All businesses, to a certain level, are responsible for damaging the environment through their processes. The production stage determines how much negative impact a product can have when it turns into waste.
Industries and different companies have the upper hand when it comes to transition to a circular economy. So, only they can choose business models supporting sustainable products over depleting natural resources. This article mentions the role and significance of EPR in business.
Role of EPR schemes in business
- EPR schemes make the business responsible for the products’ entire life cycle. These schemes help with the compliance of collection and recovery targets.
- The manufacturers and producers often delegate their responsibility to other organizations, also known as the Producer Responsibility Organisation (PRO). It ensures the proper funding, cooperation with small or local authorities, and cost-efficient recycling.
- EPR with a powerful policy tool motivates businesses to shift to a more circular economy model so that their products improve overall.
Benefits of EPR in business
EPR schemes incentivize the business to innovate their products according to the market and circular economy. There are several substantial benefits that prove why EPR is vital for companies.
- Circular Economy: There are many schemes that provide Eco-modulation of fees and specific incentives to the producer integrating eco designs for products. These policies in CE can motivate businesses to reach their economic and environmental objectives.
- Competition in the market: Circular EPR is an economic opportunity for businesses. Changing market patterns have made consumers more aware of sustainable products and their uses. So, the companies following the EPR schemes have an added advantage over those still stuck with linear marketing style.
- Cost-effective: EPR schemes allow the businesses to take optimal cost-effective solutions for recycling and disposal of the waste. EPR ensures the producer bears the cost of sorting, collecting, and processing the waste. For higher profit,s the producers bring specific changes like:
- Changing the entire production process
- Reducing the amount of resource consumption
- Rethinking the design of products
- Adopting friendly methods
- Change the products if they hamper the recycling and reusing process.
4. Efficiency in waste management: EPR directly contributes to the development of waste and recycling industries. Thus, it increases the rate and potential of employment in the market. The introduction of separate collection schemes has led to:
- Reduction in disposal
- Increasing the cost efficiency of reusing, reducing, and recycling
How to get along with EPR
There are potential steps business can take to implement the EPR schemes:
- Research studies can help to figure out the benefits and opportunities of EPR schemes. About what are the well-established schemes and drawing of their experiences through different case studies. Familiarise with the key objectives and principles of EPR.
- Creating communication and network links with businesses with the same future goals and objectives
- Study the policies of the government for EPR schemes and calculating benefits your business can draw from it.
- Create a PRO according to your business requirements to divide the responsibility of disposal and recycling.
Business with the right set of initial actions to implement EPR schemes can develop and flourish in the market.