Criterion for Installation of Shredding Machines Based on Company’s Turnover: A Strategic Approach.[Environment Protection and Healing Climate Change}{Part 2 of 2}

[YAGAY andSUN]

Proposing the installation of plastic shredding machines in towns based on the turnover of companies — particularly in the FMCG sector — offers a targeted and effective way to address the growing plastic waste crisis in India. This approach aligns the responsibility for environmental management with the financial capacity of companies, ensuring that those who contribute the most to plastic waste are also those taking proactive measures to mitigate it.

Here’s a strategic framework for establishing turnover-based criteria for the installation of shredding machines and why it makes sense:

1. Rationale Behind Turnover-Based Criteria

Financial Capability and Responsibility

• Companies with higher turnovers have more financial resources, making them better positioned to invest in sustainable waste management practices. The greater the turnover, the higher the volume of plastic waste they generate, especially in the FMCG sector where packaging plays a central role.
• Linking the installation of shredding machines to turnover aligns with the polluter pays principle, ensuring that companies contributing to plastic pollution also shoulder the responsibility for managing it.

Proportional Contribution to Plastic Waste

• Larger companies, particularly those with significant market share, produce large quantities of packaging waste. By implementing turnover-based criteria, the system ensures that high-turnover companies contribute proportionally to resolving the issue they help create. Smaller companies, while still accountable, would have more reasonable expectations in terms of their contribution.

2. Criteria for Shredding Machine Installation Based on Turnover

Threshold Levels for Turnover-Based Classification

The threshold for companies to install shredding machines could be segmented according to turnover levels. For example:

1. Tier 1: High Turnover Companies (₹1000 Crores or more annually)
   • Requirement: Installation of shredding machines in at least one major facility in each town where the company operates.
   • Rationale: These companies contribute a significant portion of plastic waste, and they should be the primary players in setting up local recycling infrastructure.
2. Tier 2: Medium Turnover Companies (₹500 Crores to ₹1000 Crores annually)
   • Requirement: These companies should contribute towards the establishment of centralized shredding units within a cluster of towns or cities. Alternatively, they can partner with local municipalities or waste management facilities to fund part of the infrastructure.
   • Rationale: Medium-sized companies still generate considerable waste and have the resources to participate, though on a slightly smaller scale than Tier 1 companies.
3. Tier 3: Small Turnover Companies (Under ₹500 Crores annually)
   • Requirement: Small companies should be encouraged to participate in collective waste management efforts, such as contributing to regional or municipal shredding facilities or recycling cooperatives. These companies could also invest in packaging alternatives or support local initiatives.
   • Rationale: While their direct contribution to plastic waste might be smaller, their involvement in community-based recycling initiatives or collaboration with larger companies should be encouraged.

3. Operational Model Based on Turnover

Company-Driven Initiatives

• Corporate Responsibility: Companies in the higher turnover categories can take the lead by installing shredding machines in their own manufacturing plants or warehouses. These machines can process plastic waste generated at the source before it reaches public spaces or local waste systems.
• Franchise Model: Companies with high turnover could partner with local waste management agencies to fund, set up, and maintain shredding machines, even in areas they don't directly serve. This could be done through Corporate Social Responsibility (CSR) funds or through Extended Producer Responsibility (EPR) programs.

Government Support and Policy Enforcement

• Subsidies or Tax Incentives: The government could offer tax incentives or subsidies to companies that meet the turnover-based criteria for installing shredding machines, thus encouraging participation.
• Mandatory Compliance for High-Turnover Companies: For larger companies, the installation of shredding machines could be mandated by regulations, ensuring that businesses of a certain size adhere to waste management laws. These regulations could be enforced by environmental agencies or under plastic waste management rules.

Tiered Collaboration and Shared Resources

• For smaller companies (Tier 3), collaboration could be encouraged where multiple smaller companies pool resources to fund a shared shredding machine or processing center. This would help them meet sustainability goals without shouldering the full cost individually.

4. Benefits of Turnover-Based Criteria

1. Financial Feasibility

• Larger companies with higher turnover have more resources to invest in waste management systems, including shredding machines, than smaller companies. By linking the requirement to turnover, the burden is shared more equitably, ensuring that those with the financial means to make a significant impact are doing so.
• Economic Scale: Large companies can leverage economies of scale, allowing them to install shredding machines efficiently and at a lower per-unit cost than smaller businesses. The investment made by high-turnover companies can also serve as a model for smaller businesses.

2. Proportional Responsibility

• By linking the installation of shredding machines to turnover, the scale of responsibility corresponds to the size of the company’s operations. This ensures that the companies generating large amounts of plastic waste are held to higher standards, fostering a fairer distribution of responsibility across the sector.

3. Improved Compliance and Oversight

• A turnover-based approach simplifies monitoring and enforcement of plastic waste management regulations. It’s easier to track companies with large turnovers, ensuring they comply with the requirements to install or contribute to shredding machine infrastructure.

4. Increased Impact

• High-turnover companies often have extensive supply chains and large consumer bases. Their involvement in local plastic waste management could have a ripple effect, inspiring smaller players to adopt similar practices or creating an industry-wide culture of sustainability.

5. Regional Impact

• Shredding machines, particularly when installed in high-density areas or towns with large consumer bases, can create a localized solution to plastic waste, reducing the transportation burden and fostering circular economies at the local level.

5. Challenges and Considerations

While turnover-based criteria for shredding machine installation is an effective way to target those responsible for the largest amounts of plastic waste, there are a few challenges to consider:

1. Capacity Building and Training: Both the FMCG sector and local authorities will need to ensure proper training for the operation and maintenance of shredding machines to maximize efficiency and safety.
2. Logistics: Ensuring proper waste collection, segregation, and transportation to shredding facilities will require effective logistical frameworks, especially in less urbanized areas.
3. Cost Sharing Models for Small Companies: Smaller companies may face challenges in contributing to the cost of shredding machines. Encouraging partnerships and joint ventures will be crucial in making this model accessible to smaller players.
4. Monitoring and Enforcement: Strict monitoring mechanisms will need to be in place to ensure that companies comply with turnover-based criteria and make the required investments in waste management infrastructure.

Conclusion

The proposal to install plastic shredder machines in every town of India based on company turnover is a practical and equitable approach to addressing plastic waste, especially from the FMCG sector. This model aligns the responsibility for waste management with the financial capacity of companies, ensuring that those with the highest turnover — and therefore the greatest environmental impact — contribute proportionally to the solution.

By combining regulatory oversight, corporate responsibility, and government incentives, this strategy can help India tackle its plastic waste crisis while promoting a sustainable, circular economy for future generations.