InvestNow News 5th July – Morphic – The Power of [Self Interest] Toasters
3rd July 2019
Within Ethical Investing and ESG, Morphic has been a long-time proponent of capitalism as the solution for some of the environmental challenges the world faces. Because capitalism, for all of its faults and flaws, is undoubtedly the most efficient way to solve these problems. Rather than appealing to the good nature of people, appeal to their hip-pocket. It is why government policy and the fight to change government policy is so important, as they set the pricing in many sectors.
In this context, the front-page story of the Sydney Morning Herald this week is about the success of the container deposit recycling scheme introduced 19 months ago in New South Wales (NSW). In this period, 2 billion (yes, billion not million) bottles and containers have been returned for recycling, with currently 4 million containers coming in each day. The 10-cent collection scheme took a year to reach 1 billion containers and just seven months to add another. Instead of bringing in 1.2-1.3 billion units in 2019 alone, the figure is likely to be closer to 1.8 billion containers.
The scheme is in many respects “back to the future” – returning glass bottles predated the rise of plastics – where the purchase price of your disposable drink includes a 10c levy, which can be redeemed on return. Now, for most people, 10c hardly seems worth it, but for quite a few or even children saving for pocket money, it can quickly add up to large amounts of money.
After less than two years, there has been a reduction of 60% in amounts reaching a landfill …