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Introduction of EPR And Vital Role of Company Secretaries in Ensuring EPR Compliance and Sustainable Governance

Nowadays, plastic waste is one of the biggest environmental challenges today due to its non-biodegradable nature and widespread use. It has severe consequences for ecosystems, wildlife, and human health.

It affects the environment in various manners like in the form of soil pollution, water pollution, air pollution and consequently it increases the global warming.

Further, it impacts the both human and wildlife. Humans consume microplastics through contaminated water, food, and even air. Plastics contain harmful chemicals like BPA and phthalates, linked to hormonal imbalances, reproductive issues, and cancer.

INTRODUCTION OF CPCB:

Before knowing further about EPR, let us know about Central Pollution Control Board (CPCB).

Under the provisions of The Water (Prevention & Control of Pollution) Act 1974, the Central Government constituted the ‘Central Board for the Prevention and Control of Water Pollution’ on September 23, 1974.

The Board was entrusted with the added responsibilities of Air Pollution Control since May, 1981 under the provisions of the Air (Prevention and Control of Pollution) Act, 1981.

The enactment of the Environment (Protection) Act, 1986, which is the umbrella legislation for enforcement of measures for protection of environment, and several notifications of Rules under the Act widened the scope of activities of the Central Board.

The name of the Board was amended to Central Pollution Control Board (CPCB) under the Water (Prevention & Control of Pollution) Amendment Act, 1988.

Central Pollution Control Board has been playing a key role in prevention, control and abatement of pollution in the country by generating, compiling and collating data, providing scientific information, rendering technical inputs for formation of national policies and programmes.

The main functions of CPCB, as spelt out in the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981, are:

-To promote cleanliness of streams and wells in different areas of the States and the country as a whole through prevention, control and abatement of water pollution;

-To improve the quality of air and to prevent, control and abate air pollution in the country;

-To give directions, in the performance of its functions under these Acts; and

-The Central Board shall be bound by such directions in writing as the Central Government may give to it.

ALL ABOUT EPR:

An EPR Certificate (Extended Producer Responsibility Certificate) is a compliance document that certifies that a company has fulfilled its obligation to manage the end-of-life disposal of its products, particularly in industries generating waste such as used oil, plastic waste, e-waste, battery waste, waste tyre and packaging materials.

At present, Extended Producer Responsibility (EPR) is a policy framework that holds manufacturers, importers, and brand owners accountable for the collection, recycling, and disposal of waste generated by their products. It is enforced by environmental regulatory authorities in various countries.

Requirement of EPR Certificate

The Companies (Businesses) that are producers, manufacturers, recyclers, importers, or refurbishers having potential environmental impact must obtain an EPR certificate. These include:

  • Electronics & Electrical Manufacturers (E-waste)
  • Plastic Producers, Importers, and Brand Owners (PIBOs)
  • Battery Manufacturers (Battery Waste Management)
  • Packaging Material Producers

Practical Process involved for application of EPR Certificate

The process involves:

Registering with the Environmental Authority

1. The Companies must register with the Central Pollution Control Board (CPCB) or State Pollution Control Boards. Go to https://cpcb.nic.in/all-epr-portals-of-cpcb/ Then choose respective registration.

Submitting Required Documents and appointment of Authorised Dismantler and Recycler

2. Submission of required documents for EPR Application:

Business registration form,

Waste Management EPR Plan,

CTO (Consent to Operate),

CTE (Consent to Establish),

Agreement of Safe, Legal & Scientific Disposal of Hazardous Waste ,

Redbook & Authorisation,

Recycler Agreement,

Recycler Profile- I Company Profile, Recycler Organisation Chart,

Capacity Utilization,

Agreement of Transportation,

Declaration for ROHS,

GST, IEC, PAN, Aadhar,

Certificate of Incorporation

or any other documents as may be required by the CPCB.

EPR Compliance Plan

3. Demonstrating how the company will collect and process post-consumer waste.

Approval & Certification

4. Upon review, the authority issues the EPR certificate, allowing the company to operate in compliance.

Benefits of EPR Certification                                                                                                

  • Regulatory Compliance – Avoids penalties and legal issues.
  • Sustainability – Promotes environmental responsibility.
  • Corporate Reputation – Enhances brand image and consumer trust.
  • Market Access – Some markets require EPR compliance for product entry.

Global scenario

  • India: Governed by CPCB under the Plastic Waste & E-waste Management Rules.
  • EU: Strict EPR regulations under the Circular Economy Action Plan.
  • USA: Varies by state, with electronics and packaging EPR programs.
  • Canada: Strong EPR framework for electronics, packaging, and hazardous waste.

OVERVIEW, HIGHLIGHTS AND COMPLIANCE OF E-WASTE (MANAGEMENT) RULES, 2022

The E-Waste (Management) Rules, 2022 were introduced by the Ministry of Environment, Forest and Climate Change (MoEF&CC), India, replacing the E-Waste (Management) Rules, 2016. These rules aim to streamline the management, recycling, and disposal of electronic waste (e-waste) while promoting sustainability and the Extended Producer Responsibility (EPR) framework.

Applicability:

The rules apply to:

✔ Producers, manufacturers, recyclers, and refurbishers of electrical and electronic equipment (EEE).

✔ Entities dealing with e-waste from computers, mobile phones, batteries, televisions, refrigerators, air conditioners, and other electronic devices.

✔ Excludes: Micro and small enterprises under the MSME Act, 2006.

Extended Producer Responsibility (EPR) Framework under E-Waste (Management) Rules, 2022

Registration

By virtue of Rule 4, the entities shall register on the portal in any of the following category, namely: –

(a) manufacturer;

(b) producer;

(c) refurbisher; or

(d) recycler.

In case any entity falls in more than one categories under sub-rule (1), then the entity shall register under those categories separately.

Producers must ensure a specific collection and recycling percentage of e-waste generated.

Procedure for storage of e-waste

According to Rule 11, every manufacturer, producer, refurbisher and recycler may store the e-waste for a period not exceeding 180 days.

Further, they shall maintain a record of sale, transfer and storage of e-wastes and make these records available for inspection and the storage of the e-waste shall be done as per the applicable rules or guidelines for the time being in force.

The Central Pollution Control Board may extend the 180 days period up to 365 in case the e-waste needs to be specifically stored for development of a process for its recycling or reuse.

Amendment in Rules

The definition of dismantler has been amended by the amended rules dated 8th March, 2024.

New definition is as follow:

‘(f) ‘‘dismantler’’ means any person or entity engaged in dismantling of used electrical and electronic equipment and components thereof in accordance with the guidelines of the Central Pollution Control Board made in this regard.’.

The Rule 9A which deals with Relaxation of timelines for filing of returns was added by the amendment dated 8th March, 2024.

This rule provides that the Central Government may, if it is satisfied that it is necessary so to do in the public interest or for effective implementation of these rules, by order, relax any period within which any return or report is to be filed under these rules by a manufacture, producer, refurbisher or recycler of electrical and electronic equipment and components or consumables or parts or spares thereof, for a further period not exceeding nine months.

ROLE OF COMPANY SECRETARIES

Company Secretaries (CS) play significant role in ensuring that businesses/corporate comply with environmental laws and adopt sustainable practices. As Governance Professionals, they assist the organizations integrate environmental, social, and governance (ESG) principles into corporate strategy.

A Company Secretary is not just a compliance officer but a key driver of sustainability. By integrating environmental responsibility into corporate governance, they help businesses become more eco-friendly and socially responsible.

Company Secretaries can play a vital role in ensuring that companies comply with Extended Producer Responsibility (EPR) regulations. They can play the role from applying the EPR registration till the completion of all the conditions stipulated by CPCB.

Their expertise in corporate governance, compliance, and regulatory affairs makes them key professionals in implementing sustainable waste management practices.

1. Ensuring Regulatory Compliance

♦ Monitor and ensure adherence to EPR laws under frameworks like:

    • Plastic Waste Management Rules
    • E-Waste (Management) Rules
    • Battery Waste Management Rules
    • Hazardous Waste Management Rules

♦ Obtain and maintain EPR registration from authorities like:

    • Central Pollution Control Board (CPCB) (India)
    • State Pollution Control Boards (SPCBs)
    • Environmental Protection Agencies (EPAs) in various countries

♦ Assist in filing periodic compliance reports with regulatory bodies.

2. Drafting and Implementing EPR Policies

♦ Develop EPR policies and strategies for the collection, recycling, and disposal of waste.

♦ Ensure companies partner with authorized waste processors and recyclers.

♦ Oversee plastic, e-waste, and battery take-back mechanisms.

3. EPR Documentation & Reporting

♦ Maintain proper records of:

    • Quantity of plastic/e-waste/battery waste generated
    • Recycling and disposal methods
    • Waste collection partners and agreements

♦ Ensure ESG (Environmental, Social, and Governance) reporting aligns with EPR obligations.

♦ Submit annual waste management reports to regulatory authorities.

4. Board Advisory & Stakeholder Engagement

♦ Advise the Board of Directors on EPR responsibilities and risks.

♦ Engage with government bodies, NGOs, recyclers, and waste management agencies.

♦ Promote corporate sustainability goals through EPR-driven CSR activities.

5. Risk Management & Legal Safeguards

♦ Identify and mitigate legal risks associated with non-compliance.

♦ Ensure businesses follow ethical waste disposal practices to avoid penalties.

♦ Assist in responding to government audits, inspections, and notices related to EPR.

6. Promoting Sustainability & Green Corporate Governance

♦ Implement eco-friendly corporate policies to reduce waste.

♦ Advocate for a circular economy approach, promoting recycling and reusability.

♦ Educate employees and stakeholders on waste reduction and EPR compliance.

References:

https://cpcb.nic.in/,

https://eprewastecpcb.in/assets/PDF/e-waste_rules_2022.pdf,

https://eprewastecpcb.in/assets/PDF/Amendment-Rules-2024.pdf

https://cpcb.nic.in/openpdffile.php?id=UmVwb3J0RmlsZXMvMTY2OV8xNzI3NDE0NTc1X21lZGlhcGhvdG8yOTAyNy5wZGY=

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Disclaimer:  This article contains interpretation of the Act, Rules, Regulations, Notifications issued and personal views of the author are based on such interpretation. Readers are advised either to cross check the views of the author with the Act or seek the expert’s views if they want to rely on contents of this article. I assume no responsibility therefore. This is only a knowledge sharing initiative and author has no intention to solicit any business or profession. Any typo error or grammatical error may kindly be ignored.

About Author: The above has been compiled by CS. Varun Kapoor, proprietor of V Kapoor & Associates, Practicing Company Secretary from Faridabad, Haryana, India. For any queries or suggestions, he can be approached at fcsvarunkapoor@gmail.com or 9899110705.

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