Plastics for Change
Plastics for Change is creating sustainable livelihoods for the urban poor in developing countries by leveraging technology to improve the quality standards for recycled plastic. With over two billion people living on less than $2.00 a day, there is enormous opportunity to reduce poverty by creating livelihoods through recycling.
We've adopted strategies from fair trade agriculture and applied them to the informal recycling economy in developing countries. Our scientific segregation process and mobile platform improves the quality of recycled plastic and enables transparency in transactions. This provides urban waste pickers with access to fair market prices
We work with brands and manufacturers to immediately improve the social and environmental impact of their products, while increasing the value of their goods to today’s conscious consumers. This initiative is about creating sustainable livelihoods for the urban poor while catalyzing the industry to transition away from virgin plastic.
Over 3 billion people around the world live without access to organised waste collection. Some of the world’s poorest people collect this waste to try to make a living. The waste pickers, many of them women, often live below the poverty line and work in appalling conditions.
In most developing countries the informal sector is responsible for 80-90 percent of recycling activities. In India alone 1 million people make a living through waste. The informal recycling supply chain in developing countries is an exploitative system. The wastepickers at the base of the supply chain face numerous challenges when trying to access fair market prices for the discarded plastics they collect. They are often unable to make a sustainable living from recycling as there are no safety nets to sustain their families during times of volatility .
The Plastics for Change platform serves as a tool for ensuring that urban waste pickers receive a fair price for the discarded plastics they collect. Similar to fair trade agriculture, our platform creates transparency and accountability from the base of the supply chain to the store shelf. This results in more efficient shared-value chains and higher quality recycled plastic.
Plastics For Change is applying mobile technology to create sustainable livelihoods for informal waste workers while transitioning the industry towards a circular economy. Our ISO and WFTO (World Fair Trade Organisation) certified segregation process and mobile platform provide urban waste-pickers access to fair and consistent incomes. This ethical sourcing platform enables corporate partners to immediately improve the social and environmental impact of their products while increasing the value of their goods with today’s conscious consumers.
Waste-pickers get all the information through Integrated Voice Response, while Brands and Franchise partners use the platform to do the buy-sell transaction, increasing the transparency of the whole supply chain. A team of field associated ensures the consistency and accuracy of the input data. Through this technology, PFC has further integrated a quarterly rating system on the app to incentivise the scrap shops to adopt socially and environmentally responsible practices. Those adhering to the defined norms receive price incentives and preference in access to the supply chain of global markets
This solution helps create jobs and sustainable income opportunities for waste-pickers.
Our platform serves as a tool for ensuring that waste pickers receive a fair price for the discarded plastics they collect.
In the current supply chains there is high levels of mistrust and inequality. In our model, the middlemen earn a commission that is based upon the price that the wastepickers receive. Therefore, both parties are incentivized to work together to get the best price.
The middlemen need to wait until the end buyer settles before they have the cash to pay the wastepickers resulting delayed payments. Our platform builds transparency and enables availability of working capital finance in advance. This process ensures all members of the supply chain are paid at the point of exchange.
Wastepickers find it very hard for them to have predictable livelihoods because the price of plastic is constantly changing. Our platform reduces price volatility of this plastic resource by facilitating long- term relationships with buyers who guarantee a fair trade minimum rate.
Our platform also provides all waste-pickers on our platform access to social and financial inclusion services for their families like education, healthcare, shelter, social identity - through our Foundation.
- Support workers to advocate for and access living wages, social safety nets, and financial security
The informal waste workers have been severely impacted by the economic lockdowns caused by COVID-19. Our foundation has distributed food staples and hygiene kits to over 1000 wastepicker families over the last few months to ensure their sustenance. However, what these communities really need is their livelihood back through trade.
We have a demonstrated proof of concept. It has designed standard operating procedures at each level of the supply chain to improve efficiency and to reduce cost. We are now in the position to scale this solution to create sustainable livelihoods for informal waste workers in multiple locations.
- Growth: An organization with an established product, service, or business model rolled out in one or, ideally, several communities, which is poised for further growth
- A new business model or process
This initiative is about leveraging technology to create sustainable livelihoods for the urban poor in developing countries.
As a young start-up, our entire solution is modelled on innovative and creative thinking. Our scientific deal segregation process and mobile platform provides urban waste pickers with access to fair market prices. We work with brands and manufacturers to immediately improve the social and environmental impact of their products.
We’re leveraging technology to create jobs rather than replace jobs. We are constantly innovating on three major fronts -
Transparency: Buy and sell transactions are made on the app by all stakeholders in the supply chain. Adhering to this unlocks further benefits and validates our gamified behaviour change model.
As we work with technology, this is highly adaptable and customisable to the requirements of each brand. This cloud-based software enables PFC to certify the quality standards of the waste segregation. The data captured on the platform can help us analyse and assess efficiency gaps.
Our science based approach to segregation uses ISO standard procedures for Quality Assurance, Quality Control and Assured Quality Level to develop the highest quality recycled plastic. We validated this technology by creating the India’s first food grade PET.
Standard SOP implementation: Through a robust training process, the segregation process is implemented by wastepickers with a high degree of accuracy.
PFC’s niche in the market is providing high-quality post-consumer recycled plastic for consumer-facing goods. Currently, it’s very difficult for brands to source a consistent flow of this material type as the supply chain is fragmented. Plastics For Change engages with brands and manufacturers to design a long term project plan for reaching their recycling goals. For example, if Unilever needs 100 tones of HDPE, PFC will reverse engineer the supply chain to ensure the consignments can be delivered on time and in full to the manufacturer. Designing the supply chain in advance increases efficiency & capitalises downtown time at the processing facility. This is PFC’s major competitive advantage compared to traditional plastic brokers and competitors.
Plastics For Change's secret sauce is developing the right technical specifications to produce virgin equivalent recycled material for the majority of the waste stream, including food-grade PET (first in India), Multi-layer films, recycled HDPE bottles, injection grade PP, Reach + Rohs compliant ABS, Polyester filament and other types of recycled plastics.
Our data capturing technology helps us build transparency and accountability through the supply chain for the informal recycling industry.
The buy/sell transaction are issued on the app. All the facilities are also geo-tagged to provide traceability brand clients - which is a huge boost of confidence to clients.
A note on how this is administered along with screen shots of the app are recorded in the link.
- Behavioral Technology
Attached
- Women & Girls
- Urban
- Poor
- Refugees & Internally Displaced Persons
- 1. No Poverty
- 8. Decent Work and Economic Growth
- 10. Reduced Inequalities
- 12. Responsible Consumption and Production
- 13. Climate Action
- India
- India
Current - 800
Next year - 3,000
5 Years - 100,000
The organisation’s goal is to help create sustainable livelihoods for the urban poor while catalyzing the industry to transition away from virgin plastic.
The urban poor are stakeholders part of the informal recycling ecosystem. This includes the followings -
Wastepickers
Scrap shops
Dry waste collection center owners/managers
Wholesaler traders.
PFC aims to be Asia’s largest Fairtrade Plastic Recycling Company. Plastics For Change has demonstrated its ability to replicate our "franchisee" model rapidly. It has designed standard operating procedures at each level of the supply chain and for different scenarios to improve efficiency and to reduce cost. Plastics For Change is now in the position to scale this solution to create sustainable livelihoods for informal waste workers while transitioning the industry towards a circular economy.
Our 2 key metrics are -
1. Create 100,000 jobs in the next 5 years for vulnerable waste-pickers in the informal sector.
2. Increase recycling capacity from current 5000 metric tonnes per annum to 100,000 MT in the next 5 years.
Longevity of sales cycles: The sales cycle, to bring a new plastic granule type to the market is very long. The process can take 6-12 months which includes testing of material properties by clients for compatibility. This involves a rigorous R&D process.
Building trust: Another barrier is building trust in the informal sector. The barriers are complex and due to the process innovation, it takes some time to build trust with multiple stakeholders. Each stakeholder has different barriers and requires custom responses. For eg, a recycling collection centre has different issues compared to a manufacturer. It is the nature and reality of the informal sector.
Premium pricing: Creating jobs, paying fair wages and ensuring good worker conditions, community development of waste-pickers - adds to the costs of the final product. Our final product is a premium product. This is a barrier for a majority of brands that are concerned only with their bottom lines and don't share an aligned vision for prosperity across the supply chain.
R&D investment: Once Plastics For Change has commercialised a resin type in the market, the sales cycle is much shorter. For example, once Unilever commercialises the HDPE bottle working with a manufacturer, PFC can supply the same HDPE granule type to other brands making bottles with the
same manufacturer.
Shared value: Plastics For Change offers supply chain as a service. Over the years, we have not been afraid to get our hands dirty and delve deep into problem solving issues in t he informal sector. We demonstrate shared value across the supply chain. For eg, collection centres, access to finance is a barrier. Through our stabilised pricing strategy, we make payments in advance to these stakeholders. For manufacturers, we complement their sales efforts and help them build loyalty and repeat business with the brands. Each manufacturer will serve dozens of brands. Once PFC validates the quality and performance with one manufacturer, it becomes easier to bring on multiple brands with the same manufacturer.
Adding value through Marketing: While our product is not cheap, Plastics For Change provides added value through a customer engagement and go-to-market strategy for brands to build loyalty and repeat business. For example: For The Body Shop contract, we able to increase their online engagement by 200X that saw them grow their social media followers and fan base by a massive 12%.
- Hybrid of for-profit and nonprofit
Full Time: 17
Part time: 1
Together our team has a collective 100 years experience robust experience working with the informal recycling economy. Competency of the team include -
1. Sales & business development
2. Marketing,
3. Fundraising,
4. Project Management, Delivery & Logistics,
5. Operations and scaling up
6. Supply Chain Experts,
7. Quality Assurance,
8. HR, Finance & Compliance.
Below is an overview of team members -
Executive Team
1. Andrew Almack (CEO) In charge of building the team and strategic partnerships. Andrew 's entire career has been focused on reducing poverty and plastic pollution. https://www.linkedin.com/in/an...
2. Myriam Shankar (COO) - Myriam held an executive position with Deutsche Bank before transitioning into a decade of experience working with waste in India. https://www.linkedin.com/in/my...
3. Shifrah Jacobs (CIO) - From leading macro projects for the UNDP to micro projects with grass root organizations - Shifrah’s role at PFC focusses on raising philanthropic capital and overseeing high impact projects https://www.linkedin.com/in/sh...
4. Arvind Palaniappan (CFO) - With a professional experience of over 30 years, Arvind is a senior finance professional with extensive experience in Finance & Accounting, Risk and Controls and Compliance who has worked with Accenture, Intel Technologies, Arthur Anderson, Ernst & Young and Axis Risk Consulting. https://www.linkedin.com/in/arvind-palaniappan-0155251/
We work with the following groups -
1. Brands that purchase the recycled plastic (Clients).
2. Investors - Equity
3. Philanthropists and funding organisations.
4. Other non-profit partners/ collaborators.
- Organizations (B2B)
Plastics For Change has demonstrated a profitable and hyper-scalable business model to disrupt the 500 billion dollar plastics industry.
The vast majority of PFC’s revenue will come from selling recycled plastic to industry partners. Overtime, Plastics For Change will achieve additional cost savings through economies of scale. Furthermore, through continuous improvement and innovation, Plastics For Change will realize cost savings in the supply chain.
Attached is our financial overview.
Solve has a wide network of partners and influencers. Our overarching solution to create livelihoods for vulnerable waste-pickers hinges on brands to make a paradigm shift from using virgin plastic in their product lines to recycled plastic. This can be a slow process which results in long sales cycles.
Ultimately this requires a combination of industry partners to be proactive and legislation by local governments.
- Solve can bring together partners to be influencers and present effective case studies to enable this paradigm shift. A number of brands are first adopters and encouragement through round-tables can go a long way in instilling confidence.
- Solve can help us with a network of marketing professionals to sell our "premium product" more effectively.
- Product/service distribution
- Marketing, media, and exposure
Solve can help us with mentoring and access to network
Scale our ethical sourcing platform to communities that need it the most by providing us with industry insights and networking opportunities.
Supply chain and marketing expertise from experts to continuously improve the platform.
Learn how to add value through an integrated CSR and PR strategy.
We would like to partner with -
- Consumer facing brands that are using plastic in their product lines.
- Brands that are committed to recycling goals and are willing to invest in building sustainable supply chains.
- Branding and Marketing experts - This is a core service that we provide. We would like to learn how we can improve our engagement strategy fro clients.
- Development professionals with experience in working informal workforce: We are constantly trying to innovate on solutions that have impact in real world scenarios. Understanding proved applications and innovations will be helpful to replicate.
Plastics for Change's entire business model is designed to enable vulnerable informal workers in the waste-management ecosystem with access to global markets - increasing their predictable income opportunities and shared value across the supply chain.