New Sustainability Laws Will Transform US Manufacturing and Food Processing

What Is Extended Producer Responsibility (EPR)?

EPR is a policy approach under which producers are given significant responsibility—financial and/or physical—for the treatment or disposal of post-consumer products. It may require producers to finance or manage the collection, recycling, or disposal of their products. The goal of these policies is to encourage producers to consider the end-of-life impact of their products during the design phase, leading to less waste and more recyclable materials.

A “producer” is a company whose product reaches the end user, although the final definition and exemptions are still being ironed out.

3 Key Elements of EPR 

EPR programs generally involve several key elements:

1. Design for Recycling 
   Producers are encouraged—or mandated—to design products that are easier to recycle, potentially using materials that can be more efficiently processed by recycling facilities.
2. Financial Penalties
   Producers may be required to pay for the costs associated with collecting and recycling products once they become waste, and they may receive penalties for violations. With California’s SB-54, fines for violations can rise as high as $50,000 per day, per violation.
3. Collaborative Strategies
   EPR policies often encourage collaboration across the supply chain to enhance product design, waste collection, and recycling processes. This can include partnerships with governments, recyclers, and other stakeholders. 

Some US-based packaging companies, like The Boxmaker, headquartered in Kent, Washington, are actively preparing for EPR compliance. Kristi Duvall, VP of sales, shared: “To support our clients in complying with upcoming EPR laws, we’ve established a dedicated Sustainability Council to ensure we are working towards meeting both current and future requirements. Additionally, we continuously develop and source innovative sustainable packaging solutions, such as paper-based Hexpand and 100% compostable Cruz Foam, to improve our clients’ sustainability profile.”

Bioplastics are another option that can help companies reach their sustainability goals. Zach Muscato, corporate sustainability manager for Madison, Wisconsin-based Plastic Ingenuity, said: “Bioplastics are a polymer made from renewable sources, with an emphasis on circularity for sustainability — not just recycling or composting. This gives manufacturers the option to pack even more sustainability into their products.”

Global Adoption and Challenges

The adoption of EPR policies is growing globally, with countries in Europe leading the way and others like Canada, Japan, and some states in the US gradually following. However, EPR implementation faces challenges. These include setting up an efficient collection and recycling infrastructure, defining the roles and responsibilities of involved parties, and ensuring transparent and fair practices.

We’ll soon see how these challenges unfold. According to Lucy Pierce, Sustainable Packaging Coalition senior project manager: “2025 is the year we will start to see actual implementation of the laws in real time, so while we do expect many growing pains, in the next year we will start to hear lessons learned coming out of states like Oregon and Colorado as they put plans into motion and funding starts to flow into municipal recycling programs.”

EPR Laws: A Step Toward Sustainability

As the world grapples with environmental challenges, EPR stands out as a promising solution to promote sustainable production and consumption patterns. By extending the producer's responsibility beyond the factory gates to the post-consumer stage, EPR not only mitigates waste but also fosters a circular economy where resources are continuously reused.

For businesses, adapting to EPR laws isn't just about compliance and risk mitigation—it's a step toward sustainability, innovation, and long-term viability in a rapidly evolving global market.

It’s essential to partner with an insurance broker who not only understands your industry but also provides insight and strategic guidance to navigate future risks effectively. Reach out to your Woodruff Sawyer account team for guidance and additional information.

For more information about EPR, definitions, and potential exemptions, visit the Sustainable Packaging Coalition website.