Document

Report
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]

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