Establishing the Business Case to Accelerate Producer Responsibility in Australia

The shift towards a circular economy in Australia hinges on the concept of producer responsibility—the principle that manufacturers or those that place a product into the market bear a fundamental responsibility for the lifecycle impacts of their products, from initial design right through to end-of-life. This is what being a ‘product steward’ is about and it starts at the top of the chain— ensuring products are designed with both their use and their end-of-use in mind.

For Australia, the challenges of limited domestic manufacturing and recycling capacity and distances back up the supply chain add complexity to this mission, nevertheless point to opportunities for product distributors here to rethink how products they supply are being designed and manufactured, and how they can–and should–influence use and recycling to keep their products and materials in circulation for as long as possible.

Producer responsibility demands transitioning business models away from traditional sales drivers built around frequent repurchases to innovative approaches that extend product life through repair, refurbishment, and reuse; to no longer thinking of just one customer but many for the life of the product; to even consider products as a service rather than a commodity. The opportunity lies in identifying the stakeholder value of producer responsibility and market innovation that delivers measurable returns to the business.

Putting producer responsibility to work will bring opportunities to achieve competitive advantage, brand distinction and customer commitment as well as meet specific ESG and corporate sustainability goals. Being an effective product steward mitigates future risks of product-related liabilities and costs associated with changing regulations and policies, and when stewards work together, such as in a scheme like ResiLoop, it reduces the risks of that investment.

Crucially, product suppliers cannot achieve circularity in isolation. Collective efforts are essential, demanding cooperation along value chains to rethink product concepts and reshape consumer perceptions and purchasing behaviours. Through industry-supported product stewardship, businesses can more effectively encourage customers to engage differently with products, making informed choices that support more sustainable outcomes. This consumer engagement is critical to building a culture of responsibility. Additionally, informing customers about which products are taking quantifiable action on stewardship helps drive informed purchasing decisions, encouraging support for those manufacturers that are walking the talk.

Australia’s transition to a circular economy will depend on those placing products into markets becoming better stewards through product design, business model innovation, industry collaboration, and consumer participation. It’s through these interconnected actions that producer responsibility can move from aspiration to practice.

Read more about ResiLoop here:  www.resiloop.org.au

Sophi MacMillan
Chief Executive Officer
ResiLoop