UK Extended Producer Responsibility for packaging: Implications for fashion retailers

The UK’s Extended Producer Responsibility (EPR) for Packaging Regulations, effective from January 2025, introduces an entirely new approach to the management and recycling of waste packaging.

Fashion retailers will now bear the full cost of the packaging disposal and must comply with new detailed reporting requirements. This article explores the scope of the regulation, outlines compliance strategies, and presents sector-specific case studies to guide businesses through the transition.

Introduction

The UK government’s commitment to sustainability underpinned by the legal framework create by the Environment Act 2021 has led to the introduction of the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 (the regulations). These regulations shift the financial responsibility for dealing with packaging waste from local authorities to the producers themselves.

For fashion retailers, complying in as cost effective and streamlined a way as possible necessitates reassessing packaging choices, supply chain practices, and data management systems. Business as usual is unlikely to remain cost effective given the level of fees, and a level of creativity on the part of both advisers and garment and packaging designers – as well as increased use of paper-based, compostable, mono-material, and refillable packaging options – is likely to lead to significant financial savings as well as significant consumer relations benefits.

Understanding the EPR framework

Under the regulations, businesses are classified based on turnover and packaging volume. 

Large producers

• Those with annual turnover exceeding £2m and placing more than 50 tonnes of packaging on the UK market.
• They face the full scope of obligations in relation to both reporting and fees. 

Small producers

• Those with annual turnover exceeding £1m but less than £2m and placing more than 25 tonnes of packaging on the UK market.
• They face obligations in relation to reporting only. Although reporting requirements have reduced, they are still subject to registration and data submission.

The fees are calculated based on the type and recyclability of packaging materials, with modulated rates incentivising sustainable design. The fee levels were recently published and there is provision for these to be amended (expect an upward trajectory).

Compliance requirements for fashion retailers

Fashion retailers must register with the government’s Report Packaging Data portal and submit detailed packaging data. Large producers are required to report biannually, while small producers report annually.

Additionally, all producers must submit nation data by 1 December 2025, indicating where packaging was supplied across the UK. The first invoices for disposal fees will be issued in October 2025, based on the first round of submitted data from large producers.

Case studies: Luxury and high street compliance strategies

Luxury fashion house

A luxury fashion house, known for its premium packaging, conducted a packaging audit and discovered that its use of laminated boxes and metallic finishes would incur high modulated fees. In response, the brand redesigned its packaging using recyclable cardboard and vegetable-based inks, aligning with both EPR requirements and its sustainability ethos.

High street retailer

A high street retailer, operating hundreds of stores and a large e-commerce platform, faced challenges in tracking packaging volumes across its supply chain. The retailer implemented a centralised data collection system integrated with its ERP platform, allowing for accurate reporting and fee forecasting. It also renegotiated supplier contracts to ensure packaging data transparency.

Fashion startup

A sustainable fashion startup launched a pilot program using reusable packaging for online orders. Customers were incentivised to return packaging via a pre-paid returns system. The company tracked packaging reuse rates to report under the EPR scheme as part of its nation data submission.

Although the upfront costs are higher, the reuse model reduces the total volume of packaging placed on the market, lowering long-term EPR liabilities and aligning with the brand’s circular economy goals.

High street fashion chain

A national high street fashion chain renegotiated its supplier contracts to include mandatory packaging data disclosure clauses. The company required all Tier 1 suppliers to provide detailed breakdowns of packaging materials and weights per shipment. Although suppliers were responsible for providing the data, the retailer retained legal responsibility for reporting and compliance.

To manage this, the retailer will use a third-party data aggregator to validate and consolidate supplier inputs before submission. This approach ensures compliance and accurate reporting whilst maintaining supply chain efficiency.

Mid-sized luxury fashion brand

A mid-sized luxury fashion brand has undertaken a full audit of its packaging supply chain in response to the regulations. The company replaced multi-material garment bags with mono-material LDPE alternatives that are easier to recycle and attract lower modulated fees. It also partnered with a third-party compliance service to automate data collection from its warehouse and retail operations.

By integrating packaging data into its ERP system, it was able to submit accurate reports and forecast future EPR costs with confidence.

Strategic recommendations

Fashion retailers should begin by auditing their packaging footprint to identify materials and volumes. For large producers an assessment of material and packaging design will be vital for reducing the level of fees incurred. Small changes can lead to substantial reductions both on an annual basis and over time. Transitioning to more recyclable materials not only reduces fees but also enhances brand reputation.

All affected businesses would also be wise to invest in advice where necessary and importantly robust data systems to ensure accurate and timely reporting.

In the case of small producers this aids compliance. In the case of large producers, the motivation for investment is even stronger as more accurate data collection and reporting will be likely to lead to lower fees (charged for what actually was put on the market rather than what was assumed to have been).

There are a large number of third-party data service providers who now specialise in collecting, validating and even submitting this sort of data. Given the proliferation of ESG services over the past few years, it is best to vet providers for experience in EPR compliance, data security protocols, and sector-specific expertise.

Under the UK EPR regulations, the legal responsibility for packaging data and disposal fees lies with the 'producer' - typically the brand owner or retailer placing packaged goods on the UK market. This means that even if packaging decisions are made upstream by suppliers, the retailer is accountable for compliance.

A legal review of supplier agreements is, as with many of these types of sustainability regulation, therefore almost a requirement. Advice should be taken at an early stage in relation to this given the potential for there to be delay in implementation of new contracts.

Collaboration across procurement, compliance, and sustainability functions will be essential to embed EPR requirements into core business processes.

Conclusion

The UK EPR for Packaging Regulations represent a significant shift in environmental financial accountability, shifting the cost of recycling from the council taxpayers’ contributions to local authorities to the producer.

For fashion retailers, proactive compliance is not only a legal necessity but also a strategic opportunity to align with consumer expectations and sustainability goals. By understanding the regulations and implementing the necessary changes and processes at an early stage, brands can navigate the transition cost effectively while also benefiting from increased sustainability credibility with customers.