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From policy evaluation to on-ground implementation, we build inclusive EPR systems that create value at every level of the supply chain.
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The Problem
Building Inclusive EPR Infrastructure in the Philippines
A Bottom-Up Model That Works for Everyone Turning Regulatory Requirements Into Community Economic Opportunity
In January 2022, the Philippines launched one of Southeast Asia's most ambitious Extended Producer Responsibility (EPR) laws. The message to corporations was clear: if you put plastic packaging into the market, you're responsible for recovering and recycling it. But there was a critical problem.
The law created compliance obligations for hundreds of companies—but the infrastructure to actually collect, process, and recycle that plastic simply didn't exist. Collection systems were fragmented. Processing facilities were scattered and inconsistent. And the informal waste workers who already collected most of the country's recyclables operated outside formal systems, invisible to corporate compliance officers.
Companies faced regulatory requirements with no clear pathway to meet them. Communities needed waste management solutions. And informal collectors—the backbone of the Philippines' existing recycling system—risked being bypassed entirely as corporations scrambled to build compliance infrastructure.
We saw an opportunity to solve all three problems at once.
The Challenge: Building Infrastructure That Didn't Exist The Philippines' EPR law required companies to recover specific percentages of the plastic packaging they produced: -20% in Year 1 (2023) -Increasing annually to higher targets
But the country lacked: -Organized collection systems connecting households to processors -Quality sorting infrastructure to separate materials by type and grade -Processing capacity to handle increased recovery volumes -Verified tracking systems to prove materials were actually recovered and recycled -Integration pathways for the informal collectors already doing the work
Companies couldn't comply while driving impact even if they wanted to. The infrastructure simply wasn't there.
The Solution
Why Bottom-Up Infrastructure Matters Since 2016, Evergreen Labs has been building circular economy systems across Southeast Asia—not by designing from the top down, but by starting with the people already doing the work. We've supported 10,738 informal waste collectors, built 187 inclusive supply chains, and processed thousands of tons of plastic through community-based systems.
We know that sustainable waste infrastructure requires: -Economic benefit at every level (not just corporate compliance) -Integration of existing systems (not replacement that destroys livelihoods) -Local government partnership (not bypass that undermines public systems) -Fair compensation (not exploitation dressed as opportunity)
When the EPR law passed, we were uniquely positioned to build infrastructure that actually worked—because we understood the realities on the ground, not just the requirements on paper.
Our Approach: Every Actor Benefits Rather than building parallel systems that competed with existing informal collection, we designed inclusive supply chains where value flows to everyone:
For Community Collectors: -Fair wages that exceed what they earned selling to traditional scrap dealers (31.67% average income increase) -Safety equipment including gloves, protective gear, and first-aid kits (253 PPE kits distributed) -Training programs on material sorting, quality standards, and safe handling (7 capacity-building events) -Stable income through consistent purchasing relationships rather than volatile scrap markets -Formal recognition as essential workers in the circular economy system
For Local Government Units: -Waste management infrastructure at no cost to municipal budgets -Collection systems that reduce landfill volumes and environmental contamination -Job creation in their communities through collector employment -Partnership models that align with local development goals -Data and reporting that demonstrates environmental progress
For Processors and Recyclers: -Consistent material flows rather than unpredictable scrap supply -Quality-sorted feedstock meeting specifications for recycling -Verified chain of custody for corporate compliance requirements -Market access to EPR credit systems and corporate buyers -Technical support for quality improvement and capacity building
For Companies: -Verified EPR compliance through documented recovery and recycling -Transparent tracking from collection through final processing -Positive social impact that enhances brand reputation -Partnership model that creates community value alongside compliance -Scalable infrastructure that grows with increasing regulatory targets
This wasn't charity. This was building economic systems where doing the right thing is also the profitable thing.
Building the System: How It Actually Works We didn't just design inclusive supply chains—we built and operated them, learning what works through real-world implementation.
Phase 1: Community Engagement and Recruitment -Identify existing informal collectors through community mapping -Establish transparent pricing and payment terms -Provide safety equipment and initial training -Build trust through consistent, fair transactions
Phase 2: Collection and Sorting Infrastructure -Establish neighborhood collection points with proper storage -Implement quality sorting protocols for different plastic types -Create aggregation systems that consolidate small volumes into commercial quantities -Develop digital tracking for material flows and collector payments
Phase 3: Processing Partnerships -Connect to verified processors and recyclers who meet quality standards -Establish chain of custody documentation for EPR credit generation -Implement quality control systems ensuring materials meet recycling specifications -Create feedback loops where processors communicate quality requirements to collectors
Phase 4: Corporate Integration -Generate verified EPR credits based on actual materials recovered and processed -Provide transparent reporting that meets regulatory requirements -Facilitate corporate partnerships with collection communities -Scale infrastructure as recovery targets increase
The Impact
What We Built: Results That Matter
Economic Impact: -₱6.9M income generated for communities through plastic collection (2024) -187 inclusive supply chains established creating stable employment
Environmental Impact: -9,025 plastic credits generated for corporate compliance -Thousands of tons diverted from landfills and environmental contamination -Verified recovery and recycling meeting regulatory standards -Reduced pollution in communities through organized collection
Infrastructure Development: -187 supply chains operational across collection, sorting, and processing -Digital tracking systems ensuring transparency and accountability
But the numbers don't capture everything. They don't show: the collector who could send her daughter to high school because of stable income; the local government official who finally had waste infrastructure that worked; the processor who could expand operations with reliable feedstock; the company that met compliance while creating community value. That's the real impact.
What We Learned: The Challenges of Building Inclusive Systems We want to be honest about what didn't come easily.
Challenge 1: Trust Building Takes Time Informal collectors have been exploited by middlemen for decades. They were skeptical of new partnerships promising better terms. Building trust required: consistent payments at promised rates; transparent weighing and grading systems; treating collectors as partners, not just suppliers; months of relationship building before scale could grow.
Challenge 2: Quality Standards Require Training Corporate compliance requires materials meeting specific quality standards. Collectors accustomed to bulk scrap sales needed training on: sorting by plastic type (PET, HDPE, PP, etc.); removing contamination and non-recyclable materials; meeting cleanliness standards for processing; understanding why quality matters for their income.
Challenge 3: Logistics Are Complex at Scale Aggregating small volumes from many collectors into commercial quantities requires: strategic location of collection points; efficient transportation routes; storage infrastructure preventing contamination; coordination systems managing hundreds of collector relationships.
Challenge 4: Regulatory Navigation Is Ongoing EPR regulations continue evolving. Staying compliant requires: regular monitoring of policy updates; adapting systems to new requirements; maintaining documentation standards; engaging in multi-stakeholder policy dialogues.
What This Work Represents Building inclusive EPR infrastructure exemplifies Evergreen Labs' approach to systems change: Bottom-up beats top-down; economic inclusion drives sustainability; compliance can create value; infrastructure requires investment; partnership multiplies impact.
Looking Ahead: Scaling Inclusive Infrastructure The EPR law is just beginning. Recovery targets increase annually, requiring infrastructure to scale accordingly — expanding geographic coverage, deepening collector support, strengthening data systems, and influencing policy evolution.
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