Waste management and circularity are critical environmental challenges for industries such as manufacturing, retail, medtech, pharma and healthcare, governed by increasingly stringent regulations. Staying compliant is a complex and resource-intensive job especially for large multinational corporations. It requires a deep understanding of both current regulations, upcoming changes and regional particularities.  And non-compliance is not an option, often resulting in significant penalties, particularly in the EU, where violations can lead to hefty fines. For instance, Germany could face annual fines of up to 10 million euros for breaches.

In this article, you will learn:

• How large companies view regulations and compliance and how it impacts their business
• How to remain compliant in spite of changing and developing regulations
• The potential business benefits of regulatory compliance
• How compliance differs across industries
• The benefits of using software for environmental compliance.

Resourcify's digital waste management system automates regulatory compliance processes and documentation and provide easy access to ESG-relevant data for your company's waste management efforts. Book a demo to learn more.

What is environmental compliance and how does it impact businesses?

This refers to the measures companies must take to adhere to environmental laws and standards relevant to their operations. The EU is a global leader in environmental legislation, with over 300 directives and regulations. Compliance with these laws is crucial as enforcement has become increasingly stringent, reflecting the growing emphasis on environmental sustainability. The EU’s regulations remain the most comprehensive and far-reaching, particularly
in promoting circular economy practices. Companies operating in or exporting to the EU must prioritise compliance with these standards, and those looking to lead globally should consider aligning with EU regulations as a benchmark for sustainability practices.

For the most part, environmental regulations tend to focus on the following topics: 

• Climate protection
• Clean energy
• Waste management
• Circularity
• Biodiversity
• Pollution
• Sustainable mobility

In our State of Circularity in German Enterprises Report, we asked over 300 German businesses how regulations and government policies influence their strategies, budgets and decisions. Only 40% said they were consistently following regulations and 30% admitted to finding changing regulations confusing.

Download the State of Circularity Report for more insights about how German enterprises view circularity and waste management.

How can companies remain environmentally compliant and why should it be a priority?

While remaining environmentally compliant can be a challenge, with the right processes and systems in place businesses will not only be able to check that box but may actually find that their growth is also positively impacted. It's important to remember that the goal of all these regulations and legislations is not to create more bureaucratic hurdles but rather to guide and incentivise businesses to build a more sustainable world.

‍According to a recent IBM study, organisations that embrace sustainability are 75% more likely to attribute greater revenue improvements to their sustainability initiatives, and are 52% more likely to outperform similar companies with regard to profitability.

"Every piece of legislation is a stepping stone on the way to circularity. Without regulation, there would be no recycling. Regulations encourage companies to go above and beyond the status quo. Enterprises who don't comply become uncompetitive, which isn’t the direction to go." - Gary Lewis,
CEO and co-founder of Resourcify

By following these actionable steps, companies will find increasing value in remaining compliant.

1. Identify and understand key regulations

Every business faces a unique set of environmental regulations depending on its sector and the regions in which it operates but navigating these is often easier said than done. The focus areas for these legislations should be integrated into daily operations and ultimately into the DNA of the company. By thinking long-term and aligning corporate goals with these objectives with time it will become easier to keep pace with developments. The IBM study also revealed that companies are actually spending 43% more on sustainability reporting compared to sustainability innovation. This underscores the need for a mindset shift - sustainability shouldn't be a box to be checked in a report. Companies who focus on understanding the essence of regulations will find they also begin to understand how their company is impacting the planet which will empower them to make more sustainable choices that benefit both the planet and their business. Regulations set a baseline for sustainability, but companies that view them as a springboard for innovation will be the ones to excel.

2. Conduct regular compliance audits

Environmental compliance is an ongoing process that requires continuous monitoring, reporting, and documentation to ensure sustainability. Businesses must regularly evaluate operations, track incidents, and learn from past mistakes to prevent environmental impacts. Customised software solutions and environmental audits—both internal and external—are essential tools for identifying gaps, improving compliance, and maintaining a good reputation. External audits, ideally conducted every three years, can help ensure that a company's practices align with globally recongised ESG standards like GRI or ISO 14001. By systematically auditing and adjusting their practices, companies can stay on track to meet their environmental and sustainability goals.

3. Automate as many compliance processes as possible

Depending on the region, sector, types of materials and waste disposal methods, companies can eventually start drowning in the documentation and reporting requirements. Automating these points won't only simplify compliance but will also reduce operational workloads and provide detailed insights that could save your business money and CO2.  

That's why our digital waste management platform aims to automate as many of these processes as possible. Resourcify provides easy-access to all ESG-relevant waste management KPIs from waste volumes split by material streams to recycling rates and even the scope 3 CO2 emissions related to waste management efforts. Our platform also automates the documentation processes involved with the handling of hazardous waste and recycler certifications. And if your business is looking to set up a fully compliant take-back program to return materials to the production cycle, our circularity experts can help with that too.

Download our FREE business guide to environmental regulations in the EU to get a more detailed overview of key regulations and potential changes over the next 5 years.

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How environmental compliance varies across industries

The environmental metrics companies must monitor for compliance and achieving their ESG goals are industry-specific.

Let us explore a few industries as examples.

1. Retail

Focus on reducing waste, particularly packaging waste, and limiting carbon emissions from supply chains. Example legislation includes the Packaging and Packaging Waste Directive, aimed at minimizing packaging waste and promoting recycling.

For more on circularity and waste management in the retail sector, download our FREE guide.

2. Manufacturing

Emphasis on resource efficiency, reducing pollution, and promoting a circular economy. Key regulations include the Industrial Emissions Directive, which sets limits on emissions of pollutants from industrial activities.

Environmental compliance for manufacturing is also necessary to ensure a steady and sustainable supply of materials for long-term production. Companies that produce circular, green, high-quality, and long-lasting products will also enhance their brand image, giving them a competitive edge in the market making compliance an increasingly vital aspect of modern manufacturing.

For more on circularity and waste management in the manufacturing sector, download our FREE guide.

3. Medtech

Focus on managing hazardous substances in medical devices, ensuring product safety, and reducing environmental impact of single-use devices. The Restriction of Hazardous Substances (RoHS) Directive is an example, restricting the use of specific hazardous materials in electrical and electronic equipment. And the Waste Electrical and Electronic Equipment Directive (WEEE) which promotes the recycling and recovery of electrical equipment.

For more on circularity in Medtech, download our FREE guide.

4. Pharmaceuticals

Concentrated on the safe disposal of hazardous waste, limiting emissions of harmful substances, and ensuring the environmental safety of pharmaceutical products. Relevant legislation includes the REACH Regulation (Registration, Evaluation, Authorisation, and Restriction of Chemicals), which regulates the production and use of chemical substances.

Why digital waste management tools are essential to streamlined compliance

In today's complex regulatory landscape, compliance is a daunting task. At Resourcify our goal is to automate operational waste management processes and streamline data analysis and reporting.  With tools designed to simplify monitoring, reporting, and audits, our platform not only simplifies the processes involved in meeting regulatory requirements but also turns compliance into a strategic advantage for your business. Ready to take the next step? Get in touch with our team to book a demo!