1. The case of united recycling efforts by
the beverage industry in Mexico
MBA Jorge Fernando Garcia Abaroa Leipzig, Germany, Nov 25th, 2012
2. Table of contents
1. Waste in Mexico
2. Facts and figures
3. Precedent in Germany and the EU
4. ECOCE Overview
5.
6. Objectives
7. Recycling: A shared responsibility
8. Gathering business
9. From vicious cycle to virtous cycle
3. Table of contents
10.
11.
12.
13. How ECOCE gave value to PET
14. Effects on value chain and the environment
15. Education and communication
16. ECO Challenge
17. Other industry initiatives: Coca-Cola
18. Conclusions
4. Waste in Mexico
Metals Textiles Mexico generates about
3% 1% tons of trash per
year.
Plastics
6%
Glass Enough to fill the Azteca
6% Organic Stadium 36 times.
32%
Garden waste The Azteca Stadium has a
10% capacity of 105,000 people.
Paper & In the1986 World Cup,
Cardboard Argentina won against
14% Germany in this stadium
Other
28%
Source: ECOCE, A.C., 2009
5. Facts and figures
6
There are plastic materials, called commodities which are the
most commonly used to make different containers:
1 PET (clear bottles)
2 PEAD (opaque bottles)
3 PVC (20 liter water bottles)
4 PEBD (bags)
5 PP (Tupperware, reusable containers)
6 PS (foam cups)
Source: ECOCE, A.C., 2009
6. Facts and figures
PET marked with in the Plastic Classification
Table, accounts for about 1.5% of the total trash
(USW)
Even though they can be recovered (gathered) in the
same way, each one of them has different
properties, characteristics and uses in terms of
recycling
Source: ECOCE, A.C., 2009
7. Facts and figures
Only about 40% of PET plastic is
recovered and recycled in Mexico
(300,000 tons a year)
Source: ECOCE, A.C., 2009
8. Facts and figures
Not all trash (Urban Solid Waste, or USW) is plastic
From the total of USW, containers account for 20%
of the volume
Plastics are one of the materials, accounting for 9%
of USW.
Not all plastic is PET
Source: ECOCE, A.C., 2009
9. Precedent in Germany and the EU
In 1991 the German government
passed a packaging law
(Verpackungsverordnung)
Requires manufacturers to take care
of the recycling or disposal of any
packaging material they sell.
Manufacturers who contribute to the
cost of recovery and recycling of
their products.
10. Precedent in Germany and the
DSD (Duales System Deutschland)
collects the materials and producers
pay a fee.
The Green Dot is used by more than
130,000 companies, encompassing 460
billion packages
11. ECOCE -‐ Overview
It is a non-‐profit organization
Founded in 2002
Its objectives are environmentally oriented
It manages a fund created by member companies
They operate the First National Voluntary PET
Container Residue Plan
Member companies, comprise about 61% of all the
PET plastic used in Mexico.
Source: ECOCE, A.C., 2009
13. Objectives
Gathering waste PET containers from its member companies.
Promote the creation of a renewed Recycling Industry in Mexico
that generates jobs and certainty.
Civic and Ecologic Education Campaings that create awareness in
Mexico, looking to change improper disposal habits.
Create sinergy with governments to analyze Critical Areas, looking
for final solutions to the problem, instead of just dealing with its
effects (cleaning).
Participate in the process of producing laws, rules and norms that
provide certainty and are objective.
Source: ECOCE, A.C., 2009
14. Comparing Green Dot and ECOCE
This Green Dot system is
compulsory, whereas in
ECOCE, it is voluntary
15. Recycling: a shared responsibility
Makes laws
Enforces laws
Government
Promotion
Gathering
Processing Sorting
Recycling Reducing
Reusing
Industry Society
16. Gathering is not always a business
Plastics are a global commodity
In Mexico, there is not enough domestic demand for
products made with recycled materials
$$$
PET recycling cost $
PET sale price
The ECOCE fund finances this gap
17. PET: From vicious to virtuous cycle
Production of PET containers
Normal use cycle of
and products
PET products
Disposal in local
landfills
18. PET: From vicious to virtuous cycle
Promotes the value
Recycling facilities use PET
of recycled
and value recycled material
materials and their
gathering
Gathering of PET to
provide certainty in
its supply, quantity,
quality and price
19. recycling process
Industrial Clean flakes
recycling Pellets
Thread
Manufacture Textile fibers Filler fiber
new Bottles Resin
products
Sheet/strap
22. benefits to the industry
1,700 direct jobs, and more than 15,000 indirect jobs
Formalization of the activity, paying taxes
Certainty in PET purchase as reuse material
Saving space, life expectancy and costs of controlled landfills
Creation of a new PET recycling industry
Better work and development conditions
23. How ECOCE gave value to PET
Internal
consumption
Export
Individuals Middlemen ECOCE
24. Effects of new PET recycling value chain
Before After
Price per Kg. 30 cents 9 pesos
Source of demand Foreign Mixed
Infrastructure Poor Very Good
25. Effects on the environment
For each ton of PET saved, 4.4 barrels of
oil are saved
Recycling a ton of PET keeps 3.32 tons
of CO2 from entering the atmosphere.
This means that in Mexico, we save
from recycling over:
996,000 tons of CO2
26. Education and communication
Since 2003 ECOCE has awareness
campaigns, inviting people to change
their behavior
About $80 000,000 USD in resources
have been invested in awareness and
educational efforts
ECOCE has support and collaboration in
events, programs and educational and
ecological efforts with all levels of
government.
31. ECO Challenge
Educational gathering program,
which is voluntary and free of
charge
Takes place in the biggest cities in
Mexico, focused in public and
private schools with more than 300
students of:
Kindergarten
Elemmentary
Junior High School
High School
32. ECO Challenge
Students participate in gathering PET waste
from containers generated at their schools
or in their homes.
At the end of the school cycle, the school
exchanges the PET gathered for prizes.
This promotes the practice of sorting and
recycling culture in schoolchildren.
34. Other industry initiatives: Coca-‐Cola
Develop eco-‐intelligent packaging that are
perceived as a source of value and not as
waste
Creating packaging that uses less plastic,
but is structurally strong
Building in Mexico, the largest
capacity PET recycling facility, which
recycles 25,000 tons of PET, with Coca-‐
own technology
35. Conclusions
ECOCE members agree to the ideals of corporate
social responsibility in Mexico.
ECOCE believes in its strategy of voluntary PET
waste management
ECOCE believes in feasible goals, which are
gradual and with the vigilance of authorities,
and that laws should be revised and changed
36. Conclusions
Lawmaking should be comprehensive of all
residues, and not target just a particular kind
Investment in infrastructure and municipal
services are the key to detonate growth in the
recycling industry
The recycling industry should be regulated and
formalized to allow for price certainty and be in
a position to compete globally
38. Social transformation of a city
based on education and
entrepreneuship
Medellin case
Presented by: MSBS Adriana Perez Perez
Medellin Colombia
(Email: adriana.perez.perez@gmail.com,
Movil: +57-‐3104558451)
41. Deep rooted violence
In 1991 we were the most violent city in the world. We
went from 381 homicides per 100.000 habitants in 1991
to a rate of 26 in 2007.
42. What did they?
-‐ Giving the best and create opportunities especially for poor people
-‐ Public-‐big firms investment
-‐ Transparence co-‐administration with the citizens
-‐ Education (Learning and training, in a broad sense) as their main tool
to build opportunities and catalyst of social transformation
-‐ New infrastructure and architect design to change the look of the
supports every social transformation program)
43. How are we going to solve the problems?
The formula=
Reduce violence and immediately carry out
O
social interventions p
p
V
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L r
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s u
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s n
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c
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Social e
+ Interventions s
44. Culture -‐
Creation-‐
1. New public spaces Human
Knowledge Spirit-‐ Integral
urban
projects -‐
Renovation
2. High quality -‐
public education
Learning
Shared
budget -‐
Participatio
3. Entrepreneurship n-‐
Innovation
Justice New public spaces
and other
and infrastructure
Living together-‐
security Recreation-‐
Sports-‐Mobility
Transparency, converted into actions= TRUST
45. Social interventions to transform Medellin
beginning
Scholarships Ludotekas
1. High quality
public
education
-‐ Learning-‐
Technical
Renovtions
school
New
schools
46. 1. High quality public education -‐ Learning-‐
Good beginning Program
47. The first step for
quality education is the
dignity of the space you
study in. The humblest
people go to the most
beautiful
51. 1. High quality public education -‐ Learning-‐
Scholarships and new places: Instituto Técnico Metropolitano ITM
New Building
¡In 2004 there were 8.000 places.
In 2008 we reached 23.000 places!
Donation of Fundación
Total area: 10.407 m2 Fraternidad Medellín:
Coverage: 13.600 students USD 16 Million
52. Social interventions to transform Medellin
Social interventions to transform Medellin
Library
parks
2.New public
Share spaces Explora
places
Knowledge-‐
Botanic
garden
64. What have we learned?
-‐ All types of entrepreneurship counts and are important. Not only
technology based firms contributing to the economy. Social and
cultural-‐creative are increasing their importance around the
world.
-‐ Development of the competences are more necessary
as the instrumental learning. In this field, the schools and universities
play the main role as row material suppliers for the
entrepreneurship ecosystem.
-‐ The development needs a culture development.
It takes time and demands the permanent commitment of the
government.
-‐ Big companies have to be involved in the social development and in the
creation of markets for the .
-‐ possible through education and entrepreneurship to catalyst a
social transformation of a city.
65. This girl is the
face of
transformation
Come to my
city to feel it.
Thank you for your attention!
