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Sustainable Companies Reducing Poverty
Since the 1970s scare, the state of the earth, specifically in regards to climate change, has been a hot topic of conversation in the scientific community. The degradation of farmlands, dangerous weather patterns and the gradual deconstruction of global ecosystems are becoming more apparent. With a growing cause for concern, scientists, corporations and individuals have come to understand that a change must occur.

On the other hand, alleviating global poverty is a pressing issue also. The world could dramatically reduce international poverty with longterm investment and adequate programming. Therefore, it can be challenging to determine where to allocate resources. Despite this conundrum, three companies have proven that resource allocation might not have to be a choice if they become sustainable companies reducing poverty. The Plastic Bank, Chr. Hansen and M-KOPA have dramatically improved the lives of impoverished and/or food insecure individuals while maintaining a corporate focus towards alleviating global sustainability issues.

3 Sustainable Companies Reducing Poverty

  1. Plastic Bank: The Plastic Bank is a Canadian company that started in 2013 with the goal of reducing plastic waste in the ocean. Impoverished and overpopulated areas with little to no waste management systems are primary sources of ocean plastic build-up. The organization works with local residents in Haiti, the Philippines, Indonesia and soon Brazil to mitigate plastic waste by mobilizing locals. It accomplishes this by imploring the citizens to collect and deposit plastic buildup in exchange for credits that they can use to buy necessities such as food, medicine and cleaning products. Not only does this reduce individual waste production, but it improves the lives of those who partake in the exchange and those around them. Plastic Bank has committed itself to the implementation of activities to educate these communities about ecological health and the science of sustainability in addition to trading labor for goods.
  2. Chr. Hansen: Chr. Hansen began in 1873 as a single pharmaceutical factory and has grown into a global force in food production and sustainability. In 2019, Corporate Knights acknowledged the Denmark-based company as the world’s most sustainable company. The organization continues to pursue these sustainability goals through the improvement of natural food longevity agents and reducing dairy waste. Further, the company floods investment into alleviating food insecurity with a primary focus on the second U.N. Sustainable Development goal. To accomplish such a goal, the company works with local agencies and/or other civil society organizations to support local, small-scale dairies in developing countries.  Chr. Hansen also devotes attention to the dairy market in Northern Africa where camels are more common than cows. Through this work, the company is investing in research about processing for preservation to decrease camel milk waste and giving local residents affordable access to these products.
  3. M-KOPA Solar: M-Kopa Solar is a Kenya-based company that has implemented solar power to over 750,000 homes and businesses in the region. Not only does the company provide clean energy, but these highly efficient systems also provide low-cost energy to the user. M-KOPA provides rural and off-grid individuals with the comfort of electricity that would otherwise be fiscally or physically inaccessible. Not only do the consumers benefit from the energy but there is also potential to profit from the sale of that power to others. Providing this energy permits consumers to focus less on how to afford power and gives them autonomy. M-Kopa is one of the few African-based sustainable companies reducing poverty within the residing country. This organization is working to expand its reach further through Kenya and into other regions.

These companies have proven that resource allocation is not a choice. These three sustainable companies reducing poverty have done so through corporate missions and societal impact initiatives.

Kayla Brown
Photo: Unsplash

Plastic BankThere are more microplastics in the ocean than there are stars in the Milky Way galaxy and the majority of this plastic waste comes from areas of extreme poverty, where recycling is simply not an option. Because a garbage truck’s worth of plastic is dumped into the ocean every minute, David Katz and Shaun Frankson were compelled to create the organization known as Plastic Bank. During a TED talk, Katz explains that the solution to this problem is to “turn off the tap,” since ridding the oceans of plastic waste may be futile. Thus, the organization was launched with two goals in mind: stopping the flow of plastic waste into the ocean, while simultaneously alleviating global poverty.

What is the Plastic Bank?

The Vancouver-based Plastic Bank, launched in 2013, is predicated around the idea of turning plastic waste into digital currency in impoverished communities. This gives plastic too much value to be simply dumped into the ocean. The organization touts the mantra, “Plastic is a resource — not waste.”

At numerous locally-run Plastic Bank locations, individuals turn in plastic they have collected from within their communities. In Haiti, more than 40 recycling centers have been established and plastic collectors earn as high as $5 per day in a country where the average citizen lives on $2 a day, according to the World Bank. Since 2015, the first Plastic Bank center opened in Haiti has collected an amount of plastic equivalent to more than 100 million plastic bottles.

The plastic is weighed and assigned a value, which is then deposited into an online account that can be accessed via a smartphone application. According to Frankson, 50 percent of people in Haiti have a smartphone that can run the app and those who do not can use plastic to buy a phone. The app uses blockchain technology on IBM’s LinuxONE servers, meaning that all transactions are tracked and free of any danger involved in a cash-based system, such as robbery or forgery. At Plastic Bank stores, individuals can use their credits to buy necessities such as water, food, sustainable cooking fuel, high-efficiency stoves and even medical insurance, school tuition, solar-powered smartphone charging and Wi-Fi access.

Another innovation is the app’s banking features. Utilizing the same blockchain technology to create a secure “hyper ledger,” users can build credit over time and eventually earn low-interest loans. Before this feature, this was a very uncommon opportunity in countries like Haiti since many citizens do not qualify for bank accounts.

The Advent of Social Plastic

Once the plastic is collected at recycling centers, it is cleaned, crushed into pellets and sold as what the organization calls Social Plastic, or a form of plastic that is more socially responsible. Social Plastic is purchased by companies and multinational corporations such as German Henkel, Shell, IBM and Marks & Spencer and is used directly in the manufacturing of their goods. According to Katz, Social Plastic is a “globally recognized currency“ that “alleviates poverty and cleans the environment at the same time.”

The Future of Plastic Bank

Currently, Plastic Bank is expanding operations to over two dozen countries and developing the app further, including IBM visual recognition technology to help users identify the value of certain plastics, like a barcode scanner in a store. Plastic Bank expects to entice major corporations such as Coca-Cola, PepsiCo and Colgate-Palmolive to join the initiative. Plastic Bank currently operates in the Philippines, Haiti and Indonesia and is projected to have 530 locations by the end of 2019.

Adam Bentz
Photo: Flickr

Plastic For ChangeUsually, the highest rates of plastic waste are correlated with areas highest in poverty. In fact, 80 percent of ocean plastic comes from areas of high poverty. What if there was a way to use plastic for change to clean up the ocean, and in doing so, lift people out of poverty?

Solutions to the Plastic Problem

This is the very motivation behind the Plastic Bank. Founded in 2013 by David Katz and Shaun Frankson, Plastic Bank is a nonprofit that pays people in poverty-stricken areas to pick up ocean trash. The organization pays these individuals a digital income in order to monitor corruption and ensure accuracy. Plastic Bank also throws in benefits including school tuition, cooking oil and more for people in these countries.

So far the organization has completed one major project in the Philippines, employing fishermen for $2.50 an hour (nearly double the average wage in the Philippines) who were able to remove three tons of waste as a result. Plastic Bank is working in Haiti and Indonesia to do projects of the same, or greater, magnitude.

Further Impact of Plastic Bank

Not only is this method far cheaper and more effective than government-run programs, but it is also teaching local communities who are often most directly affected by pollution, the importance of recycling and the proper way to go about it. In many countries like the Philippines or Haiti, survival trumps recycling etiquette, and therefore trash accumulates in the streets and waters. This contaminates the water sources, creating large numbers of people without access to clean drinking water. In Haiti, 75 percent of the population lacks access to this basic necessity.

Plastic Bank is transforming the way plastic is seen. The organization wants to help people realize the value of plastic and how we can use plastic for change. By educating individuals about the uses of plastic, they learn to view it as precious — a kind of currency almost.

Plastic Bank uses the recycled plastic to make what they dub, “social plastic,” plastic that other companies can use knowing they have helped people out of life in extreme poverty. Companies like Dell are using plastic in pellet form to make products such as computers and other electronics.

Going Above and Beyond

Other organizations have headed up similar efforts, including The Bounty Network, which recently completed a clean-up project in the Philippines, specifically in Manila Bay. Working with Filipino locals, the organization cleaned up nearly three tons of trash. Project participants were paid in both cryptocurrency and knowledge — having learned about the importance of caring for the earth.

This new trend of cleaning oceans by empowering disenfranchised people to make a difference is a win-win solution. With a steady income, people in countries like Haiti and the Philippines can overcome poverty, and with clean oceans, they can have safer, healthier environments that could even become good sources of food.

– Hannah Stewart
Photo: Wikimedia

Recycling Plastic Waste
When brainstorming solutions for global poverty, it’s important to consider how we can use existing resources more efficiently. The world wastes far more resources than it needs to, and one major source of waste is plastic. Several entrepreneurs today are recycling plastic waste into productive materials.

According to the Environmental Protection Agency (EPA), out of 32 million tons of plastic waste produced in 2012, only 9 percent was actually recycled. Plastic is pound-for-pound more valuable than steel, and letting so much of it go to waste is a real shame.

Several ideas for utilizing plastic waste to combat poverty have been implemented. For example, the company Plastic Bank pays people to collect plastic waste in exchange for practical items like food and clothing. This strategy removes plastic from areas such as beaches where it poses an environmental threat while simultaneously giving impoverished people a chance to earn things they need.

Plastic is a versatile material that can be used for a myriad of purposes. EcoDomum is a Mexican startup that collects used plastic materials with which to build housing. It takes the company about a week to make a house from recycled plastic materials, and one 430-square-foot unit costs around 5000 pesos (around $280 U.S. dollars) to build. The short amount of time and low cost required to build these houses make them an efficient tool for improving the living conditions of impoverished people.

While companies can utilize recycled plastic waste for large-scale construction jobs like this, it’s also possible to use plastic for small-scale local operations. A group of older women in Tennessee have made it their mission to make beds for the homeless out of discarded plastic bags. The women receive donated bags, cut them into strips and tie those strips into a sort of plastic yarn, which they then use to crochet sleeping mats.

Recycling plastic waste into productive materials positively impacts the environment as well as the world’s poor. It’s an enterprise that can be undertaken anywhere at both community and global levels.

Edmond Kim

Photo: Flickr