GreenCo Encourages the F&B Industry to Prepare in Advance for Hong Kong’s MSW Charging Scheme

MSW Charging Implementation

The need for waste reduction is becoming ever more imminent in Hong Kong as three existing landfills are expected to be filled up in the coming years. The bill of the Waste Disposal – Charging for Municipal Solid Waste (MSW) Ordinance 2021 (Amendment Ordinance) was passed by the Legislative Council (LegCo) on 26 August 2021. After rounds of public consultation and revisions, this MSW Charing Scheme will take effect from 1 April 2024 with a 6-month phasing-in period that allows the public to adapt to the implementation of MSW charging.

Implementation Timetable for MSW Charging Scheme

Impacts on F&B industry

The MSW Charing Scheme is going to bring significant impacts on businesses, especially for the Food & Beverage (F&B) industry. On the one hand, F&B companies often generate a substantial amount of waste, including food residues, packaging materials, and disposable cutlery. As companies would be required to pay based on the amount of waste they generate and dispose of, the MSW Charging Scheme will dramatically affect the operating procedures of the restaurants, leading to the potential increase of operating costs and resources required for frontline staff compliance training.

On the other hand, the MSW Charging Scheme provides a strong incentive for F&B companies to reduce waste generation and accelerates the transition to a greener economy. Consumers are increasingly concerned about corporate sustainability and are more likely to choose companies with good sustainability practices as their partners or purchasing choices. Companies that actively engage in waste reduction and responsible waste management practices can attract environmentally conscious customers and enhance their brand image. As a result, we strongly recommend companies prepare in advance for the MSW Charging Scheme.

Establishing effective waste management

Embracing innovation can provide a two-fold solution: addressing waste charge challenges while promoting sustainability. We encourage the F&B companies to adopt innovative solutions on packaging materials and design to reduce waste generation. For example, many companies have already replaced plastic packaging with sustainable materials that are biodegradable. They also put effort in developing new packaging designs with lighter weight which consumed less virgin raw materials during production. Moreover, upgrading technologies and equipment like food waste decomposer and processor could improve recycling efficiency, divert more waste from landfill sites, thereby reducing waste disposal costs.

Furthermore, the journey towards sustainable waste management requires collaboration and communication. Companies are encouraged to organise community engagement activities to publicise their waste management strategy, demonstrate their sustainability commitment to the public while allowing dynamic interactions with their stakeholders to collect and understand their concerns and expectations.

The F&B companies could collaborate with professional consultants to establish effective tailored waste management strategies. GreenCo, as an ISO 9001 accredited ESG Advisory service provider, we specialise in assisting businesses in overcoming the challenges presented by regulatory changes through providing smart sustainable solutions. Our company remains committed to staying updated on regulatory changes and ensuring our clients receive timely support to adapt to the MSW Charging Scheme.