Innovation

A group of friends founded Oikos PH in 2020. Dan and Faith Nacarato and Lizzie Guerrero, the company’s founders, had various backgrounds, such as food, technology, real estate, and education. Still, they came together to start something new for the Earth. The idea of creating a business comes from the group’s realization of the enormity of the problems caused by paper and plastic pollution. They also found that the Philippines is one of the top contributors to plastic pollution in the world’s oceans (Jambeck et al., 2015).

Oikos PH uses cassava starch to develop biodegradable packaging. The end products are proven to be water-soluble, biodegradable, and even edible, which is safe from accidentally entering the animal’s body. However, one of the challenges of using water-soluble packaging is that it is not conducive when packaging wet items such as wet foods, frozen items, and others. Therefore, Oikos PH looked for another alternative and decided to use corn starch. According to research, corn plastic has the same characteristics of normal plastic, but it is made from corn starch polymers, a biodegradable and renewable resource (Cowley, 2020).

Oikos PH’s innovative and sustainable business model is expected to encourage other organizations to use biodegradable packaging in their products. This, in return, can help the Philippines leave the list of the top contributors to plastic pollution in the world’s oceans.

Source: Cowley, L. (2020, September 4). What is Corn Starch Plastic? Compostable plastic Eco World. Eco World. Retrieved November 16, 2022, from https://ecoworldonline.com/what-is-corn-starch-plastic/

Inspiration

The inspiration for this innovation came from the group's mission of making greener choices more widely accessible for all of us to make a difference collectively. A friend presented the innovation to Dan, the president of the company, and her wife, Faith, who are both nature lovers. An organization already doing biodegradable packaging in Central America was looking for a partner starting in Asia. The idea resonated with Dan and Faith, mainly because Dan has stopped using plastics, which initially annoyed Faith because plastic bags are necessary, especially when shopping for grocery items.

As nature lovers, Dan and Faith usually go hiking, diving, and other outdoor activities with their kids. They have witnessed first-hand the effects of single-use plastics on the environment. The company's website shows the danger of plastics once it reaches the oceans. That compelled them to take action by sourcing and manufacturing innovative and sustainable solutions to contribute to a greener Earth.

Faith added, "The state of the environment bothers us, especially in the Philippines; even by just stepping outside the house, you can see the pollution that is happening. We saw this endeavor not only as an investment or a business but also as a worthwhile advocacy. We are not just concerned with how much money we are making but really, are we doing something good or bringing a lasting impact? As parents, we are doing something to better the world. Those realizations basically what sealed the deal."

Overall impact

The Oikos PH innovation allows the company to be not just a for-profit organization but also to become an advocate that attracts other organizations to avail of its products. In addition, this creative and innovative solution impacts society and the environment by spreading more awareness of the dangers of single-use plastics and their impact once it reaches a body of water.

However, though the vision and mission are clear, Faith is aware of her endeavor's challenges. “It does take a lot of changing of habits down to the individual, especially in the Philippines. We are compelled to do it in the Philippines instead of the US, which will be an easier market because the US is more open to the idea of sustainability. Whereas in the Philippines, people agree with the idea but when faced with costs, if it's short-term, it will cost more, but the long-term impact is incomparable”, she added.

In the Philippines, the tingi habit is one of the habits that are not easy to break or change as it is ingrained in Filipino culture. Oikos PH's short-term vision is to influence big businesses such as supermarket chains, food chains, and shopping stores because these are the businesses that consume the most plastic packaging. In addition, Faith sees that this innovation can have a good effect in the long term. Once their business strategy succeeds, the founders are expecting that it will create a ripple of positive change in society and even in the business world where most, if not all, rely on biodegradable packaging not only for shopping bags but also for sachets and packets, trash bags, and other microplastics.

Business benefit

Oikos PH focuses on the B2B model, which focuses on building strategic partnerships with the public and private sectors. When asked why not reach out to the households or SMEs since they are the end-users of the plastic packaging, Faith believes that having the big businesses to be fully onboard with their business will create a ripple effect of positive change in how Filipinos see biodegradable packaging be part of their daily lives. In addition, their equipment can produce sixteen tons of biodegradable packaging a month which is not ideal for small-scale production.

Through this innovation, Oikos PH was able to hire around twenty employees to work in the manufacturing, administration, and marketing of the products. Faith is thankful for this endeavor, despite being challenging, her company is able to raise enough revenue to support the employees and their operations and get profit to sustain the business.

Currently, they are expanding their target market to offices and BPO companies that consume a huge amount of trash bags. They are also encouraging these companies to educate their customers and employees about the danger of traditional plastic bags and asking them to switch to more sustainable practices. Another opportunity that Oikos is exploring right now is engaging hotel chains. The hotel uses a lot of packaging for toiletries, takeout bags, laundry bags, and trash bags, and these items provide a good opportunity to switch to biodegradable packaging. Faith's hope for the future is to fully onboard these organizations and eventually expand the business not just for revenue but also to create a lasting impact on society for future generations.

Social and environmental benefit

Awareness is one of the most important benefits of Oikos's innovation. Faith acknowledges that Filipinos are already aware of the problems we are facing in terms of plastic pollution. She mentioned that when you talk to individuals and organizations, people express passion for the topic of environmental sustainability. "People, especially Filipinos, are very passionate about the call to go green and to reduce plastic waste. She said that they share posts on social media about the dangers of plastic in the ocean and its habitat".

Having biodegradable packaging is just one of the solutions, and it needs more participation from the larger sectors of society. Faith said, "It really takes so many approaches, from the government, for example. We expect more legislation to compel the organizations that mass-produce harmful materials to the environment to switch to more environment-friendly products." She suggested banning plastic packaging and penalizing violators to reinforce the use of environment-friendly materials. "Even people as consumers. She added that if they can demand these businesses switch to more sustainable practices, that would start a chain of good habits in the country".

While awareness and education are a good start, politicians, business leaders, and consumers should commit to promoting more sustainable consumption practices. Oikos believes that its innovation is at par with traditional plastic bags when it comes to durability. In addition, they make sure that their products are affordable and more accessible. Oikos also allows sellers to get creative with their packaging. We accept customization orders when you buy from us in bulk.

Interview

Faith Nacarato, Co-Founder, COO