Product stewardship calls for companies, supply chains and retailers to take greater responsibility for their services and products across their whole life cycle, from design to production to use and, finally, disposal.
Earlier in July the Product Stewardship Centre of Excellence released a white paper report “Addressing the Barriers: A needs assessment of product stewardship in Australia.” The paper aims to explore and understand the barriers to product stewardship in Australia, investigating opportunities for further development and expansion of product stewardship across the nation.
The paper discusses the major challenge such as free-riders; businesses or organisations that may benefit from product stewardship activity without contributing to the implementation or operation.
Although not discussed in the paper, the voluntary trend of product stewardship in Australia is also an issue to consider.
This trend is a particularly Australian phenomenon, as most other countries support regulatory approaches. Australian industry leadership towards product stewardship should be congratulated. For example, the recent announcement of the Australian Toy Association partnering with other leading brands to investigate product stewardship of toys, and the recognition of best practice for Tyre Stewardship Australia are positive developments.
However, similar to the free-riding organisations, companies and industries who use voluntary as a means to defer, delay or avoid responsibility should be brought to account.
Voluntary approaches cannot be realistically expected to work in a timely manner where there is no industry agreement and coordination, and where the brand owners are diffuse, have little or no local decision-making authority or are no longer trading. In such cases it at best will be a slow process and many years before some sort of voluntary approach is figured out.
In general, the need for government intervention is generally greater the more complex the products and supply chain.
For product stewardship broadly to meet community expectations, to reach waste and recycling targets, to discourage free-riders and to support genuine leadership efforts, there therefore needs to be clear market signals that government will regulate when and where needed.
While the Centre’s white paper correctly highlights key barriers, overcoming them will require the government to act where appropriate to put pressure on industry and ensure accountability, and that includes judicious use of regulatory powers.