42 Degrees - Business from a different angle

Forget global warming and raised sea levels. The UK is in serious danger of drowning in its own rubbish long before our coasts are eroded and rivers overflow their banks for good. According to government figures, we produce more than 434 million tonnes of waste every year. That's enough to fill London's Albert Hall 4,400 times over.

Of that waste, industry and commerce produce around 79 million tonnes while the building industry produces a further 106 million tonnes.

It's a serious environmental problem for a small, overcrowded island. Not only are we running out of space, but anything thrown away represents wasted resources. Worse still, rubbish releases all sorts of nasties into the environment, including carbon, methane, toxic chemicals and indestructible heavy metals.

The problem is that for business, energy conservation is a no-brainer. If you aren't taking steps to reduce your energy and resource use, then you are simply guilty of running your business badly.

The business case for better waste management and recycling, however, is less clear cut. That is why, in the absence of a nice juicy green carrot with which to entice commerce to accept more responsibility for its waste, governments have turned to the stick of legislation.

There are at least 35 laws and directives affecting the way waste materials can be disposed of covering everything from ordinary tap water to polonium.

Until recently, these tended to be highly specific. However, on January 2 of this year, the Waste Electrical and Electronic Equipment (WEEE) regulations came into force. The new law aims to minimise the impact of electrical and electronic goods on the environment by increasing re-use and recycling and reducing the amount of WEEE going to landfill.

"Electrical waste, such as toasters, fridges and washing machines, is a growing environmental problem here in the UK with over two million tonnes being dumped in landfill last year alone," says Science Minister Malcolm Wicks. "There is currently no incentive for those that produce them to care about the life cycle of their products. These regulations will mean they can no longer shirk this responsibility."

The good news is that the new rules will allow us all a good snigger as we talk about different kinds of WEEE, how much WEEE we produce and the possibility of selling our WEEE.

The bad news is that now every business in the country is responsible for disposing of its unwanted electronic equipment responsibly – or faces the possibility of a £20,000 fine or even a gaol sentence.

The responsibility is slightly less burdensome than it first sounds, because all companies will have to do, in theory at least, is give back old appliances when they buy new ones. "Your Distributor/Retailer has to offer you a free take-back for your WEEE (on a like for like basis) when you buy a new one, and the Producer of the new equipment has to pay for the cost of Treatment, Recovery and Recycling of the old one. Basically, this covers, more or less, anything with a plug or battery," explains Lorie Randall managing director of recycling research and development company DARP Environmental and Advisor to the WEEE Recycling Network*.

Well that's the theory at any rate. The truth is that just as there is no such thing as a free lunch, there is no such thing as free take-back: someone has to pay for it. Whether it is the cost of providing the free take back, or the costs of Treatment, Recovery and Recycling, the Producers and the Retailers/Distributors will pass on these costs to end users, says Randall. "It means prices of electrical equipment will probably rise by three or four per cent," she estimates.

There will be times when businesses throw out old equipment without replacing it. Then they need to be very alert, says Randall, because under the law they have a 'Duty of Care' to ensure that the WEEE regulations are observed to the letter.

"The problem for many small companies is that their normal waste management company will do it, but they will charge you," she says. "So you may end up paying disproportionately to get rid of an old microwave or fridge. On the other hand if you try to do it yourself, you must ensure that the end result complies or else you will be held responsible."

So, on top of all the other regulations, business now faces the possibility of major sanctions if they fail to dispose of something as small as a kettle or lamp properly. Perhaps surprisingly, business organisations welcome the new regulations – sort of. "We support the principle that business should have to take care of its waste and we recognise that action needs to be taken," says a spokesman for the Federation of Small Businesses. "Our concerns are that the burden of this falls most heavily on smaller companies. Its just another layer of regulation."

True. But another layer of regulation is probably better than several layers of toxic waste. Just take care when you are getting rid of that old computer or fridge that you've observed the rules.

*The WEEE Recycling Network is the only independent free advice service for SMEs in the UK.