ERP UK • 10 years of WEEE in the UK • Continual evolution

10

years of WEEE in the UK Continual evolution

Contents 2

Introduction: A decade of WEEE

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Championing choice: producer pioneers

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A decade of digitisation

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Producer priorities

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Looking forward: what’s next for WEEE?

600+ companies trust ERP to manage their compliance in the UK

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ERP 10 Year Report

Who are ERP? ERP are the only producer responsibility organisation for Waste Electrical and Electronic Equipment (WEEE), batteries and packaging across Europe and beyond.

Part of the Landbell Group ERP are proud to be part of the Landbell Group – the leading supplier of global services and consulting for environmental and chemical compliance.

A decade of WEEE Since the introduction of the UK WEEE Regulations in 2007, the recycling and compliance landscape has changed dramatically.

The central aim – reducing the amount of electrical and electronic equipment (EEE) ending up in landfill – has certainly been a success, which must continue.

Ten years on, we feel it’s time to reflect on these changes in more detail. The environmental results stand out: the UK has recycled over 5 million tonnes of WEEE. But there have been fascinating changes across the board: producers have had

to respond to the unique challenges of changing regulations to ensure they comply; retailers and local authorities have had to focus on increasing public exposure to recycling messages; and households and consumers have responded in kind, with many changing their approach to recycling drastically. The goods we recycle have also evolved beyond recognition.

This report provides a retrospective look at the last 10 years of UK WEEE Regulations, reflecting on what we have achieved to date and the key challenges and developments ahead.

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The positive ERP approach is appreciated, and has enabled us to protect our members’ positions and ensure they are not faced with unsustainable obligations and targets.”

Umberto Raiteiri ERP CEO

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Championing choice: producer pioneers July 2007

January 2010

UK WEEE Regulations enter into force; ERP UK starts operating for WEEE

UK Waste Batteries Regulations enter into force; ERP UK starts operating for batteries

July 2009 ERP UK starts operating as a packaging compliance scheme

Founded by producers for producers, producer interests have always been central to ERP’s objectives.

Producer challenges have changed dramatically over the last decade, following the introduction of the UK WEEE Regulations in 2007, and so too have the opportunities.

ERP was created in 2002 as the first organisation to provide pan-European take-back schemes for the collection and recycling of e-waste. The founding members’ core mandate was to introduce a choice for compliance in a marketplace that was often dominated by a sole provider. Research has shown that creating healthy competition makes the compliance landscape fairer for producers, who were often overcharged. Just as cost is important, so too is quality. Driving 4

ERP 10 Year Report

up the quality standards of WEEE treatment was another key mandate.

To create a healthier compliance marketplace with more high-quality options for producers, several things had to happen. Firstly, producers’ voices needed to be heard. Since its formation, ERP has worked particularly hard in this regard. Both in the UK and across Europe, ERP has worked with, and for, as many producers as possible to create a stronger voice to lobby for fair legislation.

“Our lobbying has always been based on facts and statistics,” explains Umberto Raiteri, ERP CEO. “Through a positive collaborative approach, we’ve been able to participate in discussions based on experience and data.

This less aggressive, less confrontational, and more positive approach is appreciated, and has enabled us to protect our members’ positions and ensure they are not faced with unsustainable obligations and targets.”

Following the introduction of the WEEE regulations in 2007, the biggest challenge for UK-based producers was the ‘must buy’

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Through our successful lobbying for changes to the UK WEEE Regulations in 2013 we demonstrated clearly our ability to work with producers and other compliance schemes, trade associations and producer groups to address unfairnesses in the UK system.”

John Redmayne ERP UK General Manager

million +

3

washing machines recycled by ERP UK

2013 New WEEE legislation comes into force

2014 onwards..

October 2010 ERP celebrates recycling 1 million tonnes of WEEE across Europe

system in place for the recycling of WEEE. The crux of the problem was that the ‘must buy’ system encouraged price hikes in the costs of obtaining evidence for recycled WEEE, particularly at the year’s end. The result was a closed market in which over-collectors profited at the expense of producers and other stakeholders. Essentially, there was no incentive for a producer compliance scheme (PCS) to lower prices and attract new members even if it had excess WEEE, as surplus evidence could always be sold to PCSs in deficit. PCSs then had to buy at the quoted price to meet obligations, or else face sanctions. The closed system embodied many of the inequalities that ERP had been formed to challenge, with producers unjustly footing the bill.

ERP led the charge in forcing action on the issue. Collaborating with producers, other PCSs, producer groups and trade associations, ERP lobbied to make producer voices heard. The facts and figures were carefully considered by the UK Government, and ERP recommended rationale-based changes to the

UK WEEE Regulations in the most progressive and mutually beneficial way possible.

The positive approach was effective. A landmark change came in 2013, when the UK WEEE Regulations introduced compliance targets which are clearly set and applied each year, and a compliance fee for schemes that have not managed to collect enough. The result is a more balanced system, which strives to recognise all players in the process, ensure that quality treatment standards are applied more consistently, and that WEEE traceability is in place, resulting in a more efficient recycling loop and a healthier environment.

The last 10 years have also seen increased quality of WEEE treatment. “WEEE treatment processes have become increasingly efficient in the last decade, with improved removal of regulated substances,” observes Dora Caria, ERP Quality and Audit Manager. “Furthermore, we’re monitoring recycling performance more effectively, through auditing and conducting technical studies. These activities are important to make sure that recovery rates are accurate

and that treatment complies not only with legal regulations, but also specific contractual requirements for certain producers.”

Continuing to improve the quality of WEEE treatment is paramount, as it greatly helps producers. Small producers can focus on achieving peace of mind – without getting involved with the details of WEEE treatment quality – because of the certainty that they have complied. Larger producers, and producers with electronics as part of their core business, for example, benefit massively from the assurances that come with highquality treatment, ensuring they’re satisfied with elements beyond compliance.

“Over the last 10 years, we’ve noticed that these producers typically want to follow up and gather detailed treatment KPIs to ensure thorough and high-quality treatment,” Dora Caria explains. “These KPIs minimize risks and can be fed into CSR reports.” This is increasingly important as it helps producers to promote and maintain their image. Detailed KPIs, along with audit summaries and supply ERP 10 Year Report

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Championing choice: producer pioneers January 2014

January 2016

Recast UK WEEE Regulations enter into force (ERP UK lobbied successfully throughout 2013 to secure the best changes for producers)

‘Dual use’ comes into effect, bringing many more products under the scope of household WEEE compliance, and printer cartridges with electronic components also come into scope.

May 2014 ERP celebrates recycling 2 million tonnes of WEEE across Europe

chain reports, also give producers a far more rounded view of their business.

Though the compliance marketplace and UK WEEE regulations have evolved for the better over the past 10 years, producers still face challenges. Speaking about other impactful challenges in the last decade, Umberto pinpoints ever-increasing targets as an issue: “The most important counter measure is to keep producer costs as low as possible, enabling them to meet stringent targets and ensuring as much WEEE as possible is recycled through recognised channels.” He also stresses

“ ERP 10 Year Report

ERP’s growth and success over the last 15 years means its UK producer members are well positioned. As the only pan-European scheme, best practices are observed both in the UK and across the continent. “We’ve been effective at sharing the learning, which is hugely appreciated by local and European legislators,” explains Umberto. “Through our

data collection, we’ve been able to provide benchmarks on collection and return rates, which again is appreciated as it’s helped to inform targets.”

UK producers face some uncertainties in the next decade, not least Brexit, further increased targets, and other regulatory changes, but as far as compliance goes these are manageable challenges. So long as producers’ freedom of choice is protected by ERP, and other producer champions, the future looks bright.

We’ve been effective at sharing the learning, which is hugely appreciated by local and European legislators. Through our data collection, we’ve been able to provide benchmarks on collection and return rates, which again is appreciated as it’s helped to set targets.”

Umberto Raiteiri ERP CEO

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the importance of awareness programs in counteracting the scarcity of waste in the system. Again, this emphasises the need to ensure WEEE is recovered and treated through approved systems.

10.4 million +

televisions recycled

by ERP UK June 2016 ERP UK celebrates recycling 500,000 tonnes of WEEE across the UK

January 2017 ERP UK takes over the compliance and data services previously provided

by DHL EnviroSolutions

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A decade of digitisation

This summer marks the iPhone’s 10th anniversary.

It’s a significant indication not just of the pace of change in the technology and gadgets themselves, but also of how they have become such an indispensable part of everyday life in the last decade.

Phones initially became smaller, then grew bigger. TVs slimmed down as cathode ray tube (CRT) sets were phased out, and plasma gave way to LCD and LED – TVs are now slimmer, lighter, and brighter. We’ve gone from CDs and DVDs to digital downloads, streaming and HD entertainment hubs.

Evolution and revolution both play a factor in the how the ‘digital home’ now shapes our lives.

Free e-waste recycling event, Cambridge 8

ERP 10 Year Report

The mobile age In today’s connected world, we’re tuned in almost 24/7: a phone, tablet, or screen is often the first and last thing we see each day. We may even glance at a screen in the middle of the night, when some notification or another interrupts our sleep with a beep or vibration.

With the average user checking their phone over 100 times a day, our social and working lives merge. This offers the benefits of flexibility, but makes it difficult to switch off.

Unsurprisingly, more and more people are becoming connected. Mobile phone ownership has rocketed from just 16% in

1997 2000 2007

1997 to 78% in 2007, and now stands at over 95% of UK households – that’s 24.7 million phones. If we assume two phones per household are changed every two years, it adds up to an eye-watering 247 million phones in the last 10 years.

“There have been a number of high profile initiatives to raise awareness of the value and importance of recycling small devices like phones, but many still end up in drawers, under the bed, in the loft, glove box or even the bin, going straight to landfill,” observes Nick Purser, ERP UK Communications

Manager. “It’s an increasing challenge not just here in the UK, but globally. In fact, it’s a challenge that has led to projects looking at the feasibility of collecting and recycling the precious elements and scarce resources used in these devices – for example, the Critical Raw Material Recovery project which ERP is supporting. Industry is trying to adopt a more circular approach, but we’re still reclaiming only a tiny fraction of the diminishing raw material supply used in manufacturing.”

16% 47% 78%

2017

95% Mobile phone ownership in UK households (%) ERP 10 Year Report

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“

Another technological change that illustrates the way this world keeps changing has taken place in lighting. From incandescent bulbs to compact fluorescent bulbs (which were massively promoted at one point) to LED today: we’ve seen a three-generational change in light bulbs in a decade.”

John Redmayne ERP UK General Manager

Make Noise, Cardiff

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ERP 10 Year Report

The internet revolution Perhaps one of the biggest changes effecting product replacement in the last decade in the home, and throughout the recycling system, has been the switch from chunky CRT TVs to sleeker and slimmer flat screens. Replacement was driven not by need, but by desire for a new experience. This resulted in increased recycling both through retail trade-ins and at local authority recycling centres.

“The move from CRT TVs to flat screens drove change throughout the system. We had to change how waste was collected, stored, and sorted at local authority level, and in the decommissioning and separation of elements carried out by our partners further along the chain,” explains John Redmayne, ERP UK General Manager.

The combination of higher quality, higher resolution screens in the home was accompanied by a shift in the way users accessed and consumed films, music, gaming, and TV content over the last decade – which was largely dependent on internet access.

More and more households got on board:

Junk Kouture

in 2016, 89% of homes in Great Britain (23.7 million) had internet access, an increase from 86% in 2015 and 57% in 2006. Subsequently, streaming and subscription services exploded, and users gained greater control of how and when they consumed content. Simultaneously, faster broadband coverage spread out from metropolitan areas across the entire country, giving even more flexibility to customers outside urban areas.

In homes across the UK, consoles and TV boxes replaced DVD players, in the same way that VCRs became extinct a decade prior. Multiscreen homes are increasingly common, with each family member streaming personalised content to phones, tablets and TV screens at any given moment.

“Regular internet use continues to rise, with more than 8 in 10 people going online almost every day in 2016.”

Kate Davies, Surveys and Economic Indicators Division, Office for National Statistics

Free e-waste recycling event, Hertford

Consumer trends and future challenges

While an increasingly digitised world has its consumer benefits, it presents a unique recycling challenge. We are amassing more and more EEE in our homes, most of which is far smaller than a chunky CRT TV or washing machine.

These concerns are echoed by WRAP (Waste & Resources Action Programme), a UK charity that works with businesses and communities to achieve a circular economy through resource efficiency. In July 2017, a WRAP survey concluded that 8 in 10 households are interested in returning used electricals to retailers through take-back and trade-in schemes, and highlighted that half of customers are willing to buy quality used products from major retailers. If customers are willing, then the rest of the industry needs to respond.

Given that the UK places close to 2 million tonnes of EEE on the market each year – a figure that’s set to increase – there’s a clear need for change. WRAP suggest that through the increased amounts of 12 to 18-month-old products discarded for newer models, retailers

and brands can capitalise by creating a market for second and third users, continuing to profit from their products beyond first use.

They’ve set an example in supporting retailers to meet the challenge, partnering with Argos, Dixons Carphone and John Lewis to roll out and trial gadget trade-in at stores. Hopefully, embracing closed-loop systems will become a trend within the electronics and retail sector.

Treating EEE as an asset and a resource is both a big challenge and opportunity for the future. EEE contains valuable materials that can be used again if recycled correctly. ERP CEO, Umberto Raiteri believes youth and developing a culture of recycling is the answer: “The younger generation is key, once they are convinced, they remain convinced forever and become champions showing the way to parents and wider communities.”

ERP has played its part to date, with numerous awareness initiatives targeting younger people, such as ‘Junk Kouture’ and ‘Make Noise’.

And connecting on a community level, by reaching out to schools and universities, and working with local authorities is important, as ERP’s collaboration with Hertfordshire County Council shows.

programs independently so ERP’s sponsorship made it all possible.”

As far as WEEE is concerned, this decade of digitisation is just the beginning: 90% of electrical products sold are new despite half of UK households owning at least one unused product. To guarantee that we make best use of the resources in EEE, we need to ensure that progressive reuse and recycling practices continue along with increased promotion. Just as digital technology has in the past decade, so recycling and compliance must continue their own evolution and consistently strive for higher levels of performance.

3.2

million +

Our love of digital devices won’t change anytime soon, and the trend of increasingly digitised homes is growing. Further developments in Internet of Things (IoT) will be a driving factor – the ability to control the tech that automates tasks remotely. We can already control household functions like heating, lighting, and hot water from outside the home via apps. And we can sync across multiple devices – our phones, tablets, computers, smart TVs, and wearables can all speak to each other and exchange key information. That may be great for busy homeowners, but the home’s increased digitisation only increases pressure on the scarcity of critical raw materials.

fridges recycled by ERP UK

“The promotional work we did with ERP to collect unwanted WEEE in the county’s 500+ schools was easily our most successful, which was definitely helped by our strong links with our schools,” recalls Linda Whitehead of Hertfordshire County Council. “If a schools’ pupils gathered 10 or more WEEE items, big or small, then ERP would provide collection.

We initially collected over 40 tonnes of WEEE,” explains Linda, “and between June 2011 and September 2016, we collected over 321 tonnes. We don’t have the kind of funding to plan and run these kinds of ERP 10 Year Report

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Producer priorities The compliance landscape continually evolves, influenced by a diverse range of factors.

As producer challenges change, so do their priorities. Factors vary: climbing annual targets are a constant challenge, producers need to be alert to changing regulations, improving

technology affects both the products we’re recycling and the recycling systems, and the customer plays a big part too. Founded by producers for producers, ERP are offering support as challenges and priorities evolve.

Embracing CSR Over the last decade, corporate social responsibility (CSR) has taken centre stage.

Less and less can companies get away with ‘greenwashing’ – increased scrutiny from well-educated consumers restricts companies from making vague or unsubstantiated claims to appear eco-friendly. This affects producers, as consumers expect products that are ethically sourced before sale, and are recycled or reused responsibly after.

Smart producers realise CSR is more than just a fad – well-executed CSR projects built on the right resources, expertise, and smart partnering can majorly benefit a society’s quality of life. They increase a company’s capacity to solve business and social problems creatively, and customers reciprocate with their support and loyalty. As customers put increasing value on meaningful CSR, 12

ERP 10 Year Report

companies can no longer afford to ignore their responsibilities.

Producer compliance schemes can aid producers by providing quality WEEE treatment that provides detailed KPIs, which can be fed into end-of-year reports and publicised. Their expertise can also provide take-back solutions so that producers can extract maximum value from the products and waste they get back.

And PCSs can help set up recycling events or “WEEE amnesties”, either at the company’s premises or in the wider community. PCSs like ERP UK can also put in place free battery boxes and collections so that producers can contribute to the recycling of this important waste stream.

17.6 million +

small appliances recycled

by ERP UK

The customer is key Customers’ needs and desires increasingly influence producers and manufacturers.

Many customers demand a proactive approach to the environment and businesses need to satisfy certain societal expectations with detailed performance statistics to back up their claims. But customers also demand more flexibility with products themselves.

There’s a strong demand for better return and repair services for EEE products. Groups like The Restart Project in London have been created purely to meet and channel the demand for more sustainable, longerlasting EEE products. The group relies heavily on volunteers, running electronics repair events with local communities, schools, and companies. There’s a genuine appetite to value and use EEE products for longer, which the current system needs to recognise.

EEE manufacturers will need to focus on meeting the demand for quality used products, with 50% of customers saying they would be willing to purchase second and third-hand items. Producers will need to develop business models that reflect customers’ needs, and generate profits, while simultaneously realising their environmental and sustainability goals.

To meet this challenge, we need to consider the circular economy.

Towards a circular economy More and more businesses are committing to help establish a circular economy. The Ellen McArthur Foundation, which aims to accelerate the transition to a circular economy, has partnered with giants of various industries such as Google, Philips, Unilever, Nike, and Renault since its formation in 2010. It’s worth emphasising that, in the UK, WRAP estimated that EEE businesses can realise about £4.4 billion of financial benefit by using resources more sustainably and adapting circular business models.

The shift towards the circular economy is and will continue to be a major priority for the next

decade, as business and government realise its value and adapt their practices accordingly.

When circular economy principles are applied throughout the entire EEE product lifecycle, it will improve profitability for manufacturers but also the customer experience through increased convenience and value for money.

For ERP CEO, Umberto Raiteri, the circular economy agenda will move up another level as we recycle more waste and reclaim more materials: “The more volumes of recycled materials available, the higher the opportunity to close the loop. At the moment, a relatively small percentage of materials are put back

into use. But this figure will grow as recycling technology improves and the amount of reclaimed materials increases.”

ERP Quality and Audit Manager, Dora Caria, highlights another issue: “We’re trying to increase the recycling potential of some of the output fractions from WEEE treatment, for example, plastics. Many are flameretardant and we can’t reintroduce flameretardant plastics into new products as they would be contaminated and not meet the required standards.”

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Supporting a sustainable approach The figures show that UK producers have set an example in sustainability over the last decade: the UK has recycled over 5 million tonnes of WEEE. To ensure this continues, producers need support. Because the compliance landscape is so diverse, support needs to come in many forms and evolve alongside producer needs and priorities.

This is why ERP have moved towards a complete service-based approach for members.

Producers need access to a comprehensive range of services across WEEE, batteries, packaging, and data processing that delivers them value beyond simple compliance.

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Producers often need a tailored approach that works for their specific situation and business plans, not a ‘one size fits all’ offer. PCSs need to continually innovate to reduce complexities wherever possible so that businesses can make the most of their resources as they become more sustainable.

Electrolux are a founding partner of ERP, and today count everything from commercial stats, savings, efficiencies, improvements, problem-solving, reduced complexity, and eased entry to new markets as the main benefits of ERP’s support.

“We get regular visits from our account manager, who keeps us up to date with any legislative changes that may affect our business, and we also get invites to the quarterly workshops,” explains Ian Steedman, UK and Ireland Logistics Market Manager at Electrolux. “We can tap into their knowledge and expertise, and speak to them without knowing anything about compliance or the regulations. They are passionate about compliance, and take the worry away from us as a producer. They also lobby on our behalf, and manage our end-of-line products responsibly for us.”

We can tap into their knowledge and expertise, and speak to them without knowing anything about compliance or the regulations. They are passionate about compliance, and take the worry away from us as a producer.

They also lobby on our behalf, and manage our end-of-line products responsibly for us.”

Ian Steedman UK and Ireland Logistics Market Manager, Electrolux

Maximising waste’s value We can’t maximise waste’s value if it doesn’t get into the system. WEEE can evade the system for many reasons: unscrupulous individuals and groups can try to sell e-waste on the grey or black markets, people may hoard EEE at home with the intention of repairing it or disposing of it later, or may simply be ignorant of how and where to dispose of WEEE.

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ERP 10 Year Report

All of the above pose a challenge to producers, legislators, and local authorities.

To reach the rising targets they’re facing each year, we need to ensure that waste enters the system by connecting with the public and educating them about the importance of recycling WEEE. Awareness programmes that counteract the scarcity of waste in the system are paramount. From recycling

competitions for schools to big-name concerts where admission is free in exchange for a small item of waste, ERP has taken this mandate to educate and inform seriously – and it will continue to do so in the future.

Featured ERP people

Umberto Raiteiri

John Redmayne

Nick Purser

Dora Caria

ERP CEO

ERP UK General Manager

ERP UK Communications Manager

ERP Quality and Audit Manager

Looking forward: what’s next for WEEE? Having reflected on the past decade since the introduction of the WEEE Regulations in the UK, it’s time to take a look forward. Building on the experience and expertise gathered over the last decade, part two of this report will focus on the decade to come. Thinking about the future can be challenging – what it holds is uncertain and change is inevitable. Shining a light on the future and considering a range of potential possibilities help us to prepare as

best we can to cope with, embrace, and even thrive in times of change and development.

Part two will consider future challenges and opportunities. It will feature an interview with CEO of the Landbell Group, Jan Patrick Schulz, tackling topics such as the fragmentation of the European market and what it means for producers, how ERP can help manage changes, and emerging market profiles.

Part two will also consider the future of extended producer responsibility. The topic of ‘closing the loop’ will feature prominently, looking at how the circular economy and consumer pressure may influence producers and manufacturers in the next 10 years.

The second part of the report will arrive in November 2017.

Get in touch – we’d love to hear from you!

For general enquiries: For information on our WEEE, batteries and packaging compliance schemes: For information on our Data services:

Call: + 44 203 142 6452 Email: uk@erp-recycling.org Call: + 44 1455 205 369 Email: ukcompliance@erp-recycling.org Call: + 44 1455 205 370 Email: ukdataservices@erp-recycling.org ERP 10 Year Report

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ERP UK Limited is registered in England and Wales (05859725).

Registered Office: ERP UK Ltd, Barley Mow Centre, 10 Barley Mow Passage, Chiswick, London, W4 4PH