Extended Product Responsibility

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1 United States EPA530-K Environmental Protection December 1998 Agency Solid Waste and Emergency Response (5306W) Extended Product Responsibility A Strategic Framework for Sustainable Products Printed on paper that contains at least 20 percent postconsumer fiber.

2 Extended Prod EXT E N D E D PRO D U C T RE S P O N S I B I L I T Y, A N E M E RG I N G E N V I RO N M E N TA L P R I N C I P L E, can help businesses spark produ ct innova ti on, c ut co s t s, and en h a n ce custom er l oya l ty, while growing market share at home and abroad. Making Product Systems a New Focus Worldwide demand for more complex products, coupled with the challenge of sustainable development, highlights the limits of traditional environmental protection strategies. End-of-pipe emissions controls, and even pollution prevention measures, generally address environmental impacts at individual industrial facilities. But the diffuse impacts from products themselves (whether from obtaining or making raw materials, manufacturing, or product use and disposal) are not fully addressed by these facility-specific strategies. A new emphasis on greening product systems is emerging as a means to advance pollution prevention and resource conservation in a more holistic and global fashion. This thinking is having powerful implications in the global marketplace. One manifestation is the growing trend in Europe to mandate producer takeback and recycling of products at the end of their useful lives. This approach, known as extended producer responsibility is intended to reduce waste, boost recycling, and drive environmentally conscious design. Some Asian countries, as well as several Canadian provinces, are implementing or considering producer responsibility mandates as well. In the U.S., a different concept is taking hold. Extended product responsibility recognizes that manufacturers have considerable ability to reduce the life-cycle impacts of their products. However, it also recognizes that lasting and substantial environmental improvements in product systems can only occur with the combined expertise, ingenuity, cooperation, and commitment of all the actors in the product chain from suppliers, designers, manufacturers, and distributors to retailers, customers, recyclers, remanufacturers, and disposers. While reducing

3 uct Responsibility end-of-life product waste is an important part of extended product responsibility (EPR), identifying other important life-cycle environmental impacts of products, such as energy efficiency, is also integral to the concept. In this sense, EPR applies a life-cycle approach to greening product systems. EPR is related to several familiar environmental policies and trends pollution prevention, design for the environment, greening the supply chain, product stewardship, eco-efficiency, and sustainable development. What distinguishes EPR from these concepts is its focus on product systems and engaging all players in the product chain. EPR is a means for making product systems sustainable. Co n su m ers and Govern m ents Are Al so Cri tical Pl ayers for EPR In ke eping with the pri n ci ple that re s po n s i bi l i ty is s h a red, E PA is pro m oting actions that different pl ayers in the produ ct chain can t a ke to redu ce the envi ro n m ental impa cts of produ ct s. Exa m ples incl u d e giving co n su m ers bet ter economic signals to redu ce wa s te throu gh va ri a bl e ra te pri cing for ga rba ge disposal and wo rking to en su re that govern m en t s buy envi ro n m en t a lly prefera ble produ cts and redu ce reg u l a to ry ba rri ers to re cover produ cts at the end of t h eir useful live s. Why Should My Company Consider EPR? Many companies have realized important product improvements enhanced reliability, performance, and energy efficiency by applying EPR. By bringing more value to customers through greener products, companies can earn greater customer satisfaction and loyalty. In addition, reducing toxics in products helps reduce potential future environmental liabilities. EPR also can save companies money through increases in efficiency and recovery of previously wasted materials. Many major manufacturers are realizing that, in the long run, it is more efficient to reuse certain

4 Ford Motor Company s bumper take-back program saves about $2 million each year. components and recapture the va lue ad ded du ring the ori gi n a l m a nu f actu ring proce s s. For ex a m p l e, Xerox Co rpo ra ti o n c re a ted its As s et Rec ycle Ma n a gem ent program to take back used produ cts for rem a nu f actu ri n g, convers i on, or disassem bly and saved over $50 mill i on in the firs t ye a r. The Fo rd Motor Co m pa ny e s ti m a tes that its plastic bu m per take - b ack progra m, c re a ted to rec ycle old bu m pers into new bu m pers, s ave s a bo ut $2 mill i on each ye a r. Finally, many U.S. companies already practicing EPR are responding in part to initiatives in Europe, Asia, and other critical international trading regions. For the global marketplace, EPR is becoming a passport for doing business. How Does EPR Work? For manu f actu rers, the essen ce of EPR is taking on re s pon s i bi l i ty and ad d ressing the envi ron m ental impacts of t h eir produ cts wh ere they have not done so before. This can inclu de rethinking the very con cept of t h e produ ct (e.g., s elling a servi ce ra t h er than a produ ct ); ex p l oring new met h ods of produ ct del ivery; c re a ting a feed - b ack loop with custom ers to drive envi ron m en t a lly sound saved $50 million Xerox Corporation rede s i gn of produ ct s ; and closing the produ ct in the first year of its m a terials cycle and con s erving re s o u rces by h a n dling en d - of - l i fe produ cts as asset s. Here EPR program. a re some ways that produ ct manu f actu rers can make a differen ce : Raw materials selection Companies can reduce the amount and toxicity of the raw materials they use and incorporate recycled material into their processes. For example, in addition to its standard raw material performance requirements, Hewlett-Packard requires suppliers to address its E (for environment) standards, which include meeting minimum plastic recycled content levels and other specific environmental performance criteria.

5 Production impacts Companies can look for opportunities to reduce process wastes, energy consumption, and toxic chemicals used in production. Nortel teamed with its main chemical supplier in an i n n ova tive s h a red savi n gs a pproach. The su pp ly con tract, b a s ed on ch emical servi ces provi ded ra t h er than on the vo lume of ch emicals purch a s ed, contains incentives for both firms to redu ce ch emical use. After developing a new recycling technology, DuPont Films now collects and recycles used PET film from retailers nationwide. Product use Companies can design their products and services to use fewer resources (including less energy) and generate less waste after the products leave the factory, without compromising cost and performance features important to customers. Instead of simply selling carpets, Interface Flooring Systems leases long-term carpet services: the company designs and installs sections of carpet based on an analysis of traffic patterns in customers facilities, replaces worn sections as needed (recycling these sections), and periodically recarpets the entire space using both new and existing carpet. Recycling and reuse Produ cts can be de s i gn ed for rec ycl a bi l i ty and/or easy disassem bly for rep a i r, reu s e, u pgrad i n g, and rem a nu f actu ri n g. To improve the rec ycl a bi l i ty of its ref ri gera tors, Fri gi d a i re con s o l i d a ted s everal types of p l a s tic into a single po lyc a rbon a te i m proving rel i a bi l i ty at the same ti m e. Products at end-of-life Companies can take products back for recycling or remanufacturing or establish themselves as a market for secondary materials collected by others. In 1995, members of the rechargeable nickel-cadmium battery industry established the Rechargeable Battery Recycling Corporation (RBRC). Joined by over 28,000 retailers, the RBRC launched a nationwide industry-funded recovery system to take back and recycle nickel-cadmium batteries.

6 As these examples illustrate, EPR means creating partnerships between manufacturers, suppliers, waste handlers, and customers to collectively improve the environmental performance of products. A number of U.S. companies are leading the way to sustainable product systems by incorporating the whole vision of EPR applying its principles to all stages of the product life cycle. Visit for more details on EPR worldwide. To realize EPR in practice, companies must commit to weaving the EPR principle throughout the entire organization starting from the top. Corporate leaders must promote this new vision and signal their willingness to consider innovative product strategies and nontraditional relationships with other players along the product chain. Th ere is no on e - s i ze - f i t s - a ll EPR soluti on appropri a te for all produ ct s ys tem s. Look for ways to implem ent this principle that make envi ron m ental and econ omic sense for your produ ct s. Companies are su cce s s f u lly i m p l em en ting EPR as a stra tegy for improving produ ct perform a n ce and i n c reasing market share. Add EPR to your com p a ny s futu re vi s i on and re a l i ze many of its po ten tial ben ef i t s. EPR and the Pre s i d en t s Cou n cil on Su s t a i n a ble Devel opm en t In the 1996 repo rt Su s t a i n a ble Am eri c a : A New Con s en su s, t h e Pre s i d en t s Cou n cil on Su s t a i n a ble Devel opm ent (PCSD) po i n ted to exten d ed produ ct re s po n s i bi l i ty (EPR) as a way to ach i eve bet ter re sou rce co n serva tion and poll u tion preven tion at lower co s t. T h i s en d o rsem ent co n s ti tu tes a ch a ll en ge to the Am erican pe ople to devel op m od els of s h a red re s po n s i bi l i ty and dem o n s tra te how these mod els can be put into ef fe ct. Foll owing the repo rt, a Wo rk s h op on Exten d ed Produ ct Re s po n s i bi l i ty, h eld in Wa s h i n g to n, D. C., u n d erl i n ed co rpo ra te Am eri c a ' s growing interest in EPR. With this broa d - ba sed su ppo rt as a ba ck d rop, the U. S. Envi ro n m ental Prote ction Agency (EPA) is en cou ra gi n g Am eri c a s top co m panies to en ga ge actively in EPR initi a tives and h elp accel era te the move towa rd su s t a i n a bi l i ty.

7 Are There Mandates for EPR in the US? There are no federal mandates for product responsibility comparable to the existing or proposed takeback and recycling mandates for packaging, electronics, and other products in Europe. However, some states have EPR-like requirements, such as deposit-refund systems for beverage containers, tires, and used oil. Also, some states require producers to take back some kinds of used batteries and are considering ways to encourage recovery of other products such as electronics. EPA is interested in steering producers and other players in the product chain voluntarily toward EPR. EPA has learned that voluntary measures implemented by those most familiar with products and their distribution and use often achieve more environmental improvement at less cost than mandates. Voluntary measures that potentially reduce the need for mandates can have environmental and economic benefits for both business and society as a whole. Where Can I Find More Information? For more information on EPR, including how other companies are using this principle and links to related programs, visit our EPR website at The mention of any company, product, or process in this publication does not constitute or imply endorsement by the U.S. Environmental Protection Agency.

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