Cole and Woolworths issued draft notice to pay estimated AUS$3.5M after soft plastic stockpiling scandal

06 Feb 2023 --- Coles and Woolworths are being served by the New South Wales (NSW), Australia, Environment Protection Authority (EPA) with a draft Clean-up Notice. EPA gave the notice due to accusations of stockpiling soft plastics after the supermarkets took over the “failed” recycling program from REDcycle.

Woolworths and Coles are facing the same stockpiling issues with hoarding excess soft plastics. The NSW EPA asks the supermarkets to remove more than 5,200 metric tons of soft plastic accumulated at 15 sites across warehouses across New South Wales. 

Following the temporary closure of  REDcycle after its stockpiling controversy, Coles, Woolworths and Aldi were approved for an urgent interim organization called the Soft Plastics Taskforce in December. However, the companies still had all the plastics left over from REDcycle, leaving them with a pile of problems.

“Woolworths was issued a letter from the NSW EPA on Friday, 3 February, which outlined a draft of a potential Clean-up Notice. Woolworths will be responding to the NSW EPA to seek clarity and communicate its position,” a spokesperson from Woolworths tells PackagingInsights. 

The removal and disposal of the stockpiled soft plastic are expected to cost Coles and Woolworths at least AUS$3.5 million (US$2.42 million).

Australian supermarkets served a draft clean-up-order for stockpiling its soft plastics from the return scheme. Headed to landfills
NSW EPA asks the supermarkets to either dispose of the waste in landfills, reprocess, or export it internationally. Due to no other country accepting imports of contaminated soft plastics and Australia not having the means to reprocess such amounts, leaves landfills as the only viable option.

“The supermarkets were not fully engaged with the concept that recycling needed to go beyond collection and have suitable long-term high-value markets for the collected films,” Ed Kosior, founder of Nextek and Nextloop, tells PackagingInsights.

“The target should have been product back to film and other long-term products and probably processed at a dedicated facility that could pre-treat the films into commercial quality resin. There were no long term innovation strategies or projects to develop suitable processing facilities and products that could use these materials.”

The grocery retailers were given the draft because the NSW EPA is concerned that vast amounts of soft plastic are dangerously stored in 15 warehouses. The EPA has notified Fire and Rescue NSW and requested the operators take immediate action, as 11 of the warehouses have been classified as “high-risk.” The whereabouts of these stockpiles have not yet been indicated by the companies.

“The extent of soft plastic waste sitting in warehouses across NSW is very concerning, and I know customers will be disappointed. It is estimated to fill about three-and-a-half Olympic-sized swimming pools,” NSW EPA chief executive Tony Chappel told The Age and The Sydney Morning Herald. 

Supermarkets response
Coles and Woolworths have been given six days to respond to the EPA’s clean-up orders, telling the EPA how they plan to dispose of the soft plastics. 

“We were surprised to receive this draft notice, as REDcycle has indicated they have plans to deal with these stockpiles. We will seek clarity from the NSW EPA on its position in the days ahead,” the Woolworths spokesperson continues. 

A Coles spokesperson expresses the company was disappointed by the notice and was determined to find “a short-term solution” to allow recycling to return.Australian supermarkets served a draft clean-up-order for stockpiling its soft plastics from the return scheme. 

“Thousands of customers diligently collected soft plastics and dropped them into their local supermarket’s collection bin because they trusted their waste would be diverted from landfill and recycled,” Chappel adds about the public’s response. 

REDcycle’s lasting effects 
REDcycle, when in operation, claimed to have diverted more than 5 billion pieces of soft plastics from landfill over the last decade. However, new stockpiles of plastic linked to REDcycle continue to be discovered in NSW, Victoria and South Australia after investigations by state environmental regulators. 

“We are also working closely with our counterparts in other jurisdictions to ensure we take a coordinated approach and understand the issues that impacted REDcycle’s collapse,” says Chapel. 

Twelve thousand four hundred metric tons have been located in 32 locations across the three states, equating to more than 1,000 semi-trailer truckloads. Since last Friday, four new warehouses filled with soft plastics have been found in Melbourne. The EPA estimates some of the stockpiles in NSW are at least three years old.

“The actual situation is that there is a large volume of flexible films being made and used and not being recycled. REDcycle’s activities helped establish the recycling loop for films but was never designed to create a long-term circular destination for the films,” adds Kosior. 

Unity to reduce waste 
REDcycle asserted it was recycling up to 7,000 metric tons of soft plastics a year collected from 2,000 supermarkets around the country. In light of the continued discovery of more soft plastic stockpiles, these numbers are being thrown into question. 

“REDcycle remains committed to continuing our important work and in reinstating our soft plastics recycling program. We have been in intensive roundtable discussions with our industry stakeholders and funding partners to explore a range of long-term and sustainable solutions following the halting of the program late last year due to supply chain disruptions,” the company said in a statement. 

REDcycle is facing criminal charges in Victoria for refusing to disclose information about its operations to the EPA.

“Our largest retailers have an important role to play in how we continue to reduce plastic waste and we are committed to working together so we can support opportunities and minimize risk,” Chapel deduces.

“Taking a supply chain approach to the problem and involving the film producers, waste collection groups, supermarkets, recyclers, innovation resources and developing a suitable infrastructure and strategies to solve the bigger issues around end of life for flexible films and removing the blockages created by contamination and material composition,” concludes Kosior.

By Sabine Waldeck