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Clarity sees increase in PRN market share as producers look to reduce supply chain risk

Clarity Environmental has announced a steep rise in its packaging recovery note trading activity, with hundreds of thousands more tonnes of evidence traded from the spot market in 2021 than the previous compliance year.

Clarity Environmental has announced a steep rise in its packaging recovery note (PRN) trading activity, with hundreds of thousands more tonnes of evidence traded from the spot market in 2021 than the previous compliance year.

The PRN trader and compliance scheme operator says the 46% rise in traded tonnages has followed the launch of its quality standard for the packaging waste supply chain, with increased demand for safer and more ethical recycling evidence procurement. Launched on 1 July 2021, Clarity’s Recycling Evidence Quality Standard has enabled packaging producers to make more informed decisions about how they procure packaging recovery notes (PRNs).

Since the rollout of our assurance scheme, which has given businesses the ability to comply safely and responsibly, we have seen many more businesses trusting Clarity with their obligations

David Honcoop

Managing Director and Founder, Clarity Environmental

Managing Director and Founder, David Honcoop, said the increase in Clarity’s traded tonnage was indicative of an increase in concerns around responsible recycling: “The PRN industry has historically been driven by price alone, with the cost of evidence being the only indicator. But with increasing emphasis on supply chain management and a focus on sustainability, producers are seeking reassurance that their compliance with the packaging regulations meets their ethical responsibilities as well as their legal duties.

“Since the rollout of our assurance scheme, which has given businesses the ability to comply safely and responsibly, we have seen many more businesses trusting Clarity with their obligations.”

Clarity’s Recycling Evidence Quality Standard was designed to support regulatory efforts following moves by the Environment Agency to cancel ‘incorrect’ packaging recovery notes (PRNs) and packaging (export) recovery notes (PERNs) issued by accredited reprocessers or exporters. Since its launch, Clarity Environmental has assessed recycling sites across the UK, examining financial risk, sustainability and social responsibility, identifying preferred suppliers to work with who meet or exceed the standards as well as possible risk factors. With more than 10 per cent of companies failing to meet its minimum transparency standards, Clarity Environmental warns that more work will be needed by the industry ahead of the introduction of Extended Producer Responsibility.

Mr Honcoop added: “With the current packaging regulations coming to an end, and funding into the system increasing, we must future proof our industry and ensure there is full confidence in our recycling systems. By encouraging safe and responsible recycling through quality assurance, we aim to help our suppliers to grow and thrive, driving a more sustainable industry and allowing our customers to make decisions that protect their business whilst putting people and planet first.”

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