One critical trend in government policy emerged in the European Union in the early 1990s: Extended Producer Responsibility (EPR) Directives.

As the name implies, EPR Directives place greater responsibility on manufacturers for the environmental impact of their products. These laws shift the focus from where products are made to where they are sold, and from the manufacturing process to the product itself. The impact of EPR legislation is far broader than previous source-point legislation, and it can impact the entire supply chain, representing hundreds of thousands of companies worldwide.

Collectively, EPR Directives represent the mainstreaming of product-oriented environmental legislation. They are driving industries towards “sustainable manufacturing”, a loosely-defined term which in the EU means that by the 2015-2020 timeframe any product placed on any EU market by any company has minimal negative health and environmental impacts. And, as discussed below, these policies have driven a substantial increase in material declaration and other data collection, exchange, management and reporting requirements, as well as the development of data formats to exchange this information.

While EPR Directives place greater responsibility on users, importers, retailers, waste management contractors and other “actors”, the lion’s share of responsibility is placed on finished goods manufacturers. Why? Because, according to a German EPA study, approximately 80% of negative health and environment impacts are related to the design stage of the product life-cycle. As such, manufacturers are being asked to take responsibility for designing products with reduced or eliminated toxic substances, decreased energy usage, and improved recycleability.

EPR Directives address virtually all industry sectors from cosmetics to construction. However, the electrical and electronic industries have received particular attention in the last decade because electrical and electronic (EE) products:
·          Are spreading rapidly throughout the world;
·          Comprise the fastest growing waste stream with often 3-5% annual growth rates;
·          Often contain highly toxic substances that are released when the products are buried or burned at end of life. 

The European Union has taken the lead in developing EPR Directives. Its EE-specific Directives include the Restrictions on Hazardous Substances (RoHS), Waste Electrical and Electronic Equipment (WEEE) and Energy-using Products (EuP) Directives. Additionally, the Battery and Packaging Directives are examples of cross-industry Directives that also impact EE manufacturers.

Other geographies from Australia to the United States have also adopted EPR legislation over the last decade that affects the EE industry. For example, numerous regions outside of Europe are adopting their own “flavors” of the RoHS Directive.