REP Laws in Latin America

REP and Reverse Logistics: A Strategic Opportunity for Consumer Businesses

How to integrate reverse logistics as a key part of business strategy?

Extended Producer Responsibility (REP) is gaining strength as a key instrument in the transition to circular economy models. Its logic proposes a key change: moving from a responsibility focused solely on production, to a more comprehensive view that also considers what happens with products and their packaging once the consumer discards them.

In Latin America, this approach is gaining relevance as regulations, consumer expectations and global pressures for greater traceability and reduced environmental impact grow along the entire value chain. Faced with this scenario, companies are beginning to rethink their role and involvement in effective post-consumer waste management.

At Kolibri, we accompany this process with concrete solutions: we design and implement reverse logistics and post-consumer material recovery systems adapted to the local context, focusing on traceability, low management costs and scalability.

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What are the main challenges companies face when implementing REP?

At Kolibri we identify recurring challenges in the implementation of REP schemes in the region. ‍

• Weak recovery infrastructure: Most Latin American countries do not have consolidated systems for the collection, classification and recovery of waste. This forces companies to operate in environments where there are not always certain conditions to comply with their legal obligations.
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• High levels of informality: Recovery chains are often dominated by informal actors, which compromises the traceability of materials, limits data quality and hinders external audits. This informality generates regulatory uncertainty and reputational exposure.
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• Gap between regulation and responsiveness: Regulations are advancing faster than the institutional, operational and financial capacity of companies (especially SMEs) to respond to new requirements. This increases the risk of non-compliance and sanctions.
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• Inefficient financial models: Many REP schemes impose advance payment obligations without clear control, prioritization, or compliance assurance mechanisms. This results in unpredictable costs per ton recovered and low spending efficiency for brands.
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• Increasing pressure from stakeholders: Companies operate in a context of increased public scrutiny, pressure from consumers, regulators and investment funds, who demand concrete evidence of environmental impact and regulatory compliance.

Why are leading companies taking action now? Regulatory versus voluntary schemes.

The REP not only responds to an expanding regulatory framework, it also allows companies to reduce the impact of their operations, ensure a supply of secondary raw materials, generate reliable data and strengthen their value proposition, integrating circularity criteria throughout their supply chain.

Regulatory requirements aren't the only driver. There is also increasing pressure from more aware consumers, corporate sustainability goals and global value chains that demand traceability, transparency and auditable metrics. Acting voluntarily allows you to prepare for global trends in corporate responsibility.

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How do we address these challenges at Kolibri?

A comprehensive approach adapted to the context
We design and implement reverse logistics strategies adapted to the reality of each company and territory. Our approach seeks to solve the structural challenges of the material recovery system with a practical and operational perspective.

• Design based on consistent standards
  We work based on international standards that allow accounting for the compensation of the waste footprint (or material neutrality).
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• Multimaterial logic and operational efficiency
  We design with a multi-material systemic vision that avoids duplication of efforts between actors. We promote collaborative schemes that optimize resources and reduce unnecessary management structures.
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• First Mile Integration
  We prioritize building solid chains, with clear goals, defined roles and special attention to integrating the first mile, recognizing and formalizing the strategic role of grassroots waste pickers. This inclusion is key to making the system work and be sustainable.
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• Efficient and sustainable investment
  We believe in distributed and sustainable investment, which avoids costly management structures and where the highest percentage of investment is transferred to the recovery chain.
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• ‍Traceable and auditable data
  Traceability is a transversal axis: we use technology to have auditable and verifiable data, which allow us to evaluate and continuously improve.
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• Scalable implementation
  Our methodologies are replicable and are designed to scale in different contexts, always with a long-term vision.