Sponsored Content
Introduction
In this edition of Sponsored Content, stratsea’s editorial team spoke to co-founder and CEO of Klean Dato’ Nick Boden. Klean is one of the strong players in Malaysia’s sustainability scene, focusing on a digital container deposit system that has gained traction in recent times.
Klean has pioneered a unique, all-hands-on-deck approach to recycling that is sustainable on all fronts. Sustainable in the sense that people are empowered to do their part for a greener tomorrow and sustainable in that it has built a circular economy that now runs on autopilot.
The start-up symbolizes the importance of a community-based outlook to addressing pertinent problems in our world today.
Janz Technologies, a Malaysian tech firm, developed Klean with the SDGs and the ESG agenda in mind.
Against this backdrop, how can the SDGs and the ESG agenda form the backbone of a business model? How can a start-up hit as many SDG and ESG goals as possible? What impact is it trying to achieve?
These were some of the questions that guided Dato’ Nick in the early days of Klean. “It’s all about bringing technology to the people and making it of value,” quips Dato’ Nick.
Klean’s model for recycling follows a dual strategy of educating the public and rewarding them in return, which is not a new concept.
If you are a Malaysian in their 30s or above, you may remember recycling old newspapers in exchange for some loose change. This practice is similar to recycling milk or Coca-Cola bottles in the United Kingdom and South Africa, respectively.
Because plastic on its own generally holds little value, rapid developments in technology have simply incentivized recyclable items like plastic, making recycling a more rewardable and worthwhile exercise.
We can look towards the container deposit return scheme (DRS) or Pfandsystem in Germany, which is the world’s “highest-performing drink container recycling system” with a record 98% return rate of single-use containers.
Germany’s DRS covers PET plastic, aluminium and tinplate cans. Refunds range from €0.25 for single-use containers, €0.08 to €0.50 for refillables, and €0.75 or €1.50 for half crates and full crates, respectively.
Technology, Incentive and Accessibility
The German example was a precursor to the circular economy that Klean has built in the Klang Valley. The foundation of its recycling ecosystem – the first of its kind in Malaysia – is a digital container deposit system that utilizes AI technology and an app to recycle, reward, and report on the ESG data it generates. In the process, it not only supports government policymaking but also the SDG and ESG agendas of corporations.
Klean’s portfolio consists of three types of reverse vending machines (RVMs). Its Maxi Prime RVM utilizes AI container recognition to accept or reject aluminium cans and PET bottles. The Food Container RVM has an AI chute to recover and clean uncrushed food containers, while its e-waste machine has a semi-manual collection system.
With technology under its belt, the next step was to recycle value, keeping the average Malaysian in mind.
If you have lived in Malaysia long enough, you would know that we have a big takeaway food culture with lots of roadside selling and food deliveries, particularly during the holy month of Ramadhan. “Shall we Grab?” is quite literally the norm of everyday conversations.
We (unashamedly) also have a tonne of public holidays and fuel subsidies are almost always a focal point of the government’s yearly budget. Not to mention the penetration of smartphone users across the public, from the B40s to the middle class to those at the top echelons of the income groups.
How can these habits be used to not only encourage people to recycle but also educate them on what being green and sustainable actually entails?
“We thought of approaching things from the right psychological perspective,” says Dato’ Nick. “Collaborations are imperative to not only add value to plastics and incentivize ‘people power’, but also help build the ecosystem that is essential to bring about a complete shift in attitudes when it comes to recycling.”
Klean allows you to choose what you think your plastic is worth based on its points and rewards system. Recyclers earn 10 points for each container deposited, which, in turn, rewards them with up to 20 times the value they would otherwise receive at an over-the-counter recycling facility.
It has employed the “top down” approach, partnering with private sector giants like DHL, Affin Bank and Telekom Malaysia to provide the start-up with the tools they need to move down the food chain and create the impact they were after.
For instance, a pilot with Permodalan Nasional Berhad valued 50 containers deposited at RM10 worth of unit trust at Amanah Saham Bumiputera, with up to 40% of those who participated being new customers.
Similarly, a collaboration with Keretapi Tanah Melayu Berhad resulted in 15% off a train trip to Penang over the Deepavali long weekend, which was originally priced at RM70. Instead of valuing 20 containers at RM0.10, Klean provided 1,000 times the value at a RM10 discount on the train ticket.
With technology and incentivization mastered, Klean then needed to ensure that its RVMs were accessible to the public. The machines needed to be strategically located in areas that had a natural footfall – such as petrol stations, shopping malls and universities – to tap into the existing journeys of Malaysians.
Klean’s modus operandi is simple and effective; recycling need not require extra effort or great lengths of time. Recycling is part and parcel of the way of life. In other words, the goal is not scalability in terms of recycling as many plastics or wastes as possible. Rather, it is behavioural change towards recycling and waste reduction that lasts.
It Is All about Impact
It should also be mentioned that Klean’s RVMs are designed not for profit but for circularity. Klean runs recycling as a service in return for individuals or companies paying a monthly fee over a 12, 24, or 36-month period and software upgrades to its machine-learning AI.
This also includes back-end upgrades for ease of data capture and sharing. The Klean dashboard captures data and then feeds it into the wider scope of sustainability in Malaysia.
Klean produces detailed ESG data, down to the type and number of containers and recyclers, as well as demographic data on recyclers, popular recycling times, and locations. This data is shared with key stakeholders like the government and its partners in the private sector, who could then use it to improve their own circular economy and sustainability options.
Klean’s statistics are a testament to the impact it has had on public participation. To date, Klean has a total of 70 machines, recovered two million containers, reduced 100,000 metric tonnes of CO2 emissions and generated RM500,000 in rewards—all with the support of 100,000 recyclers on the Klean Recycling App.
Ultimately, Klean’s ecosystem is built on inclusion. What is perhaps the most striking element is its amalgamation of the “S” in ESG into the overall SDGs—a mix of the social and sustainable.
Dato’ Nick believes that there are social opportunities around sustainability that can be further tapped into. For instance, the feel-good factor of helping a foreign worker, a Myanmar refugee, or a B40 family living in a Program Perumahan Rakyat (People’s Housing Program) flat.
“If you can generate real value for people, such as food and transport vouchers, you would be helping to take pressure off families. So, our approach is simple: Ask people what their stressors are and have them dictate our solutions to sustainability.”
The Future Is Bright
As the first-to-market, and the ones who have built the entire system, Klean has the “founders’ advantage”. They are the inventors, technologists, manufacturers and reporters. However, they do not want to be, nor should they be, the only ones in the game—sustainability requires cooperation rather than working in silos.
Dato’ Nick’s advice for future start-up players in the green economy is to look at their sustainability return on investment, a new metric that should not involve breaking even or earning a profit.
He also believes that bridging existing gaps in the market lies in linking psychosocial behaviour with impact and asking existential questions. For example, how can we empower the masses and help them scale up while building a sustainable business model in the process?
Indeed, the logic follows that you give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime.
For its part, 2025 will see Klean continue to educate consumers. An upcoming project includes solving the tong sampah or rubbish bin problem that has not quite been solved or managed effectively.
This has led to the development of the Klean Bag, a mesh bag that is sustainably designed and uniquely coded for recyclers to scan and recycle their containers and be credited with points in exchange.
