Sustainability has risen up the agenda in grocery in recent years, however, some of the legislation that could have had a game-changing impact on reducing food and plastic waste have been delayed or scrapped entirely by the government.
The setbacks in the deposit return scheme, extended producer responsibility and mandatory food waste reporting have caused quite the uproar among environmentalists.
So what are the initiatives, why are they being pushed back, and is sustainability in the grocery sector really getting the focus it deserves?
The sustainability schemes put on ice
Deposit return scheme
Michael Gove first proposed a deposit return scheme (DRS) in 2018 which looks to “provide a simple and effective system across the country that helps reduce litter and recycle more easily, even when on the move”, according to environment minister Rebecca Pow.
Under the not-yet-launched Scottish DRS, which the English scheme is largely based off, a 20p charge will be applied to drinks containers that consumers can claim back when bottles and cans are returned to retailers’ in-store reverse vending machine.
The English DRS is now due to roll out in October 2025, however, this could be delayed by at least another year as the current start date was deemed unachievable during meetings between representatives of all the UK governments and industry bodies in August.
This set back follows concerns that the scheme will cost retailers approximately £1.8bn – a figure ten times the amount that officials previously reported.
Extended producer responsibility
The governments extended producer responsibility (EPR) scheme, first announced in 2018 by Gove, plans to make the industry responsible for the cost of recycling by paying packaging fees.
This has been officially delayed for at least a year (October 2025) over concerns it will drive up food prices by a significant margin. Supermarket bosses and manufacturers have called for it to be shelved or scrapped.
On top of this, upcoming food waste laws, which would have made food waste reporting mandatory for large and medium-sized businesses in England, were also scrapped in August.
Campaigners said the legislation could reduce food prices and help tackle the climate crisis as environmental group feedback found a 1% reduction in waste would have saved food businesses an estimated total of at least £2.4m a year.
However, Defra said the costs for businesses to regulate food waste reporting could actually drive food inflation higher.
A government spokesperson says: “A regulatory approach which we estimate to cost businesses around £5.3m is not suitable in the current economic climate, especially when any additional costs may be passed on to consumers.”
Is the government right to delay or scrap the initiatives?
British Retail Consortium director of food and sustainability Andrew Opie agrees with the delay to the “costly, complicated” DRS, which he believes “cannot deliver the step change in recycling needed to justify it”.
“By driving up costs by almost £2bn per year, the government risks pushing up prices for ordinary households, just as inflation is coming down. It will be consumers paying the price of this unnecessarily hastly, expensive and complex scheme.”
Tesco CEO Ken Murphy agrees. “The very worst outcome here is we set back progress with a poor scheme, rather than drive forward the changes we all want and need.”
He adds that the UK government should look to implement a nationwide DRS approach, instead of a country-by-country method.
However, sustainability consultant Neil Russell-Bates tells Grocery Gazette that the governments delays to both the DRS and EPR are “very disappointing” and the wrong move, noting that countries including Germany, Norway, Denmark and Sweden have all had fully-implemented deposit return schemes for a number of years.
“It seems like there’s been a sudden sense within the government that they can win votes by putting business first and hold off on some of these initiatives, which is letting politics get in the way of what really needs to be done.”
He adds that there isn’t much to be gained from the delays except “kicking the can”.
In terms of EPR, WRAP director of innovation and change Claire Shewsbury says that while she appreciates the “complexities of introducing these changes”, the delay is “deeply frustrating given the climate crisis and the urgency to meet the UK’s net zero commitments”.
Recycling Association chief executive Paul Sanderson says the recycling industries message to Defra on EPR is to “get on with it”, adding that the delay is “unbelievable”.
“EPR and Consistency of Collection reforms have the potential to transform the recycling sector, helping to improve the quality and quantity of material in this country.”
He goes as far to say that in order for EPR to be fully implemented, the deposit return scheme “should be dropped”, adding EPR is “too important to be dragged down by DRS”.
Despite this, Sainsbury’s CEO Simon Roberts welcomes the delay, adding that this will “provide the necessary time to work across our industry and with government in order to get EPR right the first time”.
While many supermarket bosses have been in support of the delays to the DRS and EPR, there has been quite the opposite reaction with regards to the scrapping of mandatory food waste reporting, as Sainsbury’s said it is “fully supportive” of the policy and Tesco agreed that it is critical.
BRC sustainability policy advisor Sophie De Salis says that it is a “missed opportunity” by the government.
“Tackling food waste is key to making the food supply chain more sustainable, and mandatory food waste reporting would have built on the good work retailers are already doing to cut waste, through voluntary food waste data reporting and partnerships with third party redistributors.”
Is sustainability getting the focus it deserves in grocery?
For Russell-Bates, sustainability is most definitely not getting the focus it deserves in the grocery sector.
While he acknowledges the work that supermarkets do to reduce plastic waste in product packaging and limit the amount of single-use plastic available in stores, he says many of these initiatives have only been given such large levels of publicity because they answer a simple public need.
“We still have very little visibility and transparency,” he says.
He believes that legislation is key to not just make the grocery sector more sustainable but also get consumers on board.
“Unfortunately, customers have been fed convenience as the overarching message for years now and for many, their beliefs and their actions don’t always marry up.”
Speaking of the DRS, he explains: “If you tell consumers they have to take their empties back to the supermarket, they’ll think it’s a pain but if you just bring in the legislation, more often they’ll do it.
“It’s like taking bags with you every time you go out shopping. There was a price to pay, legislation came in, and there was a bit of grumbling, but within weeks, you don’t hear anybody complaining about it – it’s just habit.”
With double-digit food inflation and rising prices to navigate, the government clearly thinks there are bigger issues to contend with in grocery.
However, legislation can help galvanise both industry and consumers – but it must be the right legislation and the right scheme.
When it comes to DRS and EPR, it’s clear the industry has misgivings. Let’s hope the government takes the opportunity to go back to the drawing board and come up with a plan that the grocery sector can give its full backing.
