You are here: Publications Waste Product Stewardship Study - Whiteware Sector Online version

5. Performance Against Current Government Policy Objectives

In a policy context where whiteware product stewardship has developed and evolved in a voluntary atmosphere with no official or formal target setting, data collection or monitoring and little overall transparency, the process of a performance review and assessment is a difficult and challenging task. The ability, however, to identify and review some key outcomes across the spectrum of activity is possible, especially given the presence of nationally significant (industry-driven) work on whiteware collection recycling.

The methodology adopted for this study draws on the stated goals and objectives outlined in key government documents and involves three levels of assessment and observation.

Firstly, the New Zealand Waste Strategy specifies three core goals, which provide a valuable high-level framework for any analysis and assessment relating to policy goals for waste reduction, resource efficiency, resource recovery and waste management.

Lowering the social costs and risks of waste.
Reducing the damage to the environment from waste generation and disposal.
Increasing economic benefit by more efficient use of materials.

Secondly, the Product Stewardship Discussion Document outlines five specific objectives for product stewardship in New Zealand.

Use resources more efficiently.
Reduce the volume of waste produced.
Increase the resources recovered.
Include the costs of waste management into the price of products.
Enhance product design.

Thirdly and finally, the brief for this study outlines additional and more specific objectives that can be used for assessing existing or proposed whiteware product stewardship schemes and programmes.

Schemes should lead to environmental gains.
Schemes should use a product stewardship approach.
Schemes should be effective and efficient.
Schemes should contain publicly reported, challenging performance measures, quantifiable where possible.
The benefits of any regulatory aspects should exceed their costs.
Schemes should be transparent.
Schemes should not reduce market competition.
Schemes should set safe standards for the collection and handling of recovered material.
Schemes should provide a forum for communication and to address any issues.
Schemes should include public information and education components.

It was also considered important by a sector group representative - Fisher & Paykel - that schemes should not simply be a cost shifting exercise from the ratepayer to the appliance purchaser, if that cost shifting resulted in a less efficient and/or more expensive process.

Based on information from the whiteware sector, Government and other parties, this section provides an assessment of the main whiteware product stewardship activities in New Zealand, including a review of how they perform against the goals and objectives outlined above.

5.1 Assessment against the New Zealand Waste Strategy

As a sector where current product stewardship and waste reduction activities are voluntary and driven by individual whiteware companies, it is important to consider the sector's significance and relevance within the context of The New Zealand Waste Strategy. It is particularly important to attempt to establish the extent to which the whiteware sector is a priority for action and policy attention in relation to the Strategy's core goals as well as the criteria used for prioritising action.

Table 1. Core goals of the New Zealand Waste Strategy

Core goals	Whiteware
Lowering the social costs and risks of waste	There is no Government or industry data and information in New Zealand indicating that the current disposal practices for end-of-life whiteware and any associated disposal and processing activities pose a threat or risk to human health or society more broadly.
Reducing the damage to the environment from waste generation and disposal	There is no Government or industry data or information in New Zealand indicating that end-of-life whiteware and any associated disposal and processing activities pose an environmental threat, risk or impact, either from the volume of waste generated or from its disposal, processing and/or treatment. A situation of 'no impact data or information' should not be interpreted that no damage is being caused or that additional impact reduction options are not appropriate or available. The precautionary principle should apply in such a case. The issue of shredder floc or residues from the steel recycling process going to landfill has been raised as an issue by parts of the whiteware sector as well as Government. However, no study or research has been conducted to establish its impact. The issue of shredder floc from the steel recycling process is acknowledged as a potential concern in Australia and other countries, especially due to the presence of heavy metals and other toxic and/or hazardous substances ending up in landfill leachate.
Increasing economic benefit by more efficient use of materials	Resource recovery associated with the collection, partial disassembly and recycling of end-of-life whiteware contributes to increased economic benefit as evidenced by the viability of the Fisher & Paykel recycling operation. Electrolux Home Products is also offering end-of-life whiteware disposal and recycling as part of its overall home delivery service indicating that some degree of economic and consumer benefits accrue from increased resource recovery enabled through whiteware recycling. Local councils, together with other steel and scrap merchants/dealers, are also likely to benefit economically from the collection, component reuse and recycling of end-of-life whiteware.

Current waste avoidance and resource recovery activity focused on whiteware appears to contribute towards addressing the Waste Strategy's three core goals. While not all such activity can be described as consistent with a product stewardship approach, the combined efforts of local councils, Fisher & Paykel and other more minor parties is effectively diverting end-of-life whiteware from landfill and helping ensure relatively high levels of resource recovery, especially in relation to metal recycling.

The extent to which responsibilities and action on waste avoidance and resource recovery in the New Zealand whiteware sector is balanced and equitable remains an outstanding question. Despite the work of local councils, Fisher & Paykel and, to a lesser degree, Electrolux Home Products, there seems to be no coordinated approach. Such an approach could serve to:

further improve and maximise the environmental performance of the whiteware sector;
identify improvement opportunities;
remove barriers and address collection and processing infrastructure concerns;
increase consumer and community awareness;
generally operationalise the policy rhetoric of product stewardship value and approaches.

In relation to prioritising action, it is the consultants' view that end-of-life whiteware does not qualify given the criteria and available research, data or information. However, this observation would change should new data emerge (eg negative findings about shredder floc or problems created by an upsurge in non-RoHS compliant imports) or the criteria expand to include specific attention to product stewardship principles being applied and the need for sector-wide responsibilities to be taken by producers and retailers.

Table 2. Criteria for prioritising action

Criteria	End-of-life whiteware
Volume and harm	Based on available New Zealand data from Government and/or industry, the volume of end-of-life whiteware going to landfill appears to be negligible. The metal component in whiteware and its economic value enables an effective market-based solution to diverting whiteware from landfills. Shredder floc from the metal recycling process is sent to landfill. However, there is no evidence at this time to indicate that floc poses any environmental harm. It should be noted that whiteware is not the sole contributor to shredder floc; end-of-life vehicles and other products going through the metal recycling process generate shredder floc that ends up in landfill.
Achievability	Some whiteware product stewardship activities (eg Fisher & Paykel's Greater Auckland recycling operation) are demonstrating viable and realistic approaches and outcomes, however, any additional or new product stewardship schemes or activities will require further investigation and assessment.
Public concern	Within the context of environmental concerns that are waste related (solid, hazardous, toxic), there is little or no evidence of whiteware being a public concern in New Zealand (excluding concerns about ozone-depleting substances, energy efficiency and water consumption). While there is growing media attention on the issue of electronic waste broadly (ie IT equipment, televisions and cell phones) this does not apply to whiteware.
Cost-effectiveness	Current whiteware product stewardship activities (eg Fisher & Paykel's Greater Auckland recycling operation and Electrolux's recycling service) are privately-run company activities and appear to be cost effective as evidenced by their ongoing existence.

As part of any prioritisation process, it is particularly important to acknowledge differences between seemingly similar product categories and waste streams. In other words, it is important to recognise the differences between electronic wastes generally (eg IT equipment, consumer electronics, cell phones), and the characteristics of whiteware. In relation to volume and harm, many of the toxicity issues associated with e-waste are not generally present in whiteware. Where they may exist in older whiteware products, their effective diversion from landfill is helping to ensure problematic substances, materials and components are being captured and processed in an environmentally sound manner.

Nonetheless, data or evidence to the contrary has the potential to shift how whiteware might be assessed in terms of action priorities. For example, should research on the composition and toxicity of shredder floc (comprising in part whiteware-generated residues) show reason for environmental or human health concern, then the issue of volume and harm may change in favour of escalating the priority. Similarly, this may also apply to the status of public concern should greater awareness of a potential environmental or human health concern gain greater public attention and interest.

It is the consultants' view that additional research and environmental assessment may be required in order to more robustly identify, assess and verify the priority level for end-of-life whiteware in New Zealand. Such research is especially important in any environment or industry policy development process that may result in significant sector-wide and social measures and consequences, such as regulation and related legal instruments.

5.2 Assessment against the Product Stewardship Discussion Document objectives

Moving from high-level Waste Strategy goals down to more specific product stewardship objectives enables a tighter focus on individual schemes and activities dedicated to whiteware. The evaluation is based on available information from companies, authorities and other parties. The particular value of these assessments is the ability to examine where and how the whiteware sector is itself integrating product stewardship principles into its commercial and environmental activities.

Table 3. Product Stewardship Discussion Document objectives: Fisher & Paykel Appliances Ltd

Discussion Document objectives	Fisher & Paykel Appliances Ltd
Use resources more efficiently and reduce the volume of waste produced	DfE combined with 'on-line manufacturing' and cleaner production techniques contribute to waste avoidance and overall resource use efficiency at Fisher & Paykel production facilities. Cost reduction related to materials efficiency is also an important driver.
Increase the resources recovered	Fisher & Paykel implements various activities related to DfE and Cleaner Production. Recovery and recycling of 32,000 end-of-life whiteware units during 2004 represents a significant programme of resource recovery and associated environmental gains.
Include the costs of waste management into the price of products	Based on information from Fisher & Paykel, the costs (and benefits) associated with waste management are implicitly included in the price of products. These costs and benefits flow 'to or from the bottom line'. This is the result of savings primarily achieved through the work of the Fisher & Paykel Recycling Centre
Enhance product design	Fisher & Paykel is explicit about its commitment to environmentally oriented design including strategies to phase out restricted substances, DfD and DfR. Fisher & Paykel's recycling operation has provided a direct information feedback-loop to the company's product research and development group.
Provide product stewardship that is effective and efficient	From data collected to date and meetings with Fisher & Paykel personnel, the scheme appears to be effective and efficient. However, opportunities for improvement have also been identified by Fisher & Paykel personnel. The scheme appears to be economically viable at this point in time.

Table 4. Product Stewardship Discussion Document objectives: Electrolux Home Products

Discussion Document objectives	Electrolux Home Products - a division of Electrolux NZ Ltd
Use resources more efficiently and reduce the volume of waste produced	All Electrolux Group production facilities share three general targets that inherently represent resource-use efficiency approach developing whiteware: i) achieve high-use rates for materials and components; ii) minimise waste and manage hazardous materials; and iii) reduce energy and water consumption. These targets, combined with Electrolux's commitment to EcoDesign tools and strategies, underscore the company's approach to, and outcomes related to, resource use efficiency and waste avoidance.
Increase the resources recovered	Electrolux is recycling all materials returned to it through the home delivery system. This allows for direct delivery to customer, removal of packaging and old whiteware units. These are delivered to Sims Metal Recycling for steel recovery. Data on volumes collected and recycled is not available and there are no plans for its future release.
Include the costs of waste management into the price of products	The costs of recycling and product stewardship activities are, in general, implicitly included in the price of a product. The Electrolux position is that these costs should be managed at the bottom line.
Enhance product design	Electrolux is proactive on the issue of environmentally oriented product development. 'EcoDesign handbooks have been developed for most product lines. These are used during the company's Integrated Product Development Process as tools to assure that the right concerns are addressed ...'
Provide product stewardship that is effective and efficient	The Electrolux service is a relatively new offering so data to enable external evaluation is not yet available. However, by using the home delivery service to help manage end-of-life whiteware Electrolux is seeking to maximise freight/logistics efficiencies. Electrolux believes it should be seen to be doing more in relation to product stewardship and plans to increase its activity over the next 12 to 24 months.

Table 5. Product Stewardship Discussion Document objectives: Other whiteware producers/suppliers

Discussion Document objectives	Other whiteware producers/suppliers
Use resources more efficiently and reduce the volume of waste produced	At a global level, the majority of established whiteware producers are increasing resource use efficiency with the overall objective of minimizing production and transport costs. While the reasons for resource use efficiency might be environmentally driven with some companies, the imperative of cost reduction across the product life cycle and supply chain is likely to be the predominant factor. Production methods among established whiteware producers generally reflect a range of measures, techniques and programmes aimed at effective environmental management. These would include cleaner production techniques, waste avoidance through DfE, in-factory waste reduction and post-industrial materials recycling. Collectively, such tools and approaches result in using resources more efficiently with the potential for reducing the volume produced during production and also at end-of-life. DfE focused on light-weighting and other material efficiency strategies are evident in global annual environment and sustainability reports released by established whiteware producers.
Increase the resources recovered	There is no evidence that 'other whiteware suppliers' and/or brands being imported into New Zealand are increasing (proactively or otherwise) the volume of resources being recovered from end-of-life whiteware. While some suppliers may offer to dispose of old whiteware as a result of a trade-in or home delivery, there is no information to support that this is widespread, publicly promoted or environmentally noteworthy from a resource recovery perspective.
Include the costs of waste management into the price of products	There is no evidence that 'other whiteware suppliers' and/or brands being imported into New Zealand are including the costs of whiteware collection and processing into the price of new products. The current situation in New Zealand does not require 'other suppliers' to cover the costs of whiteware collection and recycling, thus no costs are incurred with no need to internalize such expenditure upstream in the product life cycle.
Enhance product design	At a global level, the majority of established whiteware producers are implementing DfE consideration during product development. Such DfE considerations include the phasing out or reduction of restricted substances such as those specified in the RoHS Directive. Producers also make claims about increased attention to design for disassembly and recyclability and associated materials identification to facilitate more viable sorting, segregation and processing. While such design-based measures contribute to a producer's overall product stewardship programme, the ultimate fulfilment of such product features depends substantially on having end-of-life take-back programmes or schemes in place for specific locations and countries. The extent to which individual brands of whiteware imported into New Zealand embody such DfE features would require a focused product audit - company by company as well as product category by product category. At a general level, it would be accurate to conclude that established producers such as Whirlpool, Miele, Bosch, Asko, Samsung and LG Electronics, demonstrate varying levels of commitment to, and action on, DfE.
Provide product stewardship that is effective and efficient	Effective and efficient product stewardship requires attention across the product life cycle; not just at the design and/or production stages. Excluding Fisher & Paykel and Electrolux Home Products, there is no evidence to suggest 'effective and efficient' product stewardship activity among other suppliers. The lack of any other company offering a whiteware collection recycling service represents a significant gap in any product stewardship scheme or programme.

5.3 Assessment against the policy objectives - study brief

Table 6. Policy objectives - Fisher & Paykel Appliances Ltd

Policy objectives (study brief)	Fisher & Paykel Appliances Ltd
Schemes should lead to environmental gains	Fisher & Paykel implements various activities related to DfE, elimination or improved management and specification of restricted substances, cleaner production as well as lean manufacturing. Recovery and recycling of approximately 32,000 end-of-life whiteware units during 2004 represents a significant programme of resource recovery and associated environmental gains. The company's efforts to recover, partially disassemble and recycle end-of-life whiteware and associated packaging is in harmony with the principles and practice of product stewardship. While not applicable to all end-of-life whiteware recovered through the Fisher & Paykel scheme, all product collected from the Greater Auckland area is partially disassembled to recover and recycle various polymers and glass. The polymers are sold onto Astron Plastics while all metals go to Sims Metal Recycling. The disassembly and recycling of some plastics helps to reduce the volume of shredder floc that can be attributed to end-of-life whiteware being recycled out of Fisher & Paykel's Greater Auckland operation. An important element of the company's Auckland recycling operation is proactive reuse and recycling of cardboard packaging. As an exporter of whiteware from New Zealand to the EU, Fisher & Paykel is also ensuring for that market compliance with the RoHS Directive and is moving towards a similar position for products supplied to all markets.
Schemes should use a product stewardship approach	As a manufacturer and supplier of whiteware in New Zealand, the Fisher & Paykel scheme demonstrates a relatively pro-active product stewardship approach across the product life cycle, from product design and innovation through to materials selection, production, packaging, distribution and end-of-life recovery and recycling. In the company's own words: 'Commitment to energy efficiency and preservation of the environment are corporate guidelines and an integral part of the culture of Fisher & Paykel Appliances.' The company's philosophy on environmental matters (including product stewardship) appears to be characterised by an unassuming approach where commitment and action to practical implementation remains paramount. There is also the view that Fisher & Paykel is not an open market seller and its holistic approach to production distribution and recovery is a source of market advantage.
Schemes should be effective and efficient	From information and data collected to date and meetings with Fisher & Paykel personnel, the scheme appears to be effective and efficient. The company has refined its methods and recycling techniques while also intelligently exploiting the synergies possible through combining its management of post-industrial waste with the recycling of end-of-life whiteware. Careful attention to logistics and maximising the efficient and decentralised use of freight also seems to be operating efficiently and effectively in many parts of New Zealand, particularly the main cities and centres. Fisher & Paykel personnel have also identified opportunities for further improvement and enhancement with regard to logistics, disassembly, recycling and overall market development for recovered materials.
Schemes should contain publicly reported, challenging performance measures, quantifiable where possible	Fisher & Paykel collects data and monitors the scheme's overall performance and outcomes. Some data is publicly released and features widely as case study material (eg The New Zealand Waste Strategy) and how New Zealand companies are effectively dealing with waste reduction and recycling in a commercially oriented environment. The extent to which the scheme is widely and openly reported, inclusive of challenging performance measures, is an area that could be explored further by Fisher & Paykel. As a voluntary company operation, it should be noted there is no requirement for the company to report more than it currently does. General and specific information about Fisher & Paykel environmental activities, including product stewardship related measures, is presented on the company web site: www.fp.co.nz
Schemes should be transparent	Some information about the scheme is freely available and Fisher & Paykel appears to respond to information requests and case study content freely and enthusiastically. Cost data that may be commercially sensitive is not generally publicly available. The company openly showcases its recycling operations to relevant interested parties and conducts tours and site visits. Queries from external parties are answered wherever possible and practicable and not commercially sensitive. Fisher & Paykel's participation in this study also demonstrates a willingness to engage with the policy development process and therefore a commitment to scheme transparency.
The benefits of any regulatory aspects should exceed their costs	The Fisher & Paykel scheme is not regulated; it is a voluntary, company-initiated product stewardship scheme.
Schemes should not reduce market competition	There is no evidence to date that the Fisher & Paykel scheme reduces market competition. Integral to the Fisher & Paykel recycling scheme is that the company will collect and recycle end-of-life whiteware regardless of brand or producer when a consumer purchases a new Fisher & Paykel whiteware product. It could be argued that the Fisher & Paykel recycling scheme adds value and provides consumers with a convenient disposal and recycling service for end-of-life whiteware. Conversely, it could be argued that Fisher & Paykel's proactive approach to product stewardship and end-of-life take-back and recycling, is a cost which some other whiteware suppliers in New Zealand are avoiding, thus providing a cost advantage to non-recycling whiteware suppliers.
Schemes should set safe standards for the collection and handling of recovered material	Fisher & Paykel has a proactive programme to ensure that all relevant compliance requirements in their recycling centre are tracked and addressed. It is assumed that the company's recovery and recycling partners would comply with all relevant laws, regulations, standards and codes of practice to ensure the safe collection and handling of recovered materials.
Schemes should provide a forum for communication & to address any issues	As the scheme is centred on Fisher & Paykel, any 'forum for communication' is primarily internal. The company's participation in this study highlights its broader sectoral engagement on product stewardship and opportunities to evolve, collaborate, communicate and improve where/if required. Fisher & Paykel appears to be committed to realistic measures (including the possibility of regulation and associated public forums) that can help further improve product stewardship in the whiteware sector in New Zealand.
Schemes should include public information and education components	Fisher & Paykel provides some public information via the company website and through various trade, industry and government publications. The extent to which such information could be described as detailed public information or community education needs requires further analysis, mindful of the overall communication objectives. It should be noted that 'education' about whiteware product stewardship (and recycling in particular) requires expertise in community education and outreach. Fisher & Paykel seems to be eager to explore the possibilities of how its scheme might be enhanced or bolstered by public information and education. The Fisher & Paykel website features an environment section with public information about DfE, cleaner production, materials selection and whiteware recycling: www.fp.co.nz

Table 7. Policy objectives (study brief) - Electrolux Home Products - a division of Electrolux NZ Ltd

Policy objectives (study brief)	Electrolux Home Products
Schemes should lead to environmental gains	Electrolux is recycling all materials returned to them through its home delivery system regardless of brand or producer; this allows for direct delivery to customer, removal of packaging and old whiteware units. These are delivered to Sims Metal Recycling. Data on volumes collected and recycled is not publicly available at the time of preparing this report. The absence of any data on units collected and recycled makes any assessment about resource recovery and environmental gains problematic. At a global level, Electrolux has noted three particular environment and sustainability issues facing their business: global warming, the RoHS Directive and socially responsible investments. The RoHS Directive has implications for specific whiteware products imported into New Zealand and the degree to which such products are, by default, RoHS-compliant or not.
Schemes should use a product stewardship approach	The Electrolux service reflects some product stewardship principles and is driven, in part, by offering customers a convenient way of managing the old product when they purchase a new one. This service is being rolled out through main centres. The extent to which the New Zealand home delivery service is being communicated or promoted as a product stewardship or environmental initiative is unclear, however, the company's global position on producer responsibility, EcoDesign, greening the supply chain and restricted materials is explicitly in favour of proactive environmental management: "Electrolux is an early advocate of producer responsibility. We were among the first in our industry to identify the business case for recycling and lobby actively for individual responsibility."
Schemes should be effective and efficient	The Electrolux service is a relatively new offering thus data to enable external evaluation is not yet available. However, by using the home delivery service to help manage end-of-life whiteware, Electrolux is seeking to maximise freight/logistics efficiencies.
Schemes should contain publicly reported, challenging performance measures, quantifiable where possible	At a global level, Electrolux demonstrates a comprehensive and sophisticated approach to public reporting and information dissemination on environmental matters and sustainability in general. The extent to which the scheme is widely and openly reported, inclusive of challenging performance measures is an area in need of more company attention. Electrolux does recognise the importance of improving the perceived value of collection and recycling activities among consumers. As a voluntary company operation, there is no requirement for Electrolux to report more than it currently does. For more information on Electrolux 's environmental activities and outcomes including end-of-life whiteware recycling and producer responsibility, refer to the annual Sustainability Report 2004: www.electrolux.com
Schemes should be transparent	The extent to which the Electrolux scheme is transparent from a consumers' perspective is limited at this time. There is no evidence of publicly available information or materials about how, when or where end-of-life whiteware is recovered and recycled when a new Electrolux product is delivered to a consumer. At a global level, Electrolux demonstrates a high degree of transparency via its annual sustainability reporting process. The company is subject to various sustainability indexes and socially responsible investment assessments such as Dow Jones pan-European Sustainability Index and the FTSE4Good Series, both of which require a substantial commitment to making data available and open public reporting.
The benefits of any regulatory aspects should exceed their costs	The Electrolux disposal/recycling service is not regulated; it is a voluntary, company-initiated activity in its infancy.
Schemes should not reduce market competition	There is no evidence to date that the Electrolux service reduces market competition. Integral to the Electrolux home delivery service is that the company will collect and recycle end-of-life whiteware regardless of brand or producer, when a consumer purchases a new Electrolux whiteware product. It could be argued that Electrolux recycling scheme adds value and provides consumers with a convenient disposal and recycling service for end-of-life whiteware.
Schemes should set safe standards for the collection and handling of recovered material	As part of the global Electrolux approach to restricted materials and hazardous substances, the company is '... concerned with the health, safety and environmental consequences of the different material choices we make'. Electrolux promotes a four-pronged approach to the use of materials and their environmentally sound management. Electrolux literature highlights the use of a Restricted Materials List (RML), which guides and defines which chemicals are banned and restricted from use in production and across the supply chain. Consistent with Electrolux's statement in its annual Sustainability Report, it is assumed that Electrolux, together with its recovery and recycling partners, comply with all relevant laws, regulations, standards and/or codes of practice. Electrolux also highlights its position to 'remain one step ahead of legislation such as EU's RoHS and similar laws ...'. This is especially the case with mercury, cadmium, hexavalent chromium and brominated flame retardants.
Schemes should provide a forum for communication and to address any issues	As the home delivery service is centred on Electrolux product, any 'forum for communication' is primarily internal. The company 's participation in this study highlights its broader sectoral engagement on product stewardship and opportunities to evolve, collaborate, communicate and improve where/if required. While not currently applicable to product stewardship activities in New Zealand, it should be noted that Electrolux together with Sony, Hewlett Packard and Braun is part of a pan-European platform for managing end-of-life whiteware and other electrical and electronic products. For more information about ERP refer to: www.erp-recycling.org
Schemes should include public information and education components	While the annual Electrolux Sustainability Report 2004 covers a diverse and comprehensive range of information, data and performance outcomes, this does not extend to any significant information about the company's product stewardship activities in New Zealand. At this point, there is no evidence of publicly available information or materials about how, when or where end-of-life whiteware is recovered and recycled when a new Electrolux product is delivered in New Zealand. There is no information available via www.electrolux.co.nz The company's comprehensive annual Sustainability Report 2004 can be downloaded at www.electrolux.com

5.4 Stability of schemes

The Fisher & Paykel scheme represents a substantial achievement and evolution given from where the company commenced in 1994. The transition from a pilot project to a national initiative demonstrates considerable commitment in terms of funds, time and expertise.

Despite the scheme's enduring operation, the risks to its stability and ongoing existence are several and potentially significant. In particular, the voluntary nature of the scheme leaves it open to market volatility both in terms of product stewardship free riders as well as potential fluctuations in the price of secondary metals. While it appears that such factors have not negatively impacted on the scheme to date, there is a need to think and act more strategically from a government policy perspective to help bolster the scheme while also stimulating other suppliers and parties in the sector to develop and operate product stewardship schemes focused on managing end-of-life whiteware.

With the exception of the embryonic Electrolux home delivery and recycling service, the absence of any other importers/suppliers proactively offering retailers and consumers a whiteware collection and recycling service, further undermines the long-term stability and expansion of the Fisher & Paykel scheme. This situation may, to some degree, provide Fisher & Paykel with a market advantage (at present) but only while the cost structure and overall market situation is favourable.

In addition to supporting proactive company initiatives in New Zealand, there is clear role for the Government to provide a policy setting, which can maximise environmental outcomes that are economically sensible.

In terms of overall sector participation, whiteware product stewardship in New Zealand is very limited and unable to deliver the type of environmental outcomes and community support that would otherwise be possible through a more 'level playing field' and widespread producer and retailer involvement.

The importance of a level playing field and sector-wide participation in creating stability and certainty is manifold in that they will:

help to support proactive company initiatives eg Fisher & Paykel scheme;
maximise resource recovery and overall environmental benefits;
help to reduces competitive disadvantage;
demonstrate significant government commitment to effective and efficient policy interventions;
help to build public confidence in a policy, scheme or programme that may otherwise attract cynicism if only isolated company initiatives exist;
provide a more attractive scenario for market development and investment in e-waste recycling infrastructure and associated collection and processing service.

Whether the producer is manufacturing in New Zealand, China, Europe or the USA, the relevance of on-ground product stewardship is critical as is being demonstrated by mandatory instruments in the EU, Japan and a growing number of USA states. The argument often used by some importers - that products are not manufactured in New Zealand, therefore, we are unable to take on collection and recycling responsibilities - is unable to be justified given the nature of the global market and everyday compliance requirements faced by importers and exporters worldwide. Government support in terms of knowledge transfer, expertise and funding may be warranted in order to help ensure non-compliance is overcome and economic development is able to continue in an environmentally responsible way. Any environmental policy or regulation that results in substantial and/or widespread failure across manufacturing business in an entire sector does not reflect an effective or sensible approach to product stewardship and should be avoided as a priority.

Uniformity can provide stability without constraining or smothering individual company opportunities to innovate and implement efficient, effective and consumer-friendly collection and recycling services. The introduction of the EU Directive on WEEE has resulted in a diverse range of industry collectives, producer responsibility organisations and operational models, all of which aim to better manage end-of-life electrical and electronic products including whiteware. The involvement of the Electrolux Group in the European Recycling Platform together with Sony, HP and Braun, is a noteworthy example of such responses. Refer to www.erp-recycling.org for more information about the European Recycling Platform.

The price of, and demand for, metals are contributing factors within the context of whiteware recovery and recycling. Metal prices have, for many years, been the primary reason why end-of-life whiteware is recovered and recycled. Any dramatic downward fluctuation in metal prices may have a negative impact on the current stability of whiteware recycling, however, the ability of any product stewardship policy or scheme design to accommodate or address such structural economic factors is impossible.

It is the consultants' view that scheme stability and sector-wide participation are essentially dependent on each other if government policy is aiming to facilitate significantly higher levels of waste avoidance and resource recovery among producers, suppliers, retailers and consumers than is presently the case.

5.5 Overall environmental and economic benefits of current schemes

Table 8. Environmental and economic benefits: Fisher & Paykel Appliances

	Environmental benefits	Economic benefits
Fisher & Paykel	Approximately 32,000 whiteware units diverted from landfill recovered and recycled during 2004. DfE contributes to waste avoidance, resource-use efficiency and a reduction in the use of hazardous substances. Take-back scheme contributes to materials recycling and resource conservation. Materials recycling contributes to reducing energy consumption and emissions associated with processing/manufacturing virgin materials. Take-back scheme helps to safely recover and control hazardous and toxic substances that might otherwise lead to human health or ecosystem impacts and contamination. Take-back scheme diverts (and reduces) end-of-life related whiteware solid waste away from landfill.	Recovery and reutilisation of materials back into the economy: reuse of packaging for new appliances recycling of ferrous and non-ferrous metals recycling of plastics including EPS. Cost reduction related to Fisher & Paykel's waste management activities, especially for post-industrial waste. Employment opportunities and job creation at Fisher & Paykel through its recycling centre. Costs savings associated with materials efficiency improvements in product development and manufacturing. Costs savings to whiteware retailers through participation in Fisher & Paykel scheme. Broader economic benefits of facilitating the removal of inefficient whiteware from the energy grid.

Table 9. Environmental and economic benefits: Electrolux Home Products

	Environmental benefits	Economic benefits
Electrolux NZ	The embryonic stage of the Electrolux scheme and the lack of any data on units collected and volume of materials recycled makes any observations about environmental benefits premature at this time.	The embryonic stage of the Electrolux scheme and the lack of any data on units collected and volume of materials recycled makes any observations about environmental benefits premature at this time.

[ Previous|Next ]