RetuRO: a Platform for Collective Action Towards a Brighter Future

Officially introduced at the end of November last year, the Deposit-Return System (DRS) is a promising way for Romania to embrace the principles of circularity and become an example of best practices in the region. As administrator of the DRS in Romania, RetuRO aims not only to have a business impact, but to shape responsible behaviour around a shared objective for a greener future. Designed as a platform for collective action towards a brighter future, it aims to encourage collaboration among diverse stakeholders, building a network of partners committed to achieving the goals of the system. Business Review sat down with Gemma Webb, CEO and president of RetuRO SGR, to talk about her commitment to fostering a culture of environmental consciousness across Romania, the system’s performance in less than half a year, and its long-term objectives.

By Anda Sebesi

What can you tell us about the beginnings of RetuRO and the process of building it, from recruiting the first employees to shaping the company’s mission and vision?

Becoming a part of RetuRO wasn’t solely a career decision; it marked a significant milestone in my personal journey. After more than two decades in the corporate sphere, transitioning to a startup setting on day one was unlike anything I had previously experienced in my professional life.

Looking back at my first day at RetuRO and at what we have achieved to date, I can say that we took a giant leap as a company in the circular economy field. The little time we had to set up such a complex system as the one we are implementing, considering the years it took for other countries to introduce a

Deposit-Return System (DRS), make it all the more incredible. RetuRO is more than just a workplace. It’s a platform for collective action towards a brighter future. Each returned package symbolises our shared commitment to future generations. It’s not just about making a business impact, but also about shaping responsible behaviour around a shared objective for a greener future.

What is the company’s structure now?

Within RetuRO’s organisational framework, we’ve crafted a structure that embodies resilience and adaptability, underscoring our commitment to advancing Romania’s recycling initiatives through the DRS. Our shareholders are the Romanian Beermakers’ Association for Environment and the Association of Soft Drink Manufacturers for Sustainability, each holding a 30% stake. Additionally, the Retailers for the Environment Association holds a 20% stake, and so does the Romanian Government through the Environment, Waters, and Forests Ministry.

Our Governance Board has strategic oversight and it comprises 11 members tasked with ensuring that our trajectory aligns with our ambitious objectives and stringent governance standards. Operational direction is provided by our Management Team, consisting of 7 members who are overseeing day-to-day operations. This comprehensive governance structure collectively drives RetuRO’s progress in its essential role as the administrator of the Deposit-Return System, ensuring the company’s long-term sustainability and performance.

Can you briefly describe RetuRO’s role in the DRS system?

RetuRO serves as a facilitator for all stakeholders involved in the DRS, aiming to streamline understanding and engagement. The DRS operates on a simple principle: consumers pay a deposit when purchasing beverages in DRS-labelled packaging with the “Ambalaj cu garanţie” logo. The deposit is refunded when they return the packaging at any registered collection point. Customers are not required to keep any receipts in order to return DRS packaging. Retailers are in turn refunded by RetuRO.

However, effective implementation relies on the retailers’ support, as they play a vital role in the successful delivery of the Deposit-Return System. It is important to recognise their efforts in implementing this system in Romania. They serve as the interface between the DRS and consumers and make a major effort to ensure its proper functioning. The DRS offers significant immediate and long-term environmental and economic benefits. Environmentally, it diverts waste from landfills, creating a cleaner environment, which is the prize we are all aiming for in the end, from this point of view. Economically, it provides recyclers with high quality materials to be used in a bottle-to-bottle process, closing the loop for these recycled materials. The packages we collect, sort, and bale have already been delivered to local recyclers. Unlike other countries, Romania benefits from a network of local recycling plants, meaning that what we are providing other Romanian businesses with high quality materials.

For manufacturers, this means that they have access to high quality packaging and reduced costs in their production processes. For retailers, the DRS increases customer traffic and loyalty. Moreover, RetuRO supports retailers in the process, both financially and logistically, making the DRS a mutually beneficial initiative for all involved.

Municipalities and local authorities can serve as promoters of the DRS, advocating for its implementation, encouraging participation, providing support and, most importantly, disseminating information. All stakeholders in this system have very important roles to play when it comes to its success and only through cooperation and mutual understanding will we see a greener, more sustainable Romania.

As the CEO of RetuRO, what can you tell us about the importance of the circular economy in today’s business environment and the company’s innovative contributions to sustainable practices?

I firmly believe in the imperative nature of the circular economy in today’s business environment. Embracing sustainability isn’t just a choice, but a necessity. The circular economy doesn’t only involve large companies. To varying degrees, small and medium enterprises are also implementing certain types of process that lower their environmental impact and generate growth opportunities. This is true for different sectors, from construction to textiles, from electronics to waste management. Changing something in your production process that makes your end-product more durable, easier to repair or simply one that in the end is not discarded as waste, means that your business is already involved in the circular economy.

As the administrators of the Deposit-Return System in Romania, we aim to close the loop for non-reusable packaging, reintegrating these materials into the business circuit, and making sure that they do not end up as waste. The loop is closed through the bottle-to-bottle process, providing producers with the materials they need and extending the lifecycle of the raw materials that are initially placed on the market. The type of system we are implementing reduces production costs for manufacturers and minimises the environmental impact they have in processing these clean, sorted bales, reducing energy and water consumption.

On the consumer side, we aim to change current post-consumption habits, encouraging the return of packaging waste, making sure this packaging is diverted from landfills and does not end up polluting the environment. We also believe that incentivising consumers through a refundable deposit is also contributing to sustainable practices in the long term. It takes anywhere between 1 to 8 months to change a habit, and this is why we are constantly trying to educate and inform citizens about the programme and make everybody aware that the simple gesture of returning DRS packaging to be collected makes a huge difference.

How have your leadership approach and dedication to sustainability contributed to the implementation of Romania’s largest circular economy project?

I believe that collaboration and adaptability play a crucial role in driving the success of Romania’s largest circular economy project. By fostering an inclusive work environment, collaboration and self-responsibility, we’ve achieved remarkable results: in just a couple of months, we’ve managed to increase the collection rate, making huge strides towards reaching EU recycling targets—and this is just the beginning. I know that the project we are implementing is purpose-driven and I know that we must not lose sight of the end goal and gain: a cleaner and healthier environment for everyone. These achievements reflect the dedication of our team and partners, showcasing our collective commitment to sustainability and the success of our collaborative efforts. While the progress since the official launch of the DRS system in Romania has been gradual, I believe in the importance of patience and continuous effort to cultivate change, and I am optimistic about the future, expecting a shift towards responsible recycling behaviour as the system matures and becomes more integral part of our daily lives.

What have been the main achievements and milestones of RetuRO so far, and how do you expect it to evolve as more time goes by?

RetuRO has marked significant achievements within the initial four months of implementing the Deposit-Return System (DRS) since its launch on November 30, 2023. During this period, over 100 million beverage packages were returned by consumers, demonstrating a remarkable level of participation. Notably, February 2024 alone saw over 21 million returned packages, representing nearly a 700-fold growth compared to December, indicating sustained public interest in recycling and environmental protection. In March, almost 80 million packaging units have been returned by consumers. Furthermore, approximately 70,000 retailers have enrolled in the DRS so far, out of nearly 80,000, with over a third already establishing return points. Additionally, three regional collection/sorting centres were opened in Cluj, Timiș, and Brașov counties, with the joint capability of processing approximately 20% of the estimated DRS packaging market. Ultimately, these achievements underscore RetuRO’s commitment to environmental sustainability and the success of the DRS initiative. As the DRS continues to evolve over the coming months, RetuRO remains dedicated to further enhancing its effectiveness and promoting sustainable practices across Romania.

The system is advancing at the pace we had projected, based on the experiences of other countries. One example in this respect is Slovakia, which has been using the system since January 2022— in its first month, it had a collection rate of 0.6%, and it managed to reach a 70% collection rate by the end of the first year. Only plastic and aluminum are included in the Slovakian DRS.

The target for us this year is a 65% collection rate, but our system covers plastic, aluminum, and glass, and we are very optimistic about what we can achieve.

Behind every successful project there are always people. What can you tell us about the team responsible for the implementation of DRS in Romania?

Expertise was a key criterion in the selection process. I looked for individuals who excelled in their respective fields, who could bring a high level of skill and knowledge to the table. This commitment to excellence is crucial for a project such as the Deposit Return-System, and for ensuring that what we are implementing now is sustainably managed in the long term.

We sought out individuals who would embody a mix of passion, expertise, and commitment to being the best. Passion is a driving force that fuels innovation and dedication, ensuring that our team is not only skilled, but genuinely invested in the success of our mission. CFO Cătălina Marga steers our financial strategy, ensuring fiscal responsibility and transparency; Denisa Gogoriţa, our Legal Director, provides comprehensive legal oversight, crucial for navigating the complexities of environmental regulations; Ilona Lixandru, our HR Director, ensures that the best talent joins us and fosters a culture of collaboration and inclusivity; our IT Director, Cristian Mihai, ensures our technological infrastructure is robust and future ready; Ovidiu Singeorzan, our COO, oversees the intricate logistics network essential for DRS implementation; Anca Severin, our Marketing and Commercial Director, crafts our narrative, connecting our mission with the public and stakeholders.

Overseen by the Supervisory Board, the Directorate ensures adherence to corporate governance and ethical behaviour within our organisation. Responsibilities include operational administration such as negotiating contracts, establishing policies, and ensuring legal compliance, as well as strategic planning and reporting. Practical elements of the DRS, such as fee computations, adherence to environmental standards, and ongoing business enhancement strategies are also a primary focus.

What can you tell us about your personal commitment to environmental consciousness?

My commitment is deeply rooted in my belief that leadership extends beyond the present. Sustainability is not just a buzzword; it’s the cornerstone of our actions. It’s about striking a balance between environmental stewardship, community support, and maintaining a robust business. In addressing the unprecedented environmental challenges we face, sustainability means more than just being eco-friendly. It is a tool and mindset that ensures a future for ourselves and future generations. The journey towards establishing the DRS is an example of this care and commitment to sustainability.

What are RetuRO’s plans for this year and for the long term?

RetuRO’s plans for the upcoming year and beyond are deeply rooted in our vision and mission to drive a transformative shift in beverage packaging management. For the upcoming period, we are focusing on opening our next counting and sorting centres, scaling to the DRS packages placed on the market, ensuring the system’s collection and processing capacity. In total, ten centres will be opened by the end of the year. We are also focusing on awareness and education campaigns to mobilise citizens, keeping the momentum going and everyone engaged.

Moreover, our long-term strategy extends beyond logistical considerations. We aim to foster collaboration among diverse stakeholders, building a network of partners committed to achieving the goals of our system. This involves maintaining open dialogue, facilitating knowledge exchange, and coordinating efforts to maximise our collective impact. Looking further into the future, we want to continue to be a driver of positive societal change by nurturing responsible behaviour and unlocking economic opportunities.