In this presentation, Johnson & Johnson’s Paulette Frank shares her experiences with Project Phoenix, a Brazilian waste co-operative, through which J&J is producing needed post-consumer recycled (PCR) materials for certain products while nurturing the local economy. Through Project Phoenix, Frank reports that quality of life is improving for co-op workers and they now have a waiting list to join, while Johnson & Johnson has a reliable source for PCR in Brazil.

1. The New World of Shared Value:
Mapping the Benefits of Project Phoenix
Paulette Frank
VP of Sustainability
Johnson & Johnson

3. Project Phoenix
Waste co-operatives, sustainability and shared value

4. …can the co-op become more
productive causing less waste to go to
landfills and reducing reliance on
virgin materials?
…can conditions for impoverished
workers who collect and process
recyclable materials be improved and
create a sense of pride and purpose?
…can the co-op become a reliable
supplier, grow its business, and increase
its income?
The Question
3
Can a waste co-operative in Brazil become a
sustainable business enterprise?
Environmental Social Economic

5. Recycling in emerging
economies

6. Scavenging Poverty Growing Problem
The World Bank estimates 1-2% of
the urban population in developing
economies are involved in waste
“picking” or scavenging.
Illiteracy, alcohol/drug abuse and poor
health conditions are common in the
waste scavenger’s culture.
It has been estimated that a 1%
increase in national income creates a
0.69% increase in the amount of
municipal solid waste.
The Context
5
Of course recycling is a good thing, right?

7. Catadores Cooperatives
The Context
6
In Brazil, waste pickers have organized
into cooperatives
Inclusive
…presenting us with an opportunity

8. …and a vision to create a package with 30% post consumer
recycled material sourced in a more sustainable way
Project Phoenix
A Cooperative called Futura and a Band-Aid Box
®

9. …to point “B”
Project Phoenix
Getting from point “A”…

10. SA8000 provided the “what”
Project Phoenix
9
global standard for
fair and better
working conditions

11. … and a focal point for the “how”
Project Phoenix
10
On Boarding
Create
Understanding
& Commitment
Activation
Start Supplier
Development
Pre-
Certification
Transform The
Recyclables Supply
Chain
Certification
Demonstrate
Sustainable
Supply
Continuation
Assure Business
Continuity
Step 1 Step 2 Step 3 Step 4 Step 5

12. Lesson learned: It takes a village
Project Phoenix
11
Who? How?
Implementing Companies
Understand motives, realities and
efforts that will be required for
transformation
Packaging Suppliers
Assure willingness to procure and
participate
Cooperatives Test readiness
Leadership Make clear change required
Employees Explain why it will be better
Phoenix Facilitators
You’ll need local, capable and
competent help
SA 8000 Certifiers Explain the uniqueness
Waste Generators Enlist their help
NGOs
NGOs created cooperatives, tap
into their experience

13. Lesson learned: 3 baby steps = 1 Giant Leap
Project Phoenix
12
1. Child Labor
2. Forced Labor
4. Freedom of Association &
Right to Collective Bargaining
3. Workplace Safety
5. Discrimination
6. Discipline
8. Remuneration
7. Working Hours
9. Management Systems
Certification At Tier 3: Management
System - Verify Consistent Conformance,
Conduct Management Reviews, and
Implement Necessary Corrective Actions -
Achieve External Verification via a formal
SA 8000 Audit
3
Certification At Tier 2: Daily Practices - Implement
Processes and Daily Practices that Conform to SA 8000
Requirements
2
Certification At Tier 1: The Basics - Understand and Document
Requirements, Including Legal Requirements, International Conventions,
and Industry Standards
1

14. Lesson learned: The certificate matters
Project Phoenix
13

15. Materials
…a second life …a better life
Lives Business
…a new source
of value
Project Phoenix
14
Today, Futura is a sustainable business
enterprise…

16. Project Phoenix
15
…and lives have been transformed
Nós Reciclamos e o meio
ambiente agradence
“We recycle and the earth
appreciates it”
…no longer scavengers,
but citizens doing valuable
work for the community
and the planet

17. 16

18. Project Phoenix
17
There are hundreds of co-operatives in Brazil

19. Project Phoenix
18
Many companies are making a difference

20. Project Phoenix
19
What if…

21. 20

22. Obrigado