New Zealand’s FMCG sector is facing increased regulatory pressure of mandatory product stewardship obligations.
The Waste Minimisation Act 2008 requires businesses dealing in priority products to participate in, and comply with, new product stewardship initiatives.
The Waste Minimisation (Priority Products) Notice 2020 declared items such as plastic packaging, e-waste, tyres, and farm plastics as requiring regulated stewardship, shifting responsibility for their disposal onto those who place them on the market. Additional products may be added under Section 9 of the Act, giving the government the ability to further extend retailer and producer obligations.
The Waste Minimisation (Product Stewardship) Regulations 2023 set specific compliance measures, requiring businesses to finance schemes (Regulation 10), establish take-back systems (Regulation 13), and demonstrate participation (Regulation 18). These legal requirements are reshaping how FMCG retailers manage product waste. Proactive engagement by producers and distributors is essential.
As Government enforcement mechanisms are developed, many businesses remain uncertain about what this means in practice. Retailers and producers must now help finance stewardship schemes while implementing programmes that encourage consumer participation in waste reduction. Obligations vary depending on product type, but the core principle remains the same: those who generate waste must also be involved in its responsible disposal.
Product stewardship schemes in New Zealand are industry-led, giving businesses some influence in developing compliance strategies. If businesses play a more active role in shaping product stewardship schemes, they may be able to ensure they support long-term sustainability and cost-efficiency. Reforms to further the aims of the legislation should be expected and could include design mandates, phasing out difficult-to-recycle materials, binding waste reduction targets, and independent oversight to ensure schemes prioritise environmental goals.
Retailers must contribute financially and modify their business practices to remain compliant.
This includes redesigning product packaging, creating take-back systems, and educating consumers on proper waste disposal. The challenge is balancing these responsibilities with cost pressures and operational constraints, particularly as government enforcement remains inconsistent. Without a clear legal strategy, businesses risk overcommitting to unnecessary and high-cost compliance measures or failing to meet regulatory requirements, which could result in fines under Section 65 of the Waste Minimisation Act 2008, with penalties of up to $100,000 for non-compliance.
The Ministry for the Environment oversees compliance monitoring, with powers to audit accredited schemes and require proof of participation from businesses. While enforcement actions remain limited, penalties may increase as waste reduction targets become more ambitious. The Government has indicated a stronger focus on regulatory oversight, so full compliance is essential to avoid unnecessary regulatory enforcement.
As the focus shifts from a linear waste model to a circular economy, many businesses are already exploring reusable packaging models and partnerships with repair services to extend product life cycles. Integrating circular economy principles into operations can reduce long-term compliance costs, improve sustainability outcomes, and enhance consumer perception.
It’s essential that businesses understand their obligations, assess scheme options, and develop compliance strategies. Legal guidance on navigating product stewardship obligations may help in ensuring your business actively manages these new obligations in a forward thinking, and cost-efficient way.
This article is for general informational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information, readers should not rely on this article as a substitute for professional legal advice.