The Environmental Act 2021 is a significant piece of UK legislation, created with the intention of leaving the Earth and the natural environment in a better state for future generations. Designed to address air quality, biodiversity loss, and waste management, the Act assigns clear responsibilities to businesses to manage their environmental impact.
This blog examines the Act's key provisions, the role of the Office for Environmental Protection, and what the Environmental Act 2021 means for manufacturers in remaining compliant and sustainable.
What is the Environment Act 2021?
The Environment Act 2021 establishes a robust legal framework for environmental governance in the UK, with some significant implications for manufacturers. Enacted in November 2021, the legislation focuses on key environmental areas, including air quality, biodiversity, water management, and waste reduction. For UK manufacturers, this Act underlines the importance of integrating environmental considerations into operations and production processes.
The legislation, introduced during the UK’s presidency at COP26 in Glasgow, underscored the expectation that businesses adopt sustainable practices and contribute to the UK’s environmental goals. By embedding ecological principles into all policy areas, the Environment Act encourages manufacturers to innovate, enhance their environmental performance, and build a culture of sustainability. The good news is that these changes in practice aren’t just good for the environment – they’re also good for a business’s bottom line.
Environmental Principles and Governance
At the heart of the Act are five environmental principles:
- Integration – environmental protection must be considered across all policy areas.
- Prevention – tackling harm early is more effective and less costly than fixing damage later.
- Rectification at source – problems should be addressed where they occur, rather than passing along the chain.
- Polluter pays – those responsible for pollution should bear the costs of managing and cleaning it up.
- Precautionary approach – when there's a risk of serious environmental harm, it's better to act even if all the evidence isn't yet complete.
The Office for Environmental Protection (OEP), an independent body responsible for holding public authorities accountable, is also established within the Environment Act 2021. The OEP’s primary role is to ensure that environmental laws are adhered to and that the commitments outlined in the Act are correctly fulfilled. The OEP functions as a watchdog, monitoring progress and ensuring there is a clear framework for oversight and enforcement.
The Environment Act 2021 ensures that environmental protection is built into decision-making at every level of government. Ministers are now legally required to take these principles into account when developing new policies and regulations. In practice, this means the Act not only regulates but also sets a direction towards a circular economy, encouraging other sectors to adopt more sustainable practices.
Legally Binding Targets
The Environment Act 2021 defines legally binding environmental targets that stretch well into the future. These cover air quality, water, biodiversity, and waste reduction. Think of them as firm commitments that keep everyone accountable for making real progress.
The Act establishes specific environmental targets that include:
- Cut PM2.5 air pollutants by over a third compared to 2018 levels.
- Improve the quality of water bodies and reduce pollution from various sources to ensure a sustainable water supply for future generations.
- Reduce phosphorus loadings from treated wastewater by 80% by 2038, compared to a 2020 baseline.
- Reduce the waste each person sends to residual treatment by 50%by 2042.
- All future development projects must now adhere to biodiversity net gain policies, which require them to enhance biodiversity by at least 10%.
Local Nature Recovery Strategies
Local Nature Recovery Strategies (LNRS) form a central thread of the Environment Act 2021. They are designed to create a structured, collaborative, and evidence-based plan for restoring nature and ecosystems across England
Making these strategies work, however, requires collaboration. Local authorities, landowners, and communities need to work together. Together, they identify and prioritise areas for nature recovery and nature-based solutions for specific areas of land and water across England.
Species Conservation Strategies
The Environment Act 2021 sets clear goals for species conservation, aiming to halt the decline of species populations by 2030. They plan to boost these numbers by at least 10% by 2042. The Environmental Improvement Plan outlines strategies to increase species abundance and protect biodiversity.
Species Conservation Strategies sit at the heart of this work. They protect the most threatened species and help improve their chances of survival. The strategies address problems like nutrient pollution that occur outside protected areas, and also ensure that existing legal protections are effective.
The Act also introduces conservation covenants. These agreements help promote environmental protection and ensure its long-term sustainability. The covenants provide conservation efforts with a long-term legal foundation and build a future that’s a few shades greener.
Marine Environment Protection
Protecting the UK's seas and coastal habitats is a central aspect of the Environmental Act 2021. One of its primary objectives is to restore 70% of the designated features in Marine Protected Areas to a favourable condition by 2042. These protected areas are essential for safeguarding marine life and resources from harmful activities, while also promoting more sustainable use of our oceans.
Achieving these restoration targets is crucial for maintaining healthy ocean ecosystems. Stronger protections for marine environments not only preserve biodiversity but also ensure the long-term sustainability of industries and communities that depend on the sea. By addressing the health of marine environments in conjunction with air, water, and land, the Environmental Act 2021 establishes a more integrated approach to environmental governance.
Waste Reduction and Resource Efficiency
One of the significant developments in the Environmental Act 2021 is the increased accountability for waste management. The Act introduced Extended Producer Responsibility (EPR) schemes, which require manufacturers to cover the costs of recycling and disposing of their products and packaging. This shift transfers the financial responsibility from taxpayers to producers, encouraging more sustainable practices in product design and packaging choices.
The new EPR for packaging scheme is being rolled out in phases, with some dates for enforcement already in effect and more to come in the next few years.
The Act also established a plastic packaging tax of £200 per tonne on any packaging that contains less than 30% recycled material, effective since April 2022.
Looking ahead, mandatory digital waste tracking systems will be introduced, providing businesses with better oversight of waste handling and improving transparency throughout the supply chain. The government also plans to implement a deposit return scheme for drinks containers to enhance recycling rates and reduce litter.
For businesses, complying with these measures not only helps avoid penalties but also offers tangible benefits: reduced carbon emissions, lower disposal costs, and enhanced sustainability credentials. In practice, the Environmental Act 2021 presents an opportunity for companies to improve their bottom line while contributing to the transition towards a circular economy.
Impact on Businesses
Stricter rules on waste and resource use are reshaping how organisations operate across the UK. In England and Wales, the Simpler Recycling legislation requires businesses of over 10 employees to separate materials such as food waste, paper and card, glass, and metal or plastic packaging from general waste. This approach to recycling is designed to improve recovery rates and reduce reliance on landfills. (This legislation is expected to roll out to businesses of under 10 employees in 2027)
For many organisations, existing compliance is just the beginning. New requirements will continue to be introduced, with mandatory digital waste tracking set to come into effect in April 2026. Businesses that review their waste systems now, redesign packaging, and implement reliable separation processes will be better prepared for the next phase of regulation and avoid unnecessary costs.
The Environmental Act 2021 is not just about legal obligations. It drives businesses to integrate sustainability into everyday operations, strengthening their position in a circular economy. Companies that adapt with confidence will not only avoid fines but also enhance efficiency, cut waste management costs, and build stronger relationships and trust with environmentally conscious customers and stakeholders.
Digital Waste Management and Business Compliance
Accurate waste data and clear compliance records are now essential for businesses under the Environmental Act. Digital waste management portals simplify this process by giving organisations real-time visibility of waste streams, segregation, and disposal. This makes it easier to comply with extended producer responsibility and consistent recycling rules.
With auditable reporting built in, these systems allow businesses to show compliance to regulators, investors, and ESG stakeholders. The data also highlights inefficiencies, helping organisations cut costs and improve recycling performance. Because portals can be updated as regulations change, they provide long-term flexibility, ensuring that waste management strategies remain compliant and future-proof. Waste Mission’s bespoke portal for contracted customers makes reporting easy – gathering all data into one easy-to-use system, which helps manufacturers to stay on top of their waste management, reporting and compliance.
Manufacturer Compliance and Waste Management
Under the Environmental Act 2021, manufacturers are held to a greater responsibility for reducing waste at the source and improving recycling rates. To meet these requirements, businesses should begin by conducting comprehensive waste audits to identify inefficiencies in material use and waste management. Clear segregation of recyclables such as metals, plastics, glass, paper, and food waste supports compliance with consistent collection rules and helps increase recovery rates.
Packaging design is also central to compliance. Reducing unnecessary materials and improving recyclability directly addresses extended producer responsibility obligations. Choosing recycled or recyclable inputs strengthens compliance and supports broader circular economy goals.
Digital waste management portals provide an additional layer of support by offering real-time tracking of waste streams. These systems generate compliance reports for regulators, investors, and supply chain partners, enabling manufacturers to demonstrate accountability while enhancing efficiency.
Risks of Non-Compliance
Businesses that fail to adapt to the Environment Act 2021's new requirements risk facing financial penalties and damage to their reputation. Poor waste practices bump up your long-term costs; for example, you could miss out on recycling rebates and pay higher disposal fees. Non-compliance also damages corporate ESG commitments and erodes investor confidence in your business. You need to provide transparent waste data and meet your audit and reporting obligations.
Summary
The Environment Act 2021 adopts a comprehensive approach to protecting the environment in the UK. It sets legally binding targets and incorporates key environmental principles into the policy-making process. The Act promotes sustainable practices across various sectors. This creates a stronger, more resilient natural world. The Office for Environmental Protection now exists as a result of this Act. Local Nature Recovery Strategies and Species Conservation Strategies also came from it. These show the Act's focus on long-term environmental sustainability.
Looking ahead, businesses, communities, and individuals need to adapt to the changes introduced by the Environment Act 2021. When we work together, we can achieve the Act's goals and build a future that’s a few shades greener for future generations.
If you would like a demonstration of the easy-to-use portal and how this can benefit your business, contact our team today.
