopters will be able to capitalise on the brand perception and commercial opportunity of being a sustainable leader. The data producers gather has value way beyond compliance. The process of transformation and progress provides rich storytelling for shareholders, customers and colleagues.”

People and businesses want to be involved with companies who share their values; consumers especially list ‘producing sustainable packaging and products’ and ‘reducing waste in manufacturing’ as the leading sustainable practices they want from brands, says Brian. “The impact on the bottom line is clear.”

Prompting refill and reuse

Fees expected to be levied against single-use packaging under EPR will likely drive innovation in refillable and reusable packaging, explains Roger Wright, waste strategy and packaging manager at Biffa. “Where an item has been reused at least once and the producer has evidence of this, it can be used to offset their market tonnage,” he says. “Certain packaging is exempt from the reporting requirements, including more robust re-used primary and secondary packaging materials such as pallets or cardboard boxes. As such, EPR enables businesses to combine their sustainable and cost-saving objectives, whilst recognising the commercial advantages of packaging designed for circularity.

“Of the sustainable waste management legislation coming into force, EPR is the one incentivising end-of-life recovery potential within packaging design,” adds Wright. “We expect packaging built for circularity will be incentivised within the fee structure which will drive innovation at the design phase. 

“Producers will now be obligated to account for end-of-life of their product packaging. Packaging producers and designers will therefore take centre stage in the next generation of packaging. As a result, we expect to see reductions in unsustainable materials and improved recyclability.”

The government’s Circular Economy Package sets a target to recycle 65% of municipal waste by 2035, notes Wright. “Companies will have their own internal targets,” he adds. “While EPR can help to achieve these objectives, producers need to know what they are reporting on, how much it will cost and when they need to plan.” 

Biffa is providing expert support to businesses of all sizes through waste policy reform. Search ‘Biffa What Iff’ for more information. ​