SUMMARY OF THE WEBINAR

Extended Producer
Responsibility Act of 2022

DATE: TIME: PRESENTED BY:

Philippine and Stock and Exchange and

13 November 2023 3:00PM the Plastic Credit Exchange

OBJECTIVE OF THE WEBINAR

The aim of the webinar is to:

1. Educate the audience on the EPR Act, which enterprise is considered an Obliged
Enterprise (OE), and the options available for compliance;

2. Provide access to DENR officials who can provide answers to any questions pertaining
to EPR compliance; and

3. Provide access to PCX, one of the registered PROs to provide an understanding of

how to comply by the end of the year.

Welcome Remarks by Atty. Roel Refran

The Executive Vice President and Chief Operating Officer of The Philippine Stock
Exchange, Atty. Roel Refran welcomed all the attendees and the key speakers from the
Department of Environment and Natural Resources, Engr. Esperanza Sajul OIC Assistant
Director and Ms. Mean Santos.
The speaker acknowledged that while the Philippine Stock Exchange may be the least
thought of government agency to conduct such a webinar, they are, however, warranted
to disseminate such information as Global Warming poses climate and physical risks
which should be mitigated in collaboration with everyone as failure is not an option
whenever we talk about sustainability and climate change.
The end in view therefore is that we grasp all possible learnings; see what important
measures we can implement and; be aligned in the objective to pass the information as a
solution to our future generations and not as a problem.
 1) WHAT IS REPUBLIC ACT 11898 OR THE EXTENDED PRODUCER RESPONSIBILTY ACT;
2) WHO ARE THE OBLIGED ENTERPRISES?
3) WHAT CONSTITUTES AS PLASTIC PACKAGING UNDER THE EPR LAW?

The Extended Producer Responsibility Act (EPR) helps address the issue of plastic pollution
and enable the shift towards a circular economy. It mandates obliged enterprises to be
environmentally responsible for the entire lifecycle of a product from manufacturing to
consumer use until it’s end-of-life. Before, only manufacturers were liable for the
environmental impact of the actual production of their products but with the implementation of
the EPR Obliged Enterprises are now required to recover or remove the equivalent amount of
the plastic product footprint they have created.

The Obliged Enterprises under the law are large enterprises with total assets over one
hundred million; (Php 100,000,000 .00)
 They are brand owners who sell or supply any commodity
 They are the product manufacturers or importers who supply their commodities for the use of
a general consumer.
Micro, small and medium-sized enterprises are highly encouraged but not mandated to
practice EPR voluntarily. However, MSMEs with a total value of assets of all enterprises
carrying the same brand, label or trademark that exceeds that of medium enterprises as
prescribed by Republic Act 9501 are mandated to comply.

Section 44-C of RA 11898 provides plastic packaging shall refer to products utilized to carry,
protect, or pack goods for transportation, distribution, and sale.
"Plastic packaging shall include the following:
"(a) Sachets, labels, laminates and other flexible plastic packaging products, whether single
layer or multi-layered with plastics or other materials;
"(b) Rigid plastic packaging products, whether layered with any other materials, which include
containers for beverages, food, home, personal care and cosmetic products, including their
coverings, caps, or lids and other necessities or promotional items, such as cutlery, plates,
drinking straws, or sticks, tarps, signage, or labels;
"(c) Plastic bags, which include single-use plastic bags, for carrying or transporting of goods,
and provided or utilized at the point of sale; an
"(d) Polystyrene.
EPR PROGRAMS OBLIGED ENTERPRISES MUST ESTABLISH WITHIN SIX MONTHS:

Section 44-D of RA 11848 oblige enterprises that within within six (6) months following the
effectivity of the Extended Producer Responsibility Act of 2022, establish or phase-in EPR
programs for plastic packaging to achieve efficient management of plastic packaging waste,
reduced production, importation, supply or use of plastic packaging deemed low in reusability,
recyclability or retrievability, and plastic neutrality through efficient recovery and diversion
schemes.

The programs under this section may include the activities and strategies stated under
paragraphs A of Section 44-A which provides:
(a) Reduction of non-environment friendly products which may include the following activities
and strategies:
"(1) adoption of reusable products, or redesign of the products to improve its reusability,
recyclability, or retrievability;
"(2) inclusion of recycled content or recycled materials in a product;
"(3) adoption of appropriate product refilling systems for retailers;
"(4) viable reduction rates plan;
"(5) information and education campaign schemes; and
"(6) appropriate labeling of products, including the information thereon for the proper
disposal of the waste product, and of Section 44-A paragraph B which provides:

(b) Product waste recovery programs aimed at effectively preventing waste from leaking to the
environment, which may include the following activities:
"(1) waste recovery schemes through redemption, buy-back, offsetting, or any method or
strategy that will efficiently result in the high retrievability, high recyclability, and resource
recovery of waste products;
"(2) diversion of recovered waste into value chains and value-adding useful products
through recycling and other sustainable methods;
"(3) transportation of recovered waste to the appropriate composting, recycling, or other
diversion or disposal site in the country;
"(4) clean-up of waste leaked to coastal areas, public roads, and other sites;
"(5) establishment of commercial or industrial scale recycling, composting, thermal
treatment, and other waste diversion or disposal facilities for waste products, when
investment therein is viable; and
"(6) partnership with LGUs, communities, and the informal waste sectors.

Their mechanisms and strategies are submitted to the National Solid Waste Management
Commission, through the Department of Environment and Natural Resources. Obliged
enterprises shall institute an EPR program either individually or collectively, whether with or
without a Producer Responsibility Officer (PRO).
PUNISHABLE ACTS, FINES AND PENALTIES UNDER THE EPR LAW:

Punishable Acts under the EPR law are as follows:

a) Failure to register
b) Falsification of Documents
c) Misdeclaration of generated or recovered footprint
d) Employment of any scheme to maliciously evade the responsibility of an enterprise
under the EPR Law
e) Tamper tits compliance with Section 44-F of the Act.

Sec. 49 of RA 11898 provides that: Any obliged enterprise that fails to register under
Section 44-E or fails to comply with Section 44-F shall be imposed with the following fines:

"(1) a fine of not less than Five million pesos (P5,000,000.00) but not exceeding Ten
million pesos (P10,000,000.00) for the first offense;

"(2) a fine of not less than Ten million pesos (P10,000,000.00) but not exceeding Fifteen
million pesos (P15,000,000.00) for the second offense; and

"(3) a fine of not less than Fifteen million pesos (P15,000,000.00) but not exceeding
Twenty million pesos (P20,000,000.00) for the third offense and automatic suspension of
business permit until the requirement of the law is complied with.

"In case of failure to meet the targets set under Section 44-F, the obliged enterprise shall
pay the same fines set above, or a fine twice the cost of recovery and diversion of the footprint
or its shortfall, whichever is higher.

"The penalty shall be imposed whether or not the noncompliance is the result of the
failure to register under Section 44-E, falsification of documents, misdeclaration of generated or
recovered footprint, employment of any scheme to maliciously evade the responsibility of an
enterprise under the Extended Producer Responsibility Act of 2022, or tamper its compliance
with the provisions of Section 44-F.

"The Pollution Adjudication Board of the Department shall hear and adjudicate cases of
violations or offenses under this section, and impose appropriate fines therefor.

INCENTIVES UNDER THE EPR ACT OF 2022

Under the law rewards and recognitions, monetary or otherwise, shall be provided to
individuals, private organizations and entities, obliged enterprises, and PROs, including
nongovernment organizations, that have undertaken outstanding and innovative projects,
technologies, processes and techniques or activities in reuse, recycling, and reduction. The
landmark legislation promotes sustainable business practices
 KEY SPEAKER MS. ESPERANZA SAJUL ON MODES OF EPR PROGRAM PLAN

Ms. Esperanza Sajul, Assistant Director of Environmental Management Bureau Department of

Environment and Natural Resources discussed the modes EPR program aimed at effectively
preventing waste from leaking to the environment.

1. Waste Recovery Schemes through redemption buy-back and offsetting is done by

collecting plastic packaging waste at an arranged collection point which will result to
a high retrievability, high recyclability and resource recovery of waste material
2. Diversion of Recovered Waste results to reduction of recovered waste by diverting it
into value chains and value adding useful products such as recycling and other
sustainable methods.
3. Transportation of recovered waste to proper diversion or disposal sites shall be the
responsibility of the Obliged Enterprises, Collectives or PROs. They shall submit the
methodology through which the movement of recovered or collected plastic
packaging wastes to the appropriate composting recycling or other diversion or
disporsal sites shall be reliably tracked and documented in a quantifiable, traceable
and auditable manner as part of their EPR program.
4. Waste Clean up of coastal areas, public roads and other sites shall fall retroactively
within the responsibility of the relevant Obliged Enterprise whose packaging products
have leaked in to the environment, however, because of the complexity of waste
clean-up, the Obliged Enterprises, Collectives, PROs may coordinate with the LGUs.
5. Investment in commercial or industrial waste diversion or disposal facilities If existing
recycling facilities are insufficient to meet the required capacity, quality or technology
standards for the collection or recovery of plastic packaging waste, Obliged
 Enterprises, Collectives or PROs have the option to formally elevate the matter to the
NEC. It is required however to submit a business case or a project feasibility and
long-term sustainability study in order to ensure potential cash or non-cash
investments and risk-sharing arrangements and more.
6. Partnerships with local governments, communities and informal waste sectors in
support of an Obliged Enterprise’s EPR plan or CSR schemes.

The DENR encourages the inclusion of informal waste sector to motivate them in
building resilience. There are over one hundred thousand Filipinos engaged in informal
waste collection, with this the DENR can ensure safe livelihoods of waste workers by
incorporating them into the evolving formal solid waste management industry for a fair
wage and occupational safety and give financial literacy programs for alternative
livelihoods.

The Target for the recovery of Plastic Product footprint are the following:

"December 31, 2023 — twenty percent (20%);

"December 31, 2024 — forty percent (40%);
"December 31, 2025 — fifty percent (50%);
"December 31, 2026 — sixty percent (60%);
"December 31, 2027 — seventy percent (70%); and
"December 31, 2028 and every year thereafter — eighty percent (80%).

The Obliged Enterprise must submit a report of their compliance on the EPR Act to the
DENR every 30th of June or the 1st working day thereafter of such year.

The EPR Compliance Audit Report includes the following:

1.) Footprint declaration of OEs OR PROs in kilograms
2.) Recovery or Plastic Packaging Waste Diversion
3.) Determination of the Equivalent Plastic Packaging Waste Footprint Reduction
Resulting from other EPR Programs
4.) Confirmation of records, reports or information that the parties consider or declare to
be “Confidential”.
 HOW CAN COMPANIES ENSURE THAT THEY ARE COMPLIANT?

1. Register under the EPR regulations.

2. Follow the two main objective of EPR Programs which are: a) Reduction of non-
environment friendly packaging products and; b) Recovery Programs aimed at
effectively preventing waste from leaking to the environment.
3. Ensure compliance with the targets for plastic waste diversion.
4. Explore the modes of compliance
.

PLASTIC CREDIT EXCHANGE CX EPR PROGRAM

The Plastic Credit Exchange is the first to introduce the Plastic Pollution Reduction Standard
(PPRS) to certify project partners through a 3rd party auditing process. PCX is the world’s only
fully transparent global marketplace for audited plastic waste reduction that provides seamless
and traceable solutions to take responsibility for post-consumer plastics.
QUESTION AND ANSWERS

1. Is the law applicable only to plastic manufacturers?

Importers, distributors and manufactures are included.

2. Companies registered under the Freeport Zone covered by the law?

Yes, so long as a company’s capitalization is 100million and above or that a company
fits the definition of what is an Obliged Enterprise, there are no exceptions even if
such company is part of a certain economic zone

3. Is EPR applicable to all industries? Not only to plastic manufacturers, importers or

distributors?
It is not all industries, those only mentioned in the EPR law.

4. Can a company recover more than their target recovery of plastic footprint and be
credited for it in the next year?
The target is yearly. If they exceed the yearly target, most likely they will be
incentivized but not carried over for the following year.

5. What if the company is unaware that it is an Obliged Large Enterprise and must
comply with this law? How can DENR check if it’s non-compliant?
The footprint is actually a self-declaration. Upon submission of their EPR programs this will
be audited by the third party and the result will be checked and validated.

6. Will the DENR release an audit standard?

We have a set of guides or manual for compliance, evaluation, audit and monitoring.
These procedures may be released next year before audit begins.

7. When should OEs register lest suffer penalization?

It is encouraged that OEs register. The DENR cannot say for certain as to when
should it start.

8. For OEs not yet registered are they still mandated to comply with the target by
December 2023?
Yes

END OF WEBINAR 4:30PM