São Paulo, the biggest city of Brazil, generates 20,000 tons of waste on a daily basis and only 5% of the residential buildings have recycling collection by the public service, the rest of it goes to landfills.
How does the social business solve this problem?
Instituto Muda has promoted sustainable practices in buildings through waste management. The company implements the waste management in buildings by training all of its residents and installing proper containers. On a weekly basis, Muda’s trucks collect the waste and donates directly to cooperatives, which are mostly formed by people in poorest conditions. This waste is sold to the private sector and generates income to the cooperated.
How does the social business generate revenue?
The business model is based on two main revenue sources: production and sale of ecological containers and dumps, and waste collection and destination of recyclable materials. This services can be sold to commercial and residential buildings or can be sponsored by a Company, that will pay for the implementation and containers, and the benefited cooperative generates a certificate with the credits of reverse logistics to the sponsor.