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TerraCycle Creates a Cycle of Hope for the Environment
Many organizations are facing numerous challenges in shifting the methods and ideals used in the production of vast materials in order to create more ecologically friendly products without sacrificing standards. Is it truly realistic for a company to obtain a positive ecological, financial and social impact on society and survive in the business arena? TerraCycle is proving to the world that there is a way by taking advantage of a consumer population that spends close to $40 billion annually on lawns and gardens. By pioneering the research and development of organic gardening products, the company promotes ecologically conscious methods for superior health and growth of vegetation, while creating marketing and educational opportunities for local communities.
Primary Sources
TerraCycle -written by Doug Blank, Angela Galati, Zachary Gryzlo, Jessica Kardos, Allison Mole, Sara Pellissier, and Shannon Sopko
Two Princeton students, who were determined to change the way in which businesses are run, created a new innovation that encompasses all aspects of an environmentally friendly product. One of them, Tom Szaky, then founded TerraCycle in 2001 by creating a complete cyclical method of production then constructing a final product that is produced by waste and packaged in waste. Their innovation was a great financial success. TerraCycle has created a market by providing a superior product, beneficial to all plant life, while bypassing chemical treatments. TerraCycle is the "first mass produced consumer product" that has a "negative environmental footprint".
Reports currently indicate that problems associated with chemical treatments are becoming abundant, thus farmers and other environmental groups are turning towards other options. Rich Terwoord, a local landscaper we interviewed, said he thinks that chemical fertilizers should no longer be used. He believes that the harm they do to the soils, the ground water, and the environment are not worth the money saved, and because of his beliefs he now only uses organic fertilizers for growing plants and vegetables. He also said that he feels that the use of organics will explode in the next 10 years. The USDA projects that organic food sales are growing at an annual rate of 20% a year and are expected to reach $20 billion by 2005 . TerraCycle has captured the market by tapping into this continually growing trend and proving their ability to produce an economically sustainable product that is safe to all types of life.
The process that is used to create the plant food is called "terracycling" and takes advantage of the natural excretion functions of the earthworm. In collaboration with the California Waste Management Board and the New Jersey Department of Environmental Protection, along with numerous schools and organizations, organic waste products are collected and fed to earthworms. Then through the collection of earthworm waste, a product called "Earth Plant Fuel" is created. The process is not only environmentally friendly but is beneficial as well. It allows for the fertilization of plants without using the harsh chemicals that can potentially harm and inhibit growth. It is also non-toxic and safe to use on indoor plants. Jim Romano, owner of Romano and Sons Nursery said, "Some people are willing to pay a slightly higher price for an organic product like this, as opposed to something like Miracle Grow. In fact, I encourage them to use it on indoor plants as well because it is non-hazardous to children or animals."
Despite the relatively high cost of production at TerraCycle, the company is financially profitable due to its unique manner of obtaining raw materials. TerraCycle's product is sold in used soda bottles, collected by elementary school children who are paid a half-cent per bottle, and the nozzles used are supplied from various companies' surplus. Additionally, the fertilizer is shipped to distributors in misprinted boxes that would otherwise be discarded. While value is gained by this environmentally conscious philosophy, the reduced cost of these materials is likely offset by several logistical complications that come with obtaining materials from so many different suppliers in such an unconventional manner. However, TerraCycle truly benefits financially through its method of procuring organic waste, its major raw material. TerraCycle collects organic waste from schools and other institutions that traditionally pay for these materials to be placed in landfills with other rubbish.
"We get paid for it, so it's a negative raw-material cost," Szaky said. Szaky, an innovator, began with the idea of a product made completely out of waste and has brought novelty, imagination, and originality to life in the gardening world.
TerraCycle's plant fuel products have a positive impact on the world by reducing the amount of waste that is deposited into the earth and by creating more oxygen for the environment. The process that TerraCycle uses is a continual cycle throughout many parts of our ecosystem. The process takes the waste from school cafeterias and uses it as food for worms, and then the worms digest the food and create their own waste that is turned into plant fuel. After it is created, the plant fuel is then used as food for plants, which in turn helps them to grow and complete the photosynthesis process, generating more oxygen for the environment. The newly created oxygen is then taken in by humans who create more food waste in school cafeterias, starting the cycle all over again. The positive impacts also are seen at the social level by making companies aware of the environmental advantages of organic fertilizer and the possibilities that new technologies can create.
In addition to developing the new plant fuel innovation, TerraCycle has had a tremendous social impact on the local communities by working with elementary schools. Not only has TerraCycle created a School-Wide Recycling Event, it has also teamed with Isle, a non-profit group that is nationally recognized for its community development and environmental organization programs. Together, they collaborate on many projects including urban community gardens and the development of a new TerraCycle facility in an inner-city area.
Also, most of the people who work at TerraCycle are students. They devote their summer to TerraCycle, where they volunteer to help run the company and, in turn, learn business skills first hand. The executives of TerraCycle have proven their commitment to their student employees by purchasing a house that acts as a dormitory for the students during their internship. The house is located in the inner city, but gives the students a place to live while they help TerraCycle has changed the way business is traditionally done.
Along with these projects, the company also encourages local community organizations, such as churches and schools, to become involved in the TerraCycle Recycling Drive Fundraiser. The program involves learning, seeing, and doing. TerraCycle provides lesson plans educating participants on environmentally focused alternatives. Upon completion of the lesson plans, participants are then invited to tour an actual TerraCycle facility. Finally, TerraCycle gives the all materials to the participants that are needed in order to start their own Recycle Drive Fundraiser in order for the participants to receive additional funds for school programs and supplies. In addition, TerraCycle offers a mural contest to those that participate. Each year, four murals are selected and serve as the background for the product.
All of the employees at TerraCycle, whether they are students or executives, have a passion to create a deep change in society. The culture at the company is "fantastic" according to Szaky. Everyone pulls together for a greater purpose, creating a wonderful working environment that helps create and support a successful product.
Overall, TerraCycle has developed a golden innovation that has proven to be positive for the environment while making a profit. They have also shown their commitment to the global community by being actively involved in educating and motivating consumers in their own local communities. They stand by their mission of positively impacting local communities through environmental and social action. Through these activities TerraCycle is creating a purpose that creates awareness throughout society and promotes the development of more environmentally conscious acts. As Tom Szaky put it in our interview with him, "We are creating an example for other companies to follow".
Further Reading
http://www.terracycle.org/about.php
Ref: Tarbous, Ken. Courier-News. "Students worming way into fertilizer." September 22, 2004.
Ref: Mclaughlin, Kevin. Public Partners. "TerraCycle Brings Environmental Action and Fundraiser to Trenton Public Schools." December 22, 2003.
Acknowledgements
Writer: Doug Blank, Angela Galati, Zachary Gryzlo, Jessica Kardos, Allison Mole, Sara Pellissier, and Shannon Sopko
© 2005 World Benefit Productions, All Rights Reserved
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