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ISWA/RDN/EXPRA workshop Promote waste collection in priority countries The example of MEXICO Dr. Philippe Diercxsens – Danone Waters.

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Presentation on theme: "ISWA/RDN/EXPRA workshop Promote waste collection in priority countries The example of MEXICO Dr. Philippe Diercxsens – Danone Waters."— Presentation transcript:

1 ISWA/RDN/EXPRA workshop Promote waste collection in priority countries The example of MEXICO Dr. Philippe Diercxsens – Danone Waters

2 22 Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world. Multiple and competitive EPR systems in place with 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. Municipal waste management system emerging with possible financial contribution from industry.

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4 Danone Ecosystem Fund

5 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 Danone Ecosystem Fund : Mission & scope

6 MUNICIPAL SOLID WASTE RECYCLING CONTEXT IN MEXICO EXTREMELY COMPLEX ENVIRONMENT 102 K tons municipal solid waste daily 260 landfills Source: SEMARNAT2012/PASA /Mundo Sustentable

7 Introducing “Pepenadores”

8 The way they used to work…

9 The way they work today…

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11 Mexican “Pepenadores”

12 Who are the waste pickers of the Mexicali project? Pepenadores (Mexicali) Working context Work placeLandfill - Waste collected by municipal trucks OrganizationGroups of 200 with leaders Strong social cohesion Relatively low level of violence and corruption for Mexico BuyersCompany (PASA) Descriptive statistics 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 income2,500 MXN (150€) weekly for a family (about 2,5 x more than min wage)

13 Mexicali is a project of social innovation in the waste picking sector 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 Environmental Economic Social Political Income increase through higher productivity and « fair » price for waste pickers Better working and living conditions New way of doing business (reputation) Governance based on co- management Ensure access to rPET at a stable price Acquire new business knowledge Increase rPET in bottles Contribute to higher quality and quantity of recycling ObjectivesContext

14 STRONG NEED FOR MORE RPET Our vision is to keep on raising rPET levels 2008: 0% Rpet Lack of offer & “rPET war” in Mexico

15 MEXICAN RECYCLING LIMITS Strong Bottleneck + Social exploitation ! Union Corrupt leaders $$ Unaccounted Not regulated Lack of integration Mexican Consumers Workers “Pepenadores” Rpet productor Plastic Buyer Garbage Collector Recycled Bottles 4.5% GETS RECYCLED ….90% BY PEPENADORES Source: SEMARNAT 2012 % Recycling Mexico11% England18% USA28% % OF RECYCLING PER TYPE OF WASTE

16 Source: Accenture / IDB Caracterization of informal recycling (October 2013) MEXICO LAGGING BEHIND IN THE 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) INCLUSION OF INFORMAL SECTOR IN THE RECYCLING CHAIN

17 Project idea: improving recycling flow Recollec tion firm Landfill 35 km Pepenado res Intermedia te Buyer Final Buyer BEFORE

18 Recollec tion firm Segregat ion Plant 5 km Final Buyer TODAY Project idea: improving recycling flow + Landfill

19 PROJECT RECAP First trainings & health brigades in landfill SP opening June Seaurs leaves- PASA takes recycling operation Libres form AC OUT ALEJANDRO! LET US WORK! Mexicali is chosen MS starts with talks with pepenadores & live tests Base line study Construction starts March :Union goes on a strike Empowered pepenadores form new group S2 bales homologation & go live recycling Planning phase II First SIC presentation Bonafont searches for partners & places. Guadalajara best alternative Corrupt leaders not an option AFTER A BUMPY ROAD … BRIGHT PROSPECTS AHEAD

20 Who are the waste pickers of the Mexicali project?

21 PEPENADORES UPDATE Recycling

22 The way they work today…

23 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)

24 Thank you Dr. Philippe Diercxsens


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