Project Installation of Pfandomats in Shopping Networks of Fast Moving Consumer Goods

SE Ukrecoresursy

Main Problems
Negative Health Impact
Polluted Environment Annual Increase of Accumulated solid waste Additional costs of purchase of raw materials
2

Life Expectancy in the world

Unauthorized Garbage Dumps in Ukraine

Chernihiv

Lytsk
Rivne Ternopil Khmelnytsky Ivano-Frankivsk Uzhgorod Chernivtsi Nikolaev 4 Odessa Kherson Simferopol Sevastopol Vinnitsa Cherkasy Kirovogtad Poltava Donetsk Zhitomir

Lviv

Kyiv

Sumy

Kharkiv

Total: 35 401
Lugansk

Kyiv: 6 014 Donetsk Region: 3 946

Dnipropetrovsk Region: 3 101 Poltava Region: 2 175 Ternopil Region: 1 663

Kharkiv Region: 1 654

Annual Landfill Flow

1 200 thousand tons of cardboard and paper
50 tons of recycled paper save 1,5 million hectares of forest

800 thousand tons of plastic

Recycled plastic is used in automotive industry, production of clothes, household appliances, lacquer and varnish industry, etc.

1 100 thousand tons of glass

Using cullet in glass production saves up to 9% of electricity consumption and reduces the content of emissions into the atmosphere.

SE Ukrecoresursy
Our Mission: to ensure national environmental security by reduction of solid waste disposal.

Increased utilization of secondary resources and involvement in economic circulation helps to reduce the negative waste impact on the environment and health of the population
Collection
Sorting and removing resource elements Using secondary raw materials in the process of manufacturing

Separate collection

Alternative fuel

Main Tasks
Ensuring effective functioning of the recycling system of disposable containers and packaging materials ;

Implementation of separate collection of solid waste;

Reduction of landfill waste; Establishment and operation of a system to monitor circulation of packaging and packing materials, and ensuring its utilization; Ensuring cooperation with the European system of packaging management Pro Europe.

About the strategy of Ukrainian Environmental Policy till 2020

According to the Law of Ukraine On General Principles (strategy) of State Environmental Policy of Ukraine before 2020 one of the main objectives is to increase the volume of procurement and disposal of waste as secondary raw materials in 1.5 times by 2020, introducing new technologies of solid waste management.

Resolution of the Cabinet of Ministers of Ukraine # 915

Resolution #915 entrusts the SE Ukrecoresursy execution of the functions concerning development and implementation of the system for collecting, storage and disposal of waste, including domestic and imported disposable containers and packaging materials, as secondary raw materials.

The Ministry of Ecology of Ukraine Initiative

Main tasks of the Ministry are: 1. Waste management state policy formation 2. Realization of the environmental conservation state policy, ecological and within its competence biological and genetic safety, waste treatment

State Enterprise Ukrecoresursy started to implement the pfandomat adoption with the direct initiative of the Ministry of Ecology of Ukraine

10

International Experience

11

Target Groups

Youth (financially dependant on parents)

Geeks (persons interested in new technologies and gadgets) Active middle class and women conscious about environment

Pensioners and vulnerable populations

Small retailers accumulating packaging and packing materials

12

Vending in Recycling
Recycling kiosks or pfandomats are being used in different countries for a long time. This practice is based on exchange of aluminum and plastic bottles for money, discount coupons for food or other goods. The process is easy and straightforward for customers, as the idea comes from the principle of a vending machine, which is popular worldwide among the retailers. Implementation of pfandomats is also based on trade chains and retailing principles. It is a sort of a reverse vending: a customer inserts disposable package and receives some money or its equivalent instead. Implementation of pfandomats are usually subsidized by state.

13

The Largest Manufacturers

Germany : Wincor Nixdorf, Sielaff, Loetec, Trautwein, RTI-Recycling Technology International
Norway: Tomra Systems Repant USA : Envipco Australia: Envirobank

14

Project Content
Pfandomat (from German pfand - a pledge) is a machine exchanging aluminum cans, glass and PET-bottles from the population on cash or checks that can be used in the shop where the machine is located. It consists of two parts: - the top contains a packing recognition device (with scales, scanner, photo-system for containers identification); - the bottom contains a capacity for sorted containers.

15

Recycling kiosks types

16

How Does It Work?

A customer inserts an empty can / bottle into the machine one by one Scanning device is defining the packing type and compares it with the database Calculation of the bonus amount to be received, depending on the weight and packing type Processing of a received unit of disposable packing (press, compaction etc.) Customer service unloads a machine filled up with disposable waste for further processing.

Containers are sorted into 7 different fractions, pressed in bales, collected in 5 cubic meters containers, aluminum cans are pressed in bales.

17

How Does It Work?

Example:

Monthly 1machine collects approximately 32 tons of containers.

For monthly collected containers buyers will receive a discount in SE "Ukrekoresursy" compensates 10.31 thousands.

the amount of 12.89 thousands UAH, provided by the trading center.

container

check

check realization

compensation

18

The General Scheme of the Used Containers Reception System

19

How Do We Benefit?
How to save on purchases? Provide containers to the shop pfandomat Get a discount Buy something right away

50 kop.

4
SE "Ukrekoresursy reimburses to the shop 80 % of the bill another 20% go for pfandomat service

Lots of other stuff

You pay 199 UAH, not 200 UAH and help environment !

Many checks many customers

20

Customers Benefit
The tariffs on received containers will correspond to the market value of the same kind of secondary raw materials (an average price at package collecting centers).
Name of secondary raw materials PET : transparent blue green brown Cullet: transparent other Aluminum cans
Prices for the population (UAH)

2,10 2,00 1,50 1,40 0,15 0,10 1,50

Pfandomat

21

Service Concept
SE Ukrecoresursy covers such expenses:
Electricity costs for the pfandomats functioning Costs of acceptance of used packaging in retail units Remuneration of the staff managing pfandomats Costs of amortization of the equipment Other extra costs of pfandomat functioning Transportation costs of secondary raw materials
22

Retailers Benefits
Financial:
Customers flow increase Sales increase due to spontaneous purchases during the bonus coupon unitization

Brand goodwill :

Company`s value increase Transnational reputation Innovation-oriented company

PR and advertising:

Socially responsible business image Effective information approach Increasing loyalty of local customers Free media campaign and social awareness of the project

Legal:

Following international environmental policy rules

23

ECO - results
Ukraine will reduce annual landfill load of solid waste by 12.1 thousands tones

PET waste reduction by 1.4 thousands tones

Glass waste reduction by 10.1 thousands tones

Aluminum can waste reduction by 0.6 thousands tones

24

Social Impact
Environmental Safety

Creation of new working places and combat with shadow economy

Reduction of solid waste disposal

Reduction of the negative impact on the Ukrainian environment and public health
Increasing the volume of products produced from secondary raw materials. Cleaner Ukrainian cities Development of recycling industry infrastructure
25

Having today

26

May have tomorrow!

27

Thank You!

SE Ukrecoresursy

28