Circularity Scotland, the company responsible for the deposit return scheme (DRS) is reported as being on the brink of collapse. The company has issued a statement saying “The board of Circularity Scotland have been working to manage the impact of the Scottish government’s announcement and find a way for the business to continue to operate.
“While this work is ongoing, we instructed staff to go home on Thursday 8 June.
“The unfortunate reality is that, at this point, we are not able to confirm whether our staff will be paid for this month or whether they will be able to return to the office.
“The board recognises that this is an extremely difficult time for our people and is working tirelessly to find a solution.
“We have remained in communication with our staff throughout and will provide updates to them at the earliest possible time.”
The delay in the implentation of DRS to October 2025 has made the current format of Circularity Scotland unviable. It is understood that Circularity Scotland Limited (CSL) has issued a proposal to stakeholders saying it does not see a future with its current staffing levels. The proposal has the company remaining solvent, almost in “hibernation” until the end of next year”, before being “reactivated” in time for the new implementation date.
Producers who founded the company have been asked to provide support. Members of Circularity Scotland include Coca-Cola European Partners Great Britain Limited, Diageo, and Heineken UK. Retailers who are members include, Aldi, Asda, Co-operative Group, Lidl Great Britain, Marks and Spencer, Morrisons, Sainsbury’s Supermarkets and Tesco.
In February 2023, David Harris Chief Executive of Circularity Scotland revealed that Circularity Scotland had “successfully secured over £100m of third-party funding to establish the infrastructure of the deposit return scheme, with only minimal up-front funding from the very largest producers. This funding approach allows producers both large and small to benefit on equal terms from this investment in world-class infrastructure and leading-edge technology and only pay their share of the costs once the scheme is in operation.
But earlier this month following the UK Government’s decision to exclude glass, and the Scottish Government’s plan to pause the scheme he said, “a scheme without glass is both economically viable and is an opportunity for Scotland to provide a platform for a UK-wide DRS. Regrettably, further delaying the introduction of DRS will hinder Scotland’s progress towards net zero and mean that billions of drinks containers continue to end up as waste.”
“The Board of Circularity Scotland will now consider the impact of this announcement and our immediate priority will be communicating with our people. We will provide further updates in due course.”
Circular Economy Minister Lorna Slater said she had been left had no option but to delay the Scottish scheme.