REG - Symphony Environment - EU Judgment – Company Response

Symphony Environmental TechnologiesAnnouncement

09/02/2024 08:00

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RNS Number : 6416C  Symphony Environmental Tech. PLC  09 February 2024

9 February 2024

 

Symphony Environmental Technologies plc

("Symphony" or the "Company")

 

EU Judgment - Company Response

 

Symphony Environmental Technologies plc (AIM: SYM), makes this further
announcement following the judgment of the General Court (the "Court") of the
European Union ("EU") delivered on 31 January 2024 (the "Judgment").

THE JUDGMENT

(1) the Judgment and ruling of the Court was as to whether the Defendants had
acted within the limits of their discretion with regard to the amendment to
the Directive. The claim was for compensation focussed on the legality of
their conduct.

(2) The Court found that the Defendants had not exceeded the limits of their
discretion, so compensation was not awarded to Symphony.

(3) This Judgment was not an assessment of the effectiveness of the d2w
technologies. The Court took into account only the information that was
available at the time the Directive was adopted and did not include further
studies that have supported the d2w technology and the distinction between
oxo-biodegradable and oxo-degradable plastics. Nor did it include any expert
evidence for which the Claimants had paid, nor the opinion of the EU Chemicals
Agency as to the formation of microplastics.

(4) The distinction of d2w from being captured under the Directive is
supported by the opinion of Symphony's King's Counsel following the Judgment,
and it is Symphony's view in conjunction with that opinion that d2w should not
be captured within the EU prohibition.

THE BUSINESS

d2w technology had not been widely used in the EU for several years, and the
lengthy legal process and Judgment has therefore very little effect on
Symphony's existing business.

The Directors of Symphony believe that a key reason behind the lack of use of
d2w in the EU is the wording of the amendment to Article 5 of the draft
Directive inserted at a late stage in one of the committees of the European
Parliament, which led to confusion in the market place with no distinction
being made between oxo-degradable plastic and the oxo-biodegradable technology
used in d2w.

Symphony was not able to change the wording of the Directive, which resulted
in the Board finding it necessary to file a claim for compensation. In the
Judgment, the Court has cited the CEN definition TR15351 which shows that
oxo-degradable and oxo-biodegradable plastic are different materials. The
Company will publish a detailed note on the Judgment next week, which will be
available on its website.

OVERVIEW

The problem with plastic is that a lot of it gets into the open environment,
where it creates persistent microplastics. Symphony had therefore developed a
method of making plastic so that it converts into biodegradable materials and
biodegrades much more quickly if it becomes litter at the end of its useful
life.  This technology (branded d2w®) has been in use around the world for
the last 15 years, and is considered by Symphony to be the only way to prevent
plastic which has escaped into the open environment from accumulating there
for decades.

Symphony's d2w and other approved brands are mandatory for a wide range of
plastic products in Saudi Arabia, the United Arab Emirates, and other
countries, who have carried out their own due-diligence on the technology,
supported by robust international standards to prove biodegradability,
recyclability, and non-toxicity.  Symphony also sells d2w in many other
markets around the world.

Commenting on the Judgment, Michael Laurier, CEO of Symphony said "We firmly
believe that we were right to challenge this amendment to the draft Directive,
and maintain that we should have received compensation for the confusion
caused.  We will continue our communications programme to explain the value
of d2w biodegradable technology to protect the environment around the world
from persistent plastic litter.

Symphony is heavily invested in a number of exciting territories around the
world for our d2w and d2p technologies, and whilst it is frustrating that this
Judgment makes it more challenging to sell d2w in the EU, the Group has a good
pipeline of global opportunities for d2w, and we remain confident of
communicating further progress in the coming months."

 

 

Enquiries

 Symphony Environmental Technologies Plc                                 +44 (0) 20 8207 5900
 Michael Laurier, CEO

 Ian Bristow, CFO

 www.symphonyenvironmental.com (http://www.symphonyenvironmental.com/)
 Zeus (Nominated Adviser and Broker)                                     +44 (0) 203 829 5000
 David Foreman / Kieran Russell (Investment Banking)

NOTES TO EDITORS:

About Symphony Environmental Technologies plc

www.symphonyenvironmental.com (http://www.symphonyenvironmental.com/)

 

D2W TECHNOLOGY

Symphony has developed a biodegradable plastic technology which addresses the
problem of persistent microplastics, by turning ordinary plastic at the end of
its service-life into a waxy substance which is biodegradable. It is then no
longer a plastic and can be bioassimilated in the open environment in a
similar way to a leaf without leaving microplastics behind. See
https://www.symphonyenvironmental.com/why-biodegradable/
(https://www.symphonyenvironmental.com/why-biodegradable/) The technology is
branded d2w® and appears as a droplet logo on many thousands of tonnes of
plastic packaging and other plastic products around the world, much of which
has been recycled. In some countries, oxo-biodegradable plastic is mandatory
for short-life plastic products.

d2w technology was studied for three years in the Oxomar project, sponsored by
the French government, which concluded that plastic made with Symphony's d2w
oxo-biodegradable technology will biodegrade in seawater significantly more
efficiently than conventional plastic. See
www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/
(http://www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/)
 

Following this report, the scientists allowed bacteria commonly found in the
open environment access to d2w oxo-biodegradable plastic containing Carbon
13.  They found Carbon 13 in the carbon dioxide exhaled by the bacteria,
proving beyond doubt that the plastic had been bioassimilated by the bacteria.

D2P TECHNOLOGY

Symphony has developed a range of additives, concentrates and master-batches
marketed under its d2p® ("designed to protect") trademark, which can be
incorporated in a wide variety of plastic and non-plastic products so as to
provide protection against many different types of bacteria, viruses, fungi,
algae, moulds, and insects, and against fire. See www.d2p.net
(http://www.d2p.net) d2p products also include odour, moisture and ethylene
adsorbers as well as other types of food-preserving technologies. For an
overview see www.d2p.net (http://www.d2p.net)    Symphony has launched d2p
anti-microbial household gloves and toothbrushes and "Symfresh" food-packaging
and is developing a range of other d2p finished-products for retail sale.

D2C TECHNOLOGY

Symphony has complemented its d2w and d2p product ranges with d2c "compostable
resins and products" that have been tested to US and EU composting standards
and has invested in Eranova - a French company extracting starch for making
plastics out of algae.

D2DETECTOR

Symphony has also developed the d2Detector®, a portable device which analyses
plastics and detects counterfeit products.  This is useful for government
officials tasked with enforcing legislation, and Symphony's d2t tagging and
tracer technology is available for further security.

SYMPHONY'S BUSINESS

Symphony has a diverse and growing customer-base and has established itself as
an international business with over 70 distributors around the world. Products
made with Symphony's plastic technologies are now available in nearly 100
countries and in many different product applications. Symphony itself is
accredited to ISO9001 and ISO14001.

Symphony is a founder-member of The BPA (www.biodeg.org) and actively
participates in the Committee work of the British Standards Institute (BSI),
the American Standards Organisation (ASTM), the European Standards
Organisation (CEN), and the International Standards Organisation (ISO).

Further information on the Group can be found at www.symphonyenvironmental.com
and twitter @SymphonyEnv   See also Symphony on Instagram. A Symphony App is
available for downloading to smartphones.

 

 

 

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