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Transforming Trash into Treasure: The Profitable Economics of Zero Waste

TerraCycle proves that solving the world’s toughest recycling challenges can be a lucrative business model that attracts millions in investment capital.

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Devin: What is your superpower?

Tom: I feel like my core superpower is convincing people to believe in my dreams and rallying them around.

Most people view recycling as a public service, but the reality is that it is a business governed by the ruthless laws of economics. If the value of the material recovered doesn’t exceed the cost to collect and process it, that item ends up in a landfill. This economic gap is exactly where Tom Szaky has built an empire.

Recently, Tom Szaky, the CEO and founder of TerraCycle, shared insights on how he is tackling the world’s garbage problem. His company isn’t just a recycling firm; it is a supply chain innovator that figures out how to recycle the “unrecyclable,” from cigarette butts to dirty diapers.

Tom explains the core issue with clarity. “The reality is most things in the world can be recycled. The difference is that recycling is not really a public service. It’s run by for-profit companies.”

He notes that aluminum cans are recycled because they are profitable. Conversely, complex items like coffee capsules cost more to process than the aluminum is worth. TerraCycle solves this by finding stakeholders—brands, retailers, and cities—willing to fund that gap.

This model has proven incredibly successful. TerraCycle has been profitable for years and recently completed a Regulation Crowdfunding offering for TerraCycle US. They raised $5 million in less than 60 days.

Investors are drawn to the company not just for its mission but for its financial discipline. Tom highlighted that previous investors have already received significant returns. “If you invested, say $1,000 in REG A back five years ago, you’d have already been paid somewhere between 17% and 20% of that invested capital in dividends.”

Tom Szaky, Founder and CEO of TerraCycle, will be speaking at SuperGreen Live, sharing insights on sustainability, circular economy solutions, and rethinking waste at scale—register now at SuperGreenLive.org

Tom challenges the old binary that you either make money or you do good. He believes purpose fuels business fundamentals. By locating his HQ in Trenton, New Jersey, he revitalizes an underserved community while gaining access to affordable real estate and a diverse talent pool.

“Why should on one end we make money and on the other end give it away to NGOs to help save the world?” Tom asks. “Why can’t those two concepts come together where you can invest in a profitable business whose core focus is making the world better?”

TerraCycle is proving that you can indeed do both. By aligning profit with planetary health, Tom is showing a path toward a zero-waste world that makes economic sense.


You Can Power a Clean Future


tl;dr:

  • TerraCycle creates supply chains for hard-to-recycle waste by getting stakeholders to fund the cost gap.

  • Recycling is an economic challenge because items are only recycled locally if they generate profit.

  • Tom recently raised $5 million via Regulation Crowdfunding by demonstrating proven growth and consistent dividends.

  • Purpose-driven business models can drive better economic fundamentals like lower costs and government support.

  • Tom’s superpower is rallying people around a vision by starting with a beautiful, impactful idea.


How to Develop Rallying Believers As a Superpower

Tom describes his superpower as the ability to get others to see his vision and join him in executing it. It isn’t just about salesmanship; it is about authentic conviction. He explains, “I feel like my core superpower is convincing people to believe in my dreams and rallying them around.” This ability allows him to mobilize diverse groups, from college interns to multinational corporations, to tackle massive global challenges like waste elimination.

To illustrate this, Tom shared a charming story from his childhood. In second grade, he had a vision of folding thousands of origami cranes to create a decorative entryway for his bedroom. He started folding them at a table with four other classmates. He didn’t force them to help; he just started doing the work with passion. Within two days, the whole table was folding cranes. By the end of the week, the entire class was involved. This early experience taught him that if you lead with action and a compelling idea, people will naturally want to be part of the journey.

How to Develop This Superpower

For those interested in rallying people around a vision, Tom offers several insights that can help transform this into a skill:

  • Start with a beautiful idea. The core concept should not just be about making money. It must be something that makes the world better, more beautiful, or more sustainable.

  • Believe in it yourself. Authentic, unwavering belief in a dream is essential before expecting others to follow.

  • Just start doing it. Action attracts others. By beginning the work, people will naturally gravitate toward the energy and vision.

  • View profit as health, not the goal. While profit is necessary to survive, keeping the mission as the central focus ensures authenticity. This, in turn, attracts investors, employees, and partners who want to be part of something meaningful.

  • Maintain clarity of vision. Instead of trying to fix everything at once, a focused approach on a specific area of expertise drives meaningful change.

By following Tom’s example and advice, rallying believers can become a powerful skill. With practice and effort, this superpower can enable individuals and organizations to achieve greater impact.

Remember, however, that research into success suggests that building on your own superpowers is more important than creating new ones or overcoming weaknesses. You do you!

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Guest Profile

Tom Szaky (he/him):

CEO/Founder, TerraCycle

About TerraCycle: TerraCycle is an international leader in innovative sustainability solutions, creating and operating first-of-their-kind platforms in recycling, recycled materials, and reuse. Across 18 countries, TerraCycle is on a mission to eliminate the idea of waste and develop practical solutions for today’s complex waste challenges. The company engages an expansive multi-stakeholder community, from Fortune 500 companies to schools and households, across a wide range of accessible programs and has raised millions for schools and nonprofits since its founding more than 20 years ago. To learn more about TerraCycle and join them on their journey to move the world from a linear economy to a circular one, please visit terracycle.com.

Website: terracycle.com

Company Facebook Page: facebook.com/terracycle

Instagram Handle: @terracycle

Other URL: invest.terracycle.com

Biographical Information: Tom Szaky is founder and CEO of TerraCycle, an international leader in innovative sustainability solutions, creating and operating first-of-their-kind platforms in recycling, recycled materials, and reuse. Across 21 countries, TerraCycle is on a mission to rethink waste and develop practical solutions for today’s complex waste challenges. The company engages an expansive multi-stakeholder community across a wide range of accessible programs, from Fortune 500 companies to schools and individuals.

In 2019, TerraCycle launched Loop, a circular reuse platform that enables consumers to purchase products in durable, reusable packaging. Loop is available in France, Japan, and the U.S., and is a key step in helping to end the epidemic of waste that is caused by “single-use” consumption. Tom and TerraCycle have received hundreds of social, environmental, and business awards and recognition from a range of organizations, including the United Nations, World Economic Forum, Fortune Magazine, Time Magazine, and the U.S. Chamber of Commerce.

Tom is the author of four books: Revolution in a Bottle, Outsmart Waste, Make Garbage Great, and The Future of Packaging. Tom created, produced, and starred in TerraCycle’s reality show, Human Resources, which aired on Pivot from 2014–2016 and is syndicated in more than 20 foreign markets on Amazon and iTunes.

LinkedIn Profile: linkedin.com/in/tomszaky


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