Product Stewardship. Terence Jeyaretnam Climate Change and Sustainability Services (CCASS)

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1 Product Stewardship Terence Jeyaretnam Climate Change and Sustainability Services (CCASS)

2 Background EY and PVC Schemes Drivers Attributes Opportunities

3 A world wide study for a world wide issue Inovyn EY Belgium Global Product Stewardship Council Vinyl Council of Australia Equilibrium Resource Recovery and Productivity Authority Sustainability Victoria Tyre Stewardship Australia

4 Definition of product stewardship an approach to managing the impacts of different products and materials. It acknowledges that those involved in producing, selling, using and disposing of products have a shared responsibility to ensure that those products or materials are managed in a way that reduces their impact, throughout their lifecycle, on the environment and on human health and society Paint PVC Tyres Packaging Televisions and Computers (e-waste)

5 Approaches to product stewardship Mining Extraction Refining Raw materials Cutting/ stamping/ moulding Transport Packaging Electricity Fuel Toxicity Repair Landfill Recycling Production Distribution Use Disposal Most PS schemes focus on end of life Mercury avoidance Best practice manufacturing Safe and sustainable use of additives Energy and greenhouse gas emissions Open disclosure Responsible consumer care Resource efficiency The PVC scheme takes a whole of life approach

6 Drivers for product stewardship We asked experts to nominate the key drivers for product stewardship. Community concern Industry willingness Increasing regulation Concern over use of toxic substances in products, resulting waste both on land and in the oceans, is leading to an increase in expectations from consumers that these matters are managed adequately. This is reflected in legislation both locally and internationally.

7 Six key attributes of product stewardship schemes Our research found six important attributes of successful product stewardship schemes Materiality approach Flexibility to innovate Informing targets by data Independent auditing Market for recycled materials Participation of key Stakeholders

8 Six key attributes materiality approach Unfortunately, eco-design has not had the impact we would have hoped for, especially in more complex products such as electronic goods, where practices such as gluing in batteries and other components makes products harder to recycle.

9 Six key attributes - flexibility to innovate Despite strong regulation in Europe, our colleagues from this region emphasised the importance of developing a scheme that allows for adequate flexibility for companies schemes cannot be too prescriptive, yet should clearly set expectations from producers. Paintback Sodastream

10 Six Key Attributes - targets and auditing Target setting Independent auditing Data

11 Six key attributes a market for recycled materials Recycled content products Green Sword policy

12 Six key attributes participation of stakeholders Gaining complete, or mostly complete, participation of industry can be a challenge, even in regulatory programs, as some companies may not agree with the program or parts of it. Free riders Free riders are companies who are part of an industry who has a product stewardship program but do not actively participate. Regulatory programs are intended to resolve this issue, but from our research, this was not necessarily the case.

13 Opportunities for the PVC industry Circular economy - Increasing the value of the recycled PVC - Ensuring high quality of recycled PVC - Reducing the cost of recycling PVC - Improving market arrangements Social factors - Modern slavery - Labour rights, ethical treatment The PVC industry can prepare itself by understanding and documenting current practice in its supply chain related to these aspects

14 Summary Drivers Attributes Opportunities

15 Q&A

16 Contact Terence Jeyaretnam Partner Climate Change and Sustainability Services Office: Direct: Mobile: terence.jeyaretnam@au.ey.com Page 16 Copyright 2017 Ernst & Young Australia. All Rights Reserved. Liability limited by a scheme approved under Professional Standards Legislation