Annual Report 2015 - EPRA€¦ · EPRA ANNUAL REPORT 2015 FEB 2007 AUG 2007 FEB 2008 APR 2009 JUL...

Annual Report 2015

VisionTo be recognized in Canada as the leading operator of environmentally responsible, regulated, cost-effective programs for end-of-life electronic products.

*OES powered by EPRA

MissionAs an industry-led not-for-profit organization, we enable:

• Businesses and consumers to manage their electronics responsibly and

• Obligated stewards to achieve regulatory compliance.

MandateCreate a national electronics end-of-life program for Canada which recognizes the uniqueness of each Provincial Regulation and appropriate stakeholders.

*EPRA assumed management of the Ontario Electronic Stewardship (OES) Program in November 2013. A separate Annual Report is produced by OES and can be found on their website at: recycleYOURelectronics.ca .

OUR VISION, MISSION AND MANDATE

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About the Electronic Products Recycling AssociationElectronic Products Recycling Association (EPRA) is an industry-led, national, not-for-profit organization that operates regulated recycling programs across Canada, ensuring that end-of-life electronics (EOLE) are handled in a safe, secure and environmentally sound manner.

EPRA is tasked with:

• promoting and managing EOLE recycling in eight provinces in Canada

• improving the efficiency of regulated reclamation and recycling

• providing secure, convenient recycling options for consumers

• managing a cost-effective, streamlined administration for stewards in the provinces in which it operates.

Coordinated efforts for responsible recycling of EOLE and diverting these products from landfill began over a decade ago. In 2004, the electronics industry, represented by Electronics Product Stewardship Canada (EPSC), developed the first Electronics Recycling Standard (ERS) to ensure environmentally responsible recycling of EOLE and prevent illegal exporting of electronic waste. The ERS ensured controls were put in place to manage the risks associated with processing EOLE and has subsequently been updated numerous times.

The decade following the development of the original ERS saw various industry-led electronics stewardship programs start up across the country to meet provincial regulations for extended producer responsibility (EPR).

EPRA ANNUAL REPORT 2015

FEB 2007

AUG 2007

FEB 2008

APR 2009

JUL 2010

OCT 2011

AUG 2012

OCT 2012

AUG 2013

Saskatchewan Program Launch

British Columbia Program Launch

Nova Scotia Program Launch

Ontario Program Launch

Prince Edward Island

Program Launch

EPRA is formed

Manitoba Program Launch

Quebec Program Launch

Newfoundland & Labrador

Program Launch

6,600

2,300

100,000660,000

EPRA provides environmental compliance to more than

EPRA manages over

and has recycled over

metric tonnes of old electronics out of landfills each year

program stewards.

convenient collection sites.

metric tonnes since the first program began.

EPRA programs safely divert more than 15 million devices from Canada’s landfills and illegal export every year.

Today, EPRA operates regulated e-recycling programs in British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. All EPRA recyclers are audited to the ERS by the Recycler Qualification Office.

EPRA keeps

From coast to coast, EPRA is helping prevent electronics from ending up in landfills and conserving our natural resources by recovering materials that can be used to make new products. EPRA will continue to serve as a North American leader in electronic waste recycling, operating an efficient, cost-effective program that enables convenient, safe recycling of EOLE.

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Committing to recycling is an important step that Canadians take with end-of-life electronics (EOLE). Making it convenient, safe, secure and accessible is what EPRA works diligently to achieve.

In 2015, EPRA was successful in expanding the collection network to over 2,300 sites, adding new locations

in all eight provinces in which EPRA operates e-recycling programs. In one year alone, Quebec’s collection network increased by 35 per cent from 681 to 918 locations; British Columbia’s network grew 12 per cent by adding 27 locations, for a total of 249 sites; and Newfoundland and Labrador continued its expansion, to a total of 48 sites province-wide for residents to drop off their EOLE.

This year EPRA continued to focus on education and awareness, and Canadians embraced the message. In 2015, EPRA safely and securely recycled more than 100,000 metric tonnes of EOLE, diverting an estimated 15 million devices from landfills across the country. Since our first programs began in 2007, EPRA has recycled over 660,000 metric tonnes of electronics through its eight industry-led and regulated e-recycling programs. Plus, recovered materials are being put back into the manufacturing supply chain so that fewer natural resources, including precious and rare earth minerals, are extracted.

At EPRA we are proud of the environmental benefits that proper e-recycling brings. In 2016 and beyond, we will continue to build on the milestones we have achieved with our eight provincial programs in the safe and secure recycling of EOLE. Today, EPRA remains a leader in North American electronics recycling. By working with recyclers who have been verified under the national Electronic Recycling Standard (ERS) and audited by the Recycler Qualification Office (RQO), EPRA ensures the safe management of all electronics entering the EPRA program. Through our ongoing work to expand access and convenience, educate Canadians and increase awareness, EPRA is at the forefront in committing to our planet’s healthy future through ensuring the proper recycling of our electronics.

Lloyd BryantChair, EPRA Board of Directors

Lloyd Bryant

“Committing to recycling is an important step that Canadians take. Making it convenient, safe, secure and accessible is what EPRA works diligently to achieve.”

Message from the Chair, EPRA Board of Directors

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In 2015, EPRA recycled over 100,000 metric tonnes of e-waste in eight provinces across Canada. We fulfilled this safe, secure compliance on behalf of more than 6,600 stewards and were honored to receive the 2015 Canadian Stewardship Award presented in Banff, Alberta.

Collection and Accessibility: It is rewarding to know that our programs are making a difference. In fact, since our first programs began, we have collected and safely recycled over 660,000 metric tonnes of end-of-life electronics (EOLE), diverting them from landfills and the environment. Recovered materials are put back into the manufacturing supply chain so that fewer natural resources are required. This significant tonnage comes from our permanent collection locations (we added over 500 new collection locations across the country) and hundreds of collection events, including those held in the remotest parts of Newfoundland and Labrador and our northern communities across Canada.

Education and Awareness: Each year at EPRA we work to educate the public on the importance of e-recycling while making it accessible and convenient to do so. An example of our local, focused education initiatives ran in Saskatchewan. The “Take-back to Touchdown” promotion with the Roughriders Football Club in Saskatchewan uniquely promoted e-recycling to residents and Rider fans. Another great example rolled out in Quebec. The powerful, new campaign for French Canadians called the Serpuariens (loosely translated as the “No-Longer-Usefuls”) was a hit and helped to achieve a level of awareness for the e-recycling program in that province of 80 per cent!

Efficient operations: As a result of program efficiencies and effectiveness achieved, we were able to reduce over 70 environmental handling fees (EHFs) across Canada in May, 2015.

Trends in Electronics: The electronics industry is answering the call for lighter, smaller, multifunctional products. This shift to “light-weighting” and “miniaturization” in electronics manufacturing will also mean a reduction in the overall tonnage of devices collected annually. The success of the first “R”, Reduce,

has shown a reduction in weight and in many cases size of electronics. As we embrace this achievement it means that we will need to move from reliance on strictly weight-based metrics to other, more meaningful indicators of program success, including public awareness, access and convenience.

The success of our programs would not be possible without our stewards; our founding organizations – the Electronics Product Stewardship Canada (EPSC) and the Retail Council of Canada (RCC); the EPRA Board Members and the public who are embracing e-recycling. To all our supporters we say “Thank you!”

Looking ahead, 2016 includes the following initiatives:

• Moving forward on our work with New Brunswick to finalize an EPRA program plan for the stewardship of EOLE in that province.

• Renewing plans for several of our other programs including British Columbia, Manitoba and Newfoundland and Labrador.

• Evaluating new technology and miniaturization that impacts recycling and tonnage.

• Working with our processors to meet the new Electronics Recycling Standard (ERS).

We have a strong team at EPRA who believe in the important work that we are doing. I am proud of our team and what we have built together and we look forward to delivering topnotch results in 2016.

Cliff Hacking Chief Executive Officer, EPRA

Cliff Hacking

“We fulfilled this safe, secure compliance on behalf of more than 6,600 stewards and were honored to receive the 2015 Canadian Stewardship Award presented in Banff, Alberta.”

Message from the Chief Executive Officer

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EPRA Board Executive

2015 BOARD OF DIRECTORS COMPOSITION

The EPRA Board of Directors is comprised of nine members:

Lloyd Bryant, ChairHewlett-Packard Canada

Pete GibelStaples Canada

Lindsey LeClairBest Buy Canada Ltd.

Peter MaddockPanasonic Canada Inc.

Clint Mahlman London Drugs Limited

Deborah SandersDell

Jeff Van DammeSamsung Electronics Canada Inc.

Mary Ann YuleCDW Canada

Harry ZarekCompugen Inc.

CEO and Staff

EPRA STAFF INCLUDES:

• Cliff Hacking, Chief Executive Officer

• Lynda Kitamura, Chief Financial Officer

• Jay Illingworth, Director, Harmonization

• Sean De Vries, Director, Recycler Qualification Office

• Christy Teasdale, National Director, Marketing and Communications

Each provincial EPRA program has an Executive or Program Director responsible for the day to day management of the programs:

• Craig Wisehart, EPRA Western Canada

• Gayleen Creelman, EPRA Saskatchewan

• Dennis Neufeld, EPRA Manitoba

• Dominique Levesque, EPRA-Québec

• Gerard MacLellan, EPRA Atlantic Canada

• Terry Greene, EPRA Newfoundland & Labrador

Governance


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RECYCLER QUALIFICATION OFFICE

The Recycler Qualification Office (RQO) ensures environmentally-friendly electronics reuse and recycling standards for upstream and downstream recyclers are

met, maintained and continually improved upon. The RQO administers onsite audits and approvals of reusers and recyclers under the Electronics Reuse and Refurbishing

Program (ERRP) and the Recycler Qualification Program (RQP) to ensure that only compliant, safe and environmentally responsible recyclers are authorized.

The Electronics Recycling Standard (ERS) is currently embraced across Canada as the standard for evaluating and validating recycling operations by program administrators.

Using the ERS as the standard and the basis for the RQP, the RQO audits and approves end-of-life electronics (EOLE) recyclers to ensure that EOLE are handled in a responsible

manner that protects the environment and safeguards worker health and safety.

EPRA only works with recyclers who have been audited and approved under the national RQP, designed by the electronics industry to ensure that EOLE are managed in a safe and

environmentally sound manner.

This means that all EPRA recyclers are prohibited from exporting electronics or substances of concern to non-OECD (Organization for Economic Cooperation and Development) nations,

and the use of prison labour for processing equipment is not permitted. In addition, EPRA requires enhanced worker health and safety provisions and downstream accountability.

These processes ultimately lead to:

TOTAL AUDIT APPROVALS ISSUED• Primary Recyclers • Reusers• Downstream Recyclers

2015 On-site Audits by Location (39)

CANADA

USA

Robust Data Security Controls

Positive Environmental Impact

Downstream Accountability

Improved Health & Safety

127

87%

13%


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EPRA BC continues to play a vital role in protecting the environment in British Columbia (B.C.) by ensuring that electronics are recycled responsibly in both urban centres and smaller communities. The results continue to be very solid. In 2015 alone, we diverted

21,675 metric tonnes from landfills and we continued to expand our collection network.

We also saw the first significant impact of lighter, smaller electronics showing up in our recycling volume in 2015. Reduce, the first element of the 3R’s, is good news for the environment. Modern electronic devices are becoming lighter and smaller, resulting in less total tonnage being put into the market each year. That creates a smaller environmental footprint on the front end, meaning that there is less tonnage to be collected and recycled at end-of-life.

Recycling electronics in our province has never been more convenient. We have expanded the number of drop-off locations and are increasing accessibility in smaller regional districts through our variety of collection site options available. Our return-to-retail program continues to gain traction, particularly in urban areas.

By the end of 2015, EPRA BC had grown the collection network by 12 per cent, with 249 locations for residents to drop-off their end-of-life electronics (EOLE) for safe and secure recycling.

We remain focused on providing value through regional and national program efficiencies and on increasing awareness to drive results. Since we began serving British Columbians in 2007, we have continued to build public awareness of the program. Education is an important tool we utilize in encouraging the public to do the right thing and ensure that their EOLE are recycled properly.

We are pleased to provide B.C. with a world-class electronics recycling program that is convenient, efficient and comprehensive.

Craig WisehartExecutive Director, EPRA Western Canada

EPRA British Columbia

Schedule of Operations British Columbia 2015 2014

Revenue: Environmental handling fees $ 20,690,273 $ 25,515,076 Interest 236,823 282,530

20,927,096 25,797,606Expenses: Direct operations: Processing 10,527,718 10,493,228 Handling 4,968,242 5,255,308 Transportation, warehousing and storage 4,224,665 4,535,925 Quality assurance sampling and recycler audits 95,934 118,502 19,816,559 20,402,963 Other: Consumer awareness and communications 778,406 764,700 Administration 1,747,909 1,651,574

2,526,315 2,416,274

22,342,874 22,819,237

Excess (deficiency) of revenue over expenses $ (1,415,778) $ 2,978,369

Year ended December 31, 2015, with comparative information for 2014

“EPRA BC continues to play a vital role in protecting the environment in B.C. by ensuring that electronics are recycled responsibly in both urban centres and smaller communities.”

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End-of-Life Electronics Collected

Collection SiteCoverage and Convenience

Public Awareness andIndustry Participation

Program Costs

Collection

Access

Awareness

Cost

Operational Indicators

Collection Accessibilityand ConvenienceIndicators

Measures related to theconvenience of accessing theprogram to have regulatedelectronics recycled.

Public Awareness andIndustry ParticipationIndicators

Measures related to the public’s awareness of the program, and the participation of obligated industry stewards in the program for environmental regulatory compliance.

Financial Indicators

21,675 4.6

98% 249

1,67876%

$1,031

tonnes kg/capita

per tonne

Tonnes collected.Kilograms

collected per capita.

Totalcollection sites.

% of the BC population within 45 minutes (rural)

or 30 minutes (urban) of an EPRA BC Drop-off Centre.

Total manufacturers, retailers and other industry stewards

registered with EPRA BC.

Percentage of the population aware of how to recycle EOLE

in an environmentally friendly way.

Total program cost per tonne.

This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA’s regulated, industry-led electronics stewardship programs operating in 2015 in Canada have committed to report on, as per “Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada” (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting.

Measures related to the weight of regulated electronics collected bythe program for recycling.

Measures related to the costs of delivering the program, including collection, consolidation,transportation, audits, processing, administration, communications, management and professional fees.

EPRA British Columbia

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Schedule of Operations Saskatchewan

EPRA Saskatchewan is proud to be one of the longest running e-recycling programs in Canada. Established in February of 2007 as the first industry-led e-recycling stewardship program in North America, we are committed to building on this early vision.

In 2015 we collected over 2,700 metric tonnes of end-of-life electronics (EOLE), diverting an estimated 400,000 devices from the environment. We are pleased to have partnered with Saskatchewan residents over the years in keeping millions of devices out of our landfills by responsibly recycling them and putting valuable materials back into the manufacturing stream.

The program has continued its strong awareness, achieving 82 per cent for the year, with over 70 per cent of people polled completely agreeing that our advertising messaging encouraged them to recycle their EOLE.

Perhaps the biggest impact in 2015 was made with EPRA Saskatchewan’s partnership with the Saskatchewan Roughriders. By partnering with what is considered the biggest brand in our province, EPRA Saskatchewan conducted the “Takeback to Touchdown” promotion and spread the message of e-recycling to a broader audience.

The promotion was a huge success. Reaching over 300 unique communities across Saskatchewan,

and garnering an estimated 300,000 impressions in social media, the partnership heightened the aware ness of electronics recycling and the EPRA Saskatchewan program.

Additionally, EPRA Saskatchewan continues to be a voice within Saskatchewan and is committed to helping promote the option of reuse first through its partner, Computers for Schools Saskatchewan.

2015 2014


3,763,844 6,211,352Expenses: Direct operations: Processing 1,281,458 1,908,371 Handling 985,427 1,055,078 Transportation, warehousing and storage 237,313 315,851 Quality assurance sampling and recycler audits 85,081 67,242 2,589,279 3,346,542 Other: Consumer awareness and communications 649,002 552,793 Administration 573,906 676,445

1,222,908 1,229,238 3,812,187 4,575,780

Excess (deficiency) of revenue over expenses $ (48,343) $ 1,635,572


EPRA Saskatchewan

“We are pleased to have partnered with Saskatchewan residents over the years in keeping millions of devices out of our provincial landfills by responsibly recycling them and putting valuable materials back into the manufacturing stream.”

Looking forward to 2016, we are excited to build off of the foundation that is in place with the Saskatchewan Roughriders. We strongly believe that 2016 will be a flagship year for the program as we focus on our collection volume and the convenience of e-recycling in the province. We’ve come a long way since the inception of the program and look forward to continued progress in the efficient and effective recycling of EOLE.

Gayleen CreelmanProgram Director, EPRA Saskatchewan

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Program Costs

Collection

Access

Awareness

Cost






tonnes kg/capita 2,770 2.4

92% 82

72382%

$1,376per tonne




% of the Saskatchewan population within 50 kms (rural)

or 30 minutes (urban) of an EPRA Sask Drop-off Centre.


registered with EPRA Saskatchewan.

Percentage of the population aware of the e-recycling program.







EPRA Saskatchewan

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Schedule of Operations Manitoba

“Record breaking” are the two words that best describe the third year of operations for EPRA Manitoba. The program set new records in both the amount of end-of-life electronics (EOLE) collected, 3,454 metric tonnes (diverting an estimate of over 500,000 devices

from landfills), as well as increasing the overall program awareness from 55 per cent to 68 per cent. We are thrilled that more Manitoba residents are aware of the program and are bringing back their EOLE. In fact, EPRA Manitoba increased the amount of EOLE collected for a second straight year and, given the reduced weight and size of most electronics, that definitely speaks to the strength of our message on the significance of e-recycling as well as the importance that residents place on the behaviour.

For the second straight year, EPRA Manitoba has increased the number of collection depots, raising the total number to 62. Expanding our collection network allows greater access for people from all over the province to participate in e-recycling. Going forward, we will continue to place an emphasis on expanding this network, making it even more convenient for all Manitoba residents to e-recycle.

In 2015, we partnered with the Manitoba Moose of the American Hockey League to help promote awareness of the e-recycling program. The partnership has been

a great success as our message is delivered in a dynamic way through the Moose’s power play, promoted as “Powered by EPRA Manitoba”, to over 7,000 people per game. In addition, we were proud to once again partner with Take Pride Winnipeg for the Team Up to Cleanup and Sustainability Day at the Assiniboine Zoo. Both events were a success and saw Manitoba students embrace the importance of e-recycling and learn how they can participate.

2015 2014


4,420,255 7,228,570Expenses: Direct operations: Processing 1,770,891 1,602,776 Handling 572,810 534,378 Transportation, warehousing and storage 278,114 345,072 Quality assurance sampling and recycler audits 81,746 58,637 2,703,561 2,540,863 Other: Consumer awareness and communications 457,797 356,501 Administration 609,264 630,263 Government fees 45,261 25,607

1,112,322 1,012,371

3,815,883 3,553,234

Excess of revenue over expenses $ 604,372 $ 3,675,336


EPRA Manitoba


In 2015, we partnered with the Manitoba Moose of the American Hockey League to help promote awareness of the e-recycling program.

Moving into 2016, we are focusing on building off of the successes of 2015. We will continue to work to promote recycling EOLE across the province. At EPRA Manitoba we are increasing e-recycling in the province and doing our part to extend nature’s warranty for generations to come.

Dennis NeufeldProgram Director, EPRA Manitoba

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Program Costs

Collection

Access

Awareness

Cost






3,454 2.7

90% 62

51168%

$1,105

tonnes kg/capita

per tonne




% of the Manitoba population within 50 kms (rural) or

15 minutes (urban) of an EPRA Manitoba Drop-off Location.


registered with EPRA Manitoba.








EPRA Manitoba

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2015 2014

Revenue: Environmental handling fees $ 22,281,381 $ 41,820,232 Interest 547,939 569,242 22,829,320 42,389,474Expenses (recovery): Direct operations: Processing 9,548,893 7,689,931 Handling 2,427,224 2,015,630 Transportation, warehousing and storage 4,116,093 3,955,000 Quality assurance sampling and recycler audits 239,887 249,084

16,332,097 13,909,645 Other: Consumer awareness and communications 3,776,777 3,853,792 Administration 2,723,662 2,526,869 Government fees 22,425 (16,262)

6,522,864 6,364,399

22,854,961 20,274,044

Excess (deficiency) of revenue over expenses $ (25,641) $ 22,115,430


Schedule of Operations Quebec

EPRA-Québec had ambitious objectives in 2015. Now that Quebecers were more familiar with the program, we needed them to participate in greater numbers. All the efforts that were deployed in 2015 focused on getting them to take action and bring their end-of-life

electronics (EOLE) to one of over 900 authorized drop-off points available throughout the province. By adding 237 locations in 2015, we improved accessibility by more than 30 per cent. We are pleased that this extensive network of authorized drop-off points means that all Quebecers can now easily find a convenient location to dispose of their old electronics.

EPRA-Québec’s program has achieved a level of awareness of 80 per cent while participation in the program grew by seven per cent, with now one third of the population actively recycling electronics. We are pleased to note that more and more Quebecers have taken the first steps towards responsibly recycling their EOLE. What’s more, the volume of products that were recovered or directed for reuse has also increased by approximately 20 per cent compared to last year.

These excellent results are partly attributable to the success of our ad campaign launched in April 2015. Through TV, radio and the web, our two funny characters, the Serpuariens (the “No-Longer-Usefuls”), got the

message across to the public – they even introduced a new word to Quebecers’ vocabulary!

Also, by participating in many special collection events in 2015, thousands of Quebecers took part in the collective effort to meet the government’s objectives and diverted tonnes of electronics from landfills.

EPRA-Québec


“We are pleased to note that more and more Quebecers have taken the first steps towards responsibly recycling their EOLE.”

The team worked tirelessly to raise public awareness and further cooperate with our members and all stakeholders, thus advancing EPRA-Québec’s program and capturing Quebecers’ attention. We must now find ways to get the population to take the next step and adopt sustainable behaviours in recycling electronics.

As behavioural change takes time, we know we will be just as busy with our collection, education and awareness efforts in 2016. We are ready for the challenge and look forward to further increasing the participation of all Quebecers in the recycling of EOLE.

Dominique LevesqueExecutive Director, EPRA-Québec

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Program Costs

Collection

Access

Awareness

Cost







99% 918

1,63080%

$1,186per tonne


% of the Quebec population within 45 minutes (rural)

or 30 minutes (urban) of an EPRA-Québec Drop-off Point.1

Total manufacturers, retailers and other industry

stewards registered with EPRA-Québec.



This scorecard lists the harmonized Key Performance Indicators (KPI) which EPRA’s regulated, industry-led electronics stewardship programs operating in 2015 in Canada have committed to report on, as per “Research and Recommendations for Performance Measures For Regulated, Industry-Led, End-of-Life Electronics Recycling Programs in Canada” (Intergroup Consultants Ltd, April 2010). These measures reflect data which is presented in each program`s annual report and/or other public reporting.1Note: Does not take into account particular access restrictions relating to municipal boundaries.

Measures related to the weight of regulated electronics collected by the program for reuse and recycling.


19,269tonnes

1,498tonnes

Tonnes collected

for recycling.

Tonnes collected for reuse.

20,767 2.5tonnes kg/capita

Total tonnes collected (recycling & reuse).

Kilograms per capita collected (recycling & reuse).

EPRA-Québec

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Schedule of Operations EPRA Nova Scotia and EPRA Prince Edward Island Nova Scotia PEI Total

Revenue: Environmental handling fees $ 4,085,308 $ 580,156 $ 4,665,464 Interest 33,572 4,284 37,856 4,118,880 584,440 4,703,320 Expenses: Direct operations: Processing 2,298,839 293,617 2,592,456 Handling 754,039 92,671 846,710 Transportation, warehousing and storage 774,399 126,697 901,096 Quality assurance sampling and recycler audits 36,561 4,986 41,547

3,863,838 517,971 4,381,809 Other: Consumer awareness and communications 233,397 70,528 303,925 Administration 603,051 70,875 673,926 Government fees – 20,000 20,000 836,448 161,403 997,851

4,700,286 679,374 5,379,660 Deficiency of revenue over expenses $ (581,406) $ (94,934) $ (676,340)

Year ended December 31, 2015 (unaudited)

Nova Scotians and Prince Edward Islanders continue to recycle their end-of-life electronics (EOLE) with vigour. During the programs’ respective eight and six years of operations, people continue to see our Drop-off Centres as convenient places to recycle old

electronics responsibly. Having already recycled their older, heavier electronics, we are seeing more and more customers return smaller, lighter devices. Given the rate of consolidation of electronics and the industry moving towards the development of smaller products, we expect this light-weighting will be an ongoing trend for e-recycling.

In Nova Scotia this year, EPRA safely and securely recycled 4,462 metric tonnes of EOLE, diverting an estimate of 669,000 devices from landfill, and we expanded to 68 locations, from 60 last year. In PEI, two new Drop-off Centres began accepting old electronics and 621 metric tonnes of EOLE were recycled, with an estimate of 93,000 devices diverted from the environment.

2015 marked the fifth anniversary of EPRA in PEI and a renewal of our program for another 5 years. We celebrated this milestone by giving away seedlings at all of our Island Drop-off Centres. We also held a special event at our Charlottetown Drop-off Centre with our partners at Island Waste Management Corporation

EPRA Nova Scotia and EPRA Prince Edward Island


“Nova Scotians and Prince Edward Islanders continue to recycle their end-of-life electronics (EOLE) with vigour.”

and Green Isle Environmental with Prince Edward Island Department of Communities, Land & Environment. It was a highlight to have Minister Robert Mitchell attend as our guest speaker.

We continue to actively engage with municipalities and other stakeholders to ensure we are delivering our recycling service effectively to residents. It was our pleasure to attend the Union of Nova Scotia Municipalities’ Annual Meeting in Halifax in November as well as to sponsor the RRFB Mobius Awards in October.

Looking ahead, 2016 will be an important year for EPRA in Atlantic Canada. With many new initiatives underway we look forward to continuing to increase education on the importance of e-recycling and providing easy access for residents to recycle their EOLE.

Gerard MacLellanExecutive Director, EPRA Nova Scotia and EPRA Prince Edward Island

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Program Costs

Collection

Access

Awareness

Cost






tonnes

per tonneper tonne

kg/capita kg/capita tonnes

Prince Edward IslandNova Scotia




621 4.24.74,462

99% 99%

83% 86%648 313

68 8

$1,053 $1,094

Tonnescollected.

Kilogramscollected

per capita.Tonnes

collected.

Kilogramscollected

per capita.

Totalcollection

sites.

Totalcollection

sites.

Percentage ofpopulation

aware of the e-recycling

program.

Percentage ofpopulation

aware of the e-recycling

program.

Total programcosts per

tonne.

Total programcosts per

tonne.

% of population within 30 kms (rural) or 30

minutes (urban) of an EPRA NS

Drop-off Centre.

% of population within 30 kms (rural) or 30

minutes (urban) of an EPRA PEI

Drop-off Centre.

Total manufacturers,

retailers and other industry stewards

registered with EPRA NS.

Total manufacturers,

retailers and other industry stewards

registered with EPRA PEI.






EPRA Nova Scotia and EPRA Prince Edward Island

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Schedule of Operations Newfoundland & Labrador

2015 was a successful year for EPRA Newfoundland and Labrador (EPRA NL). As the newest provincial program launched in August 2013, Newfoundlanders and Labradorians are recycling their old electronics with increasing enthusiasm. In 2015 alone,

our end-of-life electronics (EOLE) collection increased by 23 per cent and since program inception over 2,150 metric tonnes of electronics have been collected and safely and securely recycled in the province. We also added new collection sites, bringing our total number to 48 locations and ensuring that 96 per cent of people in the province are within a 45-minute drive of an EPRA Drop-off Centre. Looking ahead to 2016 we will remain actively engaged with Municipalities NL to make sure our programs are accessible.

Building awareness and convenience continues to be a priority for EPRA NL. To ensure that residents have access to electronics recycling in 2015, we held 25 Special Collection events in rural and remote areas of the province. We also participated in the Downhome Expo and the Municipalities NL Annual Convention to raise awareness of our Drop-off Centre network and we continued to communicate the benefits of e-recycling in our advertising campaigns across the province.

This year, we made a special effort to engage students in electronics recycling. We sponsored the Technical Educators Special Interest Council’s annual conference, promoting action and awareness among students. These students in turn often become the recycling advocates at home.

EPRA Newfoundland & Labrador

2015 2014


2,372,520 3,476,431Expenses: Direct operations: Processing 497,625 390,719 Handling 209,711 141,209 Transportation, warehousing and storage 719,013 629,883 Quality assurance sampling and recycler audits 22,441 28,850 1,448,790 1,190,661 Other: Consumer awareness and communications 344,344 425,900 Administration 364,243 412,255

708,587 838,155

2,157,377 2,028,816

Excess of revenue over expenses $ 215,143 $ 1,447,615



“In 2015 alone, our EOLE collection increased by 23 per cent and since program inception over 2,150 metric tonnes of electronics have been collected and safely and securely recycled in the province.”

We are proud of the EPRA NL program and how it’s been embraced by residents and organizations alike; including strong public awareness of, and support for, our program and the steadily-increasing public participation in electronics recycling. In 2016, we look forward to continuing our work on educating residents on the importance of e-recycling while making sure they can participate as conveniently as possible.

Terry GreeneProgram Director, EPRA Newfoundland & Labrador

17




Program Costs

Collection

Access

Awareness

Cost






1,061 2.0

96% 48

31372%

$2,033

tonnes kg/capita

per tonne




% of the NL population within 45 minutes (rural) or 30 minutes

(urban) of an EPRA NL Drop-off Centre.


registered with EPRA NL.








EPRA Newfoundland & Labrador

18


Independent Auditors’ Report

To the Members of Electronic Products Recycling Association

We have audited the accompanying financial statements of Electronic Products Recycling Association, which comprise the statement of financial position as at December 31, 2015, the statements of operations, changes in net assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Electronic Products Recycling Association as at December 31, 2015, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for- profit organizations.

Other Matter

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in the schedules is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Chartered Professional Accountants, Licensed Public AccountantsApril 19, 2016Toronto, Canada

KPMG LLPYonge Corporate Centre4100 Yonge Street Suite 200Toronto, ON M2P 2H3Canada

Telephone: (416) 228-7000Fax: (416) 228-7123Internet: www.kpmg.ca

19


2015 2014

Assets Current assets: Cash and cash equivalents $ 114,132,319 $ 109,482,786 Accounts receivable (note 2) 11,109,877 18,356,123 Short-term investments (note 3) 2,422,774 4,200,000 Prepaid expenses 66,376 62,242

127,731,346 132,101,151

Long-term investments (note 4) 4,269,300 2,389,323Capital assets (note 5) 126,608 280,023

$ 132,127,254 $ 134,770,497

Liabilities and Net Assets

Current liabilities: Accounts payable and accrued liabilities (note 6) $ 7,854,946 $ 9,151,603Net assets: Effectiveness and Efficiency Fund (note 7(a)): British Columbia 1,222,252 1,222,252 Nova Scotia and Prince Edward Island 664,126 664,126 Saskatchewan 289,000 289,000

2,175,378 2,175,378 Contingency reserve (note 7(b)): British Columbia 27,891,705 29,307,483 Manitoba 9,457,508 8,853,135 Quebec 63,850,492 63,876,133 Nova Scotia and Prince Edward Island 5,404,070 6,080,410 Saskatchewan 12,616,311 12,664,654 Newfoundland & Labrador 2,549,209 2,334,066

121,769,295 123,115,881 Invested in capital assets: Quebec 23,274 175,455 Headquarters 97,026 104,568 Newfoundland & Labrador 6,307 –

126,607 280,023

Unrestricted 201,028 47,612

124,272,308 125,618,894 $ 132,127,254 $ 134,770,497

See accompanying notes to financial statements.

On behalf of the Board of Directors:

Director Director

December 31, 2015, with comparative information for 2014

ELECTRONIC PRODUCTS RECYCLING ASSOCIATION

Statement of Financial Position

20


2015 2014

Revenue: Environmental handling fees $ 57,954,101 $ 91,258,419 Management fee 2,423,058 2,609,350 Interest 1,062,254 1,098,597

61,439,413 94,966,366Expenses:

Direct operations: Processing 26,219,041 24,791,315 Handling 10,010,124 9,946,851 Transportation, warehousing and storage 10,476,294 10,715,230 Quality assurance sampling and recycler audits 566,636 580,952

47,272,095 46,034,348 Other: Consumer awareness and communications 6,310,251 6,485,050 Administration 9,115,967 9,365,620 Government fees 87,686 19,345

15,513,904 15,870,015

62,785,999 61,904,363

Excess (deficiency) of revenue over expenses $ (1,346,586) $ 33,062,003




Statement of Operations

21


British Columbia Manitoba Quebec Nova Scotia and Prince Edward Island

Effectiveness Effectiveness Contingency & Efficiency Contingency Contingency Invested in Contingency & Efficiency reserve Fund reserve reserve capital assets reserve Fund

(note 7(b)) (note 7(a)) (note 7(b)) (note 7(b)) (note 7(b)) (note 7(a))

Balance, beginning of year $ 29,307,483 $ 1,222,252 $ 8,853,135 $ 63,876,133 $ 175,455 $ 6,080,410 $ 664,126

Excess of (deficiency) of revenue over expenses – – – – (152,181) – –

Interfund transfers (1,415,778) – 604,373 (25,641) – (676,340) –

Invested in capital assets – – – – – – –

Balance, end of year $ 27,891,705 $ 1,222,252 $ 9,457,508 $ 63,850,492 $ 23,274 $ 5,404,070 $ 664,126


Statement of Changes in Net Assets


Saskatchewan Newfoundland & Labrador Headquarters 2015 2014

Effectiveness Invested Invested & efficiency Contingency Contingency in capital in capital Fund reserve reserve assets assets Unrestricted Total Total

(note 7(a)) (note 7(b)) (note 7(b))

Balance, beginning of year $ 289,000 $ 12,664,654 $ 2,334,066 $ – $ 104,568 $ 47,612 $ 125,618,894 $ 92,556,891

Excess of (deficiency) of revenue over expenses – – – (218) (30,106) (1,164,081) (1,346,586) 33,062,003

Interfund transfers – (48,343) 215,143 – – 1,346,586 – –

Invested in capital assets – – – 6,525 22,564 (29,089) – –

Balance, end of year $ 289,000 $ 12,616,311 $ 2,549,209 $ 6,307 $ 97,026 $ 201,028 $ 124,272,308 $ 125,618,894


22


2015 2014

Cash provided by (used in):Operating activities: Excess (deficiency) of revenue over expenses $ (1,346,586) $ 33,062,003 Amortization which does not involve cash 182,504 174,357 Change in non-cash operating working capital: Accounts receivable 7,246,246 3,876,726 Prepaid expenses (4,133) (7,001) Accounts payable and accrued liabilities (1,296,658) (505,334)

4,781,373 36,600,751

Investing activities: Investments, net (102,751) (2,141,250) Capital assets acquired (29,089) (47,034)

(131,840) (2,188,284)

Increase in cash and cash equivalents 4,649,533 34,412,467

Cash and cash equivalents, beginning of year 109,482,786 75,070,319

Cash and cash equivalents, end of year $ 114,132,319 $ 109,482,786




Statement of Cash Flows

23



Notes to Financial StatementsYear ended December 31, 2015

The Electronic Products Recycling Association (the “EPRA” or the “Association”) is an industry-led, not-for-profit association dedicated to ensuring the safe, secure and responsible recycling of end-of- life electronics and ensuring compliance with the provincial regulations on electronics recycling. Members of Electronics Product Stewardship Canada and the Retail Council of Canada established the EPRA in 2011. The EPRA collects environmental handling fees from registered companies (stewards) which sell electronics into the marketplace. These fees are in turn used to pay the handlers of end-of-life electronics, mainly collection depots, transportation companies and processors. The fees also cover the communication and education outreach on the electronics recycling programs and drop-off locations.

The EPRA was incorporated on April 14, 2011 as a Canadian not-for-profit organization without share capital. The Association was previously incorporated under the Canada Corporations Act and was continued under the Canada Not-for-profit Corporations Act in March 2013. The Association operates programs in British Columbia, Manitoba, Quebec, Nova Scotia, Prince Edward Island, Saskatchewan and Newfoundland and Labrador without monetary gain or profit to its stewards. The EPRA is exempt from income taxes under Section 149 (1) of the Income Tax Act (Canada).

1. Significant accounting policies:

These financial statements have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations:

(a) Cash and cash equivalents:

Cash and cash equivalents include cash on hand and term deposits which are highly liquid.

(b) Revenue:

The Association follows the deferral method of accounting for revenue. Environmental handling fees (“EHF”) are received from registered stewards within the provinces which participate in the EPRA program. The Association recognizes these fees as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

EHF revenue is recognized as individual stewards’ report and remit them as required by applicable provincial environmental legislation.

Management fee and interest revenue are recognized as earned.

(c) Direct collection, handling and processing and other expenses:

Processing, handling and collection expenses (including transportation, warehousing and related storage) are recorded on the date the electronics are gathered from collection sites. Other expenditures are recognized as incurred.

(d) Allocated expenditures:

Allocated expenditures, such as administration services, including harmonization costs, recycling quality office costs, administration and other governance expenses, are allocated to the EPRA regions of British Columbia, Manitoba, Quebec, Nova Scotia, Prince Edward Island, Saskatchewan and Newfoundland and Labrador based on actual costs as incurred.

(e) Capital assets:

Purchased capital assets are recorded at cost. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. Repairs and maintenance costs are charged to expense. Betterments which extend the estimated life of an asset are capitalized. When a capital asset no longer contributes to the Association’s ability to provide services, its carrying amount is written down to its residual value.

Software 3 years

Furniture and equipment 5 years

Leasehold improvements Over lease term Equipment 5 years

24


(f) Financial instruments:

Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. The Association has not elected to carry any such financial instruments at fair value.

Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight-line method.

Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Association determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount the Association expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future period,

2015 2014

Accumulated Net book Net book Cost amortization value value

Software $ 443,763 $ 438,307 $ 5,456 $ 153,377Furniture and equipment 114,550 51,658 62,892 85,802Leasehold improvements 69,904 17,951 51,953 40,844Equipment 6,525 218 6,307 – $ 634,742 $ 508,134 $ 126,608 $ 280,023

5. Capital assets:

an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.

(g) Use of estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, accruals for processing end-of-life electronic products and environmental handling fees, accrued revenue and amortization of capital assets. Actual results could differ from those estimates.

2. Accounts receivable:

Included in accounts receivable is an amount totaling $1,400,000 (2014 - $1,400,000) owing from the British Columbia administration service provider that was advanced in order to finance the region’s operations. The advance is unsecured, non-interest bearing and due on demand.

3. Short-term investments:

Short-term investments consist of a guaranteed investment certificate (“GIC”), bearing interest at 1.40% and maturing on August 10, 2016.

4. Long-term investments:

Long-term investments consist of a GIC, bearing interest at 1.65% and maturing on March 21, 2017.

25


6. Accounts payable and accrued liabilities:

Included in accounts payable and accrued liabilities are government remittances payable of $193,557 (2014 - $533,731), which includes amounts payable for harmonized sales tax.

7. Restricted funds:

(a) Effectiveness and Efficiency Fund:

The EPRA Board of Directors established an Effectiveness and Efficiency Fund to promote best practices for the collection, transportation and processing of end-of-life electronics and to ensure overall continued reduction of the environmental impact of the EPRA program.

The intent of the fund is for the enhancement of non-funded program elements, such as ensuring that there is adequate capacity to properly handle end-of-life electronics collected through the program, providing improvements to the metrics of the program and ensuring that best practices are employed for the handling of substances of concern. Up to 10% of direct operational expenses incurred by the EPRA may be transferred to the fund annually when there is an excess of revenue over expenses in the year.

(b) Contingency Fund:

The EPRA Board of Directors established a Contingency Fund to accumulate sufficient funds to ensure stable program operations continued through variable economic conditions.

The targeted amount for the fund is the equivalent of one year of projected operating costs. All excess of revenue over expenses not used for the purchase of capital assets and after transfers to the Effectiveness and Efficiency Fund are transferred to the fund until the targeted amount is reached. In a year where an operating deficit occurs, a transfer is made from the Contingency Fund to the general fund to cover the current year operating deficit.

8. Risk management:

(a) Credit risk:

The EPRA is exposed to credit risk that arises from the quality of its stewards. Credit risk arises from the possibility that the registrants of the EPRA will be unable to fulfill their obligations. The EPRA stewards are numerous and diverse which reduces the concentration of credit risk. Management closely evaluates the collectability to mitigate this risk. There has been no change to the risk exposure from 2014.

(b) Market risk:

The EPRA is exposed to financial risk that arises from fluctuations in the sale of consumer electronic products within the provincial regions in which the EPRA operates. This risk is minimized by the corresponding decreases in program delivery and recycling process expenses and by regulation through each regional Department of the Environment. There has been no change to the risk exposure from 2014.

(c) Interest rate risk:

The EPRA is exposed to interest rate risk arising from the possibility that changes in interest rates will affect the value of fixed income securities held by the Association. EPRA manages this risk by holding GICs and staggering the terms of the investments held. There has been no change to the risk exposure from 2014.

9. Commitments:

The Association has entered into a lease for office premises. Minimum future payments required under this operating lease are as follows:

2016 $ 184,600

2017 195,700

2018 195,700

2019 195,700

2020 97,800

$ 869,500

This report was printed on Rolland Enviro100 Digital – 80lb cover and 80lb text. Rolland Enviro100 Digital contains FSC Certified 100% post-consumer recycled fibers.

It is certified EcoLogo and Processed Chlorine Free, and is manufactured using biogas energy.

5750 Explorer Drive, Suite 301Mississauga, Ontario L4W 0A9

Telephone: 289-814-2400

Email: [email protected]

Suite 315, 210 - 1600 Kenaston BoulevardWinnipeg, Manitoba R3P 0Y4

Telephone: 1-888-527-9382

Suite 44, 201 Brownlow AvenueDartmouth, Nova Scotia B3B 1W2

Telephone: 1-877-462-8907

206 - 2250 Boundary RoadBurnaby, British Columbia V5M 3Z3

Telephone: 604-291-1002

4005 Matte Boulevard, Suite CBrossard, Quebec J4Y 2P4

Telephone: 1-888-557-8177

P.O. Box 14133, Manuels Station MainConception Bay South, Newfoundland & Labrador A1W 1A0

Telephone: 1-888-503-3201

2366 Avenue C NorthSaskatoon, Saskatchewan S7L 5X5

Telephone: 306-242-6006

Suite 44, 201 Brownlow AvenueDartmouth, Nova Scotia B3B 1W2

Telephone: 1-877-462-8907

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