19th Jul 2022 07:00
This announcement contains inside information
Biffa secures logistics contract for UK's first Deposit Return Schemein Scotland
18 July 2022
Leading UK sustainable waste management company Biffa plc ('Biffa', 'the Group' or 'the Company') (LSE: BIFF) confirms that it has been awarded a 10-year contract to provide logistics, sorting and counting services for the UK's first Deposit Return Scheme ('DRS') for drinks containers in Scotland.
Key highlights
· Biffa to be logistics partner for the scheme, with responsibilities including the collection of bottles and cans from c. 30,000 locations across Scotland and the building and operation of 3 counting centres
· C. £80m estimated capital commitment (including property lease commitments) to be deployed by August 2023
Biffa has been appointed by Circularity Scotland Ltd (CSL), the appointed scheme administrator - working on behalf of drinks producers, retailers and hospitality venues to provide the collection, counting and recycling of the billions of drinks containers which are placed on the Scottish market each year. The scheme requires highly complex operational management and Biffa's appointment is testament to its ability to manage such a programme from collection through to recycling.
The agreement is expected to create around 500 jobs in Scotland to support the collection, sorting and counting of products within scope of the scheme. Circularity Scotland is also working with Biffa to explore the opportunity to build a PET recycling plant in Scotland to support the scheme and deliver further employment opportunities.
Scotland is the first UK nation to implement a DRS, with others expected to confirm plans for their own DRS schemes in due course. From 16th August 2023, a refundable 20p deposit will apply to all applicable drinks containers sold in Scotland (from small 50ml containers to large 3-litre containers). Bottles and cans can be returned to any shop or hospitality venue in Scotland that operates as a return point.
The DRS aims to capture at least 90% of the drinks containers made from PET plastic, steel, aluminium, and glass. The plastic bottles collected will be converted by Biffa into recycled pellets to be supplied back into the UK beverage supply chain, thereby delivering a closed loop recycling system.
Michael Topham, Chief Executive of Biffa, commented:
"We're delighted to have been appointed to provide logistics, sorting and counting services for Scotland's landmark Deposit Return Scheme. This appointment is testament to the strength of Biffa's reputation as a sustainable waste management provider to complex markets, our extensive capabilities and world leading recycling infrastructure."
NOTES
Rule 26.1 disclosure
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Enquiries:
Investors
Michael Topham, Chief Executive Officer
Richard Pike, Chief Financial Officer
Paul Tillstone, Head of M&A and Investor Relations
Media & Analysts
Houston
T: +44 (0) 203 701 7660
About Biffa
We've been leading the UK's waste management industry for over 100 years and have a strong track record of growing our profits and returns to shareholders, whilst reinvesting to grow our business.
Today Biffa is an established enabler of the UK circular economy and our team of more than 10,000 colleagues carry out essential operations every day including surplus redistribution, recycling, treatment, energy generation, collection and disposal.
Our purpose is 'to change the way people think about waste' and sustainability has been at the heart of our business strategy for many years. Our areas of focus essentially reflect the waste hierarchy - to Reduce, Recycle, Recover and Collect.
We have already made huge strides in our sustainability journey by investing in surplus redistribution, plastic recycling, energy from waste infrastructure and low carbon collections, leading to a 70% reduction in our carbon emissions since 2002. Our sustainability strategy, 'Resourceful, Responsible', will see us unlock £1.25bn of investment in vital green economy infrastructure by 2030, of which £1bn has already been unlocked, while further reducing our carbon emissions by 50% by 2030. We aim to have net zero emissions by no later than 2050.
We understand that we must lead by example and are committed to further improving health, safety and wellbeing in our sector. We are proud to have been awarded a 5 star grading by the British Safety Council. We have also made strong progress in making sure Biffa is an inclusive place to work where diversity is championed and our >10,000 strong workforce feel valued and understand the positive contribution they make to enabling the UK circular economy.
Our long-standing Biffa Award programme supports sustainable projects across the UK which deliver environmental benefits while making a valuable contribution to local communities. Our partnership with WasteAid helps countries in the developing world with managing their waste more sustainably.
Biffa is a Great British Company, listed on the London Stock Exchange (LSE:BIFF) and a member of the FTSE 250. That's just a bit about us. To find out more, visit: www.biffa.co.uk/investors
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