As sustainability continues to be a central focus for governments and consumers alike, the retail and wholesale sectors are facing an increasing number of regulations aimed at reducing environmental impact.

Keeping up with these regulations is crucial for businesses looking to avoid penalties and maintain their competitive edge.

One of the most important regulations currently affecting the retail sector is the Extended Producer Responsibility (EPR) scheme(1). This regulation requires producers, including retailers and wholesalers, to take responsibility for the collection and recycling of packaging materials.

It aims to reduce waste and encourage more sustainable product design. Retailers must ensure their products meet these standards by using recyclable or reusable packaging, or they risk facing financial penalties.

Another major regulation is carbon emissions reporting. As part of the UK’s push to reach net zero emissions by 2050, some retail and wholesale businesses are now required to disclose their carbon emissions and the steps they are taking to reduce them(2).

This reporting is part of the government’s broader effort to hold businesses accountable for their environmental impact and monitor progress towards national carbon reduction goals.

Additionally, the UK’s Climate Change Act and Energy Savings Opportunity Scheme (ESOS)(3) require larger retailers to regularly assess their energy consumption and implement energy-saving measures. These regulations are designed to reduce energy use across businesses and help the UK meet its carbon reduction targets.

As these regulations continue to evolve, retail and wholesale businesses must stay informed and adapt to the changing landscape. Compliance with these sustainability regulations not only helps avoid penalties but also positions companies to meet the growing demand for eco-friendly products and services, securing their place in a more sustainable future.

Bibliography

1 Extended producer responsibility for packaging: who is affected and what to do (Accessed May 2025) https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do

2 Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements  (Accessed May 2025) https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance

3 Energy Savings Opportunity Scheme (Accessed May 2025) https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos