Initiative
Circularity of Materials and Packaging
About the initiative
We are working to reduce the use of raw materials and increase circularity in our packaging systems. To this end, we prioritize the use of recycled materials and strive to ensure that our packaging is recyclable, reusable, bio-based, or compostable. In the case of plastics, we focus our efforts on reducing the use of virgin plastic.
Waste management follows a regional guideline integrated into operational decision-making—from packaging design to source separation, including the establishment of standards for distribution centers and offices. We also work in collaboration with logistics partners and suppliers to ensure these practices extend throughout the entire value chain.
Material Reduction in Shipments (SIOC)
Our commitment to packaging optimization is reflected in the expansion of the SIOC (Shipping in Own Container) program, which encourages shipping products in their primary packaging, without additional packaging. In 2025, SIOC accounted for 21.4% of shipments in the region, helping to reduce material use, optimize transport space, and minimize the volume of materials introduced into the market.
We have also adopted, in some categories, automated packaging processes that eliminate the use of labels, reducing input consumption and facilitating the recyclability of materials.
Packaging Solutions
We work to reduce materials and increase the circularity of packaging, prioritizing recycled materials and solutions that are recyclable, reusable, bio-based, or compostable. Since 2023, we have incorporated up to 50% recycled plastic into the bags used for shipments in Argentina and Mexico, achieving a regional average of 18%.
In 2025, we progressively implemented a high-performance stretch film solution in Brazil, Argentina, Chile, and Colombia, reducing material consumption at seven logistics centers. We have also made progress in implementing reusable packaging for certain product categories. This initiative reduces packaging weight by up to 75%, optimizes transportation by minimizing empty space, and promotes the reuse of materials. The initiative is already operational in Brazil and Mexico, and is currently being implemented in Argentina and Chile.
Material Recovery and Circularity
We carry out programs to recover essential materials at our distribution centers and offices, with the mission of reintroducing them into the production cycle. Since 2015, we have had a regional recycling program with on-site sorting and selective collection schemes. Today, more than 82% of the materials used in our operations are recovered through local partners.
We use scales and compactors to optimize the measurement and compaction of cardboard and plastic, increasing operational efficiency and the value recovered. In the case of wood, we maintain repair contracts to extend the useful life of existing units, and in certain applications, we replace wooden pallets with highly durable and recyclable plastic alternatives—reducing waste generation and the consumption of forest-based materials.
Reverse Logistics
Our regional reverse logistics program assesses the potential for reuse and reintegrates returned products into the value chain through donations, resale, or recycling. By 2025, we were able to recover and repurpose over 90% of returned products across the region, reducing disposal to just 1.6%—a milestone in the history of our reverse logistics.
As a result, we have moved from a model focused on returns management to a value recovery ecosystem that processes millions of units per year. The scale and social impact of this operation are significant: 6% of returned products were directed to social initiatives and communities through a network of partner foundations. More than just a way to generate economic impact, it is a driver of large-scale social, environmental, and operational transformation.
Connecting our environmental initiatives to users’ daily lives
To close this cycle, we want to help consumers dispose of items correctly. That’s why, in the main countries where we operate, we include sustainability messages on packaging, with a linked website that describes the materials and provides tips on how to recycle them.
We explore and adopt new technologies and innovations in packaging that allow us to mitigate environmental impacts and optimize the use of resources.
Main results
82%
average waste recovery rate in operations.
Over 90%
of returned products were recovered.
18%
recycled plastic on average in packaging.
21.4%
of shipments made via SIOC (without additional packaging).
Learn more about our initiatives
Sustainable Operations
We have made progress in energy and water efficiency, expanding the use of renewable sources, and managing socio-environmental and climate risks.
Sustainable Mobility
We minimized the impact of logistics operations by expanding the fleet of electric and low-emission fuel vehicles, along with partnerships that enable us to adopt innovative solutions.
Material and packaging circularity
We seek solutions to reintegrate resources into the production cycle, promoting material circularity. We act on three fronts: reduce, replace, and recycle, while raising awareness throughout the value chain.
