Reciclad’OR, 5 years of performance!

It is the market leader and has set strong targets for the future. What is Reciclad’OR preparing?

An interview with Denise Deleanu, Chief Operating Officer, Reciclad`OR

What is the Reciclad’OR story and what are the principles on which the company’s activity is based?

The success story of Reciclad’OR started 5 years ago when, in November 2017, the company obtained its operating license as an organization that implements extended producer/importer responsibility for placing packaged products on the national market.

As a joint-stock company, with a shareholder base represented by companies with an unquestionable national and international reputation, Reciclad’OR has grown organically in its five years of activity.

We would like to thank the more than 800 companies operating on the Romanian market, manufacturers and importers in various fields of activity, as well as large retail chains, for all the trust they have placed in us.

Since its establishment and to date, Reciclad’OR has taken responsibility for the recycling and recovery of more than 1 million tonnes of packaging placed on the market by our partners, which positions us as the market leader in this field. We estimate a turnover of over 131 million lei for 2022.

Confirmation of Reciclad’OR’s performance and the way we have respected the principles that define us comes not only from the high level of satisfaction of our partners and organic development, but also from the state authorities. Reciclad’OR’s activity is deeply regulated, we are constantly monitored by the control and approval bodies of the Romanian state. They have confirmed, year after year, that in the five years of activity, Reciclad’OR has successfully fulfilled all legal obligations.

Ethics in business is an essential condition for our success.

How was the first semester for the business? What were the company’s achievements this year?

Reciclad’OR’s activity is influenced by three major factors: the sales of partners in terms of the quantities of packaging placed on the national market and the packaging solutions chosen; macro-economic developments in the packaging and packaging waste supply chain; and regulations adopted at national or EU level.

From the perspective of our partners’ sales, 2022 is the year in which we cannot generalise that there have been decreases or increases. The global economic context, reflected in local feedback, was also reflected in the quantities of packaging waste put on the market.

Depending on the field of activity and the products marketed by our partners (manufacturers, importers and retailers) and the impact of global developments on their business, we have recorded significant fluctuations in certain areas manifested by decreases or increases in packaging introduced on the national market. It is clear that the purchasing and consumption pattern of the buyer has undergone a number of transformations in recent times.

As a particularity in the FMCG sector, we have identified in packaging solutions and materials some decreases in PET packaging and increases in glass packaging.

The end-buyer is more cautious than in previous years, which is reflected in the products they buy.

From the beginning, the company has respected the basic principles of business ethics towards its partners: predictability, stability and transparency. Reciclad’OR has absorbed the economic shocks of the market by implementing strategic mechanisms, keeping its tariffs unchanged and its firm commitments to its partners.

Maintaining our position as market leader in this sector in 2022 is an honour for us, but it also implies a responsibility to exceed the expectations of our partners who, year after year, choose to trust the services we provide. In order to meet our recycling targets, we have entered into strong and sustainable partnerships with over 270 waste management operators nationwide.

Another achievement of our company is that we have developed and implemented all the consumer education and information programs that we have foreseen in the Reciclad’OR CSR Plan for 2022.

What services have you offered to clients in the last year and which have been the most “popular”?

Innovation and continuous development of the service portfolio is one of the basic principles of our company. The Action Plan for the Circular Economy, the recent legal regulations adopted at national level through the Emergency Ordinance No. 125/2022 for the amendment and completion of the Government Emergency Ordinance No. 196/2005 on the Environmental Fund, the revision of the EU Waste Framework Directive as well as a number of other collateral regulations will put a lot of pressure on the packaging solutions used. Our whole vision is also connected to the future of packaging solutions.

By providing access to a mix of services and solutions we want to ensure our partners the freedom to choose the most efficient and sustainable packaging solutions, in full compliance with EU requirements that by 2030 all packaging placed on the market should be reusable or recyclable in an economically viable way.

Reciclad`OR has constantly invested in diversifying and increasing the quality of resources and skills in the company. Thus, we have created the premises for the development of the most complete and efficient portfolio of services that an Extended Producer Responsibility Implementing Organisation (EPRMO) can have in Romania.

The creation of new services was based on legislative requirements or unmet customer needs that we identified in our annual surveys.

When we talk about services that address waste management I would mention: technical and legislative consulting in packaging management, specialized collection services, support services for reporting data to the Environmental Fund Administration, thematic workshops (legislation, collection models, recyclability of packaging), specialized training dedicated to employees and held at our partners’ premises and CSR projects customized to the sustainable profile of each company.

When we talk about services related to design for recycling I would mention: eco-design consultancy for packaging, support services in aligning with essential packaging requirements and EU standards.

The most popular service dedicated to our partners was the Circular Economy Training, launched in 2021. The training sessions, attended by hundreds of participants from dozens of companies, were a great success.

In 2022, taking into account recent legislative changes, we launched the worksop for “Developing waste prevention and reduction programmes”. It had all its places filled from the first day of the launch. Another workshop that we are re-launching at the request of partners is the one on joining the Return Guarantee Scheme. I invite you to visit our website for a detailed analysis of the integrated package of services available to partners.

We face a tense economic and geopolitical context. What trends have you identified in your sector and how have they impacted the company?

All countries in Europe and beyond are going through troubled and uncertain times. After the years of the pandemic, a rather difficult period in which many sectors of activity were severely affected, even closed down, just when it seemed that economies were recovering, other challenges have arisen which are totally unpredictable and whose evolution is almost impossible to quantify. Conflicts in certain regions, lack of access to certain raw materials or the impossibility of import-export on certain routes, restrictions imposed on certain markets, but above all rising energy costs and, consequently, higher prices for many other products and services, all have a huge impact on all companies, from the smallest to the most powerful corporations. In this context it is difficult to make a financial and sales forecast in the first place. At the same time, business priorities are put to the test. And managers have to find ways to adapt and adjust their goals and plans almost every day. For the sector we operate in, the biggest challenge is to keep the attention of companies and the general public on environmental issues and the importance of recycling and moving to a circular economy, in a context where most people’s concerns turn to the ability to pay bills, for example. But at the other end of the spectrum, we have also identified companies that pay particular attention to this sector and have well-trained teams that are in constant contact with European legislation. We are pleased that our partners include people who are well grounded in the changes that are about to take place in the Romanian legislation and we have carried out large-scale projects together to prepare for future changes. Our team has the capacity to adapt to the new context and to face the challenges by pursuing the set objectives.

The legislative unpredictability in Romania often leaves room for interpretation, giving a volatile note to this sector. The open dialogue with the state institutions gives us optimism that things will enter a predictable and stable legislative trend.

What are the company’s goals for the end of this year and also for 2023?

The objectives of Reciclad’OR are and will remain, year after year, to achieve the recycling and recovery targets imposed by legislation, to make data transparent and to strengthen the relationship with partners.

Year after year, Reciclad’OR’s objectives have been: successfully meeting legal recycling and recovery targets for all partners; maintaining strong partnerships at national level throughout the supply chain (collectors, sorters, recyclers); developing and implementing consumer education and information programmes and continuous transparency of data flows and financial information.

For the year 2023, we want to stay on the same upward trend, to come closer to more and more of our old and new partners and meet their needs, to continue the process of improving the capacity to purchase and verify packaging waste from authorised collectors and to reach as many people as possible, of all ages, from the general public through information and awareness actions. Most likely, next year will not be an easy year either, economically it is very difficult to predict how things will evolve, but I trust our team to adapt and find the best solutions for each situation.

What projects are you currently working on and what is the company’s business strategy for the coming period?

We have considered the short-term risks 2022-2023 and the long-term risks 2024-2030. One of our objectives is to inform and raise awareness among partners about the legislative changes adopted by the European Union, which also have an impact on Romanian legislation.

In the coming period, the domestic market will face a number of changes that will have a significant financial impact on the business of a manufacturer or importer. I mention a few of them: increased recycling targets, increased tariffs charged by IDAs (Intercommunity Development Associations) and TAUs (Territorial Administrative Units), cascading of the national contribution of 800 euro/tonne for non-recycled plastic quantities to producers/importers, increased costs for hard recyclable (composite) packaging, regulations on packaging used in online trade, special regulations on bioplastics and compostability of materials, change in consumer behaviour (change in purchasing and post-consumer storage patterns), introduction of the guarantee-return system – SGR s.a.

Reciclad’OR’s projects and strategy are primarily aimed at achieving recycling/recovery targets taken over from partners, securing collection, sorting and recycling operations at national level.

We are aware of the financial impact that a series of legislative measures can have on company budgets and in this context we have focused on strengthening the relationship with our partners by creating training and programmes dedicated to each business sector. For the year 2023 we plan to diversify our portfolio of services and the pro-active support provided to them and to implement social responsibility campaigns at national level.

What is the impact of the conflict in Ukraine on the company’s operations?

From an operational perspective, the conflict in Ukraine had a minimal and indirect impact on Reciclad’OR operations. Operating only on the domestic market, the impact of the conflict was indirectly manifested in the way some of our partners managed their supply chain of raw material, packaging or products.

Reciclad’OR has been able to absorb the tremors in the market and provide stability and predictability to its partners regardless of the unforeseen situations that have arisen in recent years and this remains a long-term goal. And we believe that we will continue to excel in this area in the future, no matter how challenging.

What is the reason for optimism in these complicated times?

Perhaps the confidence in the future comes from the past, from all that we have managed to achieve in our five years of activity.

A company can overcome any challenges and bad times much more easily when it has a united and competent team and when the culture of the organisation is aligned with the company’s vision, mission and strategic goals.

When each team member does their job well, collaborates with others and supports each other, when everyone understands and assumes their role in the team and their obligations, then success is bound to follow.

Last but not least, we look to the future with optimism through the confidence that comes from the resources and skills we have developed, the culture of our organisation and the unity of our team.

The results of Reciclad’OR’s five years of activity, which have resulted in the consolidation of its leading position on the market, are due to the commitment, unity and dedication of the team, as well as to the professionalism shown by each employee, regardless of department or hierarchical position.

Source: forbes.ro