Waste Management – Of all the environmental challenges that businesses face today, waste disposal is one of the most pressing and all-encompassing. Over the past 30 years countries around the world have introduced regulations to govern how companies handle and dispose of their waste, from hazardous materials to digital waste. Large markets such as the United States and the European Union were pioneers in implementing environmental regulations and set the standard that other territories have followed since. There are also international non-governmental organisations that regulate specific industries such as the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO). Businesses must adhere to these regulations if they apply to where they are operating to avoid penalties, legal claims and reputational damage.
Waste Disposal Legislation in the USA
In the United States, the primary legislation controlling waste disposal for businesses is Resource Conservation and Recovery Act (RCRA). This stipulates the management of hazardous, offensive, industrial and chemical waste disposal and is overseen by the Environmental Protection Agency (EPA). The RCRA requires businesses to implement a “cradle to grave” system of handling, storing, disposing of and tracking waste.
Another key piece of legislation businesses must be aware of is the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), which is better known as ‘Superfund’. This requires businesses found responsible for environmental contamination to cover the costs of cleanup and repair, which can amount to millions of dollars over many years. CERCLA also compels businesses to notify relevant authorities of any accidental spills or release of hazardous waste.
The Clean Water Act (CWA) and Clean Air Act (CAA) also include provisions for businesses to manage waste that affects water and air quality respectively.
European Union Waste Disposal Laws
The main piece of waste management legislation in the European Union is currently the Waste Framework Directive (Directive 2008/98/EC). This classifies a hierarchy of waste management for businesses, emphasising prevention of waste, reuse and recycling materials and recovering byproducts before disposal. It creates a “the polluter pays” principle, making corporate entities for the costs of managing their waste, with substantial fines available to punish non-compliance.
The EU also has the 1999 Landfill Directive, which aims to minimize environmental harm by discouraging and restricting the sending of waste in landfills, and carries severe penalties for non-compliance, evasion or unauthorized disposal. The Directive on Hazardous Waste imposes specific and strict controls for specific types of waste classified as hazardous to health and the environment.
As a supranational organisation, the EU also has regulations governing the transportation of waste across borders. Regulation 1013/2006 lays down safety standards for this traffic.
Waste Disposal Legislation in the UK
As an EU member until 2020 and still a close trading partner with, the UK’s regulations are currently very close in standards and implementation to the EU’s. The Environmental Protection Act 1990 is the legal basis for the majority of laws and regulations about waste management in the UK. It establishes that businesses have a duty of care to manage their waste responsibly and a framework of fines for non-compliance.
Waste specifically classed as hazardous is governed by the Hazardous Waste Regulations 2005. The UK imposes taxes on businesses sending waste to landfill, and penalties for evading or not declaring this activity are laid out in the Landfill Tax Regulations 1996.
International Standards: IMO and ICAO
International industries have their own regulations set down and enforced by their own regulatory bodies that can govern their members’ activities independently of specific national laws. The International Maritime Organization (IMO) enforces the requirements of the International Convention for the Prevention of Pollution from Ships (commonly known as MARPOL). Illegal disposal of waste into the maritime environment, especially sewage, fuels and oils and plastics, can result in large fines of more than $500,000. The IMO also has the power to call on local authorities to detain ships found in violation of MARPOL regulations until corrective actions are made.
The International Civil Aviation Organization (ICAO) serves a similar function for the aviation industry and regulates waste disposal from aircraft and airports. Penalties for violating the ICAO standards depend on the local legislation, but repeated or severe non-compliance can enable the ICAO to impose fines and suspend operator licenses.
Penalties and Other Consequences for Non-Compliance
Businesses can face consequences for improper waste disposal beyond fines, operational restrictions and prison terms. Companies found to be swerving waste disposal regulations and harming the environment can suffer significant reputational damage, losing customers and confidence. Consumers and investors are increasing conscious of environmental factors and will disengage or even boycott businesses found to not be meeting environmental standards.
As mentioned, many territories have laws that put the costs of rectifying any environmental damage onto the perpetrating business. Laws like CERCLA can impose ongoing costs of many millions of dollars on businesses to restore or make safe hazardous waste sites. For instance, chemical giant Dupont has ended up paying over $400 million, including $110 million in environmental restitution, for decades of dumping carcinogenic chemicals at Parkersburg, West Virginia.
In extreme cases, non-compliance can cause disruption to business activities by the loss of licenses or permits, or even forced shutdowns and liquidations for repeated and egregious violation of waste disposal laws. This especially applies to heavily regulated industries such as energy, chemical production, shipping and aviation.
Conclusion
Compliance with waste disposal legislation is not just a legal obligation but a vital component of responsible business operations. Non-compliance can lead to crippling fines, imprisonment, and irreversible reputational damage. As businesses face increasing pressure to demonstrate sustainability, adhering to national and international waste disposal regulations is crucial for long-term success.