The case of united recycling efforts by the beverage industry in Mexico MBA Jorge Fernando Garcia Abaroa Leipzig, Germany, Nov 25th, 2012
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
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
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
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
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
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
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
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.
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
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
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
Comparing Green Dot and ECOCE This Green Dot system is compulsory, whereas in ECOCE, it is voluntary
Recycling: a shared responsibility Makes laws Enforces laws Government Promotion Gathering Processing Sorting Recycling Reducing Reusing Industry Society
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
PET: From vicious to virtuous cycle Production of PET containers Normal use cycle of and products PET products Disposal in local landfills
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
recycling process Industrial Clean flakes recycling Pellets Thread Manufacture Textile fibers Filler fiber new Bottles Resin products Sheet/strap
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
How ECOCE gave value to PET Internal consumption Export Individuals Middlemen ECOCE
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
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
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.
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
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.
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
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
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
Social transformation of a city based on education and entrepreneuship Medellin case Presented by: MSBS Adriana Perez Perez Medellin Colombia (Email: firstname.lastname@example.org, Movil: +57-‐3104558451)
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.
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)
How are we going to solve the problems? The formula= Reduce violence and immediately carry out O social interventions p p V o i L r o e t l s u e s n n i c t e i Social e + Interventions s
Culture -‐ Creation-‐ 1. New public spaces Human Knowledge Spirit-‐ Integral urban projects -‐ Renovation2. High quality -‐ public education Learning Shared budget -‐ Participatio3. Entrepreneurship n-‐ Innovation Justice New public spaces and other and infrastructure Living together-‐ security Recreation-‐ Sports-‐Mobility Transparency, converted into actions= TRUST
Social interventions to transform Medellin beginning Scholarships Ludotekas 1. High quality public education -‐ Learning-‐ Technical Renovtions school New schools
1. High quality public education -‐ Learning-‐ Good beginning Program
The first step forquality education is thedignity of the space youstudy in. The humblest people go to the most beautiful
1. High quality public education -‐ Learning-‐ Ludotekas
1. High quality public education -‐ Learning-‐ Renovations
1. High quality public education -‐ Learning-‐ New schools
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 FundaciónTotal area: 10.407 m2 Fraternidad Medellín:Coverage: 13.600 students USD 16 Million
Social interventions to transform MedellinSocial interventions to transform Medellin Library parks 2.New public Share spaces Explora places Knowledge-‐ Botanic garden
2.New public spaces Knowledge-‐ Library parks - outside
2.New public spaces Knowledge-‐ Library parks - inside
2.New public spaces Knowledge-‐Explora, Science and Technology ParkArchitect: Alejandro Echeverri Constructed: 17.930 m2 Public Space: 21.470 m2
2.New public spaces Knowledge-‐ Botanical GardenThe expression of Spring in Medellín
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.
This girl is the face of transformation Come to my city to feel it. Thank you for your attention!