With the compliance process for the Extended Producer Responsibility (“EPR”) programs for packaging, paper, and food service ware in full swing in Oregon and fast approaching in Colorado and California, “producer” companies can gain an advantage when their personnel across the board, not just in their Compliance Department, has a working understanding of EPR issues.
For example, the labeling standards around recyclability and compostable materials, as well as potential incentives for certain labeling practices, impact what content a Marketing Department can convey on product packaging and how it advertises its products. Additionally, familiarity with the context of EPR policy and each state’s program will help an ESG Department communicate a company’s sustainability efforts more concretely.
Packaging engineers and personnel responsible for contracting a company’s packaging need to understand the requirements informing an EPR-compliant design and the additional incentives informing a package designed to incur lower fees, such as considerations around specific materials and configurations, source reduction, labeling, and even coloring. For food and beverage companies, their Formulation department needs to be aware of packaging design constraints that interact with product safety and palatability.
Operations and Procurement are critical for a company’s overall EPR compliance, as these departments manage the data tracking and reporting required each year to assess producer fees. Many companies will need to develop improved data organization capabilities in order to submit compliant reports, avoid paying fees for excluded materials, and take advantage of fee credits. Note that this data for Oregon must be reported to Circular Action Alliance by March 31, 2025.
Lastly, a company’s Compliance and Legal departments must be completely up to speed on current and unfolding EPR programs in order to avoid retroactive fees for noncompliance with Circular Action Alliance, paying penalties to state agencies, and potential sales prohibitions.
A corporate training conference is one way companies have chosen to gain this inter-department understanding of EPR issues. This type of virtual or in-person training program educates a company on all-things-EPR as well as on associated issues of specific relevance, such as expanded polystyrene restrictions for food and beverage companies.
There is more to EPR than meets the eye. Companies equipped with a working understanding of EPR issues across their departments and personnel will be poised for more cost-effective compliance than their competitors.
