Recycling: The Business Case

An article series: A Recycling or Contamination Crisis? Article #2

In early November 2016, the ZWA Blog article, A Recycling or Contamination Crisis, an article series, published with acclaimed respect and empowering readership. Overall, the response to the article is a "Thank You" for clarifying the obvious, explaining the current recycling scenario, and invoking the Power of Consumer Demand to create solutions.

The article's opening paragraph sets the tone for the big hauler perspective and responsibility for the current scenario:

Over the past year numerous mainstream media articles presented a national recycling crisis. In John Tierney's October 2015 New York Times article The Reign of Recycling, Waste Management (WM) CEO David Steiner is quoted, "If you believe recycling is good for the planet and that we need to do more of it, then there’s a crisis to confront."

Susan V. Collins
photo courtesy of CRI

Published to support the December 8 U.S. Zero Waste Business Council (USZWBC) | Green Business Certification Inc. (GBCI) Recycling: The Business Case webinar, the article was featured in webinar promotion.

Elemental Impact Founder Holly Elmore moderated and co-presented the powerful Recycling: The Business Case webinar with Container Recycling Institute President Susan Collins. The webinar explained the current scenario, how we got here, and effective paths to recycling PROFIT centers.

Current Scenario:

In her presentation, Susan opened with recycling's benefits beyond landfill diversion. According to UPSTREAM (formerly the Product Policy Institute) research, 44% of U.S. Greenhouse Gas (GHG) Emissions are generated from products and packaging. In addition to the GHG emissions, manufacturing virgin products is energy intensive, depletes the Earth's resources, and damages fragile local eco-systems. From Susan's presentation:

In total, about 2.3 million American homes could have all their energy needs met (heating & cooling, cooking, utilities, etc.) with the amount of energy required to replace the beverage containers wasted in 2010.

Contributing to wasted beverage containers is the high contamination levels within single-stream recycling, often the only option available for municipalities and businesses. According to 2015 CRI research, on average 75% of recyclables collected in single-stream are recycled into new products; on average 25% of single-stream recycling is landfill destined due to contamination.

The following images from Susan's presentation clearly show the difference between glass separately collected via bottle bills (or other systems) and single-stream recycling glass:

Bottle Bill Collected Glass vs. Single-Stream Collected Glass

Many sustainability reports include collection stats versus actual recycled material stats. Thus, single-stream recycling inflates reported recycling rates and creates a false sense of accomplishment. In addition, high contamination rates understate the actual collection cost per ton. 

A proven municipal successful recycling system is dual-stream recycling: fiber (paper, cardboard) is collected separate from containers (metal, plastic & glass).

Kansas City consumer glass collection
photo courtesy of Susan Collins

It is important to follow the material and understand the final destination. WHY: 1> receive services paid for via hauling contracts and 2> reputation risk of false recycling reporting. For protection, Susan recommends material quality and actual recycling reporting provisions are included in hauler contracts.

Susan concluded her impressive presentation with examples of successful municipal recycling systems in the U.S. and abroad. For the City of Los Angeles, the newly launched program requires better material reporting and recycling facilities must be certified. An overall program emphasis: higher quality materials create better jobs locally.

Recycling PROFIT Centers

In her presentation, Holly focused on recycling PROFIT centers supported by success stories. While Susan included municipal recycling examples, Holly's focus was the corporate | organization arena.

The Path to a Recycling Business Model slide set the stage for Holly's presentation:

• Organization Culture | Top Management Buy-In.
• Material Baseline Assessment | Local Available Infrastructure.
• Clear Program Communication & Training.
• Reward & Promote Successes.
• Take Baby steps, lots & lots of baby steps.

Holly emphasized the list was not chronological and steps often intertwined.

Organization Culture | Top Management Buy-In

Corporate culture dictates acceptable and unacceptable behavior within daily operations. Ultimately, top management sets the overall corporate culture through policy, reward systems, and program support. Top management reports to the Board of Directors and shareholders and is the steward of the organization's bottom line. For top management's complete buy-in, a recycling program must improve the bottom-line or at the very least be cost-neutral.

In companies with an empowering culture, the organization's zero waste commitment is included in employee hiring and training processes. A Green Team is established with the team leader in a decision-making position, or at least with direct access to a decision-maker. Green Team participation is written into the employee's job description - VERY important at performance review time!

Piazza Produce Green Team
photo courtesy of Scott Lutocka

Successful Green Teams are comprised of members from across the organization's departments including operations, janitorial and administrative. The team meets on a regular basis and shares within their respective departments.

Employees experience inefficiencies within daily operations and are often the best avenue for waste reduction and recycling improvement ideas. It is important to encourage, recognize, and reward employees who contribute suggestions for program enhancement.

Supported by the organization's culture, employee perspectives shift from viewing operation by-products as "trash" to valuable material. In addition, clean material is perceived as a revenue generator while contaminated items are viewed as a business expense.

WE Consciousness is key to program success! Across the organization, employees must work in unison towards clearly defined, common goals. The Green Team establishes protocol and practices included in employee training and communicated via signage through out the facility.

... and WE Consciousness extends beyond the organization's boundaries. It is important to work as a team with suppliers, purveyors, waste | recycling haulers, and customers to minimize waste and maximize reuse and recycling. 

The WE Consciousness was introduced in the September 2012 ZWA Blog article, Zero Waste is a Team Sport. The May 2013 ZWA article, Zero Waste Success Requires WE Consciousness, chronicles the 2013 National Zero Waste Business Conference's impressive program.

Material Baseline Assessment | Program Parameters

Waste audit in-process
photo courtesy The Pitt News

One of the first action steps in crafting a recycling program is establishing the material baseline via a waste audit. Performed by the waste hauler or a third party contractor, an audit generally consists of spreading a waste compactor contents on a tarp to separate the recyclable material from the trash. 

It is important the Green Team attends the waste audit and documents it via video and still photos. If available, recruit top management to attend; they will see first-hand the cost of sending valuable material to the landfill. Remember: make the waste audit FUN to maximize effectiveness!

The waste audit will identify the recycling "easy wins:" 1> highest value material and 2> largest quantity of material type. 

Source-separated CLEAN material is the foundation of a recycling PROFIT center! For smaller generators, dual-stream recycling (containers separated from fiber) may work well as long material does NOT go to a single-stream recycling MRF.

A next step is to determine local end markets available for the material. In many cities, there are grass roots recycling companies who collect moderate amounts of source-separated material. Non-profits and government offices are an excellent resource for local recycling options. 

The following proven Program Parameters were presented:

Total Material Management Approach
- Entire material stream evaluated in one cost | revenue center.
- Materials with solid end markets (e.g. aluminum, mixed paper, certain plastics) subsidize more challenging streams generated in operations such as food waste and glass.

Metrics system 
-Important to track | report program financial, tonnage recycled and other successes.

Balers

- Key to on-site material source separation.
- Mini-balers are perfect for small to moderate generators. 

Clear Program Communication & Training

For success, clear concise communication supported by training is critical. Once the Green Team establishes the parties responsible for disposition, communication tools are crafted for the targeted audience. Internal signage may differ from signage designed for facility guests.

At most organizations multi-lingual signage supported with images, possibly with product samples, reaps strong benefits for intended disposition. In general, signage placed at eye level is most effective.

The following recycling bin best practices are well proven:

Ga Tech recycling center
photo courtesy Ga Tech

• Always place trash & recycling bins together.
• Use bins with holes that match the material collected.
• Place signage at eye level.
• Use material images to convey proper sorting.
• Strategically place recycling centers in high traffic areas.

NOTE: melted ice from fountain soft drinks and other beverages is a BIG contaminant in recycling streams where plastics & paper are together. To prevent water contamination, collect beverage containers separate from fiber. Where practical, include a disposable option for ice.

In general, higher volume material generation resides in the operations back-of-the-house. Once the material flow is determined, allocate a convenient space to create recycling centers for collection and baling. Clearly label large containers for their respective item collection. In addition, determine a space to store bales until sufficient quantity is accumulated to warrant a hauler pick-up.

Back-of-the-house bin & signage

For administrative offices, develop a program that involves active participation. Georgia Institute of Technology devised a three-bin desk system where the tiny black bin was designated for trash. While janitorial staff collects the recycling bin contents, the employee takes their trash to the closest copy room for landfill disposal. With this system, the employee is aware of the quantity, frequency and type of trash generated.

It is important to monitor recycling programs. Contamination notices are issued for "mistakes" and clean material is recognized.

Whether third party contracted or in-house, the janitorial staff is a critical program component. In general, janitorial staff are responsible for recycling | trash bins content disposal. Using WE Consciousness, it is imperative to educate, nurture and reward the staff to ensure proper disposition. If third party contracted, ensure recycling program parameters are included in the janitorial agreement upon renewal.

Clever, creative signage infiltrated with humor is most effective!

Reward & Promote Successes

As stated previously, it is important Green Team participation is written into formal position responsibilities and incorporated into performance review procedures. Internal recognition of Green Team membership and responsibilities through employee newsletters, memorandums or other effective methods garners fellow associate respect for members.

Scott Lutocka with Piazza
Produce Awards

Regular recycling lunch 'n learn sessions substantiate management's program commitment. In addition, the sessions are excellent times for employees to share ideas for fine-tuning the existing practices. When ideas segue into waste reduction or increased material recycling, reward the associate with recognition along with financial incentives (if appropriate.)

In addition to internal program promotion, share recycling tonnage and financial stats via press releases or other publicity vehicles. Encourage Green Team members to participate in local, regional and national conferences to educate on challenges, lessons learned and successes.  Apply for certifications and other awards that recognize the organization as a community leader. Beyond a huge employee morale boost, success stories inspire others to embark on their own recycling journey.

Most importantly:

Take Baby Steps

lots & lots of baby steps!

Recycling Success Cases

To validate recycling PROFIT centers are a feasible destination, Holly featured several USZWBC member programs.

Georgia Institute of Technology (Ga Tech)

The "AMAZING Cindy Jackson"
photo courtesy of Ga Tech

Thanks to the "AMAZING Cindy Jackson," Ga Tech never succumbed to single-stream recycling, despite immense pressure from their waste hauler and university management. Out of tremendous respect, Holly refers to her good friend as AMAZING in introductions and everyone agrees.

In fiscal year 2016, Ga Tech earned $60,000 on recyclable sales including cardboard, metals, office paper, plastics, glass, pallets, aluminum, and other less common items. The $60,000 does not take into account the cost-savings achieved by reduced landfill hauling and tipping charges. Overall, in 2016 Ga Tech recycled 3.7 million pounds of material, including 743,000 pounds of food waste collected for compost.

As mentioned in the Clear Program Communication & Training section, in 2012 Ga Tech augmented their award-winning program with administrative office desk side recycling.

Earth Friendly Products (EFP)

EFP employee garden 

Impressive: EFP's five U.S. plants are ZWFC at the platinum level!!! Under the direction of EFP Vice-President of Sustainability & Education Nadereh Afsharmanesh, employees work within a zero waste culture supported by top management. The results are incredible!

Using a hands-on approach, Nadereh nurtures the culture via monthly employee lunches with educational topics that extend beyond recycling to health, nutrition and joyful living. In the back of the Garden Grove, CA plant, EFP created a lovely garden area for employees to enjoy at lunch and during breaks. The garden is complete with fresh herbs, beautiful flowers and a living wall.

Employees share their ideas for further waste reduction and there is evidence throughout the plant: 

• Reused plastic jugs earmarked for toilet paper cardboard cores are on bathroom counter tops.
• Small bins for staples and pens, pencils & markers staged for upcycling are in the office supply area.
• Polystyrene packing peanuts are given to the local UPS Store for reuse.

TP core collection bin

EFP's zero waste commitment extends to their supply chain who must complete a sustainability checklist and explain any negative responses. Nadereh visits suppliers and educates them on how to set-up successful recycling systems.

Amidst soft commodity markets in 2015, EFP's recycling program earned a $21,600 profit. From 2011 - 2015, EFP earned a cumulative $318,000 profit on their recycling program, including $205,000 in revenue and $113,000 in reduced hauling costs.

Inside Supply Management's (ISM) October 2016 cover story, Full Circle: Supply management can play a key role in the circular economy, working with suppliers to eliminate waste and drive financial value, features EFP's impressive recycling program and supplier relationships. The ZWA Blog article, Zero waste moves from "best" to standard operating practices, includes an ISM article recap along with commentary.

Sierra Nevada Brewery (SNB)

In November 2013 SNB was awarded the FIRST Platinum ZWFC facility! The associated audit revealed SNB reused, re-purposed or recycled 99.8% of discards from operations. Key to SNB's success is material source-separation of cardboard, shrink wrap, glass, cans, bottles, paper, plastics, batteries, light tubes, computers, construction debris, and wood.

SNB clean plastic ready for baling
photo courtesy of SNB

SNB Sustainability Manager Cheri Chastain emphasizes "closing the loop" with the brewery, on-site pub and estate agriculture. In September 2010 SNB invested in a Hot Rot, a New Zealand in-vessel composting system, for the pub food waste and brewery organic by-products. In turn, the Hot Rot compost is used within the estate agriculture to grow food served in the pub and hops | barley for the brewery.

At SNB the recycling program is a strong profit center. In 2015, SNB recycled 5.9 million pounds of various materials (without spent grain) and earned $416,900 net profit, consisting of $41,800 in revenue, $33,000 in program costs and $408,100 in avoided costs.

Piazza Produce (PP)

Gold ZWFC PP earned $288,000 in recycling center profits during the soft 2015 commodity markets. As a USZWBC Board Member (now a GBCI Zero Waste Advisory Council member), PP Facility Manager Scott Lutocka shares his recycling wisdom across the nation at conferences and beyond.  A famous phrase from Scott's presentations:

“There’s Ca$h in Your Tra$h!” and “You don’t know what you don’t know (about the value in your waste stream)!”

Scott Lutocka at baler

According to Scott, several keys to creating a recycling PROFIT Center include:

• Clean source-separation of material.
• Teamwork across company department boundaries.
• Close working relationships with recycling partners. 

From program inception in 2006 through 2016, PP experienced total recycling, compost, & waste diversion savings of $1.75 Million Dollars!

To download Susan and Holly's comprehensive Recycling: The Business Case PPT presentations, visit the Ei Speaking Engagements page.

Conclusion

SNB clean cardboard bales
photo courtesy SNB

WM complains they are losing money on their self-invented single-stream recycling and there is a recycling crisis. Yet industry pioneers prove recycling PROFIT centers continue to thrive amidst the soft commodity markets. As reinforced by the above examples, several keys to success are a top management commitment at a foundation level, employee engagement across department boundaries, and source-separated, clean material ready for sale.

Though they may still have contracts with the big haulers for the small amount of remaining waste, the pioneers work with an array of local and regional companies to collect their material bales (or otherwise contained). It is important to note, at this juncture, the big haulers are NOT part of the recipe for profitable recycling programs.

Article #2 in the A Recycling or Contamination Crisis, ends with same empowering paragraph as Article #1:

It is time for the corporate community to exercise their power of consumer demand when it comes to materials management and resource recovery. Once industry leaders break the single-stream cycle, the big haulers will follow with crafting an alternative, effective system. Simple Economics 101 may prove the best pathway to fixing a broken recycling system riddled with contamination.