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Translating commitments to Action Plan

The big challenge is how to take recycling rates form mid-thirties to 100%. Can each corporate set up a reverse logistics arm to pull back each of their packaging waste post consumption by the consumer. When product distribution and penetration is a challenge for the CPG companies who supply food and beverages in bulk packing to their retailers and distributors ( and not to the final consumer) , can it bring back the packaging after use form the final consumer who are widely spread across the hinterland. What are the motivations to be provided for such packaging waste to travel back to recycling centres for its repurposing?

Instead, could a separate organisation be created which could work for all CPG companies and undertake the process of galvanising the entire system to create ‘value streams’ for the packaging to flow back to recycling centres? Could India use and uplift the Waste pickers and integrate their role into this drive of keeping India clean and pristine. Could we solve the problem of collecting difficult plastics like sachets & pouches ( MLP/ MetPet etc) by funding research and seeding innovation ideas in Start-Up India. Building and Using entrepreneurship models to bring about quantum change in thinking and undertaking waste management in transparent, hygienic and professional ways as never done before. Waste is after all, a misplaced Value and entrepreneurs have the ability to unlock the same.

Instead, could a separate organisation be created which could work for all CPG companies and undertake the process of galvanising the entire system to create ‘value streams’ for the packaging to flow back to recycling centres? Could India use and uplift the Waste pickers and integrate their role into this drive of keeping India clean and pristine. Could we solve the problem of collecting difficult plastics like sachets & pouches ( MLP/ MetPet etc) by funding research and seeding innovation ideas in Start-Up India. Building and Using entrepreneurship models to bring about quantum change in thinking and undertaking waste management in transparent, hygienic and professional ways as never done before. Waste is after all, a misplaced Value and entrepreneurs have the ability to unlock the same.

Producers Responsibility Organisation Europe

PRO- Europe came into existence in EU as legislations forced companies to ‘take back’ packaging waste as part of Extended Producer Responsibility (EPR). Over the decades of work, more than 30 countries in EU have adopted the Green DOT program, which indicated both to consumers, and regulators as to which packaging is being channelized though the PRO- Europe. As part of enrolment into Green Dot , brands commit not only to design ‘recycle friendly plastic packaging’ but also allocate takeback cost towards PRO-Europe.PRO in turn facilitates such reverse logistics in terms of technology, infrastructure , transparency and governance. The PRO- Europe then manages the EPR requirements of the Brands collectively and individually, liaison with all stakeholders including regulators at the local area level and to free the Brands to do their own core jobs that is to create brands, manufacture products and sell. This model needs to be studied deeply and relevant learning could be brought back to India for creation of India specific PRO.
Social Impact Funds: Coupled with PRO , funds are allocated by the Brands to help solve ‘recyclying issues’ for plastics with lower recycling rates. These could be towards funding innovative idea at the early stage ( like waste to fuel). Majority of funds are used towards ‘replicating’ a working business model in waste collection, segregation and processing and towards improving outcomes while getting little more than social returns (SROI). Patience capital is employed to get return of capital ( than return on capital) by corporates .Impact Fund operate like a VC and take positions in waste management ecosystem towards debottlenecking and solving critical issues while supporting municipalities ( and governments) to do their jobs of creating infrastructure for collection and segregation. One such Fund in USA is Closed Loop Partners which has committed contribution of $100MM from Coca-Cola, Pepsico, Unilever, Nestle , CP , J&J & P&G. Even Foundation like Walmart have joined hands to improve plastic recycling rates in the US.
Foundations, Charitable Organisations and CSR money is used to create livelihood opportunities at the bottom of the pyramid – access of safety, health and education for the non-industrialised street workers. Funds provide long term improvement in the living standards whist giving the sector it much required status and dignity. Many companies are using this approach to make a difference to the lives (much like development sector) towards making visible change to the members in the community that bring value in the value chain and guarantee business continuity.

Producers Responsibility Organisation Europe

PRO- Europe came into existence in EU as legislations forced companies to ‘take back’ packaging waste as part of Extended Producer Responsibility (EPR). Over the decades of work, more than 30 countries in EU have adopted the Green DOT program, which indicated both to consumers, and regulators as to which packaging is being channelized though the PRO- Europe. As part of enrolment into Green Dot , brands commit not only to design ‘recycle friendly plastic packaging’ but also allocate takeback cost towards PRO-Europe.PRO in turn facilitates such reverse logistics in terms of technology, infrastructure , transparency and governance. The PRO- Europe then manages the EPR requirements of the Brands collectively and individually, liaison with all stakeholders including regulators at the local area level and to free the Brands to do their own core jobs that is to create brands, manufacture products and sell. This model needs to be studied deeply and relevant learning could be brought back to India for creation of India specific PRO.
Social Impact Funds: Coupled with PRO , funds are allocated by the Brands to help solve ‘recyclying issues’ for plastics with lower recycling rates. These could be towards funding innovative idea at the early stage ( like waste to fuel). Majority of funds are used towards ‘replicating’ a working business model in waste collection, segregation and processing and towards improving outcomes while getting little more than social returns (SROI). Patience capital is employed to get return of capital ( than return on capital) by corporates .Impact Fund operate like a VC and take positions in waste management ecosystem towards debottlenecking and solving critical issues while supporting municipalities ( and governments) to do their jobs of creating infrastructure for collection and segregation. One such Fund in USA is Closed Loop Partners which has committed contribution of $100MM from Coca-Cola, Pepsico, Unilever, Nestle , CP , J&J & P&G. Even Foundation like Walmart have joined hands to improve plastic recycling rates in the US.
Foundations, Charitable Organisations and CSR money is used to create livelihood opportunities at the bottom of the pyramid – access of safety, health and education for the non-industrialised street workers. Funds provide long term improvement in the living standards whist giving the sector it much required status and dignity. Many companies are using this approach to make a difference to the lives (much like development sector) towards making visible change to the members in the community that bring value in the value chain and guarantee business continuity.

PRO for India

India is in unique position. It has higher recycling rates of plastic. The culture of preserving, reusing, and repurposing goods and even packaging is the essence of resource efficient India. Packaging waste is actually seen as value and is therefore picked up even after being irresponsibly thrown by some households. From a large portion of households/ dwellings (more than 80%), plastic packaging is collected formally by municipalities or by informal waste pickers. Either way, plastic, which are of value, are pulled out. However, it is about the 5% of plastic waste, which is of no value to the informal waste picker that is strewn across the countryside, and ends up in the drains and sometimes-animal food chain.

India legislative context i.e. the Plastic Waste Rules 2016 makes India unique singling out Brands as responsible agents to pull back the plastic waste whilst collaborating with urban departments and other govt bodies. The problem that most municipalities are in red and do not have infrastructure and people to pull back and segregate solid waste.This makes matter difficult and uphill for Brands to solve it alone. While the govt and legislators rrealizethe potential and managerial ability of the Brands, they would have to work hand in hand to co-create and the reverse logistics infrastructure. Municipalities should be able to function smoothly pulling back household waste, segregate (wherever possible) to extract value (composting wet waste and controlled waste to energy generation) and leave very little to get to landfills. Brands could follow PRO structure to fund innovation and pilots to bring technologies that have worked elsewhere in the world. Brands could help in replicating best practices and lend managerial support to the recycling efforts. The PRO could create a balanced recycling points system that can normalise the collection effort by the type of plastic composite and related incentives to the value chain for smooth functioning of ‘ all plastic takeback’.