Circular Action

waste footprint solutions

We solve waste collection challenges
for consumer goods companies in emerging markets with
informal sector collectors and mobile tech.

Consumer goods companies are under considerable time pressure to be ready for the emerging Extended Producer Responsibility (EPR) regulations in developing countries. With the help of our Circular Action Programme (CAP), pioneers and early adopters can develop their own strategies for the collection and sorting of waste, commonly dealt with by the informal sector. Using existing mechanisms and networks, we can help you deliver initial results within six months.


Circular Action is a BVRio company, which in 2013 developed the world's first system for waste recycling credits (plastic credits), involving Brazilian waste pickers and cooperatives.

Global corporate challenges

EPR Regulations

Emerging market governments such as India, Vietnam and Indonesia are implementing regulations to enforce collection of post-consumer waste by brand owners and packaging manufacturers. Every year the targets will increase.

2025 Commitments

500 international consumer goods companies have signed the Ellen MacArthur Foundation's Global Commitment of 100% recyclable packaging as well as committing to collection and recycling of packaging waste targets by 2025.

Public Opinion

83% of people in the UK believe business is not doing enough to fight the plastic waste problem (Oceana, YouGov 2019). Consumers are selecting brands with better packaging solutions and genuine collection and packaging recycling claims.

Our waste footprint solutions


Sourcing and certifying Circular Credits

We can help businesses in sourcing credits anywhere in the world. As a starting point, we would Once projects are identified, we would screen projects listed in the Circular Action Hub, and conduct due diligence. Following contracting, we can assist with monitoring, verification and certification of impacts to different standards.

BVRio was involved in the creation of the 3R Initiative and the Circular Credits Mechanism and can help clients in certifying their projects to either standards, or even through a ‘blended’ approach in which the project is validated and registered with Verra’s PWRS, but implemented to the requirements of the Circular Credits Standard.

The full set of services related to project certification consists of:

  1. Preparation of documentation and assistance with project registration,

  2. Assistance with project monitoring, and

  3. Verification and credit Issuance.


Circular Action Programmes

The Circular Action Programme (CAP) model is a customised service based on engaging all actors in the waste supply chain and providing incentives for collection, sorting and recycling of waste materials.

The system is managed using supply chain traceability and monitoring tools (the KOLEKT app, reporting platforms) specifically developed for the program to register all actors participating in waste management supply chains to enable the traceability of waste along the supply chain.

The full set of activities involved in the development and operation of the CAP consists of four phases:

  1. Initial diagnostic of the waste management situation affecting the Client’s operations,

  2. Programme design,

  3. Inception of the Programme, and

  4. Continuous operation and administration of the CAP.


Main features of a Circular Action Programme

The Circular Action Programme model is based on identifying and involving all actors in a waste supply chain and providing incentives for collection, sorting and recycling of waste materials. In this way, it aims at removing bottle-necks along the chain, and ensuring that all are properly remunerated. It allows for full traceability of material flows, facilitating monitoring and verification.

The main features of the Circular Action Programme are:

Social Inclusiveness – by engaging and adequately remunerating waste pickers and associations for the service provided;

Environmentally robust: ensuring that operations adhere to the social and environmental requirements of BVRio’s Circular Credits Standard;

Cost effective: incentive systems based on performance-based payments for all actors in the waste supply chain, to provide incentives for collection, sorting and recycling of waste materials;

Customised to the client’s needs – programmes designed to recover the quantity and materials in the locations selected;

Scalable – programmes can be scaled up modularly;

Low risk - Solution not based on credits but on direct supply chain measures;

Customised technology tools for managing and monitoring the programme. A central component is its KOLEKT app, a mobile phone system to register all actors participating in the programme and enable the traceability of waste along the supply chain. Based on that, performance-based payments can be made directly to the e-wallets of these actors. Data collected can be used for independent verification;

Independently verified CAP’s operations and impacts will be periodically verified by 3rd party auditing firms to provide credibility to the results.

Transparent – by recording the audited impacts of the project in Circular Action Hub Registry. This provides transparency and avoids double counting of impacts.

Professionally managed - Circular Action International will design, develop, manage and operate the programme on behalf of the client.

Implementing a Circular Action Programme

Design

Together with Tetra Pak in Vietnam and India, we researched the market and designed a programme (CAP) to collect 25,000 tonnes of used beverage cartons at less than USD 150 per tonne. We sought best recycling buyers. Researched supply chain pricing and costs. We looked into waste picker behaviour, monitoring, fraud and payment mechanisms. Performed packaging premium calculations and identified ways to improve the livelihood of waste pickers.

Pilot

Prior to undertaking large scale programmes we test our assumptions in local pilots. Keeping the distance between recycler and waste picker short allows for quick feedback-loops to tweak our CAPs and save on costs and scaling errors. Such pilots were undertaken in Rio de Janeiro, Bali, and Ho Chi Minh City between 2014 and 2021. A pilot is succesful when all stakeholders are happy with the outcomes.

Monitoring & incentives

Core to the CAP is our mobile app system called KOLEKT. The app is primarily a tool for waste collectors to find and trade waste. It also monitors transactions up the supply chain in real time. It allows a large corporate to incentivise waste collectors per kg. These micro-payments can then be 'cashed out' by informal collectors at any ATM. Info: www.kolekt.app

Social & Environmental Additionality

Additionality usually refers to the environmental impact of a project - i.e., that additional waste collected by a project. With the CAP approach we not only monitor additional waste collected, but as important to us is the concept of "Social Additionality" - the additional incomes earned by waste collectors that work with us. In many countries, waste pickers earn less than the minimum wage; we strive to get them earning more than the living wage.

Verification & Credits

All transactions handled by the KOLEKT app are verifiable and therefore certifiable. A CAP is always verified and certified by an independent auditor. We work with clients like Nestlé and Danone on certification of their waste recovery projects. This can be done against the Verra Plastics Standard or BVRio's Circular Credit Mechanism. See www.circularcredits.org
Clients wishing to sell their certificates as credits can do so under a CAP.

Our clients

Designed a carton recovery program for Vietnam & India. 2020. Implementing in 2022.

Pilot project to test Verra's standard under the 3R Initiative. 2020-2021

Pilot project to test Verra's standard under the 3R Initiative. 2020-2021

First plastic credit trade, using BVRio's 'reverse logistic credit system. Brazil, 2013

Pilot digital solutions to waste management in Bali 2021

Plastic market research: Brazil, Chile, Peru 2021