Post on 17-Dec-2015
The leading provider of
Outsourced Solutions for
Recycling and Waste
Wastelink Services Ltd
•established 1994 – UK’s largest independent waste management FM company
•business – waste handling, recycling, treatment, disposal and environmental compliance
•by - being a solution provider in partnership clients, delivering innovation, best value and excellent service
•for – all businesses sectors
A Total Waste Management Solution
Waste management services
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Treatment –ABP,Haz waste Services
Recycling, Trading
Confidential waste
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Packaging Waste Regulations
PRN Trading
New legislation WEEE, Batteries ELV ,
Duty of care
Expert advice
Influencing legislation
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LU
E
Producer Responsibility How does it reach into
your business?
2 September 2004
The Institute of Environmental Management &
Assessment
Producer Responsibility “What does it mean”
• English Dictionary- producer – to make, manufacture or create, responsibility – a thing that someone is required to do, a legal obligation
• Producer Responsibility first introduced for waste in 199- ? (audience please guess)
• based on polluter pays principle
• given that virtually every business is a waste producer, PRODUCER RESPONSILILITY impacts on more businesses than any other environmental legislation
Environmental Drivers
• legislation single-market, but who is setting the standards?
• change behaviours – producers and consumers, design out waste, hazardous materials and encourage recycling over disposal
• landfill avoidance and pre-treatment
• increase material recovery and recycling rates ?
• one of the many paths on the route to sustainability
Concept of “gone away” has gone away
• European Union identified priority waste streams to which it would apply the principles of Producer Responsibility
-Packaging Waste
-End of Live Vehicles
-Electrical and Electronic products
-Luminars and discharge lamps
- Vehicle Tyres
- Batteries
- Emissions and energy
What next, Aggregates, minerals, bi-material (wood), nappies
even more radical - a global producer responsibility on all materials ?
Human natures reaction to PR
• the journey begins – this is crazy it won’t happen (denial)
– we can change it (false belief)
– we will wait and see what others are doing (procrastination)
– someone else will sort it (who!)
– government know what they are doing (since when has this ever been true!)
– 11th hour wake up call (reactionary)
– little choice, loss of control and higher costs (reflective – how did we get in this mess)
– acceptance (must do)
– bitterness (why is it difficult and costly)
The journey ends at COMPLIANCE or not!
The here and now
• Packaging Waste Regulations, increased targets, much higher costs, possibly more burdens put on obligated business to enable government to meet national targets
• WEEE – Draft regulations that have not addressed financing,collection,Clearing House concept or levels of treatment required – but it’s here
• WEEE Compliance – cut and paste from packaging Regulations
• ELV- Big boys and rough boys row – lines have been re-drawn
• Batteries – proposals similar to WEEE (producer pays market share, collection target, retailer takeback)
Common thread “Producer Responsibility”
• producer pays
• amount you pay depends on market share –or does it ?!
• related to waste products for which you have little or no control over, nor or access to
• complex legislation –mainly driven by the need to be seen as fair!
• legislation that is sprinkled with additional burdens, good intentions usually ineffective
• in many instances financially impossible to DIY (WEEE)
• opportunity to delegate all your responsibilities
• you increase recyclers’ profits, help build their infrastructure or provide a nice subsidy that reduces their risk on raw material price fluctuations
Average CEO’s/FD’s view
• you’re joking!
• how does it affect turnover and profit?
• what is it going to cost?
• what’s the bottom line – legally have to do?
• what’s the competition doing?
• why worry, TRUST the government, the regulators they have all the solutions!
• in most instances -seek lowest cost legal/environmental solution
Impact on business
• added cost – data capture (products placed on market), data on waste streams
• added cost - waste segregation, waste treatment, paying for recycling infrastructure
• added cost – complexity of have to deal with legislation, regulations, permits, controls and regulators
• added cost- to avoid risk of prosecution
• added cost – meeting compliance and recycling targets
• added cost – endless rounds of discussions, lobbying, navel gazing – and we still end up with dreadful regulations!
• more added costs – as year on year targets rise
External annual compliance cost to UK businesses
• Packaging £87m - £160m
• WEEE £150m - £400m (DTI estimate)
• ELV £150m - £285m (estimate)
• Batteries £32 m - £60m
• Tyres £4m - £21m
Almost £1bn per year at higher cost!
Other Impacts
• tendency to look inwards – fine if related to product design (you directly benefit) woeful if you begin to “redesign the waste collection and recycling infrastructure”
• many get hung up on the details and miss the strategic issues, the ones that matter to the business and shareholders
• delays introducing legislation affects behaviour – the unknown
• choosing the right supplier – too many choices
• risk or fear of doing too much too soon – your competitors didn’t !
Benefits to business
• tangible benefit
- product is legal,
- business remains legal
- product re-design can reduce costs or design out waste
- increase market share
-enhance consumer / public perception
- cost of compliance less than competitor
• intangible benefits
- contribution to environmental sustainability
- social responsibility
real challenges facing producers
• accept it - but be pro-active
• control – have you any?
• how is it all going to be done? Collection, treatment, reuse, recycling
• complying with the legislation
• does the UK have an infrastructure and treatment facilities to cope?
• avoiding excessive costs and administration
• determine their market share and costs
• demonstrate compliance
• plan future financial provision
So why do we often end up making it more complex
• endless debates
• lots of navel gazing
• few practical solutions
• no clarity
• little or no investment by industry or waste industry
• fortunes made by consultants
So why is it so complex – it never was !
• it’s waste and remains a waste – only difference is you pay more to turn it into a raw material
• evidence of compliance – the contracts with reprocessors - no extra cost
• treatment process – determines cost
• treatment and recycling – commercial market forces – only restrictions must conform to all environmental permitting conditions
• if facilities do not exist – competitive bids for doing it
• the majority of end use material will be exported
So why is it so complex- it never was!
• paying for PR compliance should only be related to getting the job done (tradeable permits add cost)
• all market share systems based on % of market share
• collection – full use of existing network LA and commercial
• data collection – by weight / protocols / mass balance
That’s why many business leave it to the experts
• market leader – this is all about managing waste and contracts
• national network contract base covering logistics and recycling
• best ideas- WEEE / ELV protocols, simplistic system of weight counting with mass balance, evidence is part of contract no extra payment for evidence, four skip collection methodology WEEE, financial provision mechanisms
• extensive knowledge of recyclate markets UK and overseas
• experts in “collective” producer responsibility provision
• commercial expertise
Summary
• PR is is not a complex science at its simplest form it’s about effective contract management
• a competitive market is vital for minimising costs
• data collection and demonstration of compliance must be simple
• evidence should have no extra cost
• visible fee is the most common sense approach
• a collective offers more advantages than doing own thing
• smart use of existing infrastructure
• how? Come and see me
Thank you
Any Questions?
Peter.gaffney@wastelink.co.uk