ISWA/RDN/EXPRA workshop Promote waste collection in priority countries The example of MEXICO Dr. Philippe Diercxsens – Danone Waters Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world. Multiple and competitive EPR systems in place with financial contribution from industry. Municipal waste management system emerging with possible financial contribution from industry. Single, mostly industry owned, EPR system in place with financial contribution from industry. Whatever the system, no financial contribution from industry up to date. 2 Danone Ecosystem Fund http://ecosysteme.danone.com/ Danone Ecosystem Fund : Mission & scope The Fund is intended to strengthen and develop the activities of the partners who make up Danone’s ecosystem: farmers, suppliers and subcontractors, transport and logistics operators, distributors, territories & local authorities…. The Fund can carry out actions in the following areas: EMPLOYMENT Aid to the strengthening of economic activities to create jobs. SKILLS & EMPLOYABILITY Support to the development of skills and integration actions, in particular through training. MICRO-ENTREPRENEURSHIP Aid to the set-up of economic activities and entrepreneurial projects to create jobs and support to the development of small and medium-sized companies R E C YC L I N G C O N T E X T I N M E X I C O E X T R E M E LY C O M P L E X E N V I R O N M E N T MUNICIPAL SOLID WASTE Source: SEMARNAT2012/PASA /Mundo Sustentable 102 K tons municipal solid waste daily 260 landfills Introducing “Pepenadores” Responsible for 90% of Mexican recycling ! Very low efficiency due to very hard conditions Social exploitation & poor life conditions (220USD / month average) The way they used to work… The way they work today… Mexican “Pepenadores” Who are the waste pickers of the Mexicali project? Pepenadores (Mexicali) Working context Work place Landfill - Waste collected by municipal trucks Organization Groups of 200 with leaders Strong social cohesion Relatively low level of violence and corruption for Mexico Buyers Company (PASA) Socio-economic characteristics Survey of 292 pepenadores in Mexicali (June-July 2013) 75% interviewed are Males 30% Married; 41% cohabitation 48% > Primary school 2.2 children in average Average income 2,500 MXN (150€) weekly for a family (about 2,5 x more than min wage) Descriptive statistics Mexicali is a project of social innovation in the waste picking sector Objectives • Increase rPET in bottles • Contribute to higher quality and quantity of recycling • Ensure access to rPET at a stable price • Acquire new business knowledge Environmental Economic Political Social • New way of doing business (reputation) • Governance based on comanagement • Income increase through higher productivity and « fair » price for waste pickers • Better working and living conditions Context • Brand Bonafont (Mexico) is leader on the national market. • Waste and recycling flow relies mainly on an informal population. • Projects with landfill waste pickers (pepenadores) in Mexico STRONG NEED FOR MORE RPET Our vision is to keep on raising rPET levels Lack of offer & “rPET war” in Mexico 65% of recovered PET goes to China M E X I C A N R E C YC L I N G L I M I T S 4.5% GETS RECYCLED ….90% BY PEPENADORES Source: SEMARNAT 2012 Cardboard & paper Garbage Collector Rpet productor Workers “Pepenadores” Plastic Buyer 39% 15% Mexican Consumers Recycled Bottles % OF RECYCLING PER TYPE OF WASTE 23% Glass 15% Metals % Recycling Mexico 11% England 18% USA 28% Plastics MEXICO LAGGING BEHIND IN THE INCLUSION OF INFORMAL SECTOR IN THE RECYCLING CHAIN MARKET Analysis of the relationships of the formal recycling system to see if there is space in the value chain for the informal one (1/3) NORMATIVE Analysis of level of government knowledge of the problem and willingness to solve it (0,75/3) ORGANIZATIONAL Analysis of the social dimension /associative and dynamism of the civil society (0,5/3) Source: Accenture / IDB Caracterization of informal recycling (October 2013) Project idea: improving recycling flow 35km Landfill Recollection firm Final Buyer Intermediate Buyer Pepenadores Project idea: improving recycling flow + 5km Segregation Plant Recollection firm Final Buyer Landfill PROJECT RECAP AFTER A BUMPY ROAD … BRIGHT PROSPECTS AHEAD 2010 • • • • First SIC presentation Bonafont searches for partners & places. Guadalajara best alternative Corrupt leaders not an option 2011 • • • • Mexicali is chosen MS starts with talks with pepenadores & live tests Base line study Construction starts 2012 • • • • First trainings & health brigades in landfill SP opening June Seaurs leaves- PASA takes recycling operation Libres form AC 2013 • • • • March :Union goes on a strike Empowered pepenadores form new group S2 bales homologation & go live recycling Planning phase II Who are the waste pickers of the Mexicali project? P E P E N A D O R E S U P DAT E Recycling The way they work today… Future: • Partnerships with economic operators, local governments and communities in other LATAM and ASIA countries : – Argentina – Brazil – Uruguay – Indonesia • Partnerships with other FMCG companies within the Consumer Goods Forum (CGF) http://www.theconsumergoodsforum.com/ Thank you Dr. Philippe Diercxsens Philippe.diercxsens@danone.com