Publicación:

Developing a Circular Economy Mindset: The case of Cencosud's Plastic Waste Reduction Strategy in Peru

Resumen

The global retail industry is responsible for massive plastic waste generation entailing environmental pollution. As a result, consumers, civil society organizations, and governments are demanding retailers to reduce or eliminate plastic waste generation. Additionally, environmental regulations are becoming more stringent while the media is exerting additional pressure on the sector too. Retailers are thereby being continuously required to reassess and restructure their entire value chain to identify potential plastic packaging (e.g., bags, bottles) and complementary materials (e.g., roll bags) waste reduction opportunities. Thus, the present case study focuses on Cencosud's plastic waste management strategy in Peru. Peru's plastic generation has shown a significant increase, especially during the COVID-19 pandemic. However, most is sent to landfills or ends up in natural spaces while recycling rates are extremely low. Plastic waste has indisputably become a critical national challenge. In response, single plastics have been banned by law urging businesses to comply. In this context, Cencosud managed to reconfigure its operational systems (i.e., input-transformation-output), adopt new materials, while discontinuing those assessed pollutant or non-compliant. In short, the retailer transitioned from a linear economy-based business model to a circular economy model by forging a new organizational mindset. As such, Cencosud Peru's case stands as an example of a firm undergoing a complex organizational change management process.