Helping you with waste and resource management: policy development and strategy
Waste management has been high on the agenda of both public authorities and private companies over the last three decades in Europe. Recently, more and more emerging countries and regions are developing policies and practices.
In recent years, the concept of the circular economy has brought forward a framework where waste and materials management is increasingly becoming a cornerstone of a broader sustainability and resource management story. The focus is shifting towards preventing waste and re-using materials, as a resource for new products or energy generation. These complex challenges require new-thought and integrated solutions.
Our CCaSS team has been actively helping private and public-sector entities develop, implement and optimize:
- environmental policies
- resource strategies
- compliance management
- governance, risk and control challenges
- collection and recycling systems.
We have experience in a wide range of product categories, e.g. solid waste, household and industrial packaging, batteries, electronic waste, tyres, non-woven cotton, solar panels, lamps.
For more than twenty years we have been developing competences in all these areas, across the globe. As a result EY is consultant to the OECD on the review and development of a new policy guidance document on EPR and sustainable resource management.
Waste policy development, implementation and enforcement
The EY CCaSS team assists with the development and implementation of waste management policies by:
- Analysis and comparison of laws and regulations
- Development of implementation policies and guidelines for the different (Member) States
- Development of legal frameworks to enable the organisation of public markets for collection and recycling activities aligned to competition laws
- Discussion with ministries and government representatives to see how cooperation is possible to fight free riders and fraud
- Development of suggestions for ministries on interpretation of the applicable laws
- Drafting position papers in order to optimise the legislative framework
- Formulation of enforcement, control and communication strategies.
The most decisive aspect of a product’s environmental impact is its design: eco-design implies that environmental effects are already taken into account at the design stage.
It requires a careful balance between financial and environmental priorities, such as the use of recycled resources, energy consumption during production and use, and durability and waste management. Public procurement and financial incentives are key policy instruments which foster eco-design.
Our team has extensive experience on this topic and has written studies for, among others, the OECD. We advise governments and industry associations on incentivizing eco-design and the role of procurement processes.
Waste and Public Private Partnerships (PPP)
EY is an experienced financial adviser to governments and industry bidders in large scale waste management PPP / infrastructure projects around the world, covering a range of technologies, including recycling, composting, anaerobic digestion, mechanical biological treatment, waste to energy and advanced thermal treatment.
Our activities include:
- business case development
- procurement design and management
- commercial documentation development
- contract negotiation
- finance raising
- financial modelling
- infrastructure tax and incentives advice.
We also advise corporate transactions in the waste management sector, including acquisitions, disposals and operational division carve outs and operational reviews for waste management companies seeking to refine strategy and enhance shareholder value.
In the last decade, the concept of the circular economy has gained importance quickly and become the centrepiece of many forward-looking policies and business strategies around the world.
Our CCaSS team has almost two decades of experience in supporting private and public sector clients with their transition towards a circular economy. We are also involved with the World Business Council for Sustainable Development’s work on Circular Economy. The experience covers:
- Policy initiatives, stakeholder pressure and resource scarcity have required the industry to rethink their long-term value proposition. Eco-design, resource efficiency and waste management have to be integrated in an overall circular economy strategy.
- EY is working with corporates across different sectors (oil & gas, food & beverage, consumer products, telecommunications, financial institutions, sovereign wealth funds, tobacco and other) to support their strategy throughout the entire supply and value chains.
- Our experts work with the private sector – in Belgium, in Europe and across the globe - to set up circular economy strategies and collection & recycling systems.
- The experience consists of supporting producers and industry associations to set-up effective, cost efficient collection and recycling compliance schemes, and of advising the shareholders and management of these schemes on a range of complex challenges in relation to legal, governance, policy, operations, finance and strategy. The majority of our work so far has focused on packaging and plastics, batteries, paper, oil, tyres and electronic products.
- At the same time we assist policy makers on different continents in establishing regulatory and economic frameworks to enable sound waste management and circular economy practices.
Strategic compliance management and EPR
Organisations are faced with the following challenges, all of which have an important impact on their operations and business model:
- an increase in, and extension of, rules and regulations, like producer responsibility, eco-design, re-use criteria and reporting;
- pressure and change in stakeholder expectations, like the use of certain materials and recycled content;
- market and technological developments like resource scarcity and new recycling technologies.
EY helps organisations provide a sustainable, integrated and structured approach to allow them to deal with these changes in a controlled manner and comply with their strategy, stakeholders, and rules and regulations.
We have more than 20 years’ experience developing EPR policies and implementing EPR strategies. We serve public entities, private companies and industry associations. The CCaSS team co-authered several OECD reports on EPR.
EY is a trusted partner in industry positioning towards government, especially in the field of waste management and related topics. Given our global experience in developing, reviewing, improving and assessing environmental policies, we are a pre-eminent advisor for public authorities, private companies and associations.
Our activities include:
- risk analysis of proposed policies and amendments
- development of comments and suggestions; clearing and discussion with relevant experts (e.g. legal, finance);
- help presentating and negotiating with government bodies,
- inclusion and alignment of country specific/company position with policies
- development of position papers
- stocktake calls
- status overview reporting.
Market forecasting and financial sustainability modelling
- Development of mathematical financial models which enable the calculation of producers’ financial contribution in light of compliance with applicable waste laws
- Development of black box structures to implement the reporting obligations in full compliance with applicable laws, e.g. competition laws, tax laws, privacy laws
- Discussion with accountancy bodies on the implication of waste laws on the accounting treatment (IFRS / IFRIC) of producers’ obligations
- Advice regarding financing of operations, including pricing strategy and sustainable reserve management
- Calculation of the sustainability of financing, taking into account market trends, different scenarios for fee levels, for instance, of different product types and the reserve level
- Development of reporting, including analysis of the different scenarios calculated, with a conclusion on the producer/collection and recycling organisation’s financial sustainability compared to their legal obligations
- Development of position papers for authorities to justify fee levels and reserve levels of collection and recycling service organisations to cover their liabilities.
Internal control, compliance and process management and optimization
EY provides assurance to clients and the general public on governance processes, risk management processes and internal control:
- Development of control and monitoring guidelines
- Set-up of collective collection and recycling compliance schemes
- Stakeholder analysis and the identification of common positions
- Benchmarking performance of different service organisations, identifying key success factors and sharing best practice
- Organise meetings, expert panels, teleconferences and workshops with representatives of government institutions, sector organisations, local organisations and other key stakeholders
- Optimisation of supply chain management
- Perform operational process audits in different domains: governance; strategy; logistics and recycling; marketing and communication; HR; finance; contracting; IT
Socio-economic and environmental valuations
We are experienced at measuring the total impact of businesses and policies, from an environmental, social and economic perspective, including: the impact on GDP; air pollution, and associated healthcare costs; employment; waste; taxes; GHG emission and preservation of natural ecosystems.