While the acronym ‘EPR’ might only be three letters long, the regulation spells major change for UK businesses. The new Extended Producer Responsibility (EPR) Framework builds on the country’s existing packaging and waste regulations to create a more stringent compliance regime for producers and users of certain items.

Specifically, EPR regulations require businesses to record and report on the packaging they supply, use and waste. This includes the type of packaging they use, how many tonnes of it and where it goes. Larger businesses may also bear the costs of recycling or sending waste to landfills, a concept known as modulated fees, which will be introduced in 2025/2026.

The phased implementation of EPR began at the end of 2023, and large organisations must submit their 2023 data by 1 April 2024.

Despite the first EPR reporting deadline being just around the corner, research suggests most businesses are inadequately prepared, mainly due to suboptimal or non-existent packaging data collection processes.

Time is running out to ensure you have end-to-end visibility of your packaging data. In this article, we’ll delve into some of the details of the new EPR scheme and consider how the right technology can remove the effort and risk associated with gathering packaging data the traditional, manual way.

What is the New EPR Framework and What Does it Mean for My Business?

EPR is a waste disposal scheme designed to make businesses bear the cost of end-of-life waste disposal rather than local authorities. It aims to incentivise companies to use less packaging, use more recyclable packaging and meet higher recycling targets.

The breadth of those impacted is broad. From retailers and restaurants to car manufacturers, many organisations now need to provide authorities with granular insights into their packaging data. You need to collect and report on your packaging data if:

• You’re an individual business, subsidiary or group (charities are excluded)
• Your annual turnover exceeds £1 million or more
• You were responsible for more than 25 tonnes of packaging and/or packaging materials in a year.

Your packaging data submission needs to include the following information:

• Packaging activity: How you supplied the packaging
• Packaging type: The type of waste the packaging will become at the end of life, for example, household or non-household waste
• Packaging class: If the packaging is primary, secondary, shipments or tertiary
• Other: Packaging material and weight

Deadlines for reporting packaging data vary depending on whether authorities classify you as a large or small organisation. HMRC’s official guidance on the EPR regulation is available here.

EPR Preparedness is Lacking

Let’s take a moment to consider UK businesses’ EPR readiness. Despite the looming reporting deadline, research undertaken in early 2023 suggests that their preparedness for EPR is significantly lacking. At the time of the study:

• Three in every five businesses surveyed didn’t currently collect data on packaging waste, let alone report on it.
• 86% of respondents had yet to establish their data collection processes fully.
• 42.9% of respondents rated themselves as unprepared but aware of the changes brought about by the latest EPR regulations.
• 14.3% of those responding admitted to being unprepared.

The Perils of Manual Packaging Data Collection

Manipulating data the old fashioned way using spreadsheets is prone to error.

As we’ve explored, EPR regulations require detailed data submissions. This means if you don’t supply the necessary packaging data, or it isn’t sufficiently precise, there could be cost implications.

Collecting data manually (on paper or by using spreadsheets) isn’t a viable option. Besides being laborious and time-consuming, manual data entry processes are laden with the risk of errors. Research on manual data entry work reveals an average human error rate of 1%. The error rate can increase if the data being entered is complicated, if the user is tired or in a hurry, or if somebody simply has handwriting that’s difficult to read.

Another study found that when performing data entry tasks related to spreadsheets, humans will average an accuracy rate of around 95%, even when dealing with small spreadsheets. When the complexity of the spreadsheet increases, the chance of a processing error is almost 100%.

How PackTotal Can Help

When it comes to EPR compliance, as with most things, those who are best prepared are also best placed to succeed. And your preparation starts with organising the process of locating, verifying and collating your packaging data.

PackTotal’s EPR system is designed to do just this. It lets you gather and collate your packaging information and quickly generate accurate EPR submission files that meet HMRC’s precise specifications. Our solution uses a database to collect and manage materials data for every component of a company’s product packaging across different departments. All data is securely stored in a central repository.

The PackTotal EPR Edition Includes

• EPR Data Categorization, Calculation and Reports: Accurately splits the data into the reporting categories required by HMRC. Full calculation of the Extended Producer Responsibility figures and production of submission files.
• Automated EPR Report Generation In-house: It enables the extraction of essential data from your packaging components, streamlining data collection and report generation.
• Efficient Data Management: The software excels in collecting, organising, and managing crucial data for all packaging components, featuring a secure, centralised database.
• Robust In-house Data Storage: PackTotal prioritises the security of your proprietary information by storing it directly on your company’s servers.
• Seamless System Integration: The PackTotal Database integrates effortlessly with your existing IT infrastructure, like ERP or supply chain management systems, enabling efficient data exchange and workflow.
• Data Validation and Audit Support: PackTotal conducts thorough data validation checks to guarantee the accuracy and completeness of your EPR reporting data and supporting documentation.
• Record and calculate Nation Data: PackTotal records and calculates data based on where in the UK the packaging has been sold, hired, loaned, gifted, or discarded, integrating this information into the EPR data submission.
• Self-Managed Waste Collection Calculations: The software calculates both Organizational and Consumer Self-managed waste, potentially offsetting household packaging obligations and reducing waste management fees.

With PackTotal, you’ll be on track to fulfil your EPR obligations and make data submissions to HMRC on time, every time without the stress.

As always, we’d love to hear your thoughts. Please share your experiences, ask a question or simply provide your thoughts on the new EPR data collection and reporting mandate. If you’d like to discuss your requirements, request more information or arrange a demo, please get in touch.