Extended Producer Responsibility with the Sustainable Packaging Coalition

May 23,2024 Category: Sustainability
Episode Summary:

Today, consumers expect brands to take more of an active role in sustainability initiatives that account for various packaging elements throughout a product’s life cycle. Current and future regulations now require brands to account for financial and logistical responsibilities regarding the end-of-life disposal or recycling of their products and packaging. These regulations are known as extended producer responsibility (EPR). In episode 12 of our Unpacking Excellence podcast, we speak with Karen Hagerman, Senior Manager from the Sustainable Packaging Coalition, on EPR and its reach, history, impact and future considerations.

In this episode, we cover:
  • EPR and what brands need to know
  • How brands are transitioning into sustainable packaging programs
  • Current EPR activity in the U.S.

Read along below.

About Our Guest
Karen Hagerman
Karen Hagerman Director, How2Recycle*

Karen Hagerman is a former helicopter pilot for the Marine Corps and has led a successful career in combating some of the most highly discussed topics in packaging, including plastic waste, recycling infrastructure, circular economics and more. She previously worked for the Sustainable Packaging Coalition since December 2020, moving from a manager to a director role, and she currently serves as the director of How2Recycle at GreenBlue, a non-profit, environmental services agency.

*At the time of recording, Karen worked for the Sustainable Packaging Coalition as a senior manager.

Listen to the Episode


0:00:01 - Intro
Powered by Adept Group, this is the Unpacking Excellence podcast. We’re bringing together top packaging professionals to share insights and knowledge on all things packaging. Now, introducing Adept Group.

0:00:21 - Adept Group
Hi and welcome to Adept Group’s Unpacking Excellence podcast. My guest today is Karen Hagerman, a senior manager with the Sustainable Packaging Coalition, and we're going to talk today a little bit about EPR, extended producer responsibility, and what that means, as it's starting to gain popularity here in the U.S. How are you doing today, Karen?

0:00:42 - Karen
I'm doing great. Thanks for having me

. 0:00:44 - Adept Group
Thank you for joining me. I want to start with just talking a little bit about what EPR is and what brands need to know. It isn’t necessarily a new idea. It's been around for a few decades in Europe and, I think, Canada and some other places, but it is a little newer to the U.S. So can you just give us a brief description of what brands need to know about how EPR is going to affect their business?

0:01:08 - Karen
Yeah, absolutely. So, EPR is, like you said, extended producer responsibility. What it is is a policy approach that takes responsibility for the end of life of products and assigns it to producers, and often, those are the brands, the ones making the product, whatever it is. And, in the case of EPR for packaging, that's the packaging for the products. And so, like you said, EPR is new in the sense that we are seeing the first bills passed in the U.S., and it's been a very hot topic this year, but there have actually been a lot of people working in this space to get to this point and, additionally, there are also many states that have had EPR for other products, like carpet, paint and electronics, and so, there's a lot of experience there as well. But in terms of applying it to packaging and really integrating it into the existing recycling infrastructure that we have, that is definitely a new challenge here in the U.S. But, as you said, there is experience in Europe, and there's experience in Canada, as well as other parts of the world, in terms of EPR for packaging.

But, I think when it comes to your question about what brands need to know, we talk about EPR as one concept, but in reality, it's many different things in practice. The way we implement it here is not necessarily going to look like what it does in other parts of the world. And so, I think one of the biggest things is to understand what the legislation is actually saying in the different states that have passed EPR, and then, in the states that haven't passed it yet, understanding how brands can be involved as a stakeholder, whether that's in the development of legislation or in the rulemaking process, and then, additionally, when it comes to, I think, sustainability of packaging, really understanding the considerations of how fees will be connected to a packaging design and how eco-modulation, how that concept plays into brands' responsibilities and what they'll be paying into the program as well.

0:03:01 - Adept Group
You mentioned that we're going to implement it a little differently here, likely in the U.S., compared to how other countries have done it. Are there any lessons that brands in the U.S. can learn from companies in Europe or other parts of the world that have been doing this for a while?

0:03:18 - Karen
Absolutely. Many brands that operate in the U.S., a lot of them actually have divisions that do global business in Europe and comply with regulations, so there's likely a lot of internal knowledge in that sense. But the interesting thing is to look at how the regulations in Europe have evolved over time. Some of them started out in terms of having a weight-based approach, so fees were basically just straight, flat fees based on weight, and then they transitioned to a more nuanced consideration of the materials and formats that factor into what a producer pays into their program. And so, looking at how it's evolved and potentially how it will best be implemented in the U.S. is important. But again, it goes back to being aware of the different regulations and considerations within a region because, again, it'll be very different, and so I think the biggest thing to understand is how it's different and why it's different and how brands have to comply with the different regulations in different states.

0:04:30 - Adept Group
That makes sense. Speaking of states, earlier this summer, Maine became the first state, and then Oregon followed, I think earlier in August. Do you think that's something that we're going to see a lot of states jump on board in the short term, or do you think there'll be more of a wait-and-see approach and let the states that adopted early test it out and smooth out the wrinkles before it spreads further here in the U.S.?

0:04:50 - Karen
Yeah, that's a great question. I'm not sure that we'll see any further activity this year because of how the legislative sessions are structured and how many of them have concluded for 2021. But, we saw 10 states introduce some EPR for packaging legislation this year, and some of those states had multiple bills.

There was also activity at the federal level with the Break Free from Plastic Pollution Act, so I think many would agree that the 2022 legislative session is sure to bring more activity in this space, and most likely, all of those states that have introduced bills this year will reintroduce them next year.

Additionally, there are some other states that have been considering or working on legislation that might join in as well, so it'll be interesting to see in what direction those bills go, whether they're reintroduced as is, as they were for this session, or if they're taking different components from the bills that have passed. The different laws that passed in Oregon and Maine have pretty significantly different structures in some sense, and so, it'll be interesting to see whether the other states follow suit, whether they trend towards one direction or the other, or if they start to emerge with unique programs that fit the needs of the individual states. But, I think that states won't wait and see until it's implemented. I think we'll see a lot more activity and people pushing towards trying to get these legislations, these bills, passed in the short term.

0:06:20 - Adept Group
You talked a little bit about the different approaches that states have. Just based on knowing all of that, how do you think the EPR regulations are going to change producers' approach to their packaging?

0:06:38 - Karen
I think a lot of producers, especially the ones that we work with at the Sustainable Packaging Coalition, are already working towards more sustainable packaging. They're looking for ways to incorporate post-consumer recycled content, reduce the carbon footprint of their processes, improve recyclability, all these different things, and so, it might not change their approach too much, but one thing it will do is require companies to keep detailed data on their packaging if they're not doing that already. But perhaps, like other brands that have been slower to make these changes, they will be further incentivized to do it when it becomes a law. The concept of the fee structure that discourages packaging materials or packaging design that is less environmentally friendly rewards better for more environmentally friendly, more sustainable materials and packaging formats, and so, that being written into the regulation may connect these, provide more specific guidelines and potentially connect the sustainable packaging formats to their bottom line in a more tangible way, and then having the targets that legislation also encourages potentially faster timelines and faster compliance to transition to these more sustainable formats.

0:08:00 - Adept Group
Yeah, that was a very similar thought to what I'm hearing from the sustainability experts on our team, the brands that have really focused on and started their journey towards more sustainable packaging are really not going to be impacted as much as maybe people who haven't been incentivized to start as much yet. The consumer preferences were the carrot, if you will, that led some brands on the road, and now, this is going to be the stick to get everybody who hasn't gotten moving in it into shape.

0:08:30 - Karen
Absolutely, and I think the interesting thing that we, a lot of brands, are looking at the most sustainable package that they can and how to transition to it. But, the sustainable end of life of a material is really dependent on the market in which it's introduced, which is why there are a lot of differences in these EPR regulations, especially when it comes to eco-modulation, because depending on what infrastructure or processing capacity or end markets exist, then they may change how different states value the eco-modulation incentives, and so that's, I think, an interesting factor to include too, is being aware of the differences between the legislations and seeing how that's going to impact packaging requirements in different ways.

0:09:21 - Adept Group
Speaking of those differences in recycling and compostable packaging and all those infrastructure differences from region to region, do you think that EPR is really going to be an effective catalyst for change, or do you think it's going to help incrementally, but we're still going to be waiting for the infrastructure to catch up to where we need to be?

0:09:43 - Karen
Yeah, that's a great question, and I think the real answer is it depends, or it remains to be seen. A lot of people talk about the need for a uniquely American version of EPR that addresses those challenges that we're facing within our recycling infrastructure and current system, and you can also see how that plays out by looking at the differences in the EPR bills that have been proposed and also in the laws that have been passed. They're designed to take into account, not only the infrastructure in a state, the market or the processing capacity, but also the government structure. But I think when it comes to changing the infrastructure, the existence of EPR doesn't necessarily equate to improved recycling rates or infrastructure. On one end of the spectrum, it could just change who's paying for the existing system.

We've seen a lot of industry positions and companies coming out in support of EPR, but a lot of them specify the need for a policy that is uniquely suited to address the realities of the current system while pushing for improvements to infrastructure and expansion, and then also setting aggressive but achievable targets. And so, if those are in fact achieved, then it would be an improvement.

But this also takes into account needs assessments that are built into a lot of the legislation to understand where the money would best be spent. But I think overall, if you step back, even the most effectively planned policy won't necessarily solve every problem, and the phrase that I hear a lot when it comes to sustainability and sustainable solutions is that it's not a silver bullet. Nothing's a silver bullet, whether that's technology or material or process. I think that applies to EPR as well. It's not a silver bullet. It's not a panacea, but it may help address shortcomings, particularly when it comes to funding gaps. But I think really, it's part of a larger system, and there's more work that needs to be done to address the limitations of that system across so many different aspects, and so, policy is just one component of that.

0:11:48 - Adept Group
Yeah, I think that's a thing that we have a lot in our conversations with our team here is that sometimes, people tend to look at new developments and sustainability as an “or,” like, “If we do this instead of what we're doing,” and really, we should start looking at them as “ands.” “We're doing this, and then we're going to add this, and we're going to add this,” and it's just going to be that incremental approach until we get where we need to be.

0:12:11 - Karen
Absolutely, and I think, taking that whole systems perspective, making sure that we're doing all of them, all the things that need to be done concurrently, that's going to be critical to really ensure that we change the system for the better.

0:12:26 - Adept Group
Karen, is there anything that we haven't touched on about EPR that you think is important, anything that we've overlooked or that you think we should talk about more thoroughly to give people a picture of how this is going to affect their packaging?

0:12:41 - Karen
I think what's really important, especially for producers of packaging, to know is just to understand what's going on, understand the landscape and understand how they can be involved, because I think that we could all agree that the most effective solution is going to be the one that takes into account the most perspectives and really looks at things that are data-based, that are backed by research, and so, ensuring that the right people are at the table to make these decisions is really important. And so, members throughout the packaging value chain that have a stake in this, it's important for them to be informed, to understand what is going on, what the differences are and what those differences would mean in practice, so that they can better take part in the discussions that we'll be developing and creating these programs to make sure that they're the most effective that they can be.

0:13:38 - Adept Group
I couldn't agree more. Karen, I want to thank you for taking some time out of your day to talk to us today. I think this will be really good for folks that aren't as familiar with what EPR is and have just maybe heard about it to help them. And, if you're listening and this is just a primer for you, the Sustainable Packaging Coalition has a really thorough guide to EPR on their website. I don't know if you had a hand in putting that together, but it's helped me a lot to wrap my head around what all this means. So, I direct people there, to sustainablepackaging.org, and look for the guide to EPR there.

0:14:12 - Karen
Yes, absolutely, and thanks for having me. And I agree, if there are any questions on that resource on the Sustainable Packaging Coalition, I'd be more than happy to answer them. But really, the purpose of that resource is, just like I said, to help inform stakeholders so that they can better take part in these discussions, and so we're glad to hear that it's useful.

0:14:31 - Adept Group
Okay, well, thanks again, Karen, and have a great day.

0:14:33 - Karen
Thanks, take care.

0:14:36 - Outro
Thank you for listening to Unpacking Excellence with Adept Group. For more resources on all things packaging, head to our website, adeptpackaging.com. Don't forget to subscribe, and thanks again for listening.

About Adept Group
Adept Group is a premier packaging partner for some of the most iconic brands in the food & beverage, CPG, pharmaceutical, medical device and industrial industries. Our team has expertise in over 60 specialized areas of focus and is the go-to for packaging needs, from cost optimization to regulatory compliance to design and engineering services. We work with clients to help them maximize the value of their packaging with personalized strategies specific to their industry and goals. Throughout the years, we’ve helped clients save hundreds of millions of dollars through cost-saving approaches to packaging that also coincide with sustainability efforts, helping build trust and credibility with consumers. If you have a packaging challenge, we’re up for it. Get in touch with our team of packaging engineering experts today to get started.