The Impact of Rising Sustainability Regulations

The relentless pace of regulatory changes in the UK and EU is sending shockwaves through the sustainability landscape. Dominic Watkins, partner and global head of Consumer sector at DWF, highlights the complexities and challenges that businesses face in navigating this evolving compliance environment.

While the surge in sustainability-related legislation signifies a serious commitment to addressing environmental concerns by the UK and EU governments, it has left many businesses feeling overwhelmed. The rapidity of these changes and their diverse range of topics, from waste management to food durability, green claims, and more, has created uncertainty about where to begin implementing these regulations.

The EU’s extensive work programme encompasses sustainability across various sectors, including food systems, packaging, and extended producer responsibility. Additionally, there are requirements for sustainability reporting at EU and local levels, as well as the forthcoming Corporate Sustainability Due Diligence Directive.

Keeping track of which obligations are currently in effect, what’s on the horizon, and how these regulations will impact businesses has become increasingly challenging. Despite the fast-paced changes, some view this as a positive step, while others believe it might be too little, too late.

In the UK, 2023 has been a year marked by the postponement of many measures, with 2025 expected to become a pivotal year for sustainability issues. Several policies, including the Scottish Deposit Return Scheme and the Extended Producer Responsibility (EPR) scheme in England, have been deferred until 2025, effectively making them the responsibility of future administrations. These decisions have raised concerns as critical issues remain unaddressed.

However, there are bright spots, such as the ban on single-use plastic bags scheduled for October 2023 and voluntary food waste reporting. In October, a consultation on the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 will conclude. Businesses will need to determine their role as producers with recycling information obligations, which can be complex. The consultation also questions the clarity of recycling information and packaging labelling requirements.

In 2023, a significant shift has occurred in the scrutiny of Green Claims, with increasing risks associated with misleading claims. While the UK hasn’t regulated Green Claims as rigorously as the EU, changes in the advertising landscape demand greater care in making such claims. The forthcoming Digital Markets Competition and Consumers Bill will have implications for sustainability by enhancing consumer protection laws and empowering authorities to issue substantial fines for breaches.

Within this wave of change, staying informed is vital, but it’s not enough. Businesses must also engage actively in shaping policies through trade associations and stakeholder engagement. This proactive approach is essential to ensure that sustainability regulations are effective and practical, reducing the likelihood of further delays and uncertainties, especially those that might arise in 2025.

In conclusion, the rising tide of sustainability regulations presents both opportunities and challenges for businesses. Staying informed, engaging with stakeholders, and navigating the evolving compliance landscape are key to ensuring a sustainable future.