Himesh Fernando, the Founder and Chief Executive of Chakra Suthra, unveils the transformative potential of their Trash2Cash initiative, demonstrating how it empowers both households and businesses to foster environmental sustainability, aiding its ambitious vision of cultivating a zero-waste culture across all Sri Lankan homes and businesses, encouraging eco-friendly corporate practices.
The Chakra Suthra team, a collective of specialists in fields ranging from technology and engineering to biology, chemistry, and circular economics, leverages its extensive network of local and international innovation partners. They offer expert consultancy in redefining business models and imparting circular economy knowledge and practices, setting a course for environmentally sustainable corporate strategies.
A flagship endeavour, the Trash2Cash programme, innovatively incentivizes the recycling of plastic bottles, aluminium cans, and tetra paks by rewarding participants. This initiative accepts a diverse array of recyclables, transforming them into new products like polyester yarn and eco-friendly stationery, thus visibly reducing waste.
Expanding its reach, Trash2Cash Home & Business caters to both individual and corporate clients, providing monetary rewards for a variety of recyclable and reusable items collected directly from the doorstep. This service not only streamlines the recycling process but also breathes new life into discarded items, aligning perfectly with Chakra Suthra’s zero-waste mission. Convenient online scheduling further simplifies engagement, inviting widespread participation in this green revolution.
How did the idea behind Chakra Suthra emerge? Could you explain the Trash2Cash business model; is it similar to programmes like Sweden’s “pay as you trash,” Korea’s waste-to-energy PPPs, and Germany’s Green Dot system?
I reside in Colombo and often travel to Matara, where my parents live. Preferring the scenic coastal route over the highway, I embark on this four-hour journey mainly because of my love for the sea, surfing, and the tranquillity of the beachside. This route takes me through Kalutara, Wadduwa, Galle, and finally Matara. I cherish these early morning drives, stopping at a few favourite spots for a quick surf session and a cup of coffee. Over the past decade, I’ve witnessed significant changes in the coastal landscapes, particularly concerning the increasing plastic pollution.
The issue of plastic waste wasn’t as pronounced in the past. For instance, in my hometown of Mt. Lavinia, it’s become common to encounter polythene underfoot while swimming and see considerable amounts of plastic littering the beaches. This observation led me to question why there was so much unmanaged waste and what could be done about it.
Aware of recycling operations in Sri Lanka, which utilize plastic bottles for yarn production among other things, I noticed a glaring gap in the supply of recyclable materials. On one hand, there’s an overwhelming presence of discarded plastics along our coasts and seas; on the other, recycling companies face shortages of necessary raw materials. This discrepancy inspired the idea of the Trash2Cash business model – by assigning a monetary value to each recyclable item, people might be more inclined to collect and return them, similar to picking up money found on the ground.
The concept revolves around incentivizing the collection of recyclable materials. By introducing a system where individuals are immediately rewarded for depositing recyclables, we coined the term Trash2Cash. The initiative aimed to bridge the gap between excess waste and the need for raw materials in recycling.
Our company, Chakra Suthra, embodies this mission. “Chakra” symbolizes circularity, and “Suthra” translates to formulas – together, they represent our commitment to fostering a circular economy through innovative solutions. Our journey has been both challenging and rewarding, driven by the goal of transforming the way materials are recycled and reused.
What role can a private sector business play in making real measurable change in the local landscape of incentivized waste management?
Viewing waste management issues as opportunities for sourcing raw materials offers a fresh perspective on addressing environmental challenges. In Sri Lanka, the prevalent cycle of consumption and disposal results in a significant amount of waste, from plastics to paper, ending up in landfills, sometimes encroaching upon residential areas. This situation, exacerbated by inadequate waste management infrastructure across districts, highlights the potential of adopting a circular economy mindset. Such an approach treats ostensibly useless waste as valuable feedstock, capable of being reintegrated into manufacturing processes. This paradigm shift not only mitigates environmental harm but also provides businesses with a sustainable source of raw materials, previously sourced through imports.
Interestingly, only 4% of Sri Lanka’s plastics are recycled, leaving a staggering 96% either incinerated or discarded. This gap underscores a massive opportunity for improvement, primarily through enhancing waste collection, the most significant bottleneck in the country’s waste management system. Our Trash2Cash initiative aims to tackle this collection issue by incentivizing the recycling process, whether through home collection or machines, effectively transforming waste into a resource.
The recent crisis, characterized by import restrictions and foreign exchange shortages, further complicates the procurement of necessary hardware for operations. Yet, it also underscores the resilience and adaptability of local businesses. Forced to innovate due to these constraints, companies are increasingly turning to recycling as a viable solution. This scenario mirrors situations in places like the Gaza Strip, where restrictions have spurred the community to maximize resource utilization. Such adversity encourages businesses to think creatively, leading to cost-effective and environmentally friendly solutions that embody the essence of circularity. This approach not only saves costs but also aligns with environmental sustainability by reducing waste.
How has your business fared in promoting incentivized waste collection in Sri Lanka, given the limited public engagement in waste management and even lesser awareness about its importance, compared to countries like Germany where waste recycling is widely understood and practised?
Addressing Sri Lanka’s waste management inefficiencies highlights a broader issue: the lack of effective infrastructure and public awareness. Despite waste collection efforts, most of Sri Lankan waste ends up in landfills, largely due to inadequate facilities and bureaucratic hurdles. This systemic failure not only undermines waste segregation efforts but also dampens public motivation to participate, as the result often remains the same—waste piling up in landfills.
Our approach with the Trash2Cash concept diverges from traditional methods by empowering consumers directly. We bypass government and local authorities to eliminate inefficiencies and corruption. Instead, we encourage consumers to segregate and deposit their waste directly into our collection machines, ensuring it goes straight to recycling, with no middlemen involved.
This direct-to-consumer strategy aims to revitalize the collection side of waste management. Our machines, designed to accept a variety of recyclable containers, from plastic bottles to cans, underscore our commitment to a circular economy. We’ve even expanded our services to include home collection, targeting not just containers but also paper, clothing, and other household items, turning unwanted clutter into valuable resources.
By positioning ourselves as a one-stop solution for corporates, we address the broader problem of waste from production to post-consumer disposal. Our services cater to the FMCG sector, instrumental in generating recyclable waste, but we also extend our reach to other industries interested in sustainable practices. Our model not only offers environmental benefits but also aligns with the growing corporate and international focus on ESG criteria and sustainability reporting, providing a tangible way for businesses to fulfil their extended producer responsibilities (EPR) and contribute to a greener future.
As corporations move towards circular economy models, how can they manage the cultural and mindset shifts needed for this transition, and what strategies can consultants use to promote sustainable change in various corporate environments?
Adopting circularity in business necessitates change management, a concept I became familiar with during my time driving innovation at MAS Holdings. The challenge for companies is to adopt new practices demanded by stakeholders for a more circular approach. However, the transition is hindered by entrenched supply chain evaluations based on cost and supplier sustainability, often overlooking the sustainability of the materials themselves. Additionally, a general lack of awareness about the circular economy, particularly in Sri Lanka, contributes to this inertia. Many decision-makers and stakeholders are still catching up with the concept that has been evolving globally over the past decade.
Companies face significant barriers in adopting circular practices, including high switching costs from existing processes and machinery tailored to specific materials, making the transition to more sustainable alternatives financially daunting. Moreover, consumer willingness to pay for sustainably produced goods remains low, exemplified by our experience at Hemas with a biodegradable sanitary napkin project that couldn’t be priced competitively due to high production costs.
These challenges underscore the need for a multifaceted approach to shift towards circularity, involving not just corporate will but also consumer mindset changes and governmental support. Incentives for adopting greener technologies and policies that favour the green economy are crucial for this transition. Unfortunately, in Sri Lanka, startups and businesses striving for sustainability face significant hurdles, from import taxes to a lack of recognition and support, unlike in countries with advanced green economies that offer incentives aligned with climate goals.
For corporates to navigate this shift effectively, there must be a concerted effort to increase awareness, manage the financial implications of transitioning to circular models, and foster a consumer base that values and is willing to pay for sustainable products. Governmental policies and incentives play a pivotal role in supporting this transition, underscoring the need for comprehensive frameworks that facilitate rather than hinder the movement towards a circular economy.
How can businesses transitioning to circularity assess their offerings to pinpoint the primary consumer problems they address, and then innovate sustainable, circular solutions that continue to deliver consumer value?
Sustainable solutions involve comprehensive assessments, like Global Reporting Initiative (GRI), which evaluates a company’s sustainability across various parameters. These assessments cover energy consumption, waste management, water use, air pollution, social impact, and more, offering a holistic view of a company’s operations. Such evaluations benchmark a business’ performance against global standards, pinpointing areas for improvement towards sustainability.
However, in Sri Lanka, the adoption of these thorough evaluations is not widespread. While services exist to facilitate such 360-degree assessments of supply chains, manufacturing processes, and consumer engagement to determine circularity, they’re not yet common practice among businesses. This gap indicates a significant area for growth, highlighting the need for more companies to engage in these evaluations to transition towards more sustainable and circular business models.
Sustainability has been on the business agenda for a while now. What new touchstones is Chakra Suthra bringing to the table for business sustainability that will be important in the future?
We’re exploring how ESG evaluations can enhance corporate sustainability. Chakra Suthra is innovating in this realm by addressing both material waste in manufacturing and consumer waste. The concept of corporate symbiosis, where waste from one company becomes a resource for another, is a key innovation we’re bringing to the table. This creates a platform for exchanging materials that would otherwise be discarded, such as turning manufacturing by-products into valuable inputs for other products.
We’re extending this concept to households, developing a platform where individuals can monetize unwanted items, from clothes to electronics, keeping these materials in circulation. This initiative not only benefits corporates by providing a channel for their by-products but also empowers consumers to contribute to the circular economy.
Globally, the reuse market is advanced, and while similar platforms exist elsewhere, Chakra Suthra aims to combine recyclables and reusables in Sri Lanka uniquely. This approach could guide corporates towards more sustainable practices by looking at international models. However, the transition often requires significant investment and legislative support to make sustainable practices financially viable for companies.
For corporates, shifting from traditional CSR efforts towards more impactful sustainability initiatives means directly addressing the environmental impacts of their business operations. Companies should focus on areas closely related to their negative impact, like waste and pollution, and work on mitigating these effects as a priority. This targeted approach ensures that sustainability efforts are not just compensatory but are integral to the company’s operations, addressing the root cause of environmental issues.