Product responsibility & EPR: How companies are now setting the course for the future

Key Takeaways  

• Product responsibility requires safe, durable and legally compliant product design – traditionally through to use.

• EPR extends this responsibility to the entire life cycle: manufacturers finance and organise collection, recycling and disposal. 

• Drivers are EU regulations and growing expectations from customers and investors alike. 

• When implemented correctly, EPR offers efficiency gains, cost advantages and potential for differentiation.

Product Responsibility and Extended Product Responsibility (EPR) Explained 

In the course of the transition toward a circular economy, the topic of product responsibility is gaining increasing strategic relevance. While companies were previously responsible mainly for the production and use of their products, the focus today extends to the entire lifecycle – from development and distribution to take-back, recovery and end-of-life treatment. The aim is to minimise environmental impacts along the value chain and to use resources more efficiently. Alongside the R-strategies, extended producer responsibility is considered a key instrument for translating circular economy principles into concrete business practice. 

Definition of Product Responsibility 

Traditional product liability obliges manufacturers and retailers to design their products to be safe, reliable and compliant with the law. It is intended to ensure that consumers are protected from damage to their health and property and that products function properly throughout their useful life. 

Furthermore, the approach is preventive in nature: companies should create incentives for sustainable product design through quality, durability and reparability. Traditionally, however, companies’ responsibility ends with the sale. The public sector or consumers are usually responsible for collection, disposal or recycling. 

This perspective is now reaching its limits – in view of resource scarcity, environmental pollution and increasing waste volumes, politicians, businesses and society are increasingly calling for holistic responsibility throughout the entire life cycle. 

Definition of Extended Product Responsibility 

Extended Producer Responsibility (EPR) is a policy and economic governance instrument that obliges manufacturers to assume responsibility for their products throughout the entire lifecycle. This expands the traditional concept of product responsibility to include ecological, organisational and financial dimensions. EPR is based on the polluter pays principle: whoever places a product on the market is also responsible for the environmental and financial impacts at the end of its life. 

The term “producer” is deliberately defined broadly within the EPR framework. It includes not only manufacturing companies but also importers, private-label providers and online retailers – in other words, all actors who place products on a market for the first time. This ensures that responsibility is assumed along global value chains and prevents competitive distortions caused by free-riding. 

Objectives of EPR 

• Integrate environmental costs into product design 
• Reduce waste volumes and landfill use 
• Promote material circularity 
• Relieve financial burdens on municipalities 
• Foster innovations for environmentally friendly product design 

Why companies should prioritise this topic now 

Hardly any other sustainability issue is currently developing as dynamically as extended product responsibility. Regulatory pressure, rising consumer demands and supply chain transparency mean that EPR is no longer a niche issue, but a central component of corporate governance. 

Some countries, including France, have extended EPR systems to additional product groups such as furniture, toys and sports equipment. 

Companies that address EPR early on gain clear advantages: 

• Regulatory certainty:proactive preparation for upcoming legal requirements 
• Cost reduction:through optimised material flows and lower disposal expenses 
• Competitive advantages:through sustainable design, transparent supply chains and ecological brand positioning 
• Risk minimisation:avoidance of fines, sales bans and reputational damage 

In short: product responsibility is a duty – and is becoming a competitive advantage for those who act now. 

How EPR Works in Practice: The Key Pillars 

In order for extended producer responsibility to be effective, it relies in practice on several closely interlinked pillars that clearly define both the financial and organisational responsibilities of companies. 

Financial Responsibility: The Role of Take-Back Systems 

Companies bear the costs of collecting, sorting, recycling and disposing of their products. This is usually done through so-called producer responsibility organisations, take-back and recycling systems, to which manufacturers pay fees. These fees are often modulated according to the type of material and recyclability of the products (“eco-modulated fees”). This ensures that waste management is no longer carried out at the expense of the general public, but by those who put the products into circulation. 

Organisational Responsibility: From Design to Take-Back 

In addition to financing, companies are also responsible for practical implementation. They must provide suitable take-back, collection and recycling systems or join existing systems.  

EPR begins as early as the design process: products should be durable, repairable and recyclable. Many regulations now stipulate specific design requirements, such as minimum recycled content, modular construction or labelling requirements. 

At the same time, companies are obliged to clearly inform consumers about return options – such as collection points for old appliances, return boxes in shops or deposit systems. This obligation to provide information increases transparency and promotes correct disposal. 

Conclusion: EPR not only obliges companies to pay, but also to actively participate in shaping functioning circular structures. 

Legal Basis and Framework Conditions: What do Companies Need to Bear in Mind? 

Extended producer responsibility is firmly anchored in European and national environmental law. Legal requirements determine which product groups fall under EPR, what take-back, collection and recycling obligations exist, and how compliance is monitored. For companies, this means that they must take into account regulatory requirements at both EU level and in the respective Member State. 

EU Level: Relevant Legislation and Reforms 

At European level, a comprehensive regulatory framework is currently being developed that will gradually strengthen and standardise EPR. At its core is the Waste Framework Directive (2008/98/EC). It defines basic principles of product responsibility and, since the 2018 reform, has stipulated binding minimum standards, including: 

• Transparent and polluter-pays-based financing mechanisms 
• Regular reporting on target achievement 
• Fee structures that take recyclability and environmental impacts into account 

Building on these principles, several legal acts are significantly driving forward the expansion of EPR: 

• Packaging and Packaging Waste Regulation (PPWR):Introduction of uniform EU-wide requirements for registration, participation in collection and recycling systems, and ambitious recycling and recycled content quotas. The PPWR replaces the previous Packaging Directive and thus creates a binding legal framework for all distributors of packaging. 
• Ecodesign for Sustainable Products Regulation (ESPR):Requires companies to demonstrate durability, reparability, recyclability and resource efficiency as early as the product development stage. The regulation thus anchors sustainability criteria directly in the design process. 
• EPR systems for textiles (in preparation):In future, manufacturers will be obliged to contribute to the financing of the collection, sorting and recycling of textiles and to prove their recyclability. 

This framework is supplemented by special sectoral legislation: 

• WEEE Directive:obliges manufacturers of electrical and electronic equipment to take back, treat and recycle waste equipment 
• EU Battery Regulation (2023/1542): sets collection rates, recycling requirements, material specifications and information and labelling requirements 
• End-of-Life Vehicles Directive (2000/53/EC): regulates take-back, recycling quotas and low-pollutant design for end-of-life vehicles 

Together, these regulations pursue the goal of implementing product responsibility in a uniform, transparent and verifiable manner throughout Europe. Companies must therefore increasingly ensure that their products meet the same requirements not only in one Member State, but throughout the EU. 

National Implementation: The Example of Austria (AWG) 

In Austria, EPR is anchored in the Waste Management Act (AWG 2002). It stipulates that manufacturers placing products on the market are responsible for their take-back and recovery.
The concrete implementation is regulated through specific ordinances, such as the Packaging Ordinance (VVO), which applies to all entities placing packaging on the market.
Since 2023, foreign companies delivering products to Austria must appoint an authorised representative within the country and register with the Environment Agency Austria. They are also required to submit regular quantity reports and obtain a licence from a collection and recovery system.
Specific regulations also apply to other product groups, such as waste electrical and electronic equipment and batteries (Waste Electrical and Electronic Equipment Ordinance, Batteries Ordinance). Violations of EPR obligations are treated as administrative offences and can be sanctioned with fines or sales bans. 

National Implementation: The Example of Germany 

In Germany, the Circular Economy Act (KrWG) forms the legal foundation of EPR. Since the 1990s, it has required manufacturers to take responsibility for the take-back of their products.
The specific obligations are regulated in specialised laws: 

• Packaging Act (VerpackG): mandatory registration in the public LUCID register and participation in a dual system. 
• Electrical and Electronic Equipment Act (ElektroG): obliges manufacturers to take back and properly dispose of end-of-life devices. 
• Batteries Act (BattG): regulates the collection and recycling of batteries. 

The VerpackG is considered particularly strict: even the very first product placed on the market is subject to the registration requirement—there is no de minimis threshold. Online marketplaces and retailers may only offer products that are properly registered. Violations can result in fines or sales bans.  

Given the highly dynamic regulatory landscape, a robust compliance management system is essential to systematically capture and implement the numerous requirements. The continuously expanding and diverse regulatory obligations affect all product categories and can hardly be managed adequately without a structured system. 

Further voluntary measures and upcoming regulations 

In addition to existing legal requirements, EU initiatives are further advancing extended producer responsibility. With the European Green Deal and the EU Circular Economy Action Plan, the circularity of products is increasingly moving into focus. 

A central instrument is the Ecodesign for Sustainable Products Regulation (ESPR). It extends sustainability requirements to many product groups and will enable mandatory rules on repairability, durability and recyclability in the future. Complementing this, the Digital Product Passport will provide greater transparency regarding materials and repair information. 

Changes are also forthcoming in the packaging sector: the EU Packaging and Packaging Waste Regulation (PPWR) will apply from 2026, introducing harmonised rules, higher recycling and reuse quotas, and restrictions on packaging that is difficult to recycle. At the same time, fees will be more closely aligned with environmental performance. 

Sanctions and enforcement 

Even the best regulation is of little use without effective enforcement. Compliance with EPR requirements is increasingly monitored. In addition to government inspections, the market itself plays an active role: industry associations and competitors can issue warnings or enforce contractual penalties for violations. Open registers such as LUCID enhance transparency and enable effective market surveillance.
The message is clear: EPR compliance is not an optional sustainability issue but a legal obligation. 

Who is Affected? 

1. Responsible Actors 

EPR applies to a broad group of companies – not just traditional producers. The decisive factor is who first places a product on the market commercially. This includes: 

• Manufacturers and brand owners 
• Importers and commercial representatives 
• Private-label providers 
• Online retailers and fulfilment service providers 

Small businesses and start-ups are not exempt either: the obligations apply from the first product sold. 

2. Product Categories 

EPR now covers numerous product groups that typically become waste: 

• Packaging: sales, transport and single-use packaging. Manufacturers must register, pay licensing fees and finance recycling. 
• Electrical and electronic equipment: household appliances, IT equipment, consumer electronics. Manufacturers must take back end-of-life devices and comply with recycling quotas. 
• Batteries and accumulators: from portable batteries to industrial batteries; manufacturers must provide collection points and ensure recycling. 
• Vehicles: car and truck manufacturers are obliged to take vehicles back free of charge. 
• Textiles (in preparation): by 2028, manufacturers of clothing and home textiles are expected to be integrated into an EU-wide EPR system. 

Opportunities through EPR: Responsibility as a Strategic Success Factor  

EPR is often perceived primarily as a legal obligation. However, when properly understood, it offers a wide range of opportunities – ecological, economic and strategic. 

• Cost savings and resource efficiency: Closed material loops reduce material and disposal costs. Companies that use secondary raw materials become less dependent on volatile commodity markets. 
• Innovation driver for sustainable design: Considering disposal and recycling aspects in product design fosters innovation. Modularity, single-material designs and bio-based materials create competitive advantages. 
• Strengthening brand reputation: Transparent take-back systems and circular product strategies build trust among customers and investors and support ESG compliance. 
• Resilience through circular systems: Companies that establish take-back structures secure stable material flows and reduce dependence on imports and global supply chain risks 

EPR is thus developing into a strategic instrument of corporate management – it combines ecological responsibility with economic benefits.. 

Expertise in Action: How EFS Consulting Circular Economy Experts Transform EPR into a Strategic Opportunity.  

The introduction and implementation of extended product responsibility brings with it complex requirements for companies – characterised by dynamic regulation, global supply chains and increasing reporting obligations.  

EFS Consulting supports organisations in anchoring EPR not only in a compliant manner, but also in a way that adds strategic value. The focus is on embedding EPR as part of sustainable corporate management – not as a cost factor, but as an investment in future viability and competitive differentiation. 

Specifically, the approach encompasses: 

• Regulatory gap analysis & compliance roadmap: assessment of existing systems, identification of gaps and development of clear implementation steps 
• Operational EPR architecture: establishment of efficient take-back, collection and recycling processes, including governance models and responsibilities 
• Eco-design & product strategy: integration of design-for-reuse, repairability, recyclability and secondary material use into development and procurement processes 
• Digital enablement solutions: systematic automation of quantity reporting, data management, traceability and reporting, as well as development and integration of digital product passport systems 
• Embedding in ESG & corporate management: integration into EU taxonomy, CSRD/ESRS, KPI systems and risk and investment decisions 

Conclusion 

Extended producer responsibility (EPR) is more than just a regulatory concept: it is a key mechanism of the European circular economy. It obliges manufacturers to think holistically about products – from development to return. Companies that actively implement EPR not only contribute to environmental and resource protection, but also create economic advantages for themselves: lower costs, higher efficiency and long-term competitiveness. 

EPR is therefore not purely a compliance issue, but an opportunity to combine sustainability and economic efficiency – and to actively shape the transition to a truly circular economy. 

FAQs  

What is the difference between product responsibility and EPR? 

Product responsibility encompasses the safe and legally compliant design of products up to the point of sale, while EPR extends responsibility to the entire life cycle – including take-back, recycling and disposal. 

What role does the EU play in the implementation of EPR in Germany or Austria? 

The EU level sets the central framework for extended producer responsibility and has a decisive influence on how EPR is structured in Germany and Austria. At its core is the Waste Framework Directive, which defines binding minimum standards – such as polluter-pays financing mechanisms, transparent reporting and ecologically modulated fees. Building on this, sectoral EU legislation such as the PPWR, the ESPR, the WEEE Directive, the EU Battery Regulation and the End-of-Life Vehicles Directive specify detailed obligations for registration, take-back, collection and recycling quotas.  

As these requirements apply to all Member States, Germany and Austria must transpose them into their national waste legislation (KrWG and AWG respectively) and special regulations. The EU level thus shapes both the content of the set of obligations and the degree of harmonisation: in future, companies must ensure that their products comply with the same product design, take-back and recycling requirements throughout the EU. The EU is thus acting as a driver for uniform, ambitious and controllable EPR implementation in both countries. 

Does every company have to register with LUCID? 

Yes, if the company commercially distributes packaging in Germany, it is generally required to register with the central packaging register LUCID of the Central Agency Packaging Register (ZSVR).