The handling and disposal of confidential waste is of the utmost importance for UK businesses of all sizes. This must also be done in certain ways, as outlined in UK law.
Although cyber resilience is increasing, recent events still emphasise the importance of information security for businesses. In June 2024 the personal data of around 560 million Ticketmaster customers was stolen.
Maintaining compliance with confidential waste regulations is the best way to avoid significant data breaches and the damage that comes with them. Data from IBMs 2024 Cost of a Data Breach Report puts the average total cost of a data breach at $4.88 million.
Confidential waste often contains employee details which could give hackers the means to access large databases. This post provides an in-depth overview of the key regulations that define confidential waste, specify how it must be managed, and outline best practices for the disposal of confidential waste.
What is confidential waste?
Confidential waste is classed as any waste produced by your business that contains private data, information, or documentation relating to its operations. The precise nature of confidential waste may vary from business to business. For instance, a private medical clinic will store customers’ medical records whereas an office-based company likely won’t. Confidential waste can also exist in digital spaces as well as physical items. Although previous reports have found 90% of digital data breaches have been due to human error.
Common examples of confidential waste include the following materials:
- Data on customers’ and employees’ personal information (contact info, medical history, National Insurance number etc)
- Photo ID
- Contracts and documents
- Application forms
- Digital media containing confidential information (USBs, hard drives etc)
- Financial records
Why proper disposal of confidential waste is important
Confidential waste poses a security risk of malicious third parties obtaining private information. This can cause serious and lasting damage to a business, particularly those that process personal information as part of their day-to-day operations. Due to the high volume of waste generated, waste management is often overlooked in office and education settings.
If confidential waste isn’t disposed of properly, it could result in:
- Identity theft and fraud – the collection of someone’s personally identifiable information (PII), such as phone numbers and addresses, can allow criminals to take out loans and open credit cards in another person’s name.
- Corporate espionage – information relating to internal business operations and secrets can be used by competitors for the purposes of sabotage. This includes client lists, intellectual property, strategies etc.
- Loss of trust from consumers – mishandling of sensitive information can severely damage the trust of consumers, clients, and stakeholders. On the other hand, secure disposal of the confidential data can show that a business looks after its interests.
- Environmental impact – Poor waste disposal can be a major source of pollution and energy inefficiency. Conversely, the best practices for disposing of confidential waste often help reduce the carbon footprint of businesses, contributing to their wider sustainability goals.
- Breach of regulatory compliance – adhering to GDPR and other regulations helps businesses avoid legal penalties, whilst also upholding privacy standards.
Confidential waste cannot simply be thrown in a recycling bin. This leaves private information potentially accessible to other people who might come across it. Comprehensive waste disposal techniques should be used instead, such as confidential waste shredding and incinerating. Using a professional confidential waste disposal service is the best approach to guarantee that your business information is disposed of securely.
Legal requirements for confidential waste
In addition to the security risk that comes with failing to dispose of confidential waste properly, which itself can lead to dire financial consequences, businesses can also face significant legal consequences in the form of fines. Any individuals responsible for the data breach could also face the possibility of imprisonment.
The following regulations outline how to get rid of confidential waste in the UK:
UK Data Protection Act 2018
The Data Protection Act establishes the main parameters for businesses when handling personal information. The legislation states that organisations must take appropriate steps to make sure all their confidential waste is securely destroyed and rendered completely unrecoverable. This applies to all forms of confidential waste regardless of when it was created.
While the Data Protection Act (DPA) affects all UK businesses, those who process large amounts of personal data are most at risk of breaching compliance. In addition, businesses who have more advanced security processes in place for staff, such as those in manufacturing, are more likely to regularly produce confidential waste. As seen in the example above, there can be significant fines for businesses that don’t dispose of confidential waste in line with DPA guidelines.
UK GDPR
The legislation in the Data Protection Act also incorporates UK GDPR (General Data Protection Regulation) to further outline the measures businesses should implement to protect private data. This includes GDPR confidential waste disposal guidance which states that qualifying waste must be destroyed irreversibly to prevent accidental disclosure or unauthorised access.
GDPR also provides a detailed framework for businesses on how to make their online activities secure. Guidance from the Information Commissioner’s Office states that this includes:
- Information security – passwords, encryption, possible security outcomes, ransomware.
- Encryption – implementation, encryption types, encrypted information transfers.
- Working from home securely – using personal devices, video conferencing, security checklist.
- Personal data breaches – assessing risk, reporting a breach.
- Email security – measures to protect networks, use of blind carbon copy (bcc).
Privacy & Electronic Communications Regulations (PECR)
Although primarily concerned with electronic communications and marketing activities, these regulations also outline the obligations of businesses in regards to confidential waste. Specifically, PECR contains provisions around maintaining the confidentiality of electronic communications data when it is being disposed of. Businesses must securely dispose of all forms of electronic communications data, such as message printouts and storage devices, to comply with these requirements.
Financial Conduct Authority (FCA)
For businesses operating in the financial services sector, confidential waste disposal must also comply with Financial Conduct Authority regulations. This legal framework imposes strict requirements on businesses for data security regarding customers, employees, and partners. Failure to protect sensitive financial data and dispose of it completely can result in sanctions.
The FCA states that business leaders should ask themselves the following questions when going about confidential waste disposal:
- Do you shred your customer data onsite and are your staff aware of how they should be disposing of customer data? Do they need reminding?
- If you use a third party to dispose of customer data, do you know the company, how it destroys your data, and how they vet their staff?
- If you have ever disposed of a computer or given one to somebody else, did you wipe the hard drive with specialist software or remove and destroy the hard drive?
The Environmental Protection Act 1990
This legal framework establishes a duty of care for business leaders to dispose of waste, confidential or not, in ways that are safe and responsible. This includes handling, storage, transport, and methods of disposal. The Environmental Protection Act is enforced by regulators, who have the ability to issue fines, introduce disposal measures, and prosecute individuals.
Tips for managing confidential waste
The following tips for managing and disposing of confidential waste have been selected to comply with all regulations above:
- Effective waste management systems
The first challenge in securely disposing of confidential waste is to be able to recognise when confidential waste has been produced. This requires your business to have effective systems in place for waste management, tracking where waste has come from and categorising it accordingly. All confidential waste should then be stored safely before disposal.
- Always shred physical documents
Shredding confidential waste is one of the most effective methods of disposal as it turns documents into small unreadable pieces. Cross-cutting and micro-cutting shredders can be used for more thorough shredding.
- Use secure waste consoles
Offices and other workplaces that deal with a large amount of documentation should have confidential waste bins and consoles. These lockable bins act as temporary storage for confidential waste that can’t be accessed by anyone without proper authorisation.
- Wipe digital data storage
When it comes to disposing of digital media on hard drives, degaussing is typically the best option. This process destroys the magnetic field patterns on the platters of the hard drive, making it so that the data cannot be read ever again. Degaussing is an irreversible process.
- Staff training
All employees in the business should be clear on its confidential waste management policies and procedures. These guidelines should cover all aspects of handling, storing, and disposing of confidential materials. Reviewing and updating your policy is also advised, as this will help ensure you remain compliant with confidential waste management regulations.
Our services for confidential waste disposal
As experienced professionals in waste management, Yorwaste provides comprehensive services for removing and recycling confidential waste. By working in partnership with a dedicated waste disposal organisation, we ensure your confidential waste is removed quickly while taking care to achieve full compliance with data protection regulations. Our solutions provide you with peace of mind through:
- Providing secure waste consoles for safe storage of confidential materials.
- On-site shredding or waste transport to a secure disposal facility.
- Separate collection options for larger waste items.
- Recycling of shredded confidential waste.
- Turning non-recyclable confidential waste products converted into energy sources.
Our team offers a wide range of commercial waste services, meaning we’re prepared to support the needs of your business. As a result, we can ensure your operations are not only compliant for confidential waste disposal, but also in the disposal of industry-specific waste such as food and liquids.
Professional and conscientious waste removal
Every business generates confidential waste in one way or another. However, they open themselves up to the risk of data breaches when they can’t establish effective systems for handling and disposing of confidential waste. That’s when Yorwaste comes in. Our solutions are tailored to your business, giving you a partner you can trust to deliver streamlined and fully compliant confidential waste disposal services.
Effective waste management, especially when it comes to confidential waste materials, is vital for businesses to protect their operations. Not only this, but it’s necessary to make sure you adhere to regulatory compliance to avoid fines and a hit to your reputation.
If you’re unsure whether your business is currently compliant in its disposal of confidential waste, get in touch today to speak to one of our experts.