The Extended Producer Responsibility Act (EPRA) of 2022 is the law that amends Republic Act 9003, otherwise known as the Ecological Solid Waste Management Act of 2000, to institutionalize the requirement on big companies to reduce and/or recover for reuse, recycling, treatment or proper ecological disposal the plastic packaging waste that they release or released to the domestic market.

Among the objectives of the EPRA is to achieve plastic neutrality wherein every amount of plastic product footprint created, an equivalent amount thereof is recovered or removed from the environment by the product producers through an efficient waste management system.

Based on the Department of Trade and Industry data, there are at least 4,000 large enterprises in the Philippines that are covered by the EPRA. However, as of February 2024, less than 900 companies or obliged enterprises (OEs) had registered with the EPRA.

Last 1 July was the deadline for the submission of the first EPR Compliance Audit Report or ECAR by all OEs to the Department of Environment and Natural Resources’ Environmental Management Bureau, the implementor of the law. Among those that submitted their ECAR was the Philippine Business for Social Progress (PBSP), a producer responsibility organization (PRO) or group of OEs. PBSP’s ECAR covers 29 OEs.

Navigating EPRA

As a PRO, PBSP provides services to OEs, including its members, in navigating compliance with EPRA regulations. It offers an end-to-end solution, guiding the companies through the entire project cycle, providing education, tools, support for data reporting, audit assistance, and facilitating collaboration with authorities.

“This comprehensive approach ensures a smooth and efficient compliance process for large enterprises,” says PBSP executive director Elvin Ivan Uy.

“The high level of compliance is evidenced by the successful diversion of 1,098,450 kilograms of plastic waste through PBSP’s partner waste diverters, upcyclers, and recyclers: Evergreen Labs, Sentinel UpCycling Technologies, Ecoloop Republic Cement and The Plastic Flamingo,” adds Uy.

“One of our waste diverter partners, Evergreen Labs, provides a state-of-the-art technological solution for real-time monitoring and management of waste collection and recycling processes,” he says. “This system ensures efficiency, transparency, and compliance with regulatory standards, enabling a more streamlined approach to waste management.”

Meanwhile, the cost of EPR compliance can vary significantly between big and small companies, according to the PBSP head.

“In the case of PBSP, as part of our EPR Services, we offer customized plastic credit management and personalized solutions for plastic waste management. This includes a fee per kilogram of plastic waste. Therefore, a large enterprise with a higher plastic footprint will incur a correspondingly higher cost under EPR. Conversely, smaller companies that generate less plastic waste will incur lower fees,” he says.

Challenges

Among the challenges of complying with the EPRA is navigating the intricacies of EPR regulations and obtaining accurate data reports from OEs, according to Uy.

“PBSP addresses these challenges by actively attending and participating in discussions and workshops about EPR organized by the DENR. Through participation in these events, PBSP strengthens its capacity as a PRO. This allows us to provide more detailed guidance and education to our OEs regarding EPR compliance,” he says.

Additionally, to ensure continuous improvement in its EPR program, PBSP has partnered with P&A Grant Thornton, a reputable accounting firm in the Philippines. P&A Grant Thornton serves as the official third-party EPR compliance auditor, conducting audits of the PBSP EPR program for the reporting year 2023. This partnership provides valuable feedback that helps PBSP identify areas for improvement and strengthen its program.

PBSP also actively participates in various corporate social responsibility activities directly impacting communities. One such activity involved organizing a visit to the material recovery facility (MRF) in Barangay Novaliches Proper, Quezon City.

“This allowed OEs to learn how to utilize the MRF at the community level effectively,” Uy says. “Also, under this program, waste collectors and estero rangers collected 300 kilograms of plastic and received rice as incentives. OEs also visited Sharon Farm, an urban farm maintained by the community, where recycled plastics from the MRF were used to form planting racks and other materials.”

The EPRA needs the likes of PBSP to successfully tackle the plastic waste crisis.

Another PRO, PCX, says the Philippines is at the epicenter of the world’s plastic waste crisis. Citing a 2020 World Wildlife Fund report, it says the country consumes over 2,150,000 metric tons of plastic each year but just 9 percent is recycled and a whopping 35 percent makes its way into the environment.