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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 Treatment – ABP,Haz waste Services Recycling, Trading Confidential waste Recycling Operatives Data KPI’s Equipment/Staff Cost Savings ADDED VALUE Disposal Compliance Packaging Waste Regulations PRN Trading New legislation WEEE, Batteries ELV , Duty of care Expert advice Influencing legislation Innovation The Institute of Environmental Management & Assessment Producer Responsibility How does it reach into your business? 2 September 2004 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 redrawn • 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? [email protected]