How Incentives Change Consumer Behavior Within the Context of EPR
Scott Cassel, CEO and Founder Product Stewardship Institute, Inc. January 25, 2012 Upcoming PSI Webinars
• “Exploring the Economic Growth, Environmental Protection, and Cost Savings that can be Achieved through Producer Responsibility” – Tuesday, January 31, 2:00 – 3:30 PM ET
• Last week’s webinar: “EPR for Packaging and Printed Materials: Status Update and Stakeholder Perspectives”
For more information and to register, please see the Product Stewardship Institute website at: www.productstewardship.us/networkingcalls
January 25, 2012 2 Who is the Product Stewardship Institute?
• Non-profit founded in 2000 • Memberships 47 States 200+ Local governments • Partnerships (75+) Companies Organizations Universities Non-US Governments • Board of Directors: 7 states, 4 local agencies Global Product Stewardship Council Scott Cassel, Founding Board Member • Multi-stakeholder product stewardship network
January 25, 2012 3 How to Participate Today
You can connect to the Audio portion using VoIP
or your telephone. To ask a question (verbally) via phone or VOIP … please use the hand-raising function.
To type in a Technical Difficulties? question, use the Dial 800.263.6317 Question tab.
January 25, 2012 4 Expert Panelists
• Jo Opot, Global Vice President, Business Development Terracycle
• Preston Read, Senior Vice President, Government Affairs RecycleBank
• Chris van Rossem, Manager, Research and Policy Waste Diversion Ontario
January 25, 2012 5 Key Elements in Product Stewardship Programs
• Access (collection and recycling/disposal infrastructure)
• Awareness (education/outreach)
• Incentives (changing behavior)
January 25, 2012 6 Programs to be discussed
• Terracycle – Collect hard-to-recycle materials and remanufacture “brand name” products (“Upcycle”) – changes consumer mindset – Focus: brand owners and consumers • RecycleBank – Reward consumers for taking everyday green actions (mainly recycling) with discounts and deals from local & national businesses – Focus: municipalities and waste management companies • Ontario Pay-As-You-Throw – User pay systems and other policies in the context of EPR for packaging and printed materials
January 25, 2012 7 TerraCycle® Brigades® Deck Eliminating The Idea of Waste!®
collect solve promote 1 8TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. LIFE CYCLE OF WASTE: BEFORE AND AFTER 9
Resources Manufacturer Retailer Consumer Post Consumer Waste Incineration
Pre Consumer Waste TerraCycle will provide an Landfill analysis of your pre-consumer waste and will accept appropriate waste streams.
The TerraCycle solution for non-recyclable waste:
Go to Start collecting in any For each unit of waste collected, receive Waste is upcycled or TerraCycle.com box. Once full, download TerraCycle points, which can be recycled in to new and pick a waste a free shipping label and redeemed for impactful charitable gifts. eco-friendly products. stream to collect. send it to TerraCycle. collect
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. BRIGADE MEMBER EXPERIENCE 1 0
2. Click the Choose a waste stream button and select 3. Read up on the Brigade 1. Go to TerraCycle.com. a Brigade. partnership and click on the Join Now button to sign up.
Jinny Jeong, Operations
4. On your Brigade member page, you can 6. Affix your shipping track what you have collected, your points label on to a sealed 5. When you are ready to ship a filled balance, news on contests and promotions box and drop it off at box to TerraCycle, click the Ship Your and how much money you have donated to UPS to send on to Waste to Us button from your member your favorite charity. TerraCycle. homepage and with two clicks you can have your shipping label printed. collect
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 1 1
28 million Number of people collecting waste for TerraCycle globally.
2.5 billion Pieces of garbage collected by TerraCycle.
MAP LEGEND 90,000
= Existing Participants Number of locations collecting waste for TerraCycle globally. = Country with Existing TerraCycle Program = New Markets for 2012 $3 million Cumulative payment to charitable organizations from TerraCycle for waste collected. 20 Countries Where TerraCycle Operates: (Australia, Argentina, Belgium, Brazil, Canada, Denmark, France, Germany, Hungary, Ireland, Israel, Mexico, Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, UK and US).
Christian Tucker, TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license,Business www.terracycle.co Developmentm, Toll-free 866.967.6766. 1 2
collect
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. RETURN ON INVESTMENT 13
Category Positive PR Leadership Unique Upcycled Consumer & Recycled Engagement Products
Access to License of the Robust TerraCycle Network Logo Your waste of Collectors is now nationally Collector Pre-Consumer Demographic recyclable! Waste Information Solutions
Activation & Guaranteed Marketing Performance Opportunities Pricing Improved Brand Retail Differentiation Activation collect
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 14
Upcycle/Reuse
Shred & Compress
Waste is sent TerraCycle checks-in and Pelletize TerraCycle’s R&D and TerraCycle works with to TerraCycle. processes collected waste. Design teams develop major manufacturers who unique recycling and then make finished upcycling solutions for TerraCycle products. collected waste. Pulverize
Non-Woven Fiber
solve
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 15
Reuse Upcycle
Josef Ehntholt, Allison Martyn, Brigades Business Development
Reuse values materials original form and use. Upcycling values material’s characteristics.
solve
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. 16
Recycle
Bari Levine, Brigades
solve
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. EXAMPLES OF “CRADLE TO CRADLE” SOLUTIONS 17
Most TerraCycle solutions can integrate collected materials into new and related products – a true “cradle to cradle” story.
Primary Secondary Tertiary
Example: TerraCycle is recycling old Example: TerraCycle is reintegrating Example: TerraCycle transformed used pens into the pen holder that is recycled Mars Drinks coffee capsules Frito-Lay® chip bags into a POP included with every pack of Expo® into the merchandisers for Mars display in Brazil featuring upcycled Pens. Now every pen can occupy a Drinks coffee. products along with Frito-Lay chips. package more than just once. solve
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. POSITIVE ENVIRONMENTAL IMPACT 18
An independent study conducted by Zero Footprint comparing the production of a virgin products to Reuse Most upcycled or recycled plastic lumber in Brazil, found that Sustainable disposing of a single pouch by:
TerraCycle will Upcycling - results in the roughly 60% ONLY reuse, less CO2 than a similar product made of Upcycle upcycle or recycle virgin material. collected waste.
Recycling - results in the roughly 18% Recycle less CO2 than a product of virgin material.
Incineration These results primarily stem from the positive impact in diverting non-recyclable materials from landfills and incinerators, reducing the impact of a number of critical factors such as: primary energy demands and Landfill/Disposal Least water as inputs and carbon dioxide, methane, Sustainable heavy metals, and leachate as outputs.
solve
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. TERRACYCLE MEDIA ASSETS 19
PR Blogs and Podcasts Social Media TV Content Marketing Support
Albe Zakes, David Simons, Megan Yarnall, Lauren Taylor, PR PR Stacey Cusack, PR PR PR
Robust in-house Integration opportunities Leverage the direct, In-house ability to Design and execute outreach to key media from content controlled instant, and objective generate fresh television promotional activities for outlets on your behalf. blogs and podcasts. access to your and video content. participants on behalf of consumers. your brand.
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. TERRACYCLE PR 20
Old Navy US: HIGH (Since 2010) Nestle BRZ: MED (Since 2010) Stonyfield CAN: LOW (Since 2010) Media Placements: 218 Media Placements: 167 Media Placements: 43 Impressions:254,892,628 Impressions: 165,643,815 Impressions: 4,773,862 Ad Value: $2,357,756.81 Ad Value: $1,532,205.29 Ad Value: $144,158.72
National Consumer Business/Trade Local Television
Albe Zakes, PR promote
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. J&J 21
Drive incremental sales and increase your scorecard with retailers.
POP Coupons Premiums Co-Display In Store Collections
Brad Sherman, Lori Amelia Nunn, Kevin Gavin, Laurie Robertson, Design Anselm, Brigades R&D Graphics Design Engage the consumer at Drive incremental Leverage the partnership Bring the story of our Bring your Brigade to life at their point of purchase with sales and collections and partnership full-circle by the store level! In-store a branded display or other through coupons and showcase your brand’s working with your collection bins inform a new mediums of communication other offerings. sustainability efforts by buyer to display your group of shoppers about (headers, shelf-talkers, including a premium upcycled product next your sustainability efforts and/or tear-pads). upcycled/recycled product as to your original product while solving for your waste a gift-with-purchase or as on shelf. at a major point of part of a redemption-based purchase. promotion promote
TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766. How Incentives Change Consumer Behavior
January 25, 2012 A Game-Changing Mission
Motivate individuals and community to realize a world where nothing is wasted
23 78% of consumers say they would do more if they understood how a particular “green” action could help the environment as well as benefit them personally.
Page 24 Recyclebank helps create
a more sustainable future
by rewarding people for taking everyday green actions
with discounts and deals
from more than 3,000 local and national businesses.
Page 25 300 Communities. 2 Million Households.
Page 26 The Program is Simple How it Works
Recycle Earn Reward Recycle your paper, metal, Points Use your points for valuable plastic and glass. The amount recycled everyday rewards from is converted into hundreds of local and Recyclebank Points. national businesses.
27 Real Impact. Real Results.
425+ lbs 15-20% more with Recyclebank 360 lbs Carts bring +20% Why Do Cities Choose Recyclebank?
ENGAGE THEIR IMPROVE REALIZE GOALS COMMUNITIES TRASHONOMICS • Sustainability & • Rewards • Avoid Disposal Waste Diversion • Education Costs • Zero Waste • Outreach • Increase Initiatives • Ongoing Commodity • Increase Communications Revenue Revenue to • Reduce Local Businesses Contamination Recyclebank Account
– Manage your account
– Check points balance
– Shop for rewards
– Discover other ways to earn
– Learn about living green REWARDS 3,000 Reward Partners LOCAL BUSINESS
Sample Reward Offers About 40% of all rewards Partner Offer are redeemed at local and Free salad with purchase of a regional businesses. happy meal
1 Free Admission Valuable Rewards for everyday needs from Local, Regional,
$5 off $20 and National Partners. purchase SAMPLE NATIONAL REWARD PARTNERS OTHER WAYS TO EARN Maintaining Member engagement & education
Learn & Earn Points on Package The Result – Real Engagement
Pledge
Take a
Learn & Earn Participate Recycle Make a pledge Read the Village Green e-newsletter
Compos City t Shop Local Deal Goal & Reward Discounts
Buy an e-book Create Motivate Upload photos Attend a for contests Community event Refer-a-friend AWARDS AND PRESS
#1 Clean-Tech Company, 2011 #4 Next Big Thing, 2011 Wall Street Journal
2009 Technology Pioneer World Economic Forum
2009 Champion of the earth United Nations Environment Programme
2010 Global Cleantech 100 CleanTech Group
Outstanding Excellence in Public/Private Partnerships, 2009 & 2010 U.S. Conference of Mayors
Eco Role Model, 2009 O, The Oprah Winfrey Magazine
Responsibility Pioneer, 2009 TIME Magazine 2010 Loyalty Marketing Innovation Award COLLOQUY Loyalty Awards Thank You! Role of Pay As You Throw (PAYT) and other policies to promote increased diversion in Ontario’s Blue Box Program
PSI 12th Networking Webinar Series How Incentives Change Consumer Behavior Wednesday, January 25, 2012 1:30-3:00 PM EST/10:30-12:00 PM PST
Chris van Rossem Manger, Policy and Research Waste Diversion Ontario
37 Presentation Outline
• Waste Diversion Act (WDA) and Waste Diversion Ontario (WDO) Overview • Blue Box Program • Funding to Municipalities – Role of PAYT and other policies to promote increased diversion in Payout Model • Summary
38 Regulatory Context
Waste Diversion Act, 2002 The purpose of this Act is to promote the reduction, reuse and recycling of waste and to provide for the development, implementation and operation of waste diversion programs
39 Waste Diversion Act
• WDA shifts responsibility – From government to industry for • Managing products & packaging that enter waste stream • Developing, implementing & operating diversion programs • Initiatives required to achieve performance goals such as market development, R&D, incentives, education • WDA shifts costs – From government & general taxpayers – To industry & potentially their consumers
40 Roles and Responsibilities
• Provincial Government/Minister of the Environment – Establishes diversion policy & sets program requirements – Provides guidance during program development – Approves or rejects program • WDO Board – Co-ordinates industry initiatives by establishing IFO – Monitors Industry Funding Organization performance • Industry Stewards – IFO manages program development & implementation – Stewards contribute to plan development through participation in consultation process – Stewards register, report & pay fees to IFO
41 Diversion Programs
• Blue Box Program Plan – Printed papers & packaging – From households • Municipal Hazardous or Special Waste – 9 materials – Materials from households as well as some of the materials if generated by small quantity IC&I generators • Waste Electrical & Electronic Equipment – 44 items from all residents & businesses • Used Tires – On-road and off-road tires from all residents & businesses
42 Blue Box Program Plan
• Commenced on February 1, 2004 – Printed papers & packaging • Stewards contribute 50% of net residential system cost comprised of – Newspapers in-kind advertising linage – Continuous Improvement Fund (R&D) – Remaining in cash disbursements • 223 municipal programs provide collection and report data on tonnage and costs through annual WDO Datacall • Surpassed 60% diversion goal – Diverted 68% of residential BB materials in 2010
43 2012 Municipal Funding
44 Best Practice Questions
45 7. Policies that Induce Waste Diversion
• Provision Blue Boxes (or equivalent) free of charge 12.5%
• Set out limits (garbage) • Pay as you throw (PAYT) program • Garbage collection frequency less than recycling frequency • Recycling incentive program for households that rewards increased recycling, set out and participation 12.5% • Reduced garbage frequency (i.e. less than once per week • Requirement for clear bags in the last year • Tag and leave policy for unacceptable set outs • Supervised recycling bins at depots
46 PAYT and Set out Limits in 2010
• 96 of 223 programs have PAYT programs – 62% of all Ontario Households Served – 66% of all Blue Box tonnes Diverted
• 102 of 223 programs have Set out limits (garbage) – 88% of all Ontario Households Served – 91% of all Blue Box tonnes Diverted
• 53 of 223 programs have PAYT and Set out limits (garbage) – 55% of all Ontario Households Served – 60% of all Blue Box Tonnes Diverted
47 Summary
• Municipal Payout Model is designed to reward individual municipalities that: – Move towards best practices which include PAYT and other policies for increased diversion (Best Practice questions) – Have already implemented PAYT and other policies that have improved program effectiveness (diversion rate) – CIF funds available to help municipalities implement best practices including PAYT and other policies
48 Contact Info
Chris van Rossem Manager, Policy and Research Tel: 416-226-5113 x 290 E: [email protected] Website: http://www.wdo.ca
49 Questions for the Panelists
• Jo Opot, Global Vice President, Business Development, Terracycle
• Preston Read, Senior Vice President, Government Affairs, RecycleBank
• Chris van Rossem, Manager, Research and Policy, Waste Diversion Ontario
January 25, 2012 50 For the Audience: 2 ways to ask questions
• Spoken: Use the “hand-raising function” on your control panel so we can unmute you. – Speak through a microphone on your computer OR – Be dialed-in through a telephone (and enter your Audio PIN)
• Written: Write your question in the Question box at any time. Please tell us to whom you are addressing your question.
January 25, 2012 51 Interested in Learning More?
Contacts
Scott Cassel Preston Read CEO and Founder Senior Vice President, Government Product Stewardship Institute Affairs 617-236-4822 RecycleBank [email protected] [email protected]
Chris van Rossem Jo Opot Manager, Research and Policy Global Vice President, Business Waste Diversion Ontario Development Terracycle [email protected] [email protected]
January 25, 2012 52 Upcoming PSI Webinars
• “Exploring the Economic Growth, Environmental Protection, and Cost Savings that can be Achieved through Producer Responsibility” – Tuesday, January 31, 2:00 – 3:30 PM ET
• Last week’s webinar: “EPR for Packaging and Printed Materials: Status Update and Stakeholder Perspectives”
For more information and to register, please see the Product Stewardship Institute website at: www.productstewardship.us/networkingcalls
January 25, 2012 53