Businesses urge UK to embrace digital deposit returns

Over 60 businesses have come together to urge the UK Government to amend the upcoming Deposit Return Scheme (DRS) legislation to allow for digital innovation.

Ocado Retail, Co-op, and Ecosurety are among the signatories of an open letter addressed to the environment minister, Mary Creagh, calling for a revision of the current DRS proposals. The companies advocate for the removal of "return-to-retail" prescriptions, promoting instead a model that embraces contemporary digital solutions enabling consumers to recycle their plastic bottles at home and receive their deposits electronically.

The proposed DRS aims to improve recycling efforts as the UK moves towards a circular economy. However, the current proposal involves a "return-to-retail" model where consumers are required to store plastic bottles and cans at home, then redeem their deposits using reverse vending machines (RVMs) located primarily at large retail outlets.

Polytag, a technology company focused on sustainability initiatives, along with its partners, recommends that the UK Government allow digital scanning options at home, in addition to the physical return of containers to shops. The company highlighted a successful trial in 2023 in partnership with Ocado Retail, which saw over 20,000 rewards redeemed in 56 days, demonstrating that customers are willing to adopt a digitalised DRS.

Alice Rackley, CEO of Polytag, stated, "At Polytag, we are backing a digital future for the UK's Deposit Return Scheme. The introduction of a DRS is extremely welcome and will play a key part in the UK's circular economy ambitions. However, without the flexibility for digital solutions, the scheme could make recycling harder, not easier, for consumers. A digital option would allow consumers to reclaim deposits conveniently from home, relieving pressure on retailers. Through innovation and digital integration, the Government can implement a blended DRS that works for both businesses and consumers. We hope to be able to work with the Government to improve environmental outcomes for all."

Laura Fernandez, Senior Packaging and Sustainability Manager at Ocado Retail, commented, "Ocado Retail and Polytag have already clearly demonstrated that shoppers have an appetite for a digital deposit return scheme; we fully support the need for a modern, flexible scheme that embraces digital innovation. A digital option is a convenient and a necessary step toward creating a recycling system that really works. This approach would empower consumers, reduce operational strain on retailers, and accelerate progress toward the UK's circular economy goals."

Will Ghali, CEO of Ecosurety, added, "A successful Deposit Return Scheme needs to be future-proofed, and digital integration is key to achieving that. By enabling consumers to scan and recycle from home, we can improve participation rates, reduce logistical challenges, and ensure the system delivers on its purpose: increasing the recycling rates of beverage containers. Polytag's vision for a blended DRS is exactly what the UK needs to balance practicality with ambition."

Concerns have been raised about the reliance on outdated technologies like reverse vending machines, which present significant carbon and financial costs. With over 10,000 RVMs projected for Scotland's DRS alone, embracing a digital alternative such as Digital DRS (DDRS) is being seen as a way forward. Trials of DDRS have shown promising results, indicating that consumers can efficiently use digital technologies to recycle and claim deposits electronically.

A report by Resource Futures highlights that DDRS could reduce the cost of implementing the DRS by approximately GBP £3.3 billion over eleven years, compared to traditional "all-in" RVM systems, while also offering greater convenience and reduced carbon impact.