We are constantly looking for solutions to minimize the amount of waste sent to landfills and reintegrate resources into the production cycle, promoting material circularity. We operate on three fronts: reduction, substitution, and recycling, as well as raising awareness among members of our value chain.

Our management of materials is mainly focused on the packaging used for delivering the products sold through Mercado Libre. All our packaging is recyclable, reusable or compostable. Our cardboard is sourced from a supply chain that is either certified by or in the process of being certified by the Forest Stewardship Council (FSC). The FSC standard ensures that the product is manufactured under responsible forest management practices. In addition, all the boxes used by our operations currently include at least 30% of recycled cardboard. In 2023, 60% of the boxes were made with 50% recycled material.

In order to achieve a sustainable reduction in the amount of packaging, we implemented a measure in 2020 allowing certain products to be shipped in their primary packaging, eliminating the need for additional packaging and reducing material usage, as well as decreasing the amount of air transported in the final delivery mile. Pilot projects conducted in Brazil and Argentina indicated a reduction of up to 40% in transported air.

In 2022, we expanded this initiative to all major fulfillment centers in Argentina, Brazil, Mexico, Chile, and Colombia. Throughout the year, the project covered 10.93% of the total volume of shipped goods, resulting in a 50% reduction in both space occupancy and dispatch time. In 2023, this shipping method continued to grow, reaching XX% of shipments.

At our distribution centers and offices, we have implemented key material recovery programs aiming at reusing resources in new production cycles.

Since 2015, we have advanced a regional recycling program based on on-site waste segregation, and selective waste collection. More than 85% of the materials used are recovered with the participation of our local partners in all our distribution centers. Particularly in Argentina, Brazil and Mexico, the material is recovered and sent for recycling and production of new boxes or cardboard.

Additionally, we encourage buyers on our marketplace to participate in responsible disposal. Utilizing a QR code on our shipment labels, we offer guidance for the proper disposal of packaging materials in households.

We have also implemented a reverse logistics program that conducts a thorough evaluation of each exchanged or returned item, optimizing inventory management and minimizing material waste. Each product is assessed and classified, ensuring its return to the value chain through donation, resale to other businesses, or recycling. Thanks to the program, we've recovered over 97% of all returned products.

In our Brazil headquarters we have two industrial composters that recover approximately 1 ton of organic waste per day, and turn it into fertilizer. The fertilizer is donated to the communal garden programs, through the Coopernatuz Cooperative, which creates jobs for more than 70 people.

Our program to recover electric and electronic equipment has extended the life cycle of devices that are no longer in use. These are donated to social organizations, such as Fundación Vivienda Digna and Fundación Equidad in Argentina, and La protectora in Chile.

Since 2020, program results have been unusual because our offices were closed most of the time. Therefore, the recovery rates do not match the rates from previous years.