4 minute read
DEPOSIT RETURN SCHEME
NEWS SPECIAL
DRS BECOMES LAW – SO WHAT NEXT?
MARK BRILL, VICE PRESIDENT SALES AND MARKETING, TOMRA COLLECTION SOLUTIONS UK & IRELAND.
THE SCOTTISH PARLIAMENT VOTED TO PASS DEPOSIT RETURN SCHEME (DRS) LEGISLATION INTO LAWLAST WEEK. WE CAUGHT UP WITH TOMRA’S MARK BRILL TO FIND OUT WHAT’S NEXT FOR RETAILERS.
SO, DRS IS NOW PASSING INTO LAW?
Yes, on 13 May the Scottish Parliament voted in favour of passing DRS legislation into law. This means that Scotland’s DRS is set to launch in 2022.
WHAT HAPPENS NEXT?
A Scheme Administrator will be appointed in the next few month. They will be responsible for the operational aspects of the scheme. Once the Administrator has been established, we expect more details about the scheme to be made available, well ahead of the start date.
WHEN DOES DRS COME INTO FORCE IN SCOTLAND?
The ‘go live’ date for the scheme has been set as 1 July 2022.
WHAT STAGE IS THE REST OF THE UK AT?
The rest of the UK is set to introduce a DRS in 2023. Introducing the scheme is part of DEFRA’s Environment Bill which is currently passing through parliament. A second public consultation is due during 2020, to assess the scheme design in more detail.
HOW MANY OTHER COUNTRIES GLOBALLY HAVE A DRS SYSTEM?
Around the world, deposit return schemes are a tried and tested way of achieving high recycling rates. In total there are about 40 countries/regions which operate a DRS, including countries such as Norway, Sweden, Germany, and Croatia. DRS is also used in most Canadian provinces, 10 US states, and large parts of Australia.
WHICH MATERIALS ARE INCLUDED IN THE SCOTTISH SCHEME?
The scheme will include PET plastic bottles (such as most fizzy drinks and water bottles), steel and aluminium cans, and glass for all types of drinks in these containers ranging from 50ml to three litres.
WHAT IMPACT WILL A DRS HAVE ON RECYCLING RATES?
A DRS is a proven way of achieving high recycling rates for beverage containers, reducing the negative impact that this waste has on the planet. The goal of the Scottish scheme is to capture 90% of drinks containers within three years. A DRS is effective in increasing recycling rates as it gives containers a value, encouraging them to be returned rather than discarded as litter or sent to landfill.
WHEN SHOULD RETAILERS START PLANNING FOR HOW THEY WILL COPE WITH THEIR NEW RESPONSIBILITIES?
Some large, multi-site retailers are already planning for how they will accept returns, since their different sites could require different equipment. For smaller sites, we would recommend that retailers use this time to understand the scheme and their role within it. This could include speaking to other retailers who have run trials and through online resources, such as those we have created at www.tomra. com/uk.
WHAT OPTIONS ARE OPEN TO THEM?
Choosing between manual or automated returns via a reverse vending machine (RVM) is the first choice to make. Retailers know their shoppers, so should start by thinking about how many they would typically serve in a week and if a great recycling experience would be something they value. When it comes to reverse vending machines, Tomra has a range of solutions for every store size. We have a brand-new machine designed specifically for Scottish retailers. The Tomra M1 concept machine is space efficient, handles all three materials – glass, PET bottles and cans – and it does so for an affordable price.
FROM YOUR TRIALS IN SCOTLAND, WHAT HAS CONSUMER RESPONSE TO RVMS BEEN?
The response from consumers in Scotland has been very positive. Shoppers are often surprised by how easy and intuitive using an RVM is and like the fact that they can ‘do their bit’ for the environment. We do see a greater uptake in stores with a higher incentive, highlighting that the 20p deposit will be a crucial way of engaging a broad spectrum of shoppers.
WHAT ARE THE POTENTIAL COMMERCIAL BENEFITS TO RETAILERS?
Retailers will receive a handling fee for each container that they take back, this is estimated as 1.1p for manual returns and 2.8p for automatic returns. The aim of this is to cover the costs incurred by acting as a return point. Aside from the handling fee, retailers should see a benefit in attracting and keeping valuable shoppers who might choose their store based on who has the easiest and fastest recycling facilities.
HOW SHOULD RETAILERS APPROACH THE CHALLENGE?
Keep in mind that the introduction of a DRS creates a wealth of opportunities, from helping the environment to attracting consumers. Plus, if retailers choose to give consumers the option of donating their deposits to a nominated charity, it is also a chance to foster a sense of community and make a difference in other ways. Speak to other retailers who have run trials, find out what worked for them and always keep the shopper in mind when planning how to accept returns.
WHAT ARE THE KEY LEARNINGS FROM RETAILERS IN OTHER COUNTRIES THAT ALREADY HAVE A DRS?
Once a DRS is up and running, returning containers becomes an important service as part of people’s regular shop. This means that speed and ease of use is critical – users can become frustrated if an RVM is not available.
Consider the busiest times in the store as well as the total number of shoppers served each week. Our experience has shown us that 40% of empty containers are returned within the seven busiest hours of each week, so fast solutions are needed to avoid long queues.
Most shoppers will use their returned deposits to pay for groceries in the store, so making this a seamless process for them is crucial.
