These Four Enterprises in the NESsT - IKEA Social Entrepreneurship Latin America Accelerator Are Proving the Value of Eco-Empowerment.
Key Takeaways
In Latin America, at least 430,000 tons of waste is produced daily, yet only two percent of total waste is recycled.
Four social enterprises in the NESsT - IKEA Social Entrepreneurship Latin America Accelerator are reshaping unsustainable production and waste management patterns across Latin America.
A circular economy model that reduces waste allows the region to preserve its biodiversity by offering opportunities to create regenerative value from its abundant natural resources.
In a circular economy, product and material life cycles are extended for as long as possible through efficient reuse, repair, and recycle.
Different from the take-make-waste linear model in which used products are quickly discarded, the circular approach reduces waste and pollution and fosters sustainable, long-term economic growth while preventing natural resource depletion and protecting the environment. Recycling systems turn one company’s waste into another company’s raw material, closing loops of waste and energy which drives productivity and generates new employment opportunities.
Leading the transition towards a sustainable circular economy in Latin America are four social enterprises supported by the NESsT - IKEA Social Entrepreneurship Latin America Accelerator. These companies are reshaping unsustainable production and waste management patterns across the region, optimizing the Earth system and thereby benefiting all levels of its organization, from individuals to biological communities. This form of ecological empowerment will strengthen our environment and pave the way for a resilient future.
These four social enterprises are part of the 15 social enterprises receiving tailor-made support from the NESsT and IKEA networks so that the businesses can scale. The accelerator is focused on unlocking the next level of creativity and implementation when it comes to the areas of product development, logistics and operations, marketing & communications, business development and marketplace access, and last but not least, employment inclusion for all who need it most.
Bendito Residuo collects trash from Chilean companies and households and transports sorted waste to corresponding valuation facilities. Through its transparent waste management services and training programs, the social enterprise aims to drive large-scale, cultural change on the ways in which waste is seen and processed. In 2020 alone, Bendito Residuo trained more than 2,000 employees, students, and clients on topics such as organic and inorganic waste, issues of water scarcity, among others.
Bendito Residuo directly employs low-income immigrants who face discrimination and lack of information during the hiring process.
Ecocitex oversees an extensive circular economy production chain that involves anyone with access to clothing in the circular economy. Every week, Ecocitex sources and processes approximately 1 ton of donated textiles and textile waste, converting it into new materials, such as upcycled textile yarn, and transporting them directly to new clients. The social enterprise sells 100% upcycled yarn through more than 250 women-led businesses across Chile.
In addition to providing upcycled yarn for these micro and small women entrepreneurs to sell, the social enterprise trains and employs formerly incarcerated women in its production facility, ensuring access to technical roles that have been historically reserved for men. Ecocitex is beginning to recycle materials into insulation panels, furniture, eco-stuffing, to complement the yarns and new lines of clothing it has developed further expanding its reach and impact.
PesCo. connects seafood lovers directly to artisanal fishing communities in Peru. The social enterprise currently works with 228 artisanal fishers and trains them to meet sustainable seafood regulations enabling them to sell seafood at a premium to environmentally-conscious consumers. Through stores located in key locations of Greater Metropolitan Lima, it makes sustainable seafood easy to purchase from home, at local supermarkets, and in restaurants.
By reducing the number of intermediaries in the supply chain and by ensuring sustainable and traceable seafood to consumers, PesCo. is able to pay artisanal fishers a higher price for their catch resulting in more sustainable livelihoods for their families. In addition to generating income for local artisanal fishing communities, the enterprise will be engaging women in value-add roles so that they can generate their own income in a sustainable manner
Próxima Servicios provides long-term contracts to its employees working in the service outsourcing industry in Chile. By offering employees improved salaries and training opportunities that allow them to seek higher-skilled jobs, the social enterprise prepares sustainable career development opportunities for underpaid workers in the competitive outsourcing industry. This training model ensures long-term job security for employees and helps them rise out of the vicious cycle of poverty.
The social enterprise also drives environmental impact by training its employees on waste management practices. Many of its employees work in industries that have a direct impact on waste reduction such as cleaning, maintenance, and gardening. After taking courses from Próxima Servicios, these workers are able to apply learned recycling techniques to their work.
About NESsT
NESsT invests in social enterprises that create quality jobs for underserved communities while sustaining the planet. NESsT raises philanthropic and impact investing capital to support the poorest communities facing isolation, discrimination, and lack of jobs skills or education. Since its launch, the organization has trained over 21,000 entrepreneurs, supported over 1200 social enterprises and invested in close to 200 that have created over 70,000 quality jobs benefitting 700,000 underserved individuals in emerging market countries.
About IKEA Social Entrepreneurship
IKEA’s vision is to create a better everyday life for as many people as possible. IKEA Social Entrepreneurship began in 2012 to look at how the IKEA brand could include products and services from social entrepreneurs in our offer. More recently IKEA expanded its support to include programmes that accelerate the movement of social entrepreneurship in general. Supporting social enterprises with a vision to create a more inclusive and equal society, our ambition is to have a positive impact on people’s livelihoods. Today, we back and boost social entrepreneurs all over the world, as well as expand the business we do together. That way, we get to be a part of creating new opportunities for vulnerable people and communities – while fighting the root causes of poverty and inequality.