Harvard Case - The City of Edmonton: Anticipating Extended Producer Responsibility
"The City of Edmonton: Anticipating Extended Producer Responsibility" Harvard business case study is written by Ryan Orchard. It deals with the challenges in the field of Operations Management. The case study is 10 page(s) long and it was first published on : Oct 15, 2020
At Fern Fort University, we recommend the City of Edmonton adopt a comprehensive Extended Producer Responsibility (EPR) program that focuses on maximizing resource recovery and promoting sustainable practices. This program should be implemented in a phased approach, starting with key product categories such as electronics, packaging, and batteries, and gradually expanding to encompass other product streams.
2. Background
The City of Edmonton faces the challenge of managing its growing waste stream, particularly electronic waste (e-waste). The case study highlights the city's commitment to environmental sustainability and its desire to explore EPR as a potential solution. The city is seeking guidance on how to design and implement an effective EPR program that balances environmental goals with economic considerations.
The main protagonists in the case study are the City of Edmonton, represented by the City Council and the Waste Management Department, and the various stakeholders involved in the waste management system, including producers, retailers, consumers, and recycling companies.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Operations and Supply Chain Management and Environmental Sustainability.
Operations and Supply Chain Management:
- Supply Chain Management: An EPR program requires a robust supply chain to manage the collection, sorting, and processing of end-of-life products. This involves coordinating with producers, retailers, consumers, and recycling facilities.
- Inventory Management: Effective inventory management is crucial to ensure efficient handling of collected materials and minimize storage costs.
- Logistics: Efficient logistics are essential for transporting collected materials to processing facilities and managing the reverse logistics for product returns.
- Process Design: The EPR program should be designed to optimize the collection, sorting, and recycling processes, minimizing waste and maximizing resource recovery.
- Operations Strategy: The city needs to develop a clear operations strategy for its EPR program, defining its goals, objectives, and key performance indicators (KPIs).
Environmental Sustainability:
- Environmental Sustainability: The EPR program should prioritize environmental sustainability by promoting resource recovery, reducing waste generation, and minimizing the environmental impact of product disposal.
- Product Development: Producers should be encouraged to design products with end-of-life considerations in mind, facilitating disassembly, reuse, and recycling.
- Green Operations: The city should prioritize green operations throughout its waste management system, minimizing energy consumption and emissions.
4. Recommendations
Phase 1: Focus on Key Product Categories:
- Electronics: Implement an EPR program for electronics, including televisions, computers, smartphones, and other electronic devices.
- Packaging: Focus on EPR for packaging materials, particularly those made of plastic, paper, and glass.
- Batteries: Establish an EPR program for batteries, including lead-acid, lithium-ion, and alkaline batteries.
Phase 2: Gradual Expansion to Other Product Streams:
- Phased Expansion: Gradually expand the EPR program to include other product categories, such as furniture, appliances, and textiles.
- Prioritize Product Categories: Prioritize product categories based on their environmental impact, volume, and potential for resource recovery.
Key Elements of the EPR Program:
- Producer Responsibility: Producers should be responsible for financing the collection, sorting, and recycling of their products.
- Extended Producer Responsibility (EPR) Fees: Implement EPR fees on producers, proportionate to the environmental impact of their products.
- Collection and Sorting Infrastructure: Develop a comprehensive collection and sorting infrastructure, including designated drop-off locations, curbside pickup, and specialized recycling facilities.
- Recycling and Material Recovery: Invest in advanced recycling technologies to maximize resource recovery and minimize waste generation.
- Public Awareness and Education: Conduct public awareness campaigns to educate consumers about the importance of EPR and proper waste disposal.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The City of Edmonton has a strong commitment to environmental sustainability, and an EPR program aligns with its mission to create a clean and healthy city.
- External Customers and Internal Clients: The EPR program will benefit external customers, including residents and businesses, by providing convenient and efficient waste disposal options. Internal clients, such as the Waste Management Department, will benefit from improved resource recovery and reduced waste management costs.
- Competitors: Other Canadian cities have successfully implemented EPR programs, providing valuable insights and best practices for Edmonton.
- Attractiveness: The EPR program is expected to have a positive impact on the environment, reduce waste management costs, and create economic opportunities in the recycling sector.
- Assumptions: The success of the EPR program relies on the cooperation of producers, retailers, consumers, and recycling companies.
6. Conclusion
By implementing a comprehensive EPR program, the City of Edmonton can significantly reduce its waste stream, promote resource recovery, and contribute to a more sustainable future. This program will require collaboration among various stakeholders, including producers, retailers, consumers, and recycling companies.
7. Discussion
Alternatives:
- Status Quo: Continuing with the current waste management system without implementing EPR would result in continued landfill reliance and limited resource recovery.
- Partial EPR: Implementing EPR for only a limited number of product categories would have a less significant impact on waste reduction and resource recovery.
Risks:
- Producer Resistance: Producers may resist the financial burden of EPR fees.
- Consumer Compliance: Consumers may not fully comply with the program's requirements.
- Technological Challenges: Recycling technologies may not be sufficiently advanced to handle all types of waste.
Key Assumptions:
- Government Support: The program requires strong government support and enforcement.
- Stakeholder Cooperation: Collaboration among producers, retailers, consumers, and recycling companies is essential.
- Financial Viability: The program must be financially sustainable and generate sufficient revenue to cover its costs.
8. Next Steps
Timeline:
- Year 1: Develop a comprehensive EPR plan, including program goals, target product categories, and funding mechanisms.
- Year 2: Implement the EPR program for electronics, packaging, and batteries.
- Year 3-5: Gradually expand the program to other product categories, monitor performance, and make adjustments as needed.
Key Milestones:
- Stakeholder Engagement: Engage with producers, retailers, consumers, and recycling companies to gather input and build consensus.
- Public Awareness Campaign: Launch a public awareness campaign to educate consumers about EPR and proper waste disposal.
- Collection Infrastructure Development: Develop a robust collection infrastructure, including designated drop-off locations and curbside pickup.
- Recycling Facility Upgrades: Invest in advanced recycling technologies to maximize resource recovery.
- Performance Monitoring: Continuously monitor the program's performance and make adjustments as needed.
By taking these steps, the City of Edmonton can successfully implement an EPR program that promotes environmental sustainability, reduces waste, and creates a more circular economy.
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Case Description
The City of Edmonton, Alberta, Canada (COE), recognizing that its once world-class waste management system needed major transformation, published an ambitious and progressive waste management strategic plan ("The Future of Waste") on October 4, 2019. Among numerous initiatives, policies, and frameworks, the plan made reference to the concept of extended producer responsibility (EPR), a public policy mechanism for increasing the responsibility of producers for post-consumer (i.e., end-of-life) product and packaging waste. Although such policies were typically enacted at a provincial level, it seemed inevitable that, if EPR came into reality in Alberta, the COE would have some involvement in promotion and/or physical post-consumer collection logistics (a critical enabler of any successful EPR system). There was, thus, an opportunity for the COE to consider how its new direction for waste management should incorporate logistical support for EPR, from a coordination/leadership and/or a physical perspective. The issue at hand was whether and how the COE should be involved (logistically) in any potential EPR manifestation, which would include an analysis of what made a good post-consumer collection system; what existed in the COE at the time from current industry players, such as retailers, third-party logistics (3PL) providers, and providers of last-mile delivery services; and what specific role the COE could play (e.g., through waste and recycling collection).
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