Budweiser Budvar UK has been fined £414,000 by the Environment Agency for failing to comply with packaging recycling regulations for 18 years.
The company did not register as a producer of packaging waste in 2004, as required under the Producer Responsibility Obligation Regulations on packaging, which apply to products placed on the UK market regardless of whether they are made in the UK or imported. Budweiser Budvar UK believed that the Regulations only applied to UK-made goods, an oversight which was discovered during a two-year investigation by the Environment Agency.
Upon realizing the mistake, Budweiser Budvar UK took immediate action to rectify the situation. They paid the fine to the environmental charity Keep Britain Tidy, which will use the funds for their Great British Spring Clean campaign. The payment includes the amount saved by not recycling, plus a 30% penalty.
The money was paid as part of a reactive Enforcement Undertaking, as an alternative to prosecution.
The company has now implemented measures to ensure full compliance with the Regulations and has covered the Environment Agency’s costs.
Jake Richardson of the Environment Agency emphasised the importance of businesses taking responsibility for the packaging they place on the UK market.
He said Budweiser Budvar UK "wanted to do the right thing" by "ensuring that all avoided recycling costs were donated to a project that will enhance, restore and protect England’s natural environment".
Budweiser Budvar has taken several proactive measures to address their past oversight in packaging recycling compliance. They have registered with Veolia’s Compliance Scheme, appointed a responsible staff member to ensure future compliance, and implemented new internal processes. The Environment Agency has audited and approved these measures.
The company emphasises its commitment to environmental stewardship and regulatory compliance.
Extended Producer Responsibility
News of the prosecution came on the same day that the UK Government released the first indicative base fees for upcoming Extended Producer Responsibility (EPR) scheme for packaging, which will come into force in 2025.
The EPR scheme builds on the Producer Responsibility Obligations and will make those who introduce packaging into the market responsible for its entire lifecycle,ensuring product design incorporates considerations for disposal and recycling.
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