Are you concerned about how the UK’s Extended Producer Responsibility (EPR) scheme may affect your glass business? Although the scheme is designed to enhance sustainability by promoting a circular economy, some businesses may find themselves facing significant costs.
At Croxsons, we play an active part in reducing the impact that glass has on our environment by designing and manufacturing containers that reduce waste. This means we are armed with the knowledge companies need to thrive under the new EPR scheme.
What Impacts Will EPR Have On Businesses?
Is the EPR Scheme a threat to businesses? The simple answer is yes. However, once you delve a little deeper, it’s clear to see that as long as changes are made to production, the risks can be significantly reduced. The scheme has been designed to shift the financial burden associated with recycling from local authorities to producers. This will be achieved by different taxes being imposed on glass packaging depending on how easy it is to recycle or reuse the material. While this does represent a financial impact for all types of glass packaging, the repercussions can be reduced with sustainable designs.
The main threats that businesses across the country are concerned with include increased costs for both manufacturers and end consumers, difficulty in sourcing the correct materials, and threats to SMEs who may find the changes impossible to navigate. These threats are also not just relevant for newer brands as even older companies, like 120-year-old Fentimans, are concerned about surviving the changes.
Prestigious associations, such as the The British Beer and Pub Association, have also aired their concerns about the threats that companies will face. Speaking about the impact of EPR on the draught beer industry, Emma McClarkin, CEO of the BBPA, said, “They may have to make tough decisions, such as passing on extra costs to customers and indeed reviewing the viability of some iconic beer brands.” Another well-known brand, Belvoir Farm, have also expressed their concerns about the financial impact of the changes stating they would, “have to pass on the levy to consumers as the extra fees would wipe out annual profits.”
Additional threats, as a result of these listed financial impacts, may also include job losses and reduced options to operate competitively which would see markets begin to stagnate.
How Can Businesses Reduce the Impact of the EPR tax on their Glass Products?
While we don’t have a magic solution for eliminating the chance of these threats impacting businesses, there are a number of actions companies can take to mitigate the risks. Thanks to our sustainable practices when it comes to designing and manufacturing glass packaging, it means our products are ideal for selecting to meet the UK’s EPR rules.
Some ways to achieve this are:
- Select high-quality glass that is simple to recycle or sturdy enough to reuse.
- Invest in lightweight packaging to reduce other costs just as logistics fees to balance out spend on production. – and lessen the weight of the product being taxed
- Offer a refill scheme for packaging by partnering with different retailers.
If you’re looking for a way to reduce the impact of these threats on your business, get in touch with our team.