In recent years, extended producer responsibility (EPR) laws have been gaining momentum in the United States as a strategy to improve our waste management infrastructure and promote sustainability. These laws place the obligation on manufacturers and producers to take responsibility for the entire lifecycle of their products, including end-of-life disposal or recycling. As EPR regulations continue to evolve and expand, companies must adapt to stay compliant and leverage these changes as opportunities for innovation, circularity, and market leadership.
In our Unpacking EPR series, we’ve been simplifying the complexities of EPR packaging laws to explain their impact on producers and brand owners. Based on our experience partnering with clients and facilitating industry collaboration on the topic of EPR and circularity, we now share eight practical recommendations for companies navigating the landscape of emerging EPR laws.
1. UNDERSTAND THE LEGISLATIVE AND REGULATORY LANDSCAPE
The first step for any company is to thoroughly understand the EPR laws relevant to their industry and jurisdiction. EPR regulations can vary significantly from state to state, affecting product categories such as electronics, packaging, batteries, and pharmaceuticals. Companies should invest in legal expertise or partner with consultants specializing in EPR and waste regulations to stay updated on current and emerging legislation. Regularly reviewing regulatory updates will help in anticipating changes and preparing for compliance well in advance.
2. ASSESS WHAT HAPPENS TO PRODUCTS AND PACKAGING POST-USE
To effectively manage EPR obligations, companies need to evaluate and understand what happens to their products after use by customers or consumers. Many companies use a comprehensive process called a lifecycle assessment. This involves evaluating the environmental impact of a product from raw material extraction through manufacturing, distribution, use, and end-of-life disposal. Identifying areas where environmental impact can be reduced or where recycling and reuse can be enhanced will not only aid in compliance but also improve overall sustainability. Companies can use these assessments to redesign products and their packaging for better recyclability and reduced environmental footprint.
3. INVEST IN SUSTAINABLE DESIGN AND MATERIALS
Many EPR laws require or encourage producers to design products that are easier to recycle and/or have a lower environmental impact. Investing in sustainable design and materials can help companies meet EPR requirements, appeal to environmentally conscious consumers, and potentially reduce the costs of compliance. This might involve using more recyclable content or alternative materials, designing for disassembly, or reducing the use of hazardous materials or substances. Sustainable design not only supports compliance but can also differentiate a company’s products in the marketplace. According to the Sustainable Market Share Index™, an annual analysis by the New York University Stern Center for Sustainable Business, products marketed as sustainable are responsible for nearly a third of the growth in consumer-packaged goods from 2013 to 2023, despite representing less than one-fifth of the market share.
4. EXPLORE TAKE-BACK AND RECYCLING PROGRAMS
Companies may also explore business model changes in how products are delivered and used. This can be accomplished by establishing or enhancing take-back and recycling programs to manage the end-of-life stage of products. This can include setting up collection points, partnering with recyclers, and offering incentives to consumers for returning products. Effective take-back programs can help companies meet EPR requirements, reduce waste, and recover valuable materials for reuse. Additionally, transparent and efficient recycling programs can bolster a company’s reputation and build consumer trust.
5. ENGAGE IN INDUSTRY COLLABORATION
Navigating EPR laws can be complex, and companies can benefit from collaborating with industry peers and other value chain stakeholders. Industry collaboration can lead to the development of standardized practices, shared recycling infrastructure, and collective advocacy efforts. By working together, companies can reduce costs, streamline compliance, and influence the development of fair and effective EPR regulations.
6. EDUCATE AND COMMUNICATE WITH STAKEHOLDERS
Effective communication is vital to the successful implementation of EPR strategies. Companies should educate their employees, suppliers, and customers about EPR laws and the company’s initiatives to comply with them. Clear communication can enhance cooperation throughout the value chain and encourage consumers to participate in take-back programs. Transparency about sustainability efforts and compliance can also enhance brand reputation and customer loyalty.
7. LEVERAGE TECHNOLOGY AND DATA ANALYTICS
Technology can play a crucial role in managing EPR compliance. Companies can leverage data analytics to track product lifecycle metrics, monitor compliance, and optimize recycling processes. Use of advanced technologies such as artificial intelligence (AI) can enhance transparency and traceability in the supply chain, ensuring that products are managed responsibly throughout their lifecycle. Investing in technology can improve efficiency, reduce costs, and provide valuable insights for continuous improvement.
8. PREPARE FOR FUTURE REGULATIONS
EPR laws are likely to become more stringent and widespread in the future. Companies should adopt a proactive approach by preparing for potential regulatory changes and their potential business impacts. This might involve setting up internal compliance teams, investing in research and development for sustainable products, and engaging in policy advocacy. By staying ahead of regulatory trends, companies can mitigate risks and position themselves as leaders in sustainability.
A PROACTIVE APPROACH TO EXTENDED PRODUCER RESPONSIBILITY IS KEY
Emerging EPR laws present both challenges and opportunities for companies. By understanding the regulatory landscape, investing in sustainable design, developing robust recycling programs, collaborating with industry peers, and leveraging technology, companies can not only ensure compliance but also drive innovation and enhance their market position. Embracing EPR as part of a broader sustainability strategy can lead to long-term benefits for the company, consumers, and the environment.
By following these recommendations, companies can navigate the complexities of EPR laws and contribute to a more sustainable future. As regulations continue to evolve, staying proactive and committed to sustainability will be key to success.
STAY INFORMED ON EXTENDED PRODUCER RESPONSIBILITY
As EPR packaging legislation continues to gain momentum, understanding and preparing for these changes is essential for producers and other members of the value chain. Our sustainability and management consulting experts at SWCA are at the forefront of EPR, circularity for consumer goods, and emerging sustainability compliance obligations. We’ve been leading the National Lubricant Container Recycling Coalition to accelerate the achievement of packaging recycling solutions for petroleum-based and related products in an industry that previously had no system for packaging recycling. SWCA is ready to help you navigate the compliance process, make the business case for your sustainability efforts, facilitate collective action, and drive the circular economy.
We invite you to explore our Unpacking EPR article series where we share more insights on EPR packaging laws and how producers can prepare for compliance.
- Part 1: The Basics of EPR Packaging Laws
- Part 2: Why EPR Is Important to Brand Owners
- Part 3: How EPR Applies to the Plastic Packaging Circular Value Chain
- Part 4: Eight Recommendations to Navigate EPR Laws
MEET THE EXPERTS
Tristan Steichen, Sustainability and Management Consulting Director
With nearly 30 years of sustainability and management consulting experience, Tristan helps clients effectively reduce risks and pursue opportunities related to their sustainability and resilience programs with a focus on circularity. Tristan is also the executive director of the National Lubricant Container Recycling Coalition and facilitates industry collaboration and collective action for the recovery and recycling of petroleum-based lubricant containers. View bio.
Laura Nelson, Principal Sustainability Team Lead
With nearly 20 years of experience in the environmental and sustainability services field, Laura has provided strategic sustainability solutions to clients in the food and beverage, consumer goods, manufacturing, technology, finance, and energy industries. She specializes in sustainability disclosure frameworks and standards and has served in director-level stakeholder engagement roles for several organizations, including International Financial Reporting Standards (IFRS) Sustainability. View bio.