WHO IS PCX?
PCX Markets, founded by Nanette Medved-Po, is a plastic credit marketplace that allows businesses globally to attain their sustainability targets through purchasing verified and audited credits from partner projects. PCX offers a full suite of plastic responsibility services, from baselining and strategy support to impact delivery and verification. Their marketplace activates an ecosystem of partners around the world who collect, transport and responsibly process plastic waste, which is tracked and verified by third-party auditors on a public registry. PCX Markets works closely with PCX Solutions, a non profit based in the Philippines, that advises companies and governments on plastic responsibility, and manages the Plastic Pollution Reduction Standard (PPRS).
WHY PCX STOOD OUT TO US?
The Market: PCX is strategically positioned to address both supply and demand gaps in the emerging plastic credits market. On the demand side, half of the world's top 10 contributors to plastic leakage into rivers and oceans are in Southeast Asia. Moreover, 85% of all marine litter consists of plastic, which is projected to triple by 2040. The Philippines, in particular, is a top contributor to ocean plastic pollution, releasing 356,000 tons annually
The increasing adoption of Extended Producer Responsibility (EPR) laws creates a significant market opportunity from regulated, required plastic footprint reduction targets. Companies like PCX, especially, are poised to capture early market share.
Since our investment, we've witnessed the growing importance and popularity of plastic credits. According to PCX Solutions, 76% of the plastic credits were generated and retired under the Plastic Pollution Reduction Standard (PPRS) in 2023 to meet waste management obligations under the EPR framework (PCX Markets).
In addition, as businesses and individuals become more environmentally conscious, the demand for plastic credits is expected to rise even further through voluntary buyers of plastic credits. Many corporations are purchasing credits as part of their Corporate Social Responsibility (CSR) initiatives or to meet waste reduction targets, driven by the growing emphasis on sustainability.
Finally, as demand for plastic credits continues to surge, the supply side presents significant opportunities for companies like PCX to step in and bridge the gap. Many NGOs, traditionally reliant on donations, struggle with inconsistent funding streams to support their operations. Similarly, waste management companies are looking for additional sources of revenue to stay profitable. The World Bank estimates there is a gap of $28-40 per ton for plastic waste collection and $24-40 per ton across plastic recycling value chains in the Philippines, Indonesia, Thailand, Vietnam and China. By selling plastic credits, these organizations can secure a sustainable source of income, enabling them to maintain and even expand their efforts.
The Company: PCX stands out as the only player capable of capturing both upstream and downstream value by offering a comprehensive suite of services to its partners. To date, they have removed and recycled 100,763 metric tons of plastic waste. With over 30 projects across 11 global markets and 21 ongoing project partners, PCX has established itself as a leader in the industry. When we first spoke to PCX at the end of 2022, they were already recognized as market makers, having pioneered the very first plastic credit standard and using third party auditors to verify the credits for additionally, accuracy, and other key aspects.
PCX makes NGOs, waste management companies and other community projects and organizations financially viable and scalable, while generating environmental and social benefits. They have successfully monetized the recycling and collecting of plastics. Moreover, their ability to provide a fully transparent marketplace for audited and receivable plastic increases the accountability for all stakeholders.
The Team : When we met Nanette and Sebastian their diverse yet complementary expertise was immediately evident. Nanette brings over a decade of experience in leading philanthropic ventures and NGOs both locally and internationally. Nanette's leadership extends to her involvement on multiple boards and advisory councils for NGOs worldwide, including her role on the board of WWF Philippines and her participation in international forums. Through these platforms, she works to address the plastic pollution problem in the Philippines by advocating for plastic treaties and promoting Extended Producer Responsibility (EPR) initiatives.
Sebastian's vast experience has uniquely equipped him to excel as the CEO of PCX Markets. As a former Senior Partner and Managing Director at Boston Consulting Group, he has significant leadership and management expertise. His background in Technology consulting, along with various executive and director roles, brings decades of strategic insight. Additionally, during his time at Gap Inc., Sebastian oversaw e-commerce, corporate and business development, further honing his ability to drive growth and innovation.