SUSTAINABILITY
The DRS – what to expect W
hat to expect from the proposed Deposit Return Scheme (DRS) for the UK was brought front and centre at a webinar hosted by the Automatic Vending Association last month.
The webinar heard that the DRS had now been brought into law in Scotland and will go live there in July 2022 with the rest of the UK likely to follow in spring 2023 with possible different start dates for the individual home nations. The DRS is a sustainability initiative aimed at creating a circular economy
by keeping packaging in the economy and out of the environment. Guest speaker, director of sustainability for soft drinks producer Britvic,
Trystan Farnworth, said: “While not everyone likes everything about the DRS, the fundamental issue is to sort out the packaging waste problem. Littering is a grotesque waste of resources, where resources are so scarce.” “If we want to have a circular economy, we must make sure there
is enough good quality and quantity of resource and without a DRS that quality and quantity won’t be there.”
The ScoTTiSh SySTem
John MacDonald of the AVA Environment Committee told the webinar that the DRS in Scotland would mean 90 per cent of drinks containers made of plastic, glass and aluminium would be recycled, with 10 per cent leaking into the economy. There will be a minimum of 17,300 return points across Scotland
and deposits will be paid from 1 July 2022. It would work as follows: 1. Buy a drink, 2. Return packaging 3. Deposit is returned and 4. Material is gathered and recycled.
Timeline • 1 January 2021 is the role out date. Exemptions can be applied for as well as applications to be a voluntary return point. Vending is exempt but there are exceptions for example if you have a small shop. In that case you will have to apply to be exempt.
• 1 January 2022 producer obligations must be met – deposits, materials and barcodes.
• 1 July 2022 the DRS will go live. That means all the deposits will be on the bottles. The period from January to July will be an implementation phase to enable removal of old stock and replenishing with new.
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Impact on Vending • The Deposit will be 20p per container payable on invoice. • This could impact cash flow for vending companies, however Mr MacDonald stressed that as this is not a tax (it’s based on a circular economy) and once the cash flushes through machines the 20ps will be returned. He added that it was important to note that the 20ps are VAT free.
How can vending operators benefit: • There is an incentive to buy an RVM (Reverse Vending Machine). A handling fee is paid by the Scottish Government meaning whoever owns it will be able to claim back the 3.5p.
Caution was urged before investment however with businesses urged to investigate the capital costs of buying an RVM first. • Being involved with the DRS could increase a company’s Corportate Social Responsibility.
Will vending companies have to take back materials in scope? They will NOT have to take back materials in scope. Exceptions will however apply to vending operators who also have catering on site; vending operators who have entered into a contract with a client where it is mandatory and vending operators who have any form of over the counter service.
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