Plastic Bank - Blockchain-based Recycling Incentives
Sector: Tertiary sector · Industry: Cleaning and caretaker services · Organisation: Plastic Bank · Maturity level: Production
Plastic Bank uses blockchain technology to provide digital credits to plastic collectors in developing countries for collected plastic waste, which can be exchanged for money, goods or services. The system has already removed over 70 million kilograms of plastic from the environment and built a community of over 25,000 people with 600 recycling stations. The collected plastic is recycled into Social Plastic® and sold to companies at premium prices, simultaneously promoting environmental protection and poverty reduction.
Documentation status
- Project status: Production
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
Plastic Bank was founded in 2013 by David Katz and Shaun Frankson in Vancouver. The model: people in developing countries with high plastic waste and poverty can bring plastic waste to local collection centres and receive digital tokens in return. The IBM partnership arose because Cognition Foundry connected Plastic Bank with IBM's blockchain infrastructure.
The core problem in Haiti and similar countries: plastic collectors were robbed of their earnings when carrying cash home. Plastic Bank solved this with a blockchain-based token system: collectors do not receive cash payments but digital tokens in their app wallet. These tokens can be safely redeemed with local partners — for food, school fees, cooking gas, health insurance or phone credit. IBM Blockchain (Hyperledger Fabric on IBM LinuxONE): the entire value chain is blockchain-secured — from plastic delivery through token issuance to token redemption and resale of Social Plastic to companies. Data transparency also enables buyers of Social Plastic (Henkel, SC Johnson, Aldi, dm) to prove what share of their products consists of ocean-threat plastic. 280+ collection sites, 100,000+ blockchain transactions. Plastic Bank won the UN SDG Action Award. Quote from CEO David Katz: IBM Blockchain gives us a single, irrefutable Hyperledger that cannot be manipulated.
Perspectives
B2B — organisations perspective
Consumer goods manufacturers can produce sustainably verified via Plastic Bank: blockchain proves the exact share of Social Plastic in each product — the basis for credible sustainability communication.
B2C — consumers perspective
Collectors in developing countries receive secure, theft-proof income for the first time through the token system and gain access to digital financial services — the Plastic Bank app as the first digital wallet for the unbanked.
Employees perspective
Employees in sustainability and CSR departments receive precise and verifiable data on the environmental impact of their procurement decisions through blockchain technology. Transparent documentation facilitates reporting and communication of sustainability goals to stakeholders and the public.
Benefits
General
- Blockchain technology creates complete transparency and traceability in the recycling process, building trust among all parties involved.
- The system generates measurable positive environmental impacts with already over 70 million kilograms of collected plastic and simultaneously creates income opportunities for over 25,000 people.
- The combination of technology and social innovation enables complex global problems such as environmental pollution and poverty to be addressed simultaneously.
B2B — organisations
- Companies gain access to certified sustainable raw materials with seamless documentation of the environmental impact and social benefits of their procurement decisions.
Employees
- Sustainability managers can use precise and tamper-proof data for their reports and increase the credibility of their sustainability initiatives.
Challenges
General
- Dependence on stable internet connections in developing countries can affect the use of mobile apps and blockchain transactions.
- Building and maintaining local partner networks for collection, recycling and goods exchange require continuous investment and management attention.
B2B — organisations
- Companies may need to pay premium prices for Social Plastic® and adjust their procurement processes to integrate the sustainable raw materials.
Employees
- Implementing new blockchain-based reporting systems requires training and adaptation of existing workflows in sustainability departments.
Technology foundation
Plastic Bank uses a blockchain-based platform that assigns a unique digital identity to every kilogram of collected plastic and tracks its path through the recycling process to the finished Social Plastic®. Blockchain technology enables transparent and tamper-proof transactions between collectors, recycling partners and end customers, ensuring trust and fair payment.
Implementation examples
SC Johnson Blockchain Token Partnership
SC Johnson wanted to achieve its sustainability goals while creating a positive social impact in developing countries. The company was looking for a trustworthy and verifiable solution for sustainable recycling.
SC Johnson uses blockchain tokens from Plastic Bank to collect plastic waste and turn it into sustainable packaging.
SC Johnson formed a partnership with Plastic Bank to use blockchain-based tokens in exchange for collected plastic waste. The company supports the collection system in developing countries and, in return, receives certified recycled plastic for its product packaging. The blockchain technology enables SC Johnson to track the entire supply chain and produce transparent sustainability reports.
The partnership solved the problem of lacking transparency in the recycling supply chain and enabled SC Johnson to make credible sustainability claims. At the same time, it directly addressed the issue of plastic pollution in developing countries.
Tags
Sustainability, Circular economy, Social innovation, Environmental protection, Development aid