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Interview Transcript
Mitch Ratcliffe 0:09
Hello, good morning, good afternoon, or good evening, wherever you are on this beautiful planet of ours. Welcome to Sustainability In Your Ear. This is the podcast conversation about accelerating the transition to a sustainable, carbon-neutral society. And I’m your host, Mitch Ratcliffe. Thanks for joining the conversation today.
Americans throw away roughly 100 billion plastic bags a year, and most curbside programs won’t take a single one of them. Plastic film, those bags, the pallet wrap in the back of the stores, the bubble mailers, the dry cleaner sleeves, the overwrap on a case of bottled water — all of this has been the recycling industry’s white whale for decades. It jams machinery at materials recovery facilities, contaminates other waste streams, and ends up in landfills and oceans, and increasingly that plastic, especially microplastic, ends up in human tissue.
Meanwhile, the lumber industry sends sawdust to landfills by the truckload, and old orchards full of dying trees become a disposal problem for farmers. Two waste streams nobody wants, generated at industrial scale with very few takers. But more than 30 years ago, a small company in the Shenandoah Valley of Virginia looked at both of those streams and saw raw material. Today, that company has upcycled more than 5.5 billion pounds of waste plastic film and sourced over a billion pounds of waste wood in 2024 alone, and as a consequence, they’ve built one of the largest plastic film recycling operations in North America, all in service of making something as ordinary as backyard decking.
The deck happens to last about 25 to 50 years, requiring no staining, no sealing, and competes head to head with pressure-treated lumber on a price and performance basis. The sustainability story isn’t a marketing layer on top of the product, it is the product. And we’re talking about Trex, Trex decking.
Our guests today run two of the most consequential functions inside Trex. Amy Fernandez is Senior Vice President, Chief Legal Officer and Secretary, and Chief Sustainability Officer at Trex Company Incorporated, the world’s largest manufacturer of wood-alternative composite decking and railing. She holds the unusual combination of legal and sustainability oversight at a moment when these two domains are converging fast, with the IFRS Sustainability Disclosure Standards, California’s climate disclosure laws, and the SEC’s evolving stance all reshaping what public companies must say about their environmental performance. In 2024, Trex indexed its sustainability report to the IFRS standards before being required to, which tells you something about how Amy thinks about the relationship between disclosure, governance, and competitive position.
She’ll be joined today by Zachary Lauer, who is Senior Vice President and Chief Operations Officer at Trex, where he oversees manufacturing, supply chain, engineering, and research and development. His teams run plants in Virginia and Nevada, and they’re bringing a major new facility online in Little Rock, Arkansas, having built the operational machinery that turns approximately 95% recycled and reclaimed content into a product that has to perform outdoors for half a century. The R&D side of his portfolio is where Trex has cracked feedstock streams that other recyclers can’t process, including industrial film trimmings, end-of-life packaging from food and chemical manufacturers, and dunnage returns from distribution partners. All this work happens at the intersection of material science, logistics, and the unglamorous reality that recycled inputs don’t behave like virgin ones. It’s more expensive sometimes to recycle this stuff.
We’ll talk with Amy and Zach about how Trex actually makes its products, where the materials come from, and what it has taken to build a national feedstock network through the NexTrex program, a collection program spanning more than 10,000 retail drop-off locations and nearly 1,000 schools and community organizations. We’ll dig into a harder question, too: why Trex’s absolute emissions rose alongside production growth in 2024, and what the company is doing about end-of-life recycling of Trex boards now that the first generation is reaching replacement age, and what other manufacturers can learn from a company that is building a recycling infrastructure before there’s a market to feed it.
To learn more about Trex and its sustainability work, visit trex.com. So, circularity is a word that gets thrown around a lot these days. Trex was practicing it before the word existed. Let’s find out what three decades of doing that work has taught Amy Fernandez and Zach Lauer, right after this.
Welcome to the show, Amy Fernandez and Zachary Lauer. How are you doing today?
Zachary Lauer 4:54
Doing great.
Amy Fernandez 4:55
Great, great. Thank you, Mitch.
Mitch Ratcliffe 4:57
Well, thank you for joining me. And Trex does such interesting work. I mean, you were demonstrating what circularity means before the word had any cultural traction. I know you weren’t there at the beginning, but was this framed internally as an environmental project or as a sourcing strategy? Just the recognition that there was this massive volume of feedstock there that could be used.
Zachary Lauer 5:16
It was initially an environmental initiative by our founder, Roger Wittenberg. You know, he was bothered by the fact that there was no way to recycle or reuse his bread bags, and he wanted to formulate a product of value from that. He went through a couple of iterations and partnered with some other people, and they decided to turn it into composite decking and market it that way. Ever since that, it’s been part of our DNA, and we were always looking to extract value out of waste streams, you know, that aren’t currently used, and we continue to develop the next generation of materials out there that we can extract value from and create a great product from.
Mitch Ratcliffe 6:09
These days — just last week, a couple of weeks ago, we talked with the CEO of Emerald Packaging, who’s also looking for recycled PE to use in their products. There’s competition for this feedstock now. How has that changed the way that Trex organizes its efforts to collect and bring this to the three different locations you manufacture the decking?
Zachary Lauer 6:30
So, you know, with opportunities and growth in this space, one of the things that has developed over time, over the last 10 to 15 years, is the growth in the availability of recycled polyethylene films from distributors. Right, as Amazon grows and direct shipments to homes grow, the materials that are used continue to expand. So that’s opened up markets for increased stretch film and those types of materials. But as those markets grow, we often go deeper and deeper into the stream, more contaminated into the stream, to go after material streams that most people can’t deal with or process.
Mitch Ratcliffe 7:17
Well, one of the benefits of this kind of recycling is that you don’t have a lot of health-quality, you know, food-contact kinds of restrictions, and so forth with the plastic. You mentioned contamination. Just how contaminated can the loads be for Trex in order to make a viable product?
Zachary Lauer 7:36
We grade our materials on a scale of 5 to 15% contamination. We can go deeper than that. The contamination that we typically find in our streams are metals, non-ferrous metals, other forms of plastic, polypropylene, polystyrene, and those types of material, paper, cardboard. And so we’re able to design processes that can accommodate those and process those materials. Out-sorting is still critical to the long-term viability.
Amy Fernandez 8:10
Oh, yes. And we can go more contaminated depending on what that contamination is. So if it’s paper, we can handle more of that. If it’s metal, it’s a bit harder to handle. So the type of contamination also matters in terms of, you know, at what level we can accept that contaminated poly.
Mitch Ratcliffe 8:31
Amy, the 2024 sustainability report describes the program as a win-win for both business and society at large. As we all know, we live in a time where that’s a contested idea — that sustainability is a good thing for the economy. What’s the most concrete way that you explain or demonstrate that the business case and the environmental case are genuinely the same for Trex, that this is an inseparable configuration?
Amy Fernandez 8:58
Yeah, you know, a really good example was our last earnings call. And during that call, you might have heard our CFO started talking about the price of PVC and virgin materials and the volatility associated because of their connection to oil. So that’s one very recent concrete example of the fact that, because our material is this poly that we recycle, we’re not as exposed to that volatility that you might get from those virgin streams. And so that is truly one of those competitive advantages that we have — that we recycle this material, and we can make a beautiful, well-performing product out of it. That is the business case. So you see it through these little examples.
Mitch Ratcliffe 9:51
So in an era of reshoring, you’re actually in a position to be even more competitively advantaged.
Amy Fernandez 9:56
Yes.
Mitch Ratcliffe 9:58
Amy, you stepped into the CSO role while also serving as Chief Legal Officer, and that’s a combination that’s becoming more common as sustainability disclosure is shifting from voluntary to regulated. How has all of the upheaval in the regulatory environment that we live in changed Trex’s approach over the past year or two in terms of what you report and what you tell customers?
Amy Fernandez 10:19
Trex has always been a highly ethical company, and so we do what’s right. And if you’re founded in doing the right thing, you’re not as subject to these whims of, you know, what’s happening either politically or, you know, with changes with government regulations, things like that. And so because we’re grounded in this reality of, we’re not going to go out there and start talking about targets that we don’t think are achievable — so when it was, you know, common to start saying “by 2030” or “by 2050” or whatever dates companies were out there saying “we’re going to get to this target” without actually having a plan to get there, Trex would never do that.
And so one of the things that you would see is that we get asked questions: “Why don’t you have targets?” And it’s because our target is to continuously keep improving from a very solid base that we have, but we’re not going to put an unrealistic number out there just to try to get points. So the regulatory changes don’t affect us as much when we start from that just basic ethical “do the right thing, disclose important information that we think our investors, our communities, others want to see, want to know that is true and not misleading in any way.”
Mitch Ratcliffe 11:39
From a marketing perspective, saying that you live by a higher standard is pretty effective. Do you think it’s necessary to be a lawyer to be a chief sustainability officer these days?
Amy Fernandez 11:49
No, not at all. And actually, I think the only reason that we did decide to put it this way — yes, of course, I do have the regulatory mindset, but I also have a passion for this, right? I mean, I joined this company because it is something that is important for me personally. And so the chief sustainability officer could have lived in other places and just been informed by legal the way that I inform other functions in this company. But I basically raised my hand for it and said, I think it lives well here, and I have a passion for it.
Zachary Lauer 12:22
It resided in other areas in our business as well, right, under other people that have that same passion.
Mitch Ratcliffe 12:29
So, Zach, what happens between the time when a plastic bag is dropped at one of the 10,000 grocery stores that collect bags and a finished Trex board leaving the factory? Can you walk us through that process?
Zachary Lauer 12:40
Yeah, you’ve kind of highlighted the ends of that value chain, right? From the pickup to the actual product that goes to the customer. We actually have over 15,000 collection points across this country that come back to centralized collection points, and then actually make their way to our recycling facilities, where the cleaner films are put directly into our production lines, and the more contaminated films go into a reprocessing operation that turns it back into a pellet.
But the most challenging engineering point for us in this entire value chain is actually at the extrusion production line, and managing variation in the streams. We call it recipes, and we have a rolodex of thousands of recipes that can be used in the production process. I liken it to a cooking analogy. Today we’re baking with wheat flour, and tomorrow we might be baking with almond flour.
And so we’ve used a lot of technology to help us — machine intelligence, artificial intelligence — to help us manage those recipes. And not only does it help us manage the streams coming into the production lines, those raw materials, but then it modifies the process parameters, the cooking temperatures, and the speeds in order to process those streams. So that’s where the complexity is for us.
Amy Fernandez 14:14
We design our own equipment. And I mean, we don’t — you can’t just buy this equipment from equipment manufacturers. So being able to design and set up this equipment to be able to process this changing raw material stream continues to be one of our areas of excellence.
Mitch Ratcliffe 14:35
That’s fascinating. The idea that if you had a different kind of fiber, for instance, coming in — you brought in a chipped orchard as a source — that you’d have a different recipe, but you’re producing a product that is consistent in its standards and specifications. That’s, I mean, Zach, that’s got to be very complicated. You mentioned AI. Was this possible before AI, or slower before AI?
Zachary Lauer 14:57
No, we still did it, but we had to program a lot more, right, and program the intelligence on the line a lot more. It’s just becoming more rapid as we can read those streams and read the variation in line. It just makes that reaction quicker and faster for us on those production lines to do that. But no matter what our recipe is for the day, to your point, Mitch, it comes out a consistent product at the end.
And it just shows that we design our product around variability. Whereas most people focus on reducing variation in their raw material streams, we’ve designed our whole manufacturing process around being flexible and adapting to material streams — not only the ones we use today, but the ones we’ll use in the future.
Mitch Ratcliffe 15:51
The other area where you’ve got that kind of volatility is in the volume of recycled polyethylene that you’re bringing in. You had a big year in 2022; it went down by almost 100 million — excuse me, 100 million pounds — the next year, and then recovered, not quite back to the 2022 range, in ’24. What’s behind that volatility? Is it competition for feedstock? The fact that retailer collection participation changes? The contamination rates?
Zachary Lauer 16:20
A lot of things go into it. But what I tell people is, don’t equate our collection volume to our consumption volume. You know, one of the unique challenges about being a recycler is the fact that it’s a winner-take-all market. When you pick up an account, maybe a large grocery store, it’s like picking up the trash — you have to be there and you have to collect it regularly. Service is key. So there could be times when there is more availability or more collection in a period, and you have to accept it.
So how we manage that volatility, or, you know, the changes that can occur from year to year or season to season, is we do a very good job of long-term demand and supply planning in this space, and combining that with our space planning, and then we kind of layer in anticipated regulatory, market, and consumer preference changes into that. And so there could be a period where we see maybe a deficit or a surplus, and we will go in and consume that and store it for a future period, or there just could be a surge in a particular market where there’s the availability and you just have to be willing to take it. And that’s difficult to absorb — those huge swings like you mentioned — into your supply chain without having a plan.
Mitch Ratcliffe 17:55
You just said “as a recycler,” but should we be thinking about this in general as simply part of the manufacturing process — going back to onshoring and keeping more materials in country and reusing them across a wider variety of production streams? How does Trex think about organizing the wider material flow rather than recycling programs in the United States? What have you learned that we should be applying as a nation?
Zachary Lauer 18:23
You know, I think you have to be intentional if you’re going to enter into a stream where you’re going to recycle or pull materials out there. We’ve focused our effort on North America, right? And we do take collection from other areas, but it’s rare. And we adapt our collection based on changing preferences. So, Mitch, what I mean by that is, you know, one year we could be doing a lot of store collection or distribution collection, but then all of a sudden in a region of the country, regulation changes, or things change, and we go more to the recyclers for our material.
We continuously monitor and adapt to the changes that we see there, because our desire is to keep our supply chains as close to our factories as possible. We bear the cost of the freight, right? And we bear the entire cost of the supply chain. We develop the supply chain, and so we’re continuously looking at ways to optimize that and keep our costs manageable.
Mitch Ratcliffe 19:34
As you say, you’ve built this vast alternative collection system — 10,000 retail drop-off locations, you’ve got 84 grassroots community partners, there’s 936 schools that were involved as of 2024. What strategies did you have to develop in terms of communicating to the public what they should put in those bins at stores so that you get a clean load? And does that actually impact the quality of the materials you receive?
Zachary Lauer 20:02
It does. From our foundation, education has been key, right? So this has been a marketing and supply chain integrated strategy from the very beginning. And so we utilize things like our NexTrex program to educate students, to educate communities, and motivate them to recycle and incentivize them to recycle. But we’ve also at the same time incentivized our value chain or our supply chain to collect and be a part of it.
And some of that education is based on teaching people what can be used and how it can be used, and to let them know it’s actually being turned into a product that they can later consume and use. But we also come alongside other businesses to support their environmental sustainability goals as well. Most of our partners want to do the right thing too, and sometimes it only takes a little bit of incentive to get them to participate in this program that we have.
Amy Fernandez 21:09
And Zach, why don’t you add also a little bit about the logistics piece of this, because — so you talked about marketing and supply chain, but part of the supply chain was the logistics with the trailers and how we track them, and time them, and send them out at appropriate, you know, to basically maximize our efficiency in getting the materials.
Zachary Lauer 21:30
Yeah. So we also help our supply chain collect this material. We provide those that are willing to collect with balers to bale this, so that we’re efficient in hauling materials back. We also are very good at calculating what collection will be like in certain areas, and where to leave trailers, and where to incentivize them to backhaul to certain locations.
Right, the grocery stores, for example, they’re backhauling anyway to their warehouses — corrugate, all these other materials — so we take advantage of that backhaul to get to their distribution centers, and then collect from those points where they can fill a trailer within a couple of days. And we manage that entire network of trailers and supply chain, and we ensure that they’re weighed out before they hit the road, so that we’re optimizing the cost of bringing those materials in as well.
Mitch Ratcliffe 22:36
Does that mean that you generally collect this material at a lower rate than most of the industry could possibly achieve at this point?
Zachary Lauer 22:43
That’s correct. Because we’re getting it directly from the source versus maybe through a waste collector or a municipal recycling facility where it’s already been handled a couple of times, and the cost could be higher.
Mitch Ratcliffe 22:59
Amy, it doesn’t sound like it, but I want to ask about this — do the partners also come to you asking about getting credit for this, ESG credit, carbon credits, and so forth? Are you starting to hear that kind of conversation about how we can create further incentives within the collection economy?
Amy Fernandez 23:17
So we’re not starting to hear that yet, unless it’s come through Zach’s team. But as far as I know, we’re not hearing that. We are, though, starting to explore, for example, those companies that do want to say that their plastic is recyclable, because, as you know, all these regulations are coming out around that. If they want to put, for example, the NexTrex logo on there, and can assure that we’re picking it up. If we pick it up, it gets to our manufacturing site. So people that have put those trackers and things like, “Is my bag actually going to get where it’s supposed to go?” — we find them, they get to us. And so that’s part of it, is to support their recycling claims. We’re starting to get some questions and conversations about that.
Zachary Lauer 24:04
The other incentive too, Mitch, is for a lot of these individuals: they have their own goals, and one of those is to minimize what goes to the landfill. And so they’re also incentivized to not throw it away, and so we can help in that process too — we can help meet that need.
Mitch Ratcliffe 24:25
I know neither of you is in the marketing organization, but when people encounter a Trex deck, do you want them to think about the fact that it’s recycled? Do you want them to identify with the circular process?
Zachary Lauer 24:36
We do, and it is meaningful to the consumer. You know, if you were to have asked that question when I just joined Trex — and I’ve only been here 10 years — that, you know, that may have been, you know, it was still in the top 10 of the consumer preference, but it was around eight or nine. That continued to climb up the ladder, and it is in the top five of what the consumer is looking for when they’re looking for a product.
It’s a luxury product that lasts an extremely long time, and they can feel good about the product that they’re purchasing when they do it. And Trex obviously leads in this space with our recycled content on our decking products.
Amy Fernandez 25:27
We still start with performance and aesthetics, but sustainability is right there, right along with it.
Mitch Ratcliffe 25:35
I have to admit, I do stand on my deck and think about the fact it’s recycled. This is a great place to take a quick commercial break, folks. We’re going to be right back to continue this conversation. Stay tuned.
Welcome back to Sustainability In Your Ear. We’re talking with two of Trex Company’s leadership team: Amy Fernandez, she’s Chief Sustainability Officer, Chief Legal Officer, and I’m forgetting one other at Trex, and Zachary Lauer, who’s Senior Vice President and Chief Operations Officer. We’re talking about how Trex has built one of the largest recycling systems in the United States to source materials for its composite decking products.
Amy, Trex in 2024 decided to embrace the IFRS Sustainability Disclosure Standards, which were not mandated by the federal government as a requirement. What drove that choice? Why are you getting ahead of the game?
Amy Fernandez 26:30
There’s a big difference between complying when you’re required to comply and adopting best practices proactively. And in looking at the IFRS disclosure standards, it is a best practice. It’s benchmarking using globally consistent frameworks. It’s, you know, well recognized. It is a good-faith process that shows rigor. And so we’re not going to wait for a US regulation to force us to do something when, again, like I mentioned before, it’s just the right thing to do, and it’s a good framework, because it’s recognized globally. So although we are a US company, we do still have, you know, investors, customers, and others globally that are connected with Trex, so we want to be able to reach them.
Mitch Ratcliffe 27:23
Did taking that higher road require more work? Were there things about your business that the IFRS framework forced you to confront and address that you wouldn’t have otherwise? And this obviously would be of interest to other companies that are thinking about whether or not to pursue them.
Amy Fernandez 27:42
Well, we are looking at some of the gaps in there, right? So our scope three, for example, we’re working on that now, and we’re going to get limited assurance from some auditors just to start. That’s something that isn’t required yet in the US, but under IFRS it is a best practice. So we’re starting to work on that now, because that is one of our gaps with alignment to that framework.
And then the other piece of this too is the rigor around any financial planning related to sustainability risk. So by doing that benchmarking, we were able to identify where we have maybe some best-practices gaps — not regulatory gaps, of course, because we’ve already talked about, this isn’t required — but best practices. And what do we want to start doing, and what might be helpful for everybody that’s looking at Trex, right? Our employees, our prospective applicants, our investors and our communities. So that is part of what we’re finding from this exercise.
Mitch Ratcliffe 28:43
I also noted that Trex’s scope one and two emissions — you mentioned scope three a moment ago — have risen about 17%, partly due to greater volume and partly due to greater energy use. As you grow as a business — and this is one of those challenges that I think the sustainably-minded confront, which is, these companies are going to produce more carbon but less carbon relative to other alternatives — how do you talk to investors and within the organization itself about that rising net impact, and how do you rationalize that given your desire to reduce environmental impact?
Amy Fernandez 29:25
Yeah. You hit the nail on the head, right? When we bring on more production lines — so we did bring more on in ’24 than what we had in ’23, which accounted for a big portion of that increase that you saw in ’24. And then we also, by adding Little Rock, the Little Rock plant into the network — although we don’t have production there, we’re still using energy while we’re, you know, bringing it up. And so you’re absolutely right that because we are running more, that is going to require more energy.
But we’re trying to improve our efficiency of what we’re using. We’re also looking at our network and the grids and the energy available across Nevada, Arkansas, and Virginia, because they’re not all the same. So we’re going to start looking at where we can optimize that as an entire network. And, you know, just be working on that equipment that we talked about earlier that we design ourselves — what else can we put in there in order to reduce the energy use there?
Mitch Ratcliffe 30:28
Zach, what are the carbon intensity goals? I know you don’t necessarily state public goals, but how do you work toward reducing carbon intensity as a continuous improvement operation?
Zachary Lauer 30:39
So we’re always looking at how we’re manufacturing, and throughout the entire supply chain how we’re — I mentioned before, are we getting the maximum weight per load that we’re hauling? And on a per-pound basis of raw materials, we will actually, Mitch, fine or reduce the cost of what we’ll pay if the loads aren’t maximized and optimized.
But when we look at our manufacturing, we want it to be the lowest possible consumption of energy, because energy is expensive, right? And we want to be as efficient with that equipment as possible. Technology is going to continue to help us get there with that. But also, we drive our facilities off of manufacturing efficiencies, and our goal every year is to keep on getting faster, better, and higher, so that content per pound, that content per linear foot — because it is better and better every year. And that’s a focus for us.
Mitch Ratcliffe 31:41
When you enter a new location like the Little Rock plant that you’ve launched, which is purportedly — I haven’t seen the results yet, but supposed to drive 7.4 million kilowatt-hours in annual energy savings and reduce the use of water through a closed-loop recycling system — how do you decide what efficiency investments are going to pay back fast enough to justify the initial investment?
Zachary Lauer 32:05
Well, you know, not everything we do has a great — you know, our goal is for everything we do to have a great return on invested capital, but there are some things that you do just because it’s the right thing to do. One of those areas that’s difficult to get tremendous payback on is water, right? Water is generally still relatively inexpensive in this country. Now, we all know that water is becoming more and more of a challenge.
But a lot of what we do is not just motivated by the return on invested capital, it’s that we’re motivated by doing the right thing. Our employees live in the communities that we operate in. They take a lot of pride. A lot of people come to work for Trex for what we’re doing. Our brand equity is enhanced by what we do and how we go about doing it — not just what, but how we go about doing it.
And our employee brand matters in the communities that we’re in, because labor is extremely competitive in this nation. And somebody that goes to work and feels the impact of what they’re doing is valuable to the community as well — is important to us, and helps us recruit. We have a lot of people that apply to Trex merely because we do things responsibly, we do recycle. So it doesn’t only matter to our consumers, it matters to our employees as well.
Mitch Ratcliffe 33:35
Does the board have a set of “we do the right things” heuristics that they apply to some of these decisions, when you come and say, “Well, we need to do this, and it’s going to be more expensive”? How do they, as a group, create a systematic approach to making the right decision?
Zachary Lauer 33:50
We’re looking at it on an enterprise level, Mitch, where we’re looking at that return on invested capital at an enterprise level. And we will more than offset with our efficiency projects and our cost savings projects and those items on capital that allow us to do these types of things. And so we, for lack of a better term, try to overachieve in some areas to make sure that we can cover our bases in other areas.
Amy Fernandez 34:22
And our nominating and corporate governance committee is the one that gets a sustainability report every quarter. So every meeting we’re reporting on these metrics. Some of these metrics being very important — like our 95% recycled and reclaimed content in our composite decking — maintaining that is something that we report to them every quarter. We also report to them what we just talked about, our energy use, so there’s various metrics that we’re reporting to them.
And so it’s not only just that board-level oversight of our capital, it’s also the nominating and corporate governance committee oversight of our sustainability targets. So you’ve got two lenses looking at it.
Mitch Ratcliffe 35:04
Do you tie executive compensation to success on those metrics as well?
Amy Fernandez 35:08
We do not. We do not. Our executive compensation — it’s in our proxy statement, but no, there is not a modifier or a target for that. No, it’s overall company performance.
Mitch Ratcliffe 35:22
One of the changes that I noticed recently is that between 2022 and 2024, the NexTrex program recovered six times as much material as it did just two years before. What drove that growth, and where do you see a ceiling, potentially, in what NexTrex can deliver?
Zachary Lauer 35:42
Yeah. So when it comes to the NexTrex program, in 2025 we collected over 4 million. In 2026 we’re on trend to get pretty close to 6 million. You know, as we continue to expand the opportunity to rural communities and other avenues to capture this material, it’s just part of our supply chain. As you mentioned before, as competition enters in the space, we’re already moving into the future on different collection points and then different materials.
And where we see — just this grassroots reference that you’re talking to — non-grocery, non-distribution, non-traditional space, this could get to 20 million pounds or greater for us over the next 10 years.
Mitch Ratcliffe 36:33
As extended producer responsibility laws come into effect in various states, does that represent competition for the material, or could Trex even become part of the producer responsibility organization solution to collection and processing of materials within the state?
Amy Fernandez 36:49
Yeah, I mean, we’re in conversations with some of those folks about what they think they might be doing in the states that are starting to implement some of these, or, you know, discussing implementing some of this legislation. But we haven’t really seen that we’re going to have significant impact at all to Trex. There’s just, you know, given where we source our materials from, we’re not really seeing competition resulting from that legislation.
Mitch Ratcliffe 37:18
How do you see the NexTrex model continuing to evolve? Do you want to expand geographically, or is there potential for collecting other materials?
Zachary Lauer 37:18
Yes, I mean, we’re continuously working on the next-gen and the gen-after-that materials. We have a very extensive materials program here to evolve that. But we will continue to reach out to rural communities and those communities that aren’t served as strongly with collection points, and continue to expand those collection efforts nationally.
There’s probably only five to six states that we don’t even have a grassroots collection point in — we’re almost nationally covered in every state with these. And we set targets every year for this team to grow those programs. We have specific people that are dedicated to establishing these programs in underserved collection areas, and they have aggressive targets, and they’re passionate people.
Mitch Ratcliffe 38:25
Let me ask about the other side of the recycling equation here, which is, with many of the earliest Trex decks coming to the end of their expected life, reaching replacement age, what do you have to do in terms of policy partnerships and pricing to create a closed-loop solution to recycle those materials as well, so that old Trex decks become new Trex decks?
Amy Fernandez 38:49
So we have the manufacturing capability to reuse our material, so that isn’t the hurdle. The hurdle is at that collection stage. And when you have a contractor that is replacing a deck, they don’t want to sort, so they want to just have everything in there. And right now that is the hurdle — it’s the sorting piece of it, because we can recycle our own decking, but we can’t take — we talked about metal earlier, right? That’s something that we’re not going to be able to use. So that’s where the challenge is.
And what we’ve done is we’ve partnered with, for example, one of our distributors. We partnered with them to bring back truckloads of material back for recycling. So we’re trying to work with our distribution network. We do merchandising, and so for those, we’re able to get that back from our merchandising vendor to send scrap back to us. And then we’re also able to implement some communication around — if there is a big job, let’s start trying to get that product back to Trex so that we can recycle it.
That being said, anecdotally, I hear from friends that have had their first-gen Trex deck, and it is still looking beautiful. So although the warranties are 25 to 50 years, you know, we don’t —
Mitch Ratcliffe 40:15
It could go longer.
Amy Fernandez 40:16
It could go much longer. And so it’s a matter of, you know, starting to see, well, how can we start to put in place a program for when these do start to get replaced or age out?
Zachary Lauer 40:28
But we would use our network to do that reverse collection, right? The network that distributed would be the means to recollect it back.
Mitch Ratcliffe 40:39
That makes complete sense. For years, Earth911 has worked with Owens Corning on driving collection of shingles, but it’s interesting because shingle collection has spikes — extreme weather events, hurricanes, and so forth. And so they focus on communities and regions that are subject to disaster. It gives them the opportunity to get people to sort at a time when there’s a vast volume of material. Have you analyzed opportunities for that kind of optimized, focused geographic collection? Maybe a little ticky-tacky question, but I’d be curious.
Amy Fernandez 41:17
I hadn’t thought of it, and now that you mention it, I will.
Zachary Lauer 41:20
We’ve typically looked at our partners in the value chain for that versus external, you know, for those opportunities. So, and taking advantage of those backhauls and those types of situations, we already have trucks delivering. Can we have trucks collecting? The other thing — as we talked about the rural communities too, we’ve looked at offering the opportunity at those rural collection sites to take back product as well, because we already have trucks and trailers there.
Mitch Ratcliffe 41:49
If you were speaking with a manufacturer in another category, say textiles or electronics or other kinds of building materials, and they asked you what the single most important thing Trex got right early on, what would you tell them?
Zachary Lauer 42:04
We designed the manufacturing process, and we designed the supply chain to support it, from the very onset. And we had the mindset from the very onset that the variation was going to be there — figure it out. And through the decades we have refined the ability to do that. So we always had that end in mind: no matter what, we were going to figure out a way to do this. And we specifically designed our manufacturing processes and our collection processes to support that end-to-end supply chain to do that.
And the other thing that’s unique, and what I would recommend, is we’ve never depended on a middle partner or middle player in this chain. So as our collection may change over time, as our material streams change, I don’t have to go find somebody that can do that for me, right? I’m just modifying what I do today to a different material stream.
Mitch Ratcliffe 43:08
Are there moves you made that you wouldn’t recommend that others copy, because maybe it worked only because of where Trex was at the time? Are there ways to get into a blind alley and get stuck there?
Zachary Lauer 43:19
I really can’t think of any. You know, regardless, we’ve always tried to locate our facilities close to our raw material streams that allow us to maintain our 95% recycled content of materials in our decking. And so we specifically saw where we locate our plants to optimize that feed of material.
Mitch Ratcliffe 43:50
Well, Amy and Zach, this has been a fascinating conversation. How can folks keep up with what Trex is doing?
Amy Fernandez 43:57
We’ll be publishing our sustainability report as usual, probably sometime in that July timeframe, so be on the lookout for that next one. Our website — NexTrex is on our website as well, so those are probably the best places.
Zachary Lauer 44:10
Yeah. I mean, our website, and especially the NexTrex link there, has, you know, great videos and just great learning for people, and social media, right, is powerful too, for our NexTrex and our branding. So those are all platforms that we utilize to inform and educate, so that people can participate in the value chain and participate in this endeavor.
Amy Fernandez 44:36
Yep. So trex.com, Why Trex? The first link under that is sustainability.
Mitch Ratcliffe 44:41
Well, we will point folks to that. This has been a fascinating conversation, and really so impressive — what Trex has accomplished. Thanks so much for your time today.
Amy Fernandez 44:50
Thank you, Mitch. It’s our pleasure.
Zachary Lauer 44:52
Thank you.
Mitch Ratcliffe 44:53
Welcome back to Sustainability In Your Ear. You’ve been listening to my conversation with Amy Fernandez, Chief Legal Officer and Chief Sustainability Officer, and Zach Lauer, Chief Operations Officer at Trex Company, the largest manufacturer of wood-alternative composite decking in the world. And you can learn more about Trex and NexTrex collection programs at trex.com — that’s T-R-E-X, folks, trex.com.
You know, for the second time in less than a month, we’ve spoken with a company whose leaders chose to do the right thing regarding their environmental impact, and as a result, built a successful business from it. Kevin Kelly, CEO of Emerald Packaging, explained how they use recycled polyethylene in food packaging just a couple of weeks ago. But Trex got there in 1996, before “circular economy” was a phrase that anyone used in a boardroom, or, well, almost anywhere outside of a small cadre of design and architectural thinkers. Three decades later, it’s upcycled more than 5.5 billion pounds of plastic film and runs roughly 95% recycled and reclaimed content into its products. And I think, most impressively, operates one of the largest plastic film recycling operations in North America.
The sustainability work and the business are the same thing. It’s not a different choice to become sustainable — it’s part of the underlying philosophy of the company, and that’s the headline here. The structural insight is that Trex designed its manufacturing processes around variations in feedstocks, instead of trying to standardize and therefore eliminate the use of most of the material that they would receive. Zach described a rolodex of thousands of recipes that the production lines run through, swapping feedstocks the way that a baker swaps wheat flour for almond flour, for instance. And machine intelligence is making it easier to read the stream in real time and adjust temperatures and speeds on the line.
Most manufacturers spend their time narrowing input tolerances, but Trex developed tolerance for inputs that nobody else wanted and made it profitable. That’s a different theory of operations, and it explains why the company can go deeper into contaminated film streams — the dunnage returns that we heard about, the industrial trimmings, the bubble mailers that went to landfill before. Other recyclers walk away from this stuff, but Trex embraces and uses it. The lesson for any building products, textile, maybe electronics manufacturer thinking about recycled content is that variability is the design constraint. Solve for that first, or the supply chain will keep breaking on you.
Trex’s poly feedstock isn’t priced off a barrel of crude, which means in a period of reshoring, tariff uncertainty, and due to the war in Iran, oil-price swings, the recycled-content company holds a competitive advantage the virgin-material companies cannot match. And this is the version of the climate story that doesn’t get told often enough: recycled supply chains can be more stable than virgin ones in a volatile economy, not less.
So it’s refreshing to hear Trex acknowledge that the loop isn’t closed yet. The first generation of Trex decks is reaching replacement age — though I have to admit that my deck is looking pretty good at almost 20 years old — and the manufacturing side can reabsorb this material, but the recycling bottleneck is contractors pulling up those old decks who don’t want to sort the screws from the boards. And Amy named this directly. That’s the kind of candor that builds trust with the audience, and it points to the next phase in the circular economy work that requires leaping into the messy human logistics of deconstruction, sorting incentives, and reverse-haul economics.
Trex’s instinct to use its existing distribution backhauls is the right one, and it’s the model that other durable-goods manufacturers will need to copy if extended producer responsibility laws keep expanding state by state.
Two interviews this month with companies that chose the harder path early and now hold more defensible market positions. That isn’t a coincidence. It’s a leading indicator of which businesses get to keep operating in the climate economy that’s arriving right now. We’ll keep tracking the manufacturers building the infrastructure before the regulations force them to, because they’re the ones writing the playbook that everyone else will be reading in five years.
So stay tuned, folks. And hey, if today’s conversation gave you something to think about, share this episode with someone in your life who’s wondering whether sustainability and business strategy can actually be the same thing. And it turns out, in some companies, they already are. Folks, you’re the amplifiers — to spread more ideas to create less waste. And there are more than 550 episodes in our archive waiting for you on Apple Podcasts, Spotify, iHeartRadio, Audible, and other purveyors of podcast goodness, whatever you prefer.
Thanks for your support. I’m Mitch Ratcliffe. This is Sustainability In Your Ear, and we will be back with another innovator interview soon. In the meantime, folks, take care of yourself, take care of one another, and of course, let’s all take care of this beautiful planet of ours. Have a green day.
The post Sustainability In Your Ear: Trex Makes Circularity Work appeared first on Earth911.
https://earth911.com/podcast/sustainability-in-your-ear-trex-makes-circularity-work/
Green Living
Sustainability In Your Ear: Urban Surfer’s Sifiso Gumbi on Organizing South Africa’s Recycling System
In South Africa, informal waste pickers recover between 80% and 90% of all plastic and paper that actually gets recycled. There are about 140,000 of these reclaimers, who walk through cities and landfills, pulling trolleys and selling what they collect to make a living. Each person can keep up to 24 tons of material out of landfills every year. Together, they saved municipalities R750 million (about $45 million) in landfill costs in just one year, yet they do this work without recognition, protection, or a formal role in the waste system.
Sifiso Gumbi began as a reclaimer at 19, collecting scrap metal in Soweto after school. After 15 years in the informal recycling economy, he founded Urban Surfer South Africa, a Johannesburg-based social enterprise that believes the people already doing recycling work should be supported and equipped, not replaced. Urban Surfer creates essential tools like PPE and collection trolleys with personalized number plates, helping reclaimers become recognized workers in their neighborhoods. The organization also runs four recycling hubs where reclaimers can sort and bale their materials to sell at better prices, cutting out the middlemen who used to buy their collections for much less than market value.
Urban Surfer tracks everything with GPS-enabled trolleys and a live dashboard, and this approach has increased reclaimer incomes by up to 300%. In this episode of Sustainability In Your Ear, Sifiso talks about why dignity is key to better recycling rates, how aluminum can prices show what gets collected and what ends up in landfills, and what it would take to expand this model across South Africa and the continent.

One key idea keeps coming up in the conversation: reclaimers are like an R&D department that no one asks for advice. In South Africa, aluminum cans sell for 28 to 30 rand per kilogram, and reclaimers collect them so thoroughly that Sifiso says finding one on the street is as rare as finding a dollar bill on the sidewalk. Meanwhile, materials with lower value end up piling up in landfills, which are quickly filling up in Johannesburg and Gauteng.
Companies that want their packaging recovered can learn from the people who decide every day what is worth picking up. Data is also important. Urban Surfer tracks every kilogram by material type and price at its hubs. As carbon and plastic credits become more common, reclaimers will have verified, real-time records of the work they have already done. Sifiso is honest about the challenges: four hubs are not enough for Gauteng, and there are always limits on land and equipment funding.
But the bigger challenge is building trust between waste pickers and a public that still sees them as vagrants, and between the informal workforce and the policymakers and companies whose programs will only work if rebates actually reach the people doing the collecting. This conversation asks whether a truly circular economy can be built by supporting the people who are already making it happen.
To learn more about Urban Surfer and to explore partnership and sponsorship opportunities that equip reclaimers with trolleys, protective gear, and recycling hub infrastructure visit urbansurfer.co.za.
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Interview Transcript
Mitch Ratcliffe 0:10
Hello, good morning, good afternoon, or good evening, wherever you are on this beautiful planet of ours. Welcome to Sustainability In Your Ear. This is the podcast conversation about accelerating the transition to a sustainable, carbon-neutral society, and I’m your host, Mitch Ratcliffe. Thanks for joining the conversation today. We’re going to talk about waste pickers.
The way most of us picture recycling is a municipal one — a truck, a sorting facility, a system run by a city or a company — but across much of the world, that’s not the right picture. In South Africa, the overwhelming majority of plastic and paper that actually gets recycled is recovered not by any formal program, but by informal waste reclaimers, an estimated 140,000 people who move through cities and landfills on foot, pulling trolleys, collecting and sorting recyclable material, and selling it to survive. Each one diverts as much as 24 tons of waste from the country’s landfills every year. Collectively, they’ve saved municipalities hundreds of millions of rand in landfill costs and built the backbone of a recycling economy, all without recognition, protection, or a place in the official system.
It is some of the most environmentally valuable work being done anywhere, and it’s performed by some of the most marginalized people in the country. Reclaimers face social stigma and frequent harassment, and they work in unsafe conditions, exposed to chemicals and traffic. And because they are unorganized, they are often exploited by the middlemen, who buy their materials for a fraction of what it’s worth. The environmental service they provide is quite literally free, and the people providing it are largely invisible to the public they serve.
Our guest today has spent 15 years trying to change that. Sifiso Gumbi is the founder of Urban Surfer South Africa, a Johannesburg-based social enterprise built on the simple conviction that the people already doing the work of recycling should be supported, equipped, and recognized, not replaced. Urban Surfer designs and provides the tools of the trade, starting with a collection trolley developed alongside reclaimers over two years and 50,000 kilometers of real-world use, and that’s complete with a personalized number plate that gives its owner a sense of belonging and a measure of public legitimacy. The organization runs sorting and baling camps that connect reclaimers to offtake agreements and producer responsibility rebates, cutting out the middlemen and raising what reclaimers actually earn. It offers training, protective equipment, and mental health support, and it tracks the whole operation through GPS-enabled trolleys and a live reporting dashboard, turning work that was once invisible into measurable, documented impact.
Running underneath all of this is a word that Sifiso returns to again and again in his speeches and writing: dignity. Urban Surfer’s mission is framed not first in tons diverted, but in belonging — the right of a reclaimer to be seen as an essential worker rather than a nuisance, with a special focus on women and youth, who make up much of this workforce. That framing has earned Sifiso recognition as South African Environmentalist of the Year and Entrepreneur of the Year, a TEDx Johannesburg stage appearance, and the endorsement of city and provincial governments that now rely on his data to plan their own waste systems.
So, we’ll talk with Sifiso about what 15 years among reclaimers has taught him that no policy paper could, why he believes dignity and recognition are inseparable from recycling rates, and how a better trolley changes the way a person is treated on the street. We’ll also dig into how his camps and offtake deals reshape reclaimers’ income, why he built a data infrastructure into grassroots work, and how he persuades corporations to see reclaimers as partners rather than a line item. Then there’s the big argument that his work makes: that a genuinely circular economy has to be built on the people who already live in it, not by bypassing them.
To learn more about Urban Surfer, visit urbansurfer.co.za — Urban Surfer, all one word, no space, no dash. That’s urbansurfer.co.za. What would it take to see the people who already recycle most of a nation’s waste not as invisible labor, but as the foundation for the circular economy? Let’s find out right after this brief commercial break. Welcome to the show, Sifiso. How are you doing today?
Sifiso Gumbi 4:36
I’m doing amazing. How are you, Mitch?
Mitch Ratcliffe 4:38
I am well. I am well. Now, you’re in Johannesburg, and you’ve spent 15 years working alongside informal waste reclaimers in South Africa. Can you take us back to that moment when you first realized that there was an opportunity and a need to organize informal recycling?
Sifiso Gumbi 4:53
I was 19 when I realized, because that’s when I was really starting out, you know, into the whole space as a waste reclaimer. And the one thing I realized was that I could actually grow within, you know, the industry, because I could just see all around me. Growing up — I come from Soweto — we used to have a massive challenge with illegal dumping sites, and on close examination of all the waste, you know, that was being dumped, it was actually waste that one could, you know, actually recycle. And what I then realized was that, you know, there will always be waste for as long as there are people, because for as long as there are people, there’ll always be consumption. And I just saw this as an opportunity that really guaranteed a career for me, because all I needed was, you know, access to the waste.
Mitch Ratcliffe 5:41
You literally saw a greenfield opportunity in waste — that there was just so much of it lying around of value that it could be, if organized correctly, a lot more valuable to the waste reclaimer, and there’s sufficient profit for you to grow an organization.
Sifiso Gumbi 5:59
Absolutely, that’s what it was. I didn’t realize the many challenges I was going to come across as, you know, an informal reclaimer.
Mitch Ratcliffe 6:07
For listeners who have never seen South Africa, can you explain the society in which a reclaimer works, and what a typical day looks like for one of them?
Sifiso Gumbi 6:16
So, a typical day for a reclaimer — they start their day very early. We do have a waste management system here in South Africa. Each metro has one, and each local municipality has one. So, how it works is that there’s a municipal bin truck that comes through on every business day to collect waste. The municipal bin truck will come and collect a bin, it gets tipped into a truck, which is a compactor truck, and that truck takes all of that waste to the landfill. So they usually come in the morning, so your typical waste picker has to get to the bin before the municipal truck gets there.
So a day in the life of a South African waste picker consists of waking up very early, so that you can get to people’s bins before the municipal truck gets there, you know, open those bins and literally go through such bins to recover recyclable waste material before the municipal bin truck gets there. And then from there you load it up in a makeshift trolley using bulk bags that, you know, are normally used for sugar, soy, maize, even manure. I think maybe you do use those bulk bags in America, but that’s what waste pickers use here in South Africa. So they use them as containers to load up all the collected recyclable material.
Then from there, the material is taken to informal waste sorting sites. You know, they don’t sort where they collect. So where they collect, they just collect everything and just tie it up into the bag, load it up on the trolley, pull the trolley to, you know, whatever informal setting they have — any piece of land that they find, they use for sorting. So there the sorting takes place: you know, the plastics are separated, the paper is separated, the metal is separated, aluminum is separated. And then once the material is separated and carefully segregated, it is then, once a week, sold off to the buyback centers or the neighboring recycling companies.
Mitch Ratcliffe 8:27
So does that produce a better-sorted load for the recycling off-takers, the organizations that buy the material? It sounds like it’s competing with the municipal system to do a better job of sorting.
Sifiso Gumbi 8:39
The municipal system is not concerned about the recovery of waste for recycling. The municipal system is mainly concerned with the recovery of waste for disposal, so that the waste is removed from, you know, people’s backyards and, you know, people’s bins. So that’s what it’s all about, you know. For the longest time — the City of Johannesburg, the City of Ekurhuleni, the City of Tshwane, I can think of all the major metros and all the local governments — we’ve relied heavily on the use of landfill space, which we are now running out of. So, the system was really simple: collect and dispose. Waste pickers are the only ones that are collecting for value, you know, and collecting with the intent of recycling, because that’s their livelihood. They actually make their money from the recycling. The municipality really doesn’t, and they didn’t really care about that, you know, because they make their money anyway.
Mitch Ratcliffe 9:33
So, in a way, this is a self-organizing solution for recycling that was simply being ignored by government.
Sifiso Gumbi 9:39
Absolutely. It’s been around for more than 30 years, largely informal — I would say totally and absolutely informal. If you look at the current South African statistics, when it comes to recycling, the main contributors are waste pickers. The reason why we have a recycling rate at all is due to the efforts of, you know, informal waste pickers.
Mitch Ratcliffe 10:01
So these people do really, really important work, and your tagline is empowering people and transforming waste, but you talk a lot about dignity, not just recycling rates. Why is dignity at the center of how you think about this work?
Sifiso Gumbi 10:17
Because that’s where we have to start. Before we get to anything else, we need to first recognize waste pickers, not only as essential environmental custodians, but firstly as people. Dealing with waste reduces you to a level, especially in this country — and I think it may be the same thing in other countries — it reduces you to a state where people don’t even see you as a human being. They see you as a vagrant, they see you as the scum of the earth, because no one wants to, like — I mean, if you think about it, no one wants to deal with rubbish, no one wants to deal with waste, no one wants to handle all of that grimy stuff, you know. So when you do, instead of being recognized and applauded for, you know, such a huge sacrifice, one is usually seen as being of the same value as that waste you are dealing with.
So the first thing, you know, we try and advocate for is the humanization and dignity of reclaimers. And how do we do that? Firstly, it’s by kitting them out, or providing them with the correct PPE, so that they are presentable and they are more approachable and they are more visible and they’re more humanized. Because most waste pickers you come across, they deal with waste on a daily basis, so of course they won’t look as glamorous as someone who drives an Uber or someone who works at a restaurant or someone who works at a hotel or someone who works at a factory, you know. They’re waste pickers, they deal with waste, you know. So usually, you know, because they don’t earn even as much, you know, their clothing items are usually soiled, the way they look is usually dirty, because of the work that they do. You know, if you deal with a mechanic, a mechanic looks like a mechanic — he will be covered in oil. If you’re dealing with a waste picker, a waste picker will look like a waste picker, because he has to deal with waste on a daily basis, you know. And because of that image, you know, the public perception around waste pickers is really, really negative.
So we advocate for their dignity and recognition first, before anything else. We want people to understand the work that waste pickers do, we want people to understand that waste pickers are humans, we want people to understand that they’re doing an amazing job, not only for these communities that do not see them as people, but for the environment as a whole.
Mitch Ratcliffe 12:30
What you’re describing is so important to understanding where the opportunity to raise up people lies in the circular economy. I’ve been involved in a little bit of this kind of work in South America, and the organization that I was consulting with paid a generous rate to trash pickers. They supported local programs that included decorating their trolleys, which gave them a real sense of pride that recognized their humanity, as you’re talking about. Tell us about how you work with a group of reclaimers to develop the trolleys that make their work easier.
Sifiso Gumbi 13:07
The first trolley that we developed was an amazing solution, and I’ll touch base on that as I expand into the whole picture that I’m going to paint for you. Most waste pickers use makeshift solutions. From the trolleys that they use — it’s all makeshift — to the PPE that they come across. They don’t have any PPE, you know, so if they find an apron that, you know, is protective gear, anything to use — from even a, we call them balaclavas here in South Africa, some people call them ski masks, you know — they wear those as protective wear. So it’s all very makeshift.
So we decided to engage them and understand, you know, what type of trolley they would, you know, like to have, and you know, what features it would have. And we realized that most of the reclaimers we were, you know, interviewing at the time were camping in open fields. And they did that because one would leave their respective township to go and try and, you know, make a living from recovering waste from the affluent neighborhoods like Sandton and Bryanston, you know, all these fancy suburbs, you know, that are away from the townships. That’s where they usually find the most waste. And because it’s so far from the township, they were now forced to, you know, camp in the open, you know, to store their recyclables, sort their recyclables, and then maybe sell their recyclables. So they couldn’t, after collecting, take their recyclables back to their townships, because the townships are like 30 kilometers away, or even more.
So, one of them said — I think several of them said — you know, if I could perhaps be able to sleep inside my trolley, that would be amazing. And so we designed a trolley that, firstly, could accommodate a bulk bag that was specifically designed to store recyclable material, you know, that could fit the trolley and carry as much as 300 kilograms onto the trolley. Secondly, we then came up with a solution to have a foldable tent that one can, you know, keep in a compartment on the trolley as they go out to collect on their daily activities, and then later on, one could be able to deploy that tent over the trolley, and they could have overnight shelter as they camped in whatever spaces they had found to store their recyclables in and camp. So when we started out, all of our trolleys had shelter — those temporary tents they could put up at night, impermeable to water, so they were protected whenever it was raining, and quite warm enough for winter.
But with that solution, what we found was that most of the reclaimers became really comfortable with that functionality in their trolleys, and they then ended up using those trolleys as mobile homes instead of using them for recycling. So what they would do is that they would park those trolleys, you know, with the tent fully set up, and then take their makeshift trolleys and go into the field to collect recyclables, which created a massive problem now for the municipality, because all of a sudden now you have all these, you know, temporary homes springing up all over the show, and we unfortunately had to cut that solution.
Sifiso Gumbi 16:30
So, what we now do is the trolleys that we roll out to reclaimers, they have personalized plates that have the waste picker’s nickname, you know, for relatability, and they also have a back panel that usually has a logo of, you know, whatever sponsor, you know, comes in to help us, you know, on a project that supports reclaimers. So what we found is that people really love the number plates and the look of the trolley, so it allows the public to get to know their neighborhood reclaimer without necessarily talking to them — because you see the trolley, it’s written “Sifiso,” then you’re like, oh, that guy is Sifiso, he’s been operating in my area the entire time. And then the other thing we have — we have GPS trackers fitted on each trolley, so as to track the movements of all the reclaimers. We are very big on data, so that we know where they are at any given time, and should there be any case in any neighborhood that they operate in, we are able to maybe, with authorities, share that. Okay, maybe at this point one of our reclaimers was there — perhaps ask him what happened there. So the reclaimers have become an added security feature, or like an intelligence network for civilians, you know, in that.
Mitch Ratcliffe 17:46
Could you also use that system to deploy people to where there is uncollected material?
Sifiso Gumbi 17:52
Absolutely, we can. As a matter of fact, we are getting requests, you know, from community associations to come and collect from them, so whenever they do, we just send through the nearest reclaimer.
Mitch Ratcliffe 18:07
You have the sorting and baling camps — are these sort of ad hoc homes for these communities of mobile workers? Tell us about how that works, and particularly, how do you aggregate enough material that you can pay them a better rate than the middlemen who would have purchased this material before?
Sifiso Gumbi 18:25
So we have recycling hubs that we’ve set up with the idea and clear understanding that, you know, most of the reclaimers we support not only just need collection equipment and PPE, but they also need working facilities where they can store their material and sort it. So now, what we have added into those facilities is processing machinery, so that the reclaimers don’t only just sort the material, but they are able to have access to a baling machine, which then compacts their material. And once the material is compacted, they can sell it to the recyclers, the recycling companies, at a better price, because they are no longer selling loose material.
So one thing we also organize for the reclaimers is corporate collection sites where they can collect from and have more access to waste. So we try and give them as much access to collection volumes as possible, because the more waste they collect, the more money they make. But the challenge is that we are only sitting on four recycling hubs so far, and there are so many waste collectors in Gauteng alone, not even mentioning in the country, so we’ve barely scratched the surface. So these recycling hubs are a great need for many of the other, you know, waste collectors, and it’s a bit of a challenge right now for us to, like, get access to land. And even if we do get access to land, we’re in constant need to perhaps get a funder to help us buy equipment, to help us set up the structures on site, and to bring in all the other necessary infrastructure to make a recycling hub operational.
Mitch Ratcliffe 20:07
I hear the beginning of an approach that would allow companies to partner with informal recyclers to collect even specialized materials, like e-waste, for instance, to create a local closed-loop system. But that also suggests that needs to happen everywhere. Do you see Urban Surfer as a model for an infrastructure to enable the circular economy globally?
Sifiso Gumbi 20:31
100%. So, the one thing that we’ve been able to crack on the ground is we have managed to become the bridge between the formal side of things and the informal side of things. So informal recycling people work as individuals — they are barely organized, they’re just concerned with their survival. So, how we’ve come in, we’ve now become the bridge between the private sector and the informal sector, we’ve become the bridge between the government and the reclaimers on the ground. So definitely, from what we have done in our own capacity, with a very small team and quite limited resources, I think our model is well proven and is well positioned to be the blueprint for replicating the same solution globally.
Mitch Ratcliffe 21:22
This is a fascinating opportunity. I want to take a quick commercial break, and we’re going to come back to continue the conversation. Stay tuned, folks.
Welcome back to Sustainability In Your Ear. Let’s continue the conversation with Sifiso Gumbi. He is the founder of Urban Surfer, which organizes informal recyclers in South Africa. Sifiso, the first time I became aware of informal trash pickers was actually in San Francisco, and it was common for older Asian women to pick bottles out of everybody’s trash before it was collected, just as you described earlier. But what I noticed is they all got on buses and then went to the most dangerous neighborhood in the city to sell their bottles, and I always wondered why nobody enabled them to drop it at an aggregation point where they would be able to collect sufficient volume to make a good profit on the material, while paying those women a fair rate for what they had collected. You’ve built this GPS-tracked trolley system, you’ve got live reporting — that’s a lot of technology for grassroots work. Following on the conversation we were having before the break, how do you see using technology, or technology’s ability to let us see into deep, complex problems, to organize a new recycling system?
Sifiso Gumbi 22:40
Listen, Mitch, we are living in a digital age, and I think the aggregation of data is quite essential, especially when you are dealing with projects like the ones we are involved in. Firstly, we saw it quite important for us to have a live data reporting system and also to fit GPS trackers on the trolleys of all the reclaimers that we support, because, one, if we are working with a project sponsor, we need to have a system that is able to measure the impact and the progress of each project that we have activated. It is important, one, to know how far waste pickers travel, where they collect, how frequently they collect from those neighborhoods. That, for one, gives us the pattern and actually gives us the general idea of, okay, which neighborhoods produce the most waste, because waste pickers only target the neighborhoods that produce the most waste, you know. So, for future reference, that data can help us maybe engage such communities more, and perhaps workshop them on how to better separate their waste, so that they help the reclaimers to collect more waste. Right.
Secondly, we record all the volumes that are brought in by our vast network of reclaimers. In all of our recycling hubs, we record the volumes of what recyclable materials they bring in — is it plastic, is it paper, and what quantity? And then, secondly, we record how much they’ve made from each recyclable item. So there’s a lot of, you know, solutions that have been brought in, like carbon credits, plastic credits, and because we already have all the data, we are in a position to bring those solutions in and have them as add-on incentives for reclaimers through the data that we collect from them — which includes the miles they cover, the volumes they recover — that can be packaged and perhaps accredited as a carbon credit that reclaimers can almost immediately start benefiting from, or it can also be credited as a plastic credit that waste pickers can start benefiting from, and which they should be benefiting from. They did the—
Mitch Ratcliffe 25:01
Work.
Sifiso Gumbi 25:02
They did the work, you know. So it was important for us to collect the data from the very beginning, so that when all of these solutions come to the fore, we already have all the data, and this is transparent data, this is real-time data. There’s absolutely no greenwashing, and these are accurate volumes. So, with that data, we are hoping maybe in the future to use it as leverage to have waste pickers benefit, you know, from all there is to benefit within the climate resilience and sustainability space.
Mitch Ratcliffe 25:38
You’re describing a remarkably advanced view into the reverse logistics economy, and I can imagine reclaimers organizing to address what we would think of in Uber terms as surge opportunities — a major football match, for instance — you could send people in to collect particular sets of material, and you have almost unprecedented visibility into local material flows. Are you also thinking about using that data as the basis for providing research, both to government and to corporations, about where those materials might be for profitable recovery?
Sifiso Gumbi 26:16
Absolutely. I mean, if we’re really talking about closing the loop, the best people to talk to, as far as R&D is concerned — let’s say you have a new product on the market, and you are looking for the best packaging solution. For one, the packaging for your product — you must make sure that it can be easily recovered for recycling, and the best people to engage on that are the waste pickers themselves, because they’ll tell you that, okay, this I can definitely recover, and this is how much I will get from it. So, if I’m well incentivized on that, you’ll definitely get to see the circular economy activated with whatever packaging material you put out into the environment. But because currently no one is really engaging, you know, the main volume drivers on the ground, people are mainly concerned with certifications, ISO standards, and this and that. But if you take a closer look at what is currently being produced as packaging material for most of the items that we consume as households, it’s only a limited portion that actually circles back into production. The rest is piling up in our landfills. And why is that? Because there isn’t any incentive for the waste pickers to collect that, you know, as a recyclable material. There isn’t.
Now, in South Africa, the best material, or the hot material, like, right now, to collect as a waste picker is aluminum cans. Aluminum cans are collected so effectively and aggressively, it is difficult to find one on the ground, just as it is difficult for one to pick up $1 in today’s economy, like, on the floor, right. Why is that? It is largely driven by the incentive behind collecting just a kilogram of aluminum cans. Currently, in South Africa, you collect a kilogram of aluminum cans, you can get up to 28 rand, or even 30 rand a kilo. Now, if you have 30 rand, that is enough to buy you a bunny chow and even a Coke.
Mitch Ratcliffe 28:23
What you’re describing is a world where we actually pay attention to the flow of materials, ultimately recognizing the value of the people who do that work. As you talked about earlier, the reclaimers face a lot of hardship — there’s the stigma of the job, the dirtiness of the job it’s associated with — but they’re harassed, a lot of them struggle with mental health issues because of the tensions of the work, and I found this in some of the philanthropic consulting I’ve done: people in many of these communities don’t trust outsiders. How do you help them work with these corporations in a way that they don’t feel like they potentially are going to be exploited?
Sifiso Gumbi 29:00
And that’s where we step in, you know. I get interviewed quite a lot. There’s a lot of media houses that want to come and interview, you know, reclaimers, you know, on site, but because they’ve been ridiculed and humiliated by the public so long, whenever someone comes and wants to stick a camera in their faces, it feels as if they are just parading them like freaks to the public, you know, because of the current stigma that is still active even today by the public. It is very difficult for them to trust anyone, and we have now established ourselves to a point where we are one of the main mouthpieces for them. And as much as I would like for them to open up a bit more, I think it will take more engagement on the ground — engagement by industry drivers, you know, CEOs, you know, ministers. We need to see more ministers visiting waste-picking camps. We need to see more CEOs engaging with waste pickers on the ground. They need to start feeling comfortable with the powers that be, even with the general public, you know, because they still aren’t, you know.
I still get a lot of, I still get a lot of hate, man. People say, “Hey, you need to make sure these people get out of the road, you need to get these people away. These people are vagrants, these people are dangerous.” You know, so we need a whole lot more engagement, we need a whole lot more interaction, you know, just with the public, with waste pickers, you know, at the heart of the discussions, at the heart of the engagement. I think we need to first get that right. We need a reconciliatory exercise: first reconcile the waste pickers with the public, and then reconcile the waste pickers with the policymakers, then reconcile the waste pickers with, you know, the relevant corporations that are interested in supporting their work. We need to get to that first before they can ease up to the idea of allowing anyone to come and be in the space and understand the work that they do.
Mitch Ratcliffe 31:00
Looking at projections about the value of the circular part of the economy — the collection and reuse components — the projections are, even just in the United States alone, between $1.5 and $2.2 trillion a year in value. Globally, it’s probably two or three times that. If you organize this class of people and give them the economic power, do you see those ministers in particular, but also corporate leaders, as feeling threatened by the rise of that power? Is that something that you need to help them overcome?
Sifiso Gumbi 31:37
They shouldn’t be threatened at all, Mitch. They shouldn’t be threatened. I think it’s an exciting opportunity. I think even for, you know, the corporations — I mean, as it is right now, Coca-Cola can tell you how many cold drink bottles or cans they produce, but they can’t tell you how many cold drink bottles or cans they’ve actually recovered back. They can only tell you the kilograms that they’ve recovered back, right, but they can’t really tell you how many of what they’ve produced that they’ve actually recovered back. They don’t even report along those lines, you understand. But if they were to start supporting reclaimers, they will know exactly that. If I produced one bottle of cold drink, right, and from the factory it left and it went to one province in South Africa, and it was bought by a client, perhaps, in that province — what happened to that bottle after the client was done consuming the contents of that Coke bottle? They will know right to a T, and they would know that, hey, that bottle registered back into our factory.
Mitch Ratcliffe 32:40
Well, and we’ve had conversations with GS1, which is the global nonprofit that runs the Universal Product Code system, and they have the ability now to track to unit level an individual can — we made it here, it was picked up here. Do you think that the reclaimers could scan every can that they picked up in order to get to that granularity of reporting that you’re describing?
Sifiso Gumbi 33:04
Absolutely, if they’re incentivized for it, definitely. Because, I mean, GS1 — I know about GS1 very well — but their technology, which is amazing, if you ask me, can only go so far. They are missing that element of including the people that are actually tasked, or appoint themselves, as the first responders to the waste.
Mitch Ratcliffe 33:27
There’s a bigger idea in everything we’re talking about, and that’s that the people already doing this work should be built into a new system rather than replaced by it. Absolutely. How do you think about reclaimers as the foundation for the real circular economy? And this kind of goes back to the question I was asking about the threat that ministers might feel. They also represent, as they organize and become more prosperous, a new voting bloc — or is that exactly the voting bloc that people should be thinking about cultivating, because it represents the future of our economy?
Sifiso Gumbi 33:57
Mitch, there’s already more than 100,000 reclaimers — I could say half a million, just a ballpark figure — here in South Africa. South Africa has a high unemployment rate, especially amongst the youth and women, you know. And already there’s this massive opportunity in waste. There’s a massive opportunity in waste that, if formalized, could really present an opportunity for people to sustain themselves at a massive scale. Right, what does that do for a government? The government can start accumulating data that they can use for their reports whenever they meet at the next COP in Geneva. They can use that data to say, okay, we have empowered X amount of people, and they are collecting X amount of waste, and as far as our carbon objectives and our climate action objectives are concerned, this is where we are, and this is where we’re going. But currently, right now, it’s a top-down approach where people are just making estimations at the top. There isn’t any real work that is being done to support those on the ground who are actually doing the real work, you know.
So, it’s an opportunity for the ministers, it’s an opportunity for the business people, it’s an opportunity for everyone. I think there isn’t any threat. If anything, there’s a big opportunity — there’s a really positive story, you know, to be achieved from all this, and South Africa has an opportunity to become the leading country as far as that is concerned. And that can be used as a blueprint, you know, to get all the other developing countries within Africa to also steer their climate objectives, their carbon objectives, and also, you know, deal with their high unemployment rate. You know, it gives us an opportunity also to explore other technologies and explore what other recyclable material we can get — you know, what can we do with carbon waste, what can we do with this, what can we do with that. But all it needs is just a little bit of support for those on the ground, you know, understanding the foundation, you know, of those dynamics, and then from there, a lot will be achieved, Mitch, I promise.
Mitch Ratcliffe 36:05
I am really struck, particularly, by the opportunity for youth and women to build the foundation for economic progress. We’ve had Georgie Badiel, the model, on several times, and she has run a program in Burkina Faso through the Georgie Badiel Foundation where women are trained to build local solar-powered water wells. But Georgie’s point is that once they have that income, that ability, and those skills, which they can sell in other contexts — so, you know, people in town need something fixed, now these women know how to do it — that drives local economies and women’s services, hairdressers, things like that. So you actually start laddering up the local opportunity. How do you see reclaiming as potentially a path out of poverty for a young person or a woman?
Sifiso Gumbi 36:50
Look, it was a path out of poverty for me, because I started in high school, Mitch. I was able to buy myself sneakers every now and then, you know, all due to the fact that I was, you know, I would say, ambitious enough to see that, okay, I could make a bit of money from collecting scrap metal, you know — and I bought my first smartphone from that. So, there’s a real opportunity for families to feed themselves. There’s a real opportunity for even varsity students to, you know, be able to support themselves while going through varsity. There’s an opportunity for one to even establish a career in this thing, because, you know, I’m here, you know, getting interviewed by you today because I walked the journey, you know. I established a career for myself within it, so you can even grow within recycling, because, you know, it’s not just recycling — there’s a broader activity even beyond that.
Mitch Ratcliffe 37:46
The economy extends into that population, the population contributes back to the economy. It’s a virtuous circle.
Sifiso Gumbi 37:53
Absolutely. It’s really an opportunity that is so untapped, and it’s just waiting for everyone to come to the party.
Mitch Ratcliffe 38:06
Sifiso, when you’re standing in front of an audience, like when you presented at TEDx, what do you want people to take away? What’s the most important point that you would like them to understand about the opportunity that we’re talking about?
Sifiso Gumbi 38:18
What I really try and perhaps galvanize people around is to start caring about how we — or how you, as the public — affect the environment that we live in. You know, we live in a world where everyone is concerned about the materialistic value of everything. No one is really concerned about the material once they’ve had their way with it, or once they’ve used it, you know — out of sight, out of mind. You buy the bar of chocolate today, open it up, eat it, you throw away the wrapper. What memory do you keep? How sweet the chocolate was, how delicious it was. But no one ever pays any attention to what happens to the wrapper, because once you’ve put it in the bin, it’s out of sight, out of mind. Right now, there is a group of people that are actually concerned with what happens to that wrapper — that chocolate wrapper that you toss in the bin — because that wrapper is their livelihood. That’s their salary, that’s their bread.
What I want people to see is that those people are not vagrants, those people are not animals — those people are actually essential. I always equate their value to that of bees, because without bees there’s no pollination, without pollination there’s no plants, and with no plants, we all die. Without waste pickers there’s no recycling — yeah, in South Africa, you know, it’s a fact. Without waste pickers there’s no recycling, and without recycling, then all the landfills would have been filled up by now. Joburg is running out of landfill space. Gauteng, as a whole, is running out of landfill space. South Africa, as a whole, is in trouble, you know, with landfill space, and the only people that are delaying the crisis are waste pickers. So, what I always try and get people to see is that, hey, those people matter.
Mitch Ratcliffe 40:13
Dignity for a set of critical workers whose work is not currently recognized, but such an important mission. What’s next for Urban Surfer, and how can people find out more about the program and support the work?
Sifiso Gumbi 40:27
We are trying to get as much support to replicate, you know, the model nationally. We want to touch as many lives as we can, we want to support as many reclaimers as we can, equip as many reclaimers as we can. So, as far as the mission goes, what we’re largely focused on right now is just expanding nationally within the next few years, and perhaps, you know, throughout Africa, to also start supporting the other reclaimers, even outside of our borders.
Mitch Ratcliffe 40:59
Can people simply send financial support to help you accelerate the project?
Sifiso Gumbi 41:04
You know, that is actually something we’ve never thought about, like GoFundMe. We’ve never had, like, a donation wallet. We always, like — maybe whenever we find a project, we identify a group of reclaimers that need to be supported. What we would do then is we draft the proposal, and then we’d approach maybe corporate SA, or perhaps government, or perhaps public benefit organizations, or PBOs, or NPOs to say, hey, can you come in and support us? We’ve never really thought about how we can perhaps get the public involved as far as donating to the cause, you know. So, maybe that’s something worth considering.
Mitch Ratcliffe 41:39
I certainly think your site is packed with insight that people would be happy to support, and so I encourage you to think about that. But Sifiso, this has been an absolutely inspiring conversation. I thank you for your time.
Sifiso Gumbi 41:52
Thank you for providing the platform, Mitch, and for helping us, you know, crystallize, you know, the message and get it out there to the masses. I really appreciate the time and the opportunity. Thank you, Mitch.
Mitch Ratcliffe 42:11
Welcome back to Sustainability In Your Ear. You’ve been listening to my conversation with Sifiso Gumbi. He is the founder of Urban Surfer South Africa, the Johannesburg-based social enterprise that equips, organizes, and advocates for the informal waste reclaimers who recover most of that country’s recyclable material. And you can learn more about Sifiso’s work at urbansurfer.co.za. It’s a great site — check it out. There’s a lot of fascinating stories.
Let’s start with the fact that reframes our perspective on recycling, because we look at this from an advanced recycling — even though it needs a lot of work — perspective here in the United States. Between 80% and 90% of South Africa’s post-consumer plastic and paper that actually gets recycled is recovered by informal waste pickers, and that’s according to the Council for Scientific and Industrial Research. Sifiso put it plainly: the municipal system collects waste simply to dispose of it, and reclaimers collect it for the value, and that value is passed on to the rest of society in the form of materials that stay in circulation. The country has a recycling rate at all because more than 100,000 people decided, one trolley at a time, that other people’s bins were their livelihood. Now, it’s not a glamorous job, but neither was recycling when it started in the United States, and frankly, it probably isn’t considered that glamorous by most people today. South Africa’s system was self-organized over 30 years while the government ignored the issue, and Sifiso’s 15 years inside it began at age 19, when scrap metal collected after school bought him his first smartphone.
Material recovery is driven by incentives, and the proof is lying on the ground — or rather, it isn’t, as Sifiso said. Aluminum cans fetch 28 to 30 rand per kilogram in South Africa right now, and reclaimers collect them so thoroughly that he says finding one on the street is as rare as finding a $1 bill on the sidewalk. Materials with weak incentives pile up in landfills, and Johannesburg and Gauteng are running out of space. The lesson is simple: if you’re a company that doesn’t want to bury its customers in waste, when you’re designing your packaging to be recovered, ask the waste pickers what they’ll bend down for, and what picking it up must pay for them to be attracted to do so. They are the R&D department that nobody consults. And meanwhile, brands chase certifications without constructing the reverse logistics infrastructure that makes a recyclability claim legitimate. There’s so many things labeled as recyclable, but you have to have a system nearby you in order for it to be collected and processed. As extended producer responsibility programs expand, the incentive structures at the street level will determine whether those policies result in more material recovery or just more paperwork.
Next, let’s talk about that data layer that Sifiso talked about. Urban Surfer fitted GPS trackers to its trolleys, and they log every kilogram by material type and price across all of its recycling hubs. Sifiso built that infrastructure before carbon credits and plastic credits arrived on the market, and that means when those instruments mature, reclaimers hold verified, real-time records of work that they’ve already performed. As he said, we can have a recycling system with no greenwashing, based on actual transparent data that everybody could see. That’s the same verification standard that my recent guest, Martin Johnston of EarthRating.ai, argued that sustainability reporting lacks, and here it’s being built from the ground up by the people with the most to gain from that information being believed. The unit-level vision could go even further. A beverage company today can report kilograms recovered — it’s referred to generally as mass balance reporting — but it can’t tell you how many of its own bottles, or which bottles, actually came back. Reclaimers scanning what they collect as they collect it could close that reporting gap, but they need to be paid for that data, and it’s not expensive.
And the last and most important idea is that dignity is a design requirement, not a slogan, when building a circular economy.
Mitch Ratcliffe 46:12
Urban Surfer trolleys carry personalized number plates with each reclaimer’s nickname, so a neighborhood comes to know them as workers rather than strangers to fear. And the hard limits that Sifiso points out are trust and scale. Integration of last-mile services — or, in the circular context, the first mile of that return journey that packaging takes — requires a reconciliation of the public, policymakers, and recycling workers, and it’s time to unlock these opportunities to collect and keep materials in use, as well as pay a fair rate, to keep our world cleaner than it currently is. A circular economy can be built on the people who already live it, and that’s the argument that Urban Surfer makes with data, trolleys, and baling machines. So, we’ll be watching whether that model can be replicated nationally and across Africa, and whether EPR rebates and plastic credits actually reach the hands doing the collecting. Stay tuned.
If this conversation changed how you’ll think the next time that you toss a wrapper, share it with someone else who needs to meet the people on the other side of the bin. And you can help the show, too, with a rating or review on Apple Podcasts or any of the podcast host sites. You folks are the amplifiers who spread more ideas to create less waste, and our archive of more than 550 episodes is waiting on Apple Podcasts, Spotify, iHeartRadio, Audible, or whatever purveyor of podcast goodness you prefer. Thanks for your support. We really appreciate you helping spread the word.
I’m Mitch Ratcliffe. This is Sustainability In Your Ear, and we will be back with another innovator interview soon. In the meantime, folks, take care of yourself, take care of one another, and let’s all take care of this beautiful planet of ours. Have a green day.
The post Sustainability In Your Ear: Urban Surfer’s Sifiso Gumbi on Organizing South Africa’s Recycling System appeared first on Earth911.
https://earth911.com/podcast/sustainability-in-your-ear-urban-surfers-sifiso-gumbi-on-organizing-south-africas-recycling-system/
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Earth911 Inspiration: What Kind of Difference Will You Make?
The late, renowned scientist and conservationist Jane Goodall reminds us that we all have an impact on the world, but it’s up to us to choose if our impact is positive or negative. Goodall said, “What you do makes a difference, and you have to decide what kind of difference you want to make.” Let’s cooperate for the health of our planet and those who call Earth home.
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Best of Sustainability In Your Ear: Luke Purdy, Wieden+Kennedy’s Director of Sustainability, on Advertising’s Power To Change
Subscribe to receive transcripts by email. Read along with this episode.
Can the industry that taught the world to consume help us learn to consume more responsibly? Luke Purdy, Director of Sustainability at one of the world’s leading creative agencies, Wieden+Kennedy, is betting his career on it. After 13 years working on major accounts like Nike and Corona at one of the world’s most influential creative agencies, Purdy did something unusual: he wrote his own job description and asked to become the agency’s first sustainability director. Wieden+Kennedy gave him the job, and in 2023, the agency became the first global advertising network to achieve B Corp certification across all nine offices in seven countries. With brands spending over $700 billion annually on advertising worldwide, the messages agencies craft shape not just what people buy, but how they think about consumption itself.

Luke discusses how he sold sustainability as a business value proposition rather than a compliance issue, why he reports to the CFO instead of the CMO, and how Wieden+Kennedy’s carbon removal program for video productions is changing industry standards. He also tackles thorny questions about greenwashing that can guide which clients agencies should work with, arguing that guiding any company toward sustainability is better than refusing to engage. He shares lessons from helping transform Danish Oil and Natural Gas into Ørsted, one of the world’s leading renewable energy companies, and explains why authentic storytelling beats green leaves and clichés every time. Can advertising agencies avoid greenwashing while still growing their clients’ businesses? And what does it mean when sustainability becomes culture rather than just compliance?
You can learn more about Wieden+Kennedy’s sustainability work at wk.com.
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Editor’s Note: This episode originally aired on November 10, 2025.
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