A survey by environmental compliance data specialist Ecoveritas found that 86% of respondents were yet to establish their data collection processes fully.
This was despite the strengthening of a statutory instrument, titled Packaging Waste (Data Reporting) (England) Regulations 2023, which mandates obligated producers in England to collect and report data on the amount and type of packaging placed on the market from this month.
57.1% of respondents to the survey, which was carried out last month and comprised hundreds of respondents from Ecoveritas’ client base, said they did not currently collect data on packaging waste – let alone report on it.
The findings came as Defra (the Department for the Environment, Food & Rural Affairs) said EPR is still on track to be delivered in 2024. Defra will remain in talks with producers as the “final design of the scheme and delivery plans are developed”.
According to Defra, UK packaging producers that import or supply packaging must take action to comply under EPR if they are an individual business, subsidiary, or group (but not a charity) that has an annual turnover of £1m or more (based on their most recent accounts), were responsible for over 25 tonnes of packaging in 2022, and carry out any of several listed packaging activities.
These include the supply of packaged goods to the UK market under their own brand, placing goods into packaging that’s unbranded when it’s supplied, importing products in packaging, owning an online marketplace, hiring or loaning out reusable packaging, or supplying empty packaging.
Earlier this month, the British Retail Consortium said that the EPR and Deposit Return Schemes combined would “add around £4bn in costs to retailers”, which will be passed down the line.
With growing concerns around inflationary pressures, 85.7% of respondents to the Ecoveritas survey were concerned about the financial implications for their businesses.
Ecoveritas chief strategy officer Andrew McCaffery said: “Many businesses face big data challenges when understanding their compliance obligations for a geographic region.
“While some countries request no or limited data and financial contributions relating to EPR, others often require detailed data submissions. This means if you don’t have the necessary data, or it is not precise enough, there could be large cost implications at stake.
“SMEs, in particular, who are getting captured by the regulations will struggle to rise to the challenge more than large companies with the resources to engage. Individual obligated companies’ compliance costs could increase between six and 20 times depending on the final design of the new system.”
He added: “It’s fair to say that preparedness is significantly lacking for many reasons. However, the direction of travel is clear, despite not reaching a full understanding and consensus. We advise engaging with your peers, suppliers, trade associations, and organisations such as ours to ensure you hold live and accurate packaging specifications.”
When asked how prepared they believe their business is for EPR, from supply chains and reporting to packaging design, 42.9% of respondents rated themselves as unprepared but aware of the changes, while 14.3% admitted to being unprepared.
85.7% of businesses rated the government’s communication quality around the legislative changes to packaging regulations between one and two, on a sliding scale of 1-10 where one is poor and 10 excellent. 100% rated it lower than four.
