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Plastics Upcycling Within the Waste Worker Value Chain
Partners :
S3IDF-US-Cambridge, MA USA – a public charity under Section 501(c) (3) of U.S. tax codeS3IDF-India-Bangalore, India – a Section 25 not-for-profit company with Section 80G tax exemption
S3IDF’s Origins• S3IDF’s Founders Background
• Work experience in 70+ countries and collectively 200+ years with infrastructure and development finance
• Need for New Development Paradigms• Founders’ recognition that conventional approaches to solving
development challenges were not addressing problems holistically; well-intentioned programs often bypassed underserved communities
• Underserved communities cannot escape poverty by living and working outside of the mainstream society and economy; too few opportunities; necessary minimum bundles of service access in particular: energy, clean water, and credit
• Founders believed that market-based approaches could promote inclusive growth and sustainable impacts
• Two Offices; One Mission• S3IDF has offices in Cambridge, MA USA and in
Bangalore, India
A women’s cooperative was able to gain access to a computer-aided embroidery machine, made possible with local financing and connections to
technology suppliers.
We build inclusive market systems to benefit poor and
disadvantaged communities in developing countries. People
cannot escape poverty by living and working outside of the
mainstream society and economy. We remove barriers to their inclusion by leveraging
private sector resources and mitigating the risk in business
transactions between local players.
PFC – Plastics for Change has developed an ethical sourcing platform that enables all the stakeholders to interact in a transparent manner while
improving the livelihoods of those at the bottom of the pyramid.
They work with brands to immediately improve the social
and environmental impact of their products, while increasing the value of their goods to today’s
conscious consumers.
Hasiru Dala actively engages with thousands of waste
workers on a daily basis for betterment of their working
conditions, policy advocacy and livelihoods. It also acts as a
engagement window for access and building relations with the
waste workers.
Who are the Partners in the Alliance?
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The Problem: 3.5 billion people globally are living without access to crucial waste management services. (World Bank, 2013). In Bangalore the waste pickers handle roughly 2,100,000 pounds of the roughly 7,000,000 pounds of waste generated by the city daily, and it’s estimated that 25,000 people are surviving on this work alone.
The problem is growing rapidly, in the last 15 years society has consumed more plastic than in all of the rest of history. And in countries like India, the consumption rate of plastic packaging is growing at double digits each year. Governments simply can’t keep up with the population growth and urbanization.
Solid Waste Collection, Sorting and Recycling: Livelihoods for Economically Vulnerable members of society.
Hasiru Dala’s Role in the Solution:• Building a member based network of 7500 in Bangalore that provides for identity, and social security (health & education) for waste workers as well as advocating
at a policy level to integrate and recognize the informal sector as the city’s solid waste professionals
Plastics for Change’s Role in the Solution:• Facilitating a deal process and mobile platform to improve the supply chain efficiency and provide urban waste pickers with access to fair market prices
At the core of the project is the creation of an ethical sourcing matchmaker platform between the waste collectors and the entities consuming this waste post-processing. The project fundamentally addresses the need for fair waste prices for the waste collectors in a highly informal
and exploitative waste market.
S3IDF’s Role in the Solution:• Connecting waste workers with financing, business education and mentorship• Responding to evolving immediate waste worker needs (workshops and trainings)
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To an environmental challenge
A human-centric approach
WASTEPICKERS
SEGREGATION
WHOLESALER
MANUFACTURER
BRAND
•EXPLOITATION
•LIMITED WORKING CAPITAL
•PRICE VOLATILITY
WASTE SUPPLY CHAIN: OPPORTUNITIES FOR IMPROVEMENT
PROCESSOR
DISTRIBUTOR
S3IDF plays an important role in the first four facets of the supply chain, helping the stakeholders in
bankability and business support and leveraging co-finance
4 MAIN IMPEDIMENTS TO WASTE WORKER MARKET ACCESS
1. Highly opaque and exploitive supply chains
2. Financing not available at the bottom of the supply chain, which would allow waste workers to have bargaining power with subsequent stakeholders
3. General lack of policies and recognition of the sector as a whole
4. Volatility leads unpredictable incomes
SPECIFIC ENGAGEMENTS AND THE VALUE CHAIN
WORLDWIDE
BUILD CONSUMER LOYALTY PRODUCT DIFFERENTIATION INTEGRATED PR CSR & HR
PRIVATE COMPANIES
COMPETITIVE PRICE HIGH QUALITY STANDARDS CONSISTENT SUPPLY
ACCESS UPCYCLING MARKETS PAID ON EXCHANGE WASTE WORKER TRUST & REVENUE
INDIA
LOCAL SCRAP SHOPS
ACCESS NEW MARKETS ACCESS TO WORKING CAPITAL REDUCE VOLATILITY RISKS
INDIALOCAL WASTE ECONOMY
GLS BANGALORE REDUCE FACTORY DOWN TIME IMPROVE SOURCE QUALITY INCREASE SALES
INDIA
SUB-CONTRACTOR BUILD KNOWLEDGE WITH SUB-
CONTRACTOR OF THE USAGE OF RECYCLED PLASTIC PACKAGING
WORLDWIDE
INDIA
WASTE WORKERS
FAIR CONSISTENT PRICES RELIABLE PAYMENTS TRUST & EQUALITY
INDIAPLASTIC INJECTOR
Entrepreneur Needs Met by the Alliance
• Social Security
• Education Subsidies
• Identification cards
• Partial loan guarantees
• Business loans for working capital and vehicle purchasing
• Mobile money usage workshops
• One-on-one business mentorship
• Transparent and accountable supply chains
• Access to high value markets
• Predictable payments
The diagram below is representative of each of the players involved in waste management in Bangalore. Highlighted in yellow is S3IDF, Plastics for Change (PFC), Hasiru Dala (HD) and Hasiru Dala Innovations (HDI), who collaborate to facilitate conversations and cooperation between the diagram’s entities to allow our entrepreneurs the opportunities to grow
their waste collection businesses
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Apartment Complexes
pKs (Street Sweeping)
Tipping Auto (Contractor)
Transfer point
Wholesale Market (Jolly Mohalla)
Recycling Industries (Nayandhalli)
Landfill(Mandur/Mavalipura/etc.)
Kabadiwala/Scrapdealer
pKs (Door-to-door) Itinerant buyers Waste pickers (Black Spots)
Independant Homes Informal Housing
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Figure 23: Network of actors in Bengaluru’s waste chain(Source: Information - ‘Trash-Trail’ Daily Dump, 2011, and Illustrations - Girish T.S., 2011)
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High - value dry waste
Informal sector
LEGEND:
Our entrepreneurs collect waste from a variety of locations, as well as other waste workers. They bring their their collected waste to a dry waste collection center where they and their employees segregate the waste for resale and recycling. After the waste is sorted
they bring it to the landfill for disposal, or to a recyclables buyer.
THE BENEFITS
• Create sustainable livelihoods for marginalized waste workers
• Avoid exploitation by building transparency and accountability into the supply chain
• Raise attention & concern on recycling
HUMAN-CENTRIC
• Accelerate the development of recycling infrastructure of ABS and other plastics
• Reduce plastic pollution & open burning
• Keep harmful materials out of landfills
PLANET
PROSPERITY• De-correlate our packaging costs from the
virgin plastic volatility, at a reasonable & competitive cost
• Have a stable cost for packaging and waste plastics
ADDITIONAL SYSTEMS-LEVEL IMPACTS:• Raise the bar for
the industry & inspire additional companies to engage with the waste workers
• Raise the bar for the informal recycling economy
• Make thousands of informal waste workers bankable
MEASURABLE IMPACTS:• Number of waste workers
engaged with the alliance• Average revenue increase of
waste workers• Total recycled plastic• Total CO2 saved versus virgin
plastic
Note: Impact measurement metrics can be customized for the global sustainable development goals
Thank you for your attention