Creating a business model with impact to fight plastic
WASTED is a recycling program that gives participants digital credits based on the amount of recyclable materials they drop off at collection hubs. Working with WASTED on a pro bono basis, we utilized our leading experience in loyalty program (loyalty scheme) design, strategy and financial analysis, to develop a business plan for the WASTED program that incorporates an earnings model and growth strategy.
Setting the scene
Plastic waste is sadly becoming one of the defining environmental issues of our time. Pictures of fish filled with microplastics, turtles suffocated by straws, and streets cluttered with single use plastics are constant graphic reminders. Like air pollution, plastic pollution disproportionality affects underserved communities, which lack the resources to cope with this growing problem. As part of our commitment to building community resilience, we took on the challenge of helping WASTED.
What is WASTED?
Founded by CITIES Foundation, a social incubator that works to solve global problems locally, WASTED is a recycling program that gives participants digital credits based on the amount of recyclable materials they drop off at collection hubs. Credits are used for discounts at participating vendors like cafes, yoga studios, and retail apparel stores. The program’s success in Amsterdam’s Noord district generated international interest and opportunities for expansion.
"With PwC's help, we built a business model that is impact oriented AND profit driven, without compromising the mission of WASTED. Building on a successful local experiment, we are creating a company to infuse systemic change, going beyond the traditional 'lean & mean' start-up model."
How we helped
Partnering with WASTED on a pro bono basis, we utilized our leading experience in loyalty program (loyalty scheme) design, strategy and financial analysis, to develop a business plan for the WASTED program that incorporates an earnings model and growth strategy.
PwC began by helping WASTED clarify its strategic objectives. We then worked with WASTED to determine a business model for achieving these objectives and supporting expansion. WASTED ultimately decided it would facilitate the scheme in new cities remotely, relying on digital innovation by providing technological resources for local activations, such as a smartphone app.
Based on this strategy, we worked with WASTED’s management team to advise in creation of its business plan. Our US Actuarial Services and US Consumer Markets Advisory teams combined expertise to draft a financial model that estimates recycling activity over the next five years, and financial results for the WASTED program arising from this activity. We used these estimations and partnered with WASTED management to fine-tune the business strategy and determine a successful operating structure and viable international expansion plan.
Impact
Our support has helped WASTED understand the key drivers of successful expansion of its business and build a plan to achieve this. Within the next year, WASTED is expected to expand to additional cities in The Netherlands, and to the United States in three years. WASTED’s expansion will allow it to have an even greater impact on the growing issue of plastic waste by raising awareness, but more importantly, changing behaviors in order to protect the environment.
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Colm Kelly
Global Corporate Sustainability Leader, PricewaterhouseCoopers International Limited
Global Corporate Sustainability Managing Director, PricewaterhouseCoopers International Limited