Business philosophy

Recently, a media contact from the United Kingdom reached out to me again regarding an article I published earlier. In that article, I explained why many countries worldwide are reluctant to accept recyclable waste from abroad. Behind this reluctance are very real and reasonable concerns. First, many countries view imported recyclable waste with caution due to its complex, often uncertain composition. Such materials frequently contain mixed or unidentified components and may even include hazardous waste. When these materials are handled in environments with weak or unenforceable regulatory oversight, the consequences can extend far beyond environmental pollution. They may pose Business philosophy Business philosophy Page 2 of 5 long-term risks to human health and, in the worst cases, lead to intergenerational health impacts. Taking Malaysia, Thailand, and Vietnam as examples, these countries generally regard regulating imported plastic waste as highly challenging. Local communities often raise concerns about emissions from recycling facilities, questioning whether these emissions may harm health or even be carcinogenic. From the government’s perspective, when viewed through the lens of long-term development and overall economic benefit, importing and processing recyclable plastic waste does not necessarily generate meaningful economic returns. On the contrary, it often imposes additional burdens on enforcement agencies and administrative systems. As a result of these combined factors, the recycling industry is increasingly being pushed to manage and process materials at the source. Business philosophy Business philosophy Page 3 of 5 In my response to the journalist, I also highlighted a crucial economic reality. Virgin plastic feedstock prices have remained low for an extended period, and there is little indication that they will rebound significantly in the foreseeable future. Technological advancements and declining production costs in Southeast Asia, the United States, and the Middle East largely drive this trend. In addition to the use of relatively low-cost crude oil for conventional plastic production, alternative technologies - such as shale gas utilization and coal-based chemical processes - continue to mature, further reducing production costs. From a long-term perspective, virgin plastic materials are therefore likely to remain, on average, cheaper than recycled materials. Under these market conditions, the continued development of the recycling industry cannot rely solely on market forces. Regulatory intervention is necessary, particularly through legislation that mandates the use of recycled Business philosophy Business philosophy Page 4 of 5 materials. At present, one of the more effective mechanisms within the global ESG (Environmental, Social, and Governance) framework requires listed companies and brand owners to disclose their use of recycled materials and their contributions to sustainability in formal reports. Many brand owners are now using blockchain technology to monitor and document the full traceability of recycled materials. This includes tracking collection, recycling processes, import and export details, and the treatment of residual waste after recycling. In some cases, video monitoring is also employed to oversee the entire process. As a result, brand owners have greater confidence in working with recycling companies that operate under transparent and well-regulated systems. One such certification framework is ISCC Plus (International Sustainability and Carbon Certification PLUS). Business philosophy Business philosophy Page 5 of 5 By contrast, traditional certification bodies and methods may face restructuring or consolidation in the future. Certification in the recycling industry should evolve toward greater digitalization and precision. Ideally, every kilogram of material should be traceable, with transparent records showing how it is collected, processed, recycled, and ultimately reintegrated into the circular economy. Overall, most regions in Europe and the United States continue to support recycling and circularity. However, the key challenge for the industry is alignment with policy direction. Many professionals within the sector recognize a fundamental reality: regardless of scale, the industry cannot compete against governments or policy frameworks. Following policy direction rather than resisting it is ultimately the only viable path to long-term survival and development.