The DRS is a green agenda to promote recycling and reduce littering. Legislation will enable consumers to redeem a 20p deposit on returned single-use retainers from any products covered by the scheme including plastic bottles made from PET plastic, aluminium and steel cans, and glass bottles. In Scotland, all retailers that sell relevant products to consumers on their premises whereas other organisations may operate on a voluntary basis. Scotland is set to introduced its DRS from 16 August 2023 but there will be a phased implementation of DRS infrastructure from 2022. The response to the consultation will indicate the intricacies of future legislation for the rest of the UK but regulation is likely to limit the marketing or sale of single-use products to consumers, require producers to collect a target percentage of the scheme packaging which they place on the market in a calendar year and require retailers to operate a return point at premises.

In Scotland, all retail outlets, regardless of size, will need to comply with the scheme. Businesses are taking steps to install the required DRS infrastructure, implementing the scheme voluntarily or ascertaining if they are exempt. In the rest of the UK, businesses may choose to participate in the consultation to inform future policy and legislation on another future DRS.

This new tax applies to plastic packaging produced in or imported (whether filled or unfilled) into the UK that does not contain at least 30% recycled plastic. Plastic that meets this threshold will not be taxed. 

Proposed key features of the tax:

• A £200 per tonne tax rate for packaging with less than 30% recycled plastic
• An exemption for producers and importers of small quantities of plastic packaging

UK producers of plastic packaging, importers of plastic packaging, business customers of producers and importers of plastic packaging, and consumers who buy goods in plastic packaging in the UK. There will be both one-off and ongoing costs to comply with the tax regime in addition to new registration requirements.

The Environment Act introduces key targets and provisions for the advancement of greener business and prevent environmentally harmful practices. For example, a legally binding long-term target to improve air quality and reduce fine particulate (PM2.5) emissions by October 2022. The Act is wide reaching and gives the Government's 25 year Environment Plan statutory footing. Some of the areas prioritised are air-quality, environmental governance and recall, water and biodiversity.

The targets the government set may impact certain businesses and mean current practices must change to comply with regulation. The Act confers powers on the relevant national authority to monitor progress and take action to enforce targets. The Office for Environmental Protection can take businesses, public bodies and the government to court over any breaches of UK environmental law. Firms must be aware if they are subject to the legislation. 

New UK regulation that furthers the EU Circular Economy Plan entitles consumers to the right to have certain goods repaired to reduce electrical waste. Products include but are not limited to dishwashers, washing machines and dryers, fridges and freezers and televisions for consumers. For business appliances cover items such as electric motors, vending machines, light sources and retail fridges and freezers. 

The new regulation mandate manufacturers to make spare parts for electrical appliances. These must be available within 2 years of all model launches and a period after the model is discontinued. Other such obligations on manufactures may be introduced.

The current MEES Regulations are in force and apply from 1 April 2020 (residential) and from 1 April 2023 for let commercial buildings (non-domestic private rented buildings). From 1 April 2023, none of a business's investment portfolio or operational leasehold estate can be let if it has an EPC rating of F or G aside from some limited exceptions. The Government is proposing to raise the minimum EPC rating from an E rating to B by 1 April 2030.

The onus will be on landlords to make energy efficient improvements as the commercial and industrial rented sector accounted for around half of energy consumed. Landlords will face higher costs to make such changes. Tenants should insist on upgrade works on new leases now and watch out for spurious dilapidation claims in their existing portfolio. If the regulations are breached, the lease will not be void; however, there are potential fines of up to £150,000. 

The Department for Transport has confirmed that all new and refurbished non-residential buildings with more than ten on-site parking spaces to have at least one EV charge point and cables routes. The proposed regulations would require that private EV charge points sold or installed in the UK have smart charging functionality included. The Automated and Electric Vehicles Act 2018 extended compulsory motor vehicle insurance automated vehicles and enable the Government to require electric vehicle charge points to be installed at motorway service stations and large fuel retailers throughout the UK. 

EV charge points will need to be factored in to future development plans for new supermarkets (EV charge point for one in five car-parking spaces) and, from 2025, all existing supermarkets with more than 20 car parking spaces will have to have at least one EV charge point. This may prove difficult for shared and rented retail.

UK B Corp Certification is awarded to businesses certified by the non-for-profit B Lab as voluntarily meeting higher standards of transparency, accountability, and performance for their social and environmental impact. Increased Environment, Social and Governance (ESG) pressure from regulators and consumers has created an influx of companies seeking certification to gain brand equity. 

Becoming a B-Corp brand has benefits for demonstrating furtherance of ESG initiatives which can safeguard businesses form regulatory consequences, drive change and appease consumers. thus protecting reputation. Businesses should consider how to become B Corp certified and the process to do so.

In 2019, The Climate Change Act 2008 (2050 Target Amendment) Order 2019 amended the Climate Change Act 2008 to commit the UK to achieving 'net zero ' emissions by 2050. This is an ambitious target compared to the previous target of an 80% reduction in emissions by 2050. The purpose of Net Zero is to ensure that any remaining emissions would be balanced by measures and schemes, such as planting trees or using technology like carbon capture and storage, to offset an equivalent amount of greenhouses gases. To meet this target, the Climate Change Committee, an independent statutory body, suggests periodic carbon budgets for the government to adopt. Following COP26, there is increasing global pressure to enforce the Paris Agreement and tackle the climate crisis.

Recently, the Climate Change Committee has highlighted that although the UK is currently hitting targets to cut emissions, the UK is not on track to meet 4th and 5th carbon budgets targets as part of Net Zero. Coinciding with pressure from COP26, the government is likely to introduce more challenging measures. This may include more policy, regulation, legislation and to ensure these targets are met sector specific frameworks will develop. For example, at the end of 2021 the government introduce the Net Zero Strategy: Build Back Greener policy plan which sets smaller milestones, such as the whole of the UK to be powered by clean electricity as the primary source of energy by 2035, to ensure Net Zero is reached. Other similar policy initiatives that have been introduced include: the UK Emissions Trading Scheme; the Heat and Buildings Strategy phasing out the use of gas heating; and a commitment to end the sale of new petrol and diesel cars and vans by 2030. Such initiatives will gain momentum and continue to be introduced over the forthcoming years.

This is a rapidly changing landscape and it is therefore critical for businesses to aware of the latest government and regulatory requirements as well as any investor and wider public expectations. Any developments that impact businesses are likely to trigger a change in company operation or infrastructure – anticipation and preparation for this will be crucial.