National Product Stewardship ForumSan Francisco; May 30

Industry Product Stewardship in British Columbia

Neil Hastie, President & CEOEncorp Pacific (Canada)

2

OUTLINE

1. Encorp Pacific (Canada)2. Product Stewardship in Canada3. “Industry” Product Stewardship in BC4. Product Stewardship Corporation5. Q & A

3

Encorp Pacific (Canada)

1. Product Stewardship Corporation2. Industry Organization3. Not for Profit4. Operate private depot collection

network $100 Million Staff of 25 Outsource all Logistics 170 Return It™ Centres Recover 75% beverage containers All products including milk E-Waste (cpu and display devices)

4

Product Stewardship Defined

1. A management system based on industry and consumers taking life-cycle responsibility for the products they produce and use

2. Also known as EPR “Extended Producer Responsibility”

5

Stewardship/EPR is Here in Canada

1. Scale:$400 million (est.)2. Material Specific: Beverage Containers

Curbside and Deposit Tires Batteries Paint Household Hazardous Waste Used Oil, Containers, Filters Used Pharmaceuticals Electronics-*new* Consumer packaging and

printed papers-*new*

6

7

Always Rough Waters for EPR

1. Opposition from Producers

2. Local and Regional Politics

3. Who pays ?4. Vested interests in

MSW

8

Producer’s View of Risk

1. Government BureaucracyOR

2. Competitive DisadvantageOR

3. Unsustainable Funding OR4. Vested Interests

9

Advocates View of Opportunity

1. Polluter Pay2. Upload costs to

industry and consumers

3. Relieve local government of costs

4. Stimulate design for Environment

5. Better Performance

10

Regulators View of Effectiveness

1. Ease of implementation

2. Adaptive to market changes

3. Apolitical4. Non-bureaucratic5. Results based

11

Stewardship Programs in British Columbia

1. Tires-19912. Batteries-19913. Used Oil-19924. Paint-19945. Household Hazardous Waste-19976. Beverage Containers-1970/19987. Used Pharmaceuticals-19978. Electronics- 20079. General Packaging and Printed

Paper-200810. Vehicles at End of Life -200?

12

ReturnIt™ DEPOT•Beverage Containers

•Paint•HHW & E-Waste

BLUE BOX/RDO•Printed Papers

•Packaging•Newsprint

RETAIL•Tires

•Batteries•Pharmaceuticals•Used Oil, Filters

CONSUMER

13

Tires $5

Battery $3

Paint $1POP $.12

Solvent $2

Oil $5TV $25CPU $10

WALMART

14

Paradigm Shift in BC

1. Government regulates does not operate nor prescribe

2. Principles and outcome based regulation

3. Industry establishes & operates diversion programs

4. Financed via visible consumer advanced disposal fees

15

Principles for Product Stewardship

1. Producer-User Responsibility2. Level Playing Field3. Results Based4. Transparency & Accountability

Product Production Through the Product’s End of Life

1.Ensure healthy and safe communities2.But don’t dictate how to build a product

1.Require a producer-driven plan and public annual report2.Ensure compliance3.But don’t set fees or dictate procedures

16

Stakeholder Universe

StewardshipCorporation

CommunityLeaders

BrandownersRegulators

Consumers

RecyclingContractors

17

Roles & Responsibilities

The Public

Provincial Government

Local Governmentsmunicipalities and regional

districts

Non-Government Organizations

environmental and consumer

Government and Non-Profit Sector

Not-for-profit Corporate Sector

Encorp Pacific Product Stewardship

CorporationRetailers

Brand Owners

For-profit Corporate Sector

Private Sector Recycling Industry –

depots, processors, transporters and recyclers

18

Hobson’s Choice for Producers

Brand Supremacy

Commercial Confidentiality

Self Reliance

Lobby for Self Interests

Corporate Culturefor

Producers

Organizing Principlesfor

Stewardship Corporation

All Products are Generic

Detailed Sales Data provided

Success through a Co-operative

Delegate Interests

19

Striking the Balance

1. Key Principles: Governance Standards No Cross Subsidy Transparency & Accountability Stakeholder Consultation Continuous Improvement

2. Government Quid Pro Quo Out of Board Room and Bank

Account Outcome based Regulation

20

Can Industry be Trusted?-YES!

Principles Performance

21

Q & Awww.encorp.ca