Goodwill Industries is not only committed to job creation for individuals facing challenges, but is also taking significant strides in environmental sustainability by diverting billions of pounds from landfills.
Goodwill Industries, widely recognized for its commitment to creating employment opportunities for individuals facing challenges such as disabilities and poverty, is also emerging as an important player in environmental sustainability. The organization operates 154 community-based, autonomous entities across North America, with global operations extending to locations in Brazil, Finland, and South Korea. In Canada, Goodwill has a presence in several provinces, including Alberta, Montreal, and Ontario.
Amidst the current retail landscape, where companies are striving to implement effective resale strategies and reduce waste, Goodwill offers what Bev Kobe, President and CEO of Goodwill Industries, Great Lakes, describes as “a really unique value proposition for the retail industry.” In an interview with Retail TouchPoints, Kobe explained that while reverse logistics remains a challenging area for many retailers, Goodwill has honed its operational infrastructure to manage returns and support sustainability efforts effectively.
The primary mission of Goodwill is to extend product lifecycles and keep items out of landfills. According to Kobe, the organization prioritizes the resale of goods by identifying items that are still suitable for purchase. However, in cases where products are either too damaged or not allowed to be resold due to brand restrictions, Goodwill has established a “de-manufacturing process.” This process involves extracting components from items to channel them into various recycling and circular solutions.
Participating retailers benefit from the efficiencies provided by Goodwill, as they can offload the complexities associated with the de-manufacturing process instead of investing in proprietary systems. “It may save brands and retailers money because they’re not having to create that infrastructure to manage the returns or burden their IT teams with implementing and managing technology,” Kobe noted.
In 2023, Goodwill diverted approximately 4.3 billion pounds of products from landfills, and by 2024, that figure is expected to rise to nearly 6 billion pounds. The success is largely attributed to the organization’s recycling efforts, with 30% of goods being recycled and 45% resold, resulting in an overall diversion rate of 75% for donated items. Kobe’s specific division of Goodwill has achieved an impressive 85% diversion rate, bolstered by partnerships with tech startups specializing in textile recycling and reuse.
Kobe emphasized the urgent need for solutions in textile recycling, noting that the industry is grappling with an increase in consumption largely driven by fast fashion trends. “We need recyclers that have this big technology where they can take our clothing and break it down to create new versions of fibers and create a new product for a market,” she added. One notable collaboration is with Reju, a UK-based company that is establishing regeneration stations in both the UK and the U.S. for large-scale textile-to-textile recycling.
Goodwill’s role transcends mere collection; it acts as a “conduit” for the circular economy, connecting various stakeholders, including retailers and recycling partners, ensuring goods are diverted from landfills. Kobe stressed that brands and retailers should collaborate to build these circular ecosystems instead of attempting to navigate the complexities independently.
Additionally, Goodwill provides valuable data and transparency regarding the lifecycle of donated products, which is increasingly significant as Extended Producer Responsibility (EPR) legislation gains traction. This legislation requires brands to report comprehensively on their product lifecycles. “This traceability will only become more important,” Kobe stated.
As Goodwill continues to evolve within the sustainability landscape, there are prospects for further expansion, including the potential involvement of academia. “We should be bringing research and academia in to demonstrate the impact, share data and best practices,” Kobe encouraged, hinting at the possibility of adapting these solutions for markets outside the U.S. and Canada.
Source: Noah Wire Services
