Annual Report 2020

The State of Plastic Recycling

ANNUAL REPORT 2020

Commissioned by: ANNUAL REPORT 2020 The State of Plastic Recycling

 Letter from our Vice President and General Manager ...... 3

 Executive summary...... 4

 Plastics have built the modern world - but do they belong to our future? ...... 8

 We need to do more ...... 9

 Consumer beliefs & attitudes ...... 10

 Governments are acting ...... 11

 Less is less: plastic and its alternatives ...... 12

 Reduce, recycle, reuse: a beverage packaging case study ...... 14

 Moving towards a circular economy ...... 16

 A next step: fixing recycling systems ...... 17

 The way ahead: plastic is not waste ...... 19

 About Hi-Cone ...... 20

 Hi-Cone’s 2025 vision and goals ...... 21

 People and our planet ...... 22

 Sources ...... 23

Please consider the environment before printing this report.

Recycling is a core component of creating a more In 2019, Hi-Cone launched a new ring carrier, sustainable future for the global community and RingCycles™, made from 50% recycled (PCR) the planet. It is key to developing sustainable content. By the end of 2020, all of our customers consumption and production patterns, which will have transitioned to this new product. Beyond support a circular economy where the entire RingCycles™, we are continuously innovating lifecycle of a product or service is considered. to find new plastic and non-plastic solutions for a completely biodegradable, recyclable, or compostable alternative for beverage multi- Hi-Cone created this first State of Plastic pack packaging. We will be working closely with Recycling Annual Report in order to shed light on partners across the industry and supply chain the current state of recycling and to help advance to amplify our efforts in 2020 and beyond. the circular economy and sustainability as a whole. This report aims to identify the challenges, as well as the opportunities, for the industry to improve plastic recycling as sustainability plays a Shawn Welch larger role and drives change. Shawn Welch Vice President and General Manager of Hi-Cone Worldwide There is a great need to create a more transparent process and clear guidance for consumers when it comes to the development of a circular economy and better recycling practices. Only by understanding consumer beliefs, national programs and global goals, can we make real progress towards innovative improvement of our products and business practices. This cannot be done alone – collaboration is key.

Hi-Cone is committed to helping develop the circular economy.

Sustainability is one of the All food and drink packaging make a big positive difference to most pressing challenges has an environmental impact. the future of our planet. Making in 2020 and beyond – and Carbon emissions and the sure consumers have all the it can only be solved by amount of energy used to information they need is the first working together as a global manufacture it must all step on this journey, as knee-jerk be factored in if we are to reactions to false information – community. Consumers, account for any packaging’s such as banning all plastics, producers and organizations true environmental cost. Now as some call for – can lead along the supply chain need more than ever, the packaging to harmful long-term effects.1 to understand the impact they industry is committed to Access to the facts is required can have, which requires a good reducing its environmental so consumers and producers understanding of the attitudes impact, to act responsibly and alike can make informed toward plastics recycling and to work together. choices, as developing the most the circular economy. sustainable solution for any In a perfect world, no products type of packaging will require In this first State of Plastic would get disposed of a close look at the facts of the Recycling Report, new findings improperly and end up in the product’s lifecycle as well as the are presented from a global natural environment. None of existing recycling infrastructure consumer survey conducted them would even go to landfill in the markets in which it will by YouGov, an international or be incinerated; instead, all be used. Accepting the status research data and analytics products would be reused or quo, however, is not enough: we group headquartered in London. recycled. Many organizations, have to strive to minimize waste The research was commissioned including the UN,i the EU, the through a truly circular economy by Hi-Cone to better understand UK government and WRAPii to reduce the world population’s the opportunities and are now calling for such a shift, impact on our planet and allow challenges to advance the towards a ‘circular’ plastics future generations to thrive. circular economy in the food economy, which would require and drinks packaging industry. a thorough improvement of recycling on a global scale. YouGov surveyed 5,509 adults in ONLY Fixing the recycling system four markets – Mexico, Spain, the and building trust that it is United Kingdom and the United effective is just one of the States – on their behaviors, many tasks that face us. By knowledge and attitudes towards 34% working together and putting of adults across all territories plastic packaging recycling. Key sustainability front and center, reported recycling all the plastic findings are presented on the organizations along the supply waste they possibly could. following pages. chain can support consumers to

i‘Single-use plastics: a roadmap for sustainability’, United Nations Environment Programme, 2018 ii WRAP, Waste and Resources Action Programme, is a UK initiative which provides research and recommendations on more sustainable resource use to stakeholders worldwide (learn more at https://www.wrap.org.uk/)

RATES OF RECYCLING IN THE HOME AND IN PUBLIC

75% of adults across all territories (Mexico, Spain, the UK and the USA) reported that they regularly recycle anything (e.g. plastic, paper, cans, or glass, etc.) in their homes, and 69% reported regularly recycling anything in public recycling bins.

75% 92% 73% 60% 58% At Home At Home At Home At Home At Home

69% 63% 89% 59% 75% In Public In Public In Public In Public In Public

of Adults Across of Spanish Adults of American Adults of Mexican Adults all Territories of British Adults

RATES OF PLASTIC RECYCLING

34% of adults across all territories reported they recycled % of Adults Across all of their plastic waste inside or outside their home. 34 all Territories

45% of British Adults

% of Spanish Adults 92% 38

26% of American Adults

ONLY 1/3 ACROSS ALL TERRITORIES 12% of Mexican Adults

LACK OF KNOWLEDGE AROUND RECYCLING PLASTIC

Over half of adults across all territories (60%) reported they did not know how to recycle some types of plastic packaging. ??? ? ?

% 56 of adults across all territories reported % % % % % 60 66 62 56 52 that they found recycling different plastics difficult to understand.

of Adults Across of British Adults of Mexican Adults of Spanish Adults of American Adults all Territories

LACK OF CONFIDENCE IN HOW THINGS ARE RECYCLED

One third of adults across all territories reported that they believe only 25% or less of what they put into recycling bins in their area is actually recycled.

PUBLIC TRUST METER

CONSUMERS KNOW THEY SHOULD BE RECYCLING MORE, AND THEY WANT TO, BUT THEY NEED MORE INFORMATION

The majority of adults across all territories The majority of adults (80%) who do not currently (91%) reported believing that recycling plastic recycle all of their plastic waste reported that is beneficial to the environment, and more than they would recycle plastic more frequently if they two-thirds (69%) of those who do not currently had more facilities and/or guidance. recycle all of their plastic waste, reported they were not recycling as much plastic as they think they should.

91% RECYCLING PLASTIC IS BENEFICIAL 80% 69% NOT RECYCLING ENOUGH

UNCERTAINTY OVER WHICH PACKAGING MATERIAL IS BETTER FOR THE ENVIRONMENT

18% of adults across all 36% reported they were unsure 30% reported being unsure if %reported they were unsure %reported being unsure if territories reported being unsure if36 it takes if moreit takes energy more energy and and using30 a small using amounta small amount of plastic of if non-plastic packaging (e.g. naturalnatural resources resources to recycleto recycle plastic packagingplastic packaging can be can better be better for for the cardboard, glass, cans, etc.) is plasticthan paper. than paper. theenvironment environment than a thanlarger aamount larger of a different packaging material, such as better for the environment than amountcardboard. of a different packaging plastic packaging. material, such as cardboard.

18% 36% 30%

Since around 1950 the mass rely on. Without it, we would saved energy through providing production of plastics has not have been able to deliver high-performance insulation, revolutionized the food industry food as cost-effectively, or as far, and it has saved fuel and cut and was a direct response to or to as many people. Plastics emissions by lightening cars, the issues around deforestation have also been delivering trucks and planes. It has made resulting from the overuse of clean drinking water and have an incalculable contribution cardboard and paper. Plastic improved the diets of millions. to human life. packaging keeps food hygienic, fresh and safe, and offers a In addition, plastic has housed And yet we know we have convenience that distribution us, clothed us and enabled a problem. networks and supermarkets medical innovation. It has also

FOOD & BEVERAGE CONSTRUCTION MEDICAL

TRANSPORTATION WEARABLES ELECTRONICS

How we dispose of plastics is a In Mexico, national newspaper and polluting the natural problem – we need to do more Milenio has reported that, environment. We also know to educate and ensure there is similarly, less than 10% of that societies across the the infrastructure nationally and residual solid waste is recycled.6 world will have to reduce globally to do this. their reliance on single-use The United Nations has written: plastics and learn to recycle The UK government estimated more effectively. in 2018 that 8.3 billion tons "According to UN Environment, of plastic have been produced 1 million plastic drinking worldwide since the 1950s.2 bottles are purchased every For too long humans have minute, while up to 5 trillion not thought about what to do single-use plastic bags are used Today, about with plastic once it has been worldwide every year. In total, used, and the very qualities half of all plastic produced that have made it ubiquitous is designed to be used only – convenience, durability, once — and then thrown away. 300 versatility – are now causing Today, about 300 million tonnes million a problem. of plastic waste every year are tonnes of plastic produced, nearly equivalent to waste every year We know that very large the weight of the entire human are produced, quantities of used plastic find population. If current trends nearly equivalent continue, the oceans could their way into the environment, to the weight of contain more plastic than fish both on land and at sea. The the entire human by 2050."7 European Commission has population. estimated that 5 to 13 million This single-use phenomenon  tons of plastics – 1.5 to 4% of depletes natural resources, plastics production globally adds greenhouse gases to the – ends up in the oceans every atmosphere, harms wildlife year. On the EU’s part, that and litters our landscapes and totals 150,000 to 500,000 tons oceans. There is also growing 3 of plastic waste. In the EU, up concern that these plastics, to 39% is incinerated and up when they break down, form to 31% goes to landfill. Only microplastic particles, which 4 around 29% is recycled. can be ingested by sea creatures and have harmful effects In the USA, meanwhile, in 2015 elsewhere in the food chain. more than three-quarters of plastics went to landfill and It is clear that we need to 5 only around 9% were recycled. stop plastic escaping into

To address this situation, we need to understand the facts as they are today – and the results are One third of adults (34%) mixed. The 2019 YouGov survey across all territories reported found that in the UK people recycling all of their plastic are the most proactive about % waste. recycling at home: 92% of UK 34 adults said that they regularly recycled (e.g. plastic, paper, cans, glass, etc.) at home, compared with 75% across all ? ? the territories. ? ? ? ? More than half of adults (60%) Spanish adults were most likely agreed that they do not know to recycle in public – 89% how to recycle some types of regularly used public recycling plastic packaging. bins compared with 69% across % all the territories. In Mexico, only 60 58% of adults said they regularly recycled at home. PUBLIC TRUST METER The vast majority of people in the UK – 87% – said they recycled Only 3% of adults across at least half their recyclable all territories believe that plastic waste inside or outside everything they put into of their home. the recycling bin is actually % recycled. In Spain this figure was 80%, in 3 the USA it was 58% and in Mexico it was 56%. Taking the responses in all territories together, only 34% of adults thought they recycled all the plastic waste The majority of adults who they possibly could. do not currently recycle all of their plastic waste (80%) would recycle plastic more if they had 80% more guidance and facilities.

For a long time, consumers and out its ambition to eliminate that is worth more than activists have been leading all avoidable plastic waste $3 billion USD, according the calls for change. And now by the end of 2042.9 On its to ANIPAC, Mexico’s national governments and leaders are part, the EU has stated it will association of plastic industries.11 setting goals to meet these work towards making sure all demands. plastic packaging is recyclable The YouGov survey found, by 2030.10 And in Mexico, in however, that people still find In June 2019, Canada, for October 2019, senators signed significant barriers to recycling example, pledged to ban single- a bill into law promoting a plastics, and are uncertain how use plastics by 2021,8 while public-private partnership in to do it best: the UK government has set waste recycling, an industry

CONSUMERS DO NOT CONSUMERS FIND CONSUMERS WANT MORE KNOW HOW TO RECYCLE RECYCLING PLASTIC FACILITIES AND GUIDANCE PLASTIC PACKAGING DIFFICULT TO UNDERSTAND TO RECYCLE PLASTIC

60% of adults across all 56% across all territories 80% across all territories territories said they agreed agreed that they “found who do not currently recycle with the statement "I don’t recycling different plastics all of their plastic waste agreed know how to recycle some difficult to understand.” that if they “had more facilities types of plastic packaging." and/or guidance they would recycle plastic more frequently.”

60% 66% 62% 56% 52% 56% 60% 58% 55% 48% 80% 92% 81% 80% 67%

This presents governments and the packaging and food industries with a double challenge: both helping consumers do the right thing and transitioning away from a single-use paradigm without jeopardizing the world’s food security, health, and economic growth.

All food and drink packaging Sustainable Futures, explained • 68% less CO2 to the has an environmental impact. that, with food packaging, on environment than shrink Carbon emissions and the average: film and 77% less CO2 amount of energy used to than paperboard15 manufacture it must all be "If you replaced plastic factored in if we are to account packaging with alternatives, you They were, said Franklin for any packaging’s true would increase the weight of Associates, twice as sustainable environmental cost. the packaging by 3.6 times. You as shrink and rigid packaging would increase the energy use multipacks and three times as The UK government’s by 2.2 times. You would increase sustainable as paperboard. Environment, Food and Rural your carbon dioxide emissions 14 Affairs Committee wrote: by 2.7% ." As for biodegradable (compostable) plastics, though "In the backlash against plastic, These examples reflect that the they promise much for the other materials are being industry needs to do more – and future, the UK government’s increasingly used as substitutes move in ways that align with ‘Plastic food and drink in food and drink packaging. optimizing for the long-term. packaging’ report commented: We are concerned that such Take plastic ring carriers, for actions are being taken without example: this type of beverage "Compostable plastics have proper consideration of wider multi-packaging is as minimal been introduced without the environmental consequences, as possible – light, low in right infrastructure or consumer such as higher carbon volume and using minimal raw understanding to manage 16 emissions."12 materials. Paper, cardboard, film compostable waste." and other alternatives all use It continued: The UK’s Waste, Resources and significant natural resources and Action Programme (WRAP) need substantial amounts of "Producers aside, we heard added: energy to manufacture. little support for compostable "If we focus too heavily on packaging. Sarah Greenwood, a single type of impact (e.g. Independent research by University of Sheffield, explained marine pollution), while Franklin Associates found that, that 'there is a perception with neglecting others (e.g. carbon if you take in the full life cycle compostable packaging that impact, impact on food waste), of each piece of packaging into it turns into compost' but 'it we risk making poor decisions account, Hi-Cone ring carriers does not'. It turns into 'carbon which have unintended presented: dioxide, water or methane' with consequences."13 'a tiny amount of biomass left • 68% less waste to the behind'. She likened the process Sarah Greenwood, University of environment than shrink to 'a very, very slow version of Sheffield Grantham Centre for film and 89% less waste burning it.'"17 than paperboard

In addition, the EC has said:

"Most currently available NON-PLASTIC VS. PLASTIC PACKAGING plastics labelled as biodegradable generally 69% degrade under specific of adults across conditions which may not 69% 78% all territories believed that always be easy to find in the non-plastic packaging natural environment, and % (e.g. cardboard, glass, can thus still cause harm to 68 cans, etc.) is better for ecosystems. Biodegradation the environment than in the marine environment 60% plastic packaging. is particularly challenging. In addition, plastics that are 60% labelled ‘compostable’ are not necessarily suitable for home composting."18 ENERGY USAGE AND NATURAL RESOURCES However, according to the YouGov survey, these issues are not very well understood by the 46% general public. Surprisingly, in the UK, where people are among % 56 of adults across the most enthusiastic recyclers, 46% all territories believed that there seemed to be the least 46% it takes more energy and awareness, although there were natural resources to recycle significant education challenges % plastic than paper. across all the territories. 36

36%

IMPACT OF SMALL VS. LARGE PACKAGING

35% Only 35% of adults across all territories 54% believed that using a small amount of plastic 37% packaging can be better for the environment than a larger amount of 30% a different packaging material, such as % 27 cardboard.

Now more than ever, the In Spain, the company is through the post. This is the first packaging industry is committed educating consumers that manufacturer-led program of to reducing the environmental Hi-Cone ring carriers can be its kind. Consumers in regions impact and acting responsibly. put in the yellow recycling not covered by Hi-Cone’s Take, for example, Hi-Cone bin. Meanwhile, in Mexico, TerraCycle® activities can visit ring carriers, which are 100% the UK, the USA and Canada, RingRecycleMe.com to learn recyclable where #4 LDPE the company is working with more about programs in their plastics are collected. Of course, TerraCycle®, a specialist recycling area. this means having the right company, and other recycling recycling infrastructure, so partners to keep ring carriers However, much remains to Hi-Cone is investing in programs from becoming waste materials. be done. to increase global recovery UK consumers can simply visit rates of ring carriers, where RingRecycleMe.co.uk, download To learn more about Hi-Cone's the infrastructure might not a freepost label and send the ring carrier recycling programs, currently exist. ring carriers to TerraCycle® visit RingRecycleMe.com

Only 24% of UK adults 35% of UK adults did 41% of UK adults knew that beverage ring not think it was possible to did not know either way. carriers can be recycled recycle beverage ring carriers where they live. where they live – far worse than in the other territories.

43% 42% 41% 37% 50% 49% 41% 24%

Hi-Cone as a company has over creating a kilogram of RingCycles™ consist of 50% collected over 300,000,000 ring virgin material. PCR material: post-consumer recycled (PCR) carriers over the last 25 years. resin, so these new carriers have The ring carriers have been environmental benefits over repurposed into new useful the previous product. Further products. studies compare impacts on a carrier level. This is one example Hi-Cone has acknowledged Uses 90% less of how Hi-Cone continues to the recycling issue and are non-renewable energy set and work towards ambitious working with TerraCycle® and sustainability goals, and this other retail and supply chain in turn helps their customers partners to raise awareness that make strides towards their ring carriers can be recycled. As sustainability goals. By the the next step on their journey, end of 2020, all of Hi-Cone’s Hi-Cone launched their new customers will have transitioned Uses 83% RingCycles™ multipacking carrier to the 50% PCR ring carriers. less water in 2019 using post-consumer recycled (PCR) resin.

PCR is made of recycled plastics: by using PCR, Hi-Cone is diverting millions of pounds of plastic from landfills and Emits 75% less GHG reusing it. Hi-Cone commissioned (greenhouse gasses) a third-party report to compare the impacts of suppliers producing recycled material relative to virgin material. For full life cycle information, Considering all the processes visit hi-cone.com/sustainability needed in both scenarios, creating a kilogram of PCR Creates 43% less iii material has significant savings solid waste

Hi-Cone as a company has ring carriers over collected over 300 the last 25 years. million

iii Cradle-to-resin comparison conducted by Franklin Associates with results based on analysis with 1kg LDPE and recycled LDPE. Savings shown for resin material only, results finished carrier product from 50% PCR resin will vary.

In a perfect world, no products Scientific American defines However, to ensure that our would get disposed of this as: efforts have the necessary improperly and end up in the impact, change has to happen natural environment. None of “A better alternative… where on a large scale. We have to them would even go to landfill waste is minimized by planning build the institutions, systems or be incinerated; instead, all in advance how materials can and processes. In its report, The products would be reused or be reused and recycled at a New Plastics Economy, the Ellen recycled. The Ellen MacArthur product’s end of life rather than MacArthur Foundation wrote: Foundation is one of the most trying to figure that out after prominent proponents of the the fact.”21 “There are many innovation and concept of a truly circular improvement efforts that show economy: Ted Siegler, a Vermont resource potential, but to date these have economist who has spent more proved to be too fragmented "The vision is that 100% of than 25 years working with and uncoordinated to have 23 plastic products should developing nations on garbage, impact at scale.” eventually be recycled and used has said: as PCR to make new products."19 Companies like Hi-Cone are “This isn’t a problem where we working with partners including The call for a circular economy don’t know what the solution the Ellen MacArthur Foundation, has been supported by many is. [...] “We know how to pick up to push for change on a systemic organizations, including the garbage. Anyone can do it. level and really make a UN,20 the EU and the UK We know how to dispose of it. difference. government and WRAP. We know how to recycle.”22

The vision is that 100% of plastic products should eventually be recycled and used as PCR to make new products.

A key stumbling block on ‘Plastic Food and Drink adults were confident that they the way to a circular plastics Packaging’ report received knew how to recycle plastic economy is inconsistent written responses from UK packaging effectively (e.g. how recycling provision. In 2018, consumers that included: & where to do this), compared the BBC reported that there with 55% in Mexico. were over 39 different sets of “The symbols used to denote rules for what local authorities whether plastics are recyclable UK adults were also the most collect across the UK.24 It is this is very confusing and misleading. likely (58%) to report there lack of consistency that led the [...] A clear and consistent were enough facilities currently European Commission to call for system of labelling plastics available to recycle plastics is required.” effectively at home, compared “Better and more harmonized with a low of 26% in Mexico; separate collection and sorting.” And:

It continued: “Despite the fact I am a 77% of Mexican adults wanted compulsive recycler I find it more recycling bins in public “Reducing fragmentation and such a drag trying to find spaces than are currently disparities in collection and the tiny triangle […] indicating available, compared with only sorting systems could whether the item is something 50% of American adults calling significantly improve the that my local authority are for the same thing. economics of plastics recycling, currently recycling. It feels saving around a hundred euros as if this vital information is And people, on the whole, were 25 per ton collected.” hidden away on purpose it not confident in the efficacy and is so difficult to find.”26 transparency of the recycling Fragmented, inconsistent system. provision confuses consumers The YouGov survey data bears and frustrates their recycling out the following mixed picture efforts. The UK government’s of plastics recycling: 72% of UK

People, on the whole, were not confident in the efficacy and transparency of the recycling system.

Across all the territories, 34% of adults believed that only half the TRUST IN RECYCLING SYSTEM recycling they put in recycling bins in their area was recycled. While 31% of adults believed only a quarter was recycled, and only 3% believed that everything was recycled.

It is not only consumers who are questioning the global recycling system’s transparency 31% of adults believed and effectiveness. In 2019 the only a quarter was recycled. New York Times reported that 25% recycling is falling in many USA cities, because of increased costs and lack of processing facilities abroad.27 The Spanish newspaper El Pais, meanwhile, has reported on recycling centers closing in Mexico since China began refusing to accept foreign waste at its treatment plants28 and the Guardian in the UK reported in 2018 that much of the plastic 34% of adults believed waste we ship for recycling that only half the recycling overseas might actually end up they put in recycling bins 29 50% in landfill. This situation was in their area was recycled. also commented on by The Drinks Business magazine, which added:

“The paradox here is that recyclers are actually struggling to source sufficient upstream PCR (post consumer recycled plastic) to meet an increased demand for recycled plastic.”30 100% Only 3% of adults believed that everything was recycled.

Fixing the recycling system and building trust that it is effective is just one of the many tasks that face us. As Helen Jordan from the British Plastics Federation said:

"We need to stop thinking of plastic as ‘waste,’ but as a renewable resource that needs to be disposed of correctly."31

We all have a role to play if we are to change behaviors at every level of society. We all must:

Push for governments Work with retailers, Improve consumer and local authorities and packaging providers, and awareness about how packaging providers brands to use innovative, to recycle all types of to improve recycling science-based, thoughtful plastics, including ring systems insights to change carriers, and drive a packaging procedures circular economy for the better

The situation will not improve overnight, but as a collective, governments, packaging producers, retailers, brands, and consumers can make significant inroads and change the way the world approaches recycling in the future.

Hi-Cone is a leading supplier recycling. Additionally, we are  Reduce the amount of multi-packaging systems setting ourselves ambitious of virgin plastic used in ring for global beer, soft drink and goals for increasing the carriers. general products industries. sustainability of our products One of our most recognizable further. In 2019, Hi-Cone started products is the ring carrier (often transitioning its portfolio,  Recycle – increase known as a ‘six-pack ring’) that moving towards exclusively infrastructure through holds together your multipacks offering packaging containing partnerships where wider of beer or soft drinks. post-consumer recycled systems do not exist today. content. We remain committed Since our inception, we have to researching and further  Reuse – process plastic been committed to developing improving our products, as (ring carriers and other the best, most environmentally well as to building a circular flexible plastic) into responsible packaging possible, economy, moving forward. recycled plastic instead and to actively working to of going to landfills. reduce its environmental impact. We want to contribute to For example, ring carriers were making responsible recycling By the end of 2020, we are developed to minimize the easier for consumers, both by transitioning all customers amount of packaging used in ensuring recyclability through worldwide to products with beverage multi-packs. public system (such as the at least 50% post-consumer yellow bins in Spain) as well as recycled content and will Moving forward, we believe that supporting alternative programs stop producing ring carriers plastic will continue to play a where this is not possible (e.g. made from all virgin plastic. role in ensuring the growing by partnering with TerraCycle® Additionally, we are supporting global population can safely in the UK as well as other the recycling of plastics where access the food and drink it partners worldwide). We want needed and within our scope. needs. But the sustainable way our partners – food brands and Last, but not least, we are forward is as yet unclear. In retailers – as well consumers committed to developing a addition, there are significant to trust that we are doing our 100% recyclable, biodegradable worries about the current part, reducing the amount of or compostable solution by recycling system, as well as packaging which is sent to 2025 and will be working misconceptions about different landfill, increasing recycling and closely with partners across the kinds of packaging and their minimizing our impact on the industry and supply chain to effect on the environment.iv environment. amplify our efforts.

We want to help provide We are committed to the information to all stakeholders fundamental shift towards the To follow our progress: on the current possibilities circular plastics economy and hi-cone.com/sustainability of plastics, packaging, and are working to…

iv ‘See the 'Sources' section at the end of this document for more information on the YouGov survey

OUR PACKAGING GOALS

REDUCE VIRGIN CONTRIBUTE TO A CIRCULAR DEVELOP NEXT PLASTIC USE FUTURE FOR PACKAGING GENERATION SOLUTIONS

Last year, we introduced As a leader in providing In 2019 Hi-Cone added clarity RingCycles™, made from 50% post- environmentally responsible to our Sustainability Vision to consumer (PCR) recycled content, multi-packaging solutions, we are ensure our product portfolio has and announced that we would investing to improve education and positive End-of-Life outcomes, transition all customers worldwide, increase recycling rates by ensuring committing to solutions that are eliminating our use of virgin recyclability through public systems 100% recyclable, compostable plastic by half. as well as supporting alternative or biodegradable by 2025. programs. We are committed to the fundamental shift towards the circular economy.

GOAL: 100% GOAL: 2020 GOAL: 100%

100% of Hi-Cone products made In 2020, we will continue to keep 100% of Hi-Cone Products from post-consumer recycled plastics out of the environment Recyclable. content by 2021. and contribute to a circular economy for packaging. PROGRESS: PROGRESS: Developing next generation All Hi-Cone ring carriers will be PROGRESS: solutions. We will report our made from 50% post-consumer We launched ringrecycleme.co.uk progress on this goal in 2021. (PCR) recycled content by 2021, in 2019 in partnership with reducing our use of virgin plastic TerraCycle® in the UK, the first by half. manufacturer-led recycling program. In 2020, we will launch ringrecycle.me.com to ensure ring carriers are recyclable globally where #4 LDPE is not widely recycled today.

Shaping a path to a more sustainable tomorrow.

Investing in and making a difference in the communities in which we live and work.

For updates on our goals and our work around the world visit:  hi-cone.com

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Survey methodology All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 5,509 adults of which 2,228 were in the UK, 1,268 in the US, 1,011 in Spain, and 1,002 in Mexico. Fieldwork was undertaken between 12th – 21st November 2019. The survey was carried out online. The figures have been weighted and are representative of all country adults (aged 18+).

References i Single-use plastics: a roadmap for sustainability’, United Nations 7. ‘World Oceans Day 2018 to focus on cleaning up plastic in Environment Programme, 2018 oceans’, UN.org, 7 June 2018 ii WRAP, Waste and Resources Action Programme, is a UK initiative https://www.un.org/sustainabledevelopment/blog/2018/06/ which provides research and recommendations on more world-oceans-day-2018-to-focus-on-cleaning-up-plastic-in- sustainable resource use to stakeholders worldwide (learn more oceans/ at https://www.wrap.org.uk/) 8. ‘Canada Aims to Ban Single-Use Plastics by 2021’, National ii A European Strategy for Plastics in a Circular Economy’ brochure Geographic, 11 June 2019 https://www.nationalgeographic.com/ and factsheet, European Commission 2018 environment/2019/06/canada-single-useplastics-ban-2021/ https://ec.europa.eu/environment/waste/plastic_waste.htm 9. Plastic food and drink packaging’, House of Commons iii Life Cycle Assessment of Recycled Low-Density Polyethylene for Environment, Food and Rural Affairs Committee, Sixteenth Report Multipackaging, Franklin Associates Study, available on request. of Session 2017–19 https://publications.parliament.uk/pa/cm201719/cmselect/ 1. ‘Plastics-out trend could open packaging’s Pandora’s box, cmenvfru/2080/2080.pdf anonymized Green Alliance interviews reveal’, Packaging Insights, 10 January 2020, https://www.packaginginsights.com/news/ 10. A European Strategy for Plastics in a Circular Economy’ brochure plastics-out-trend-could-open-packagings-pandoras-box- and factsheet, European Commission 2018 https://ec.europa.eu/ anonymized-green-alliance-interviews-reveal.html environment/circular-economy/pdf/plastics-strategy-brochure.pdf 2. ‘Plastic food and drink packaging’, House of Commons 11. ‘El reciclaje, una oportunidad que México sigue desperdiciando’ El Environment, Food and Rural Affairs Committee, Sixteenth Report Pais, 18 May 2018 of Session 2017–19 https://elpais.com/internacional/2018/05/16/ https://publications.parliament.uk/pa/cm201719/cmselect/ actualidad/1526428616_838184.html cmenvfru/2080/2080.pdf 12. ‘Plastic food and drink packaging’, House of Commons 3. A European Strategy for Plastics in a Circular Economy’ brochure Environment, Food and Rural Affairs Committee, Sixteenth Report and factsheet, European Commission 2018 https://ec.europa.eu/ of Session 2017–19 environment/circular-economy/pdf/plastics-strategy-brochure.pdf https://publications.parliament.uk/pa/cm201719/cmselect/ cmenvfru/2080/2080.pdf 4. ibid, A European Strategy for Plastics in a Circular Economy’ brochure and factsheet, European Commission 2018 https:// 13. Written evidence submitted to parliament by WRAP ec.europa.eu/environment/circular-economy/pdf/plastics- http://data.parliament.uk/writtenevidence/committeeevidence. strategy-brochure.pdf svc/evidencedocument/environment-food-and-rural-affairs- committee/plastic-food-and-drink-packaging/written/101525.html 5. ‘Advancing Sustainable Materials Management 2015 Fact Sheet’, Environmental Protection Agency, 2018 https://www.epa.gov/ 14. ‘Plastic food and drink packaging’, House of Commons sites/production/files/2018-07/documents/2015_smm_msw_ Environment, Food and Rural Affairs Committee, Sixteenth Report factsheet_07242018_fnl_508_002.pdf of Session 2017–19 https://publications.parliament.uk/pa/cm201719/cmselect/ 6. ‘Reciclaje, un negocio que no termina de despegar en México’, cmenvfru/2080/2080.pdf Milenio, 20 October 2019 https://www.milenio.com/negocios/reciclaje-un-negocio-que-no- 15. ‘Life Cycle Inventory Study’, Franklin Associates, 2018 termina-de-despegar-en-mexico https://plastics.americanchemistry.com/Reports-and-Publications/ LCA-of-Plastic-Packaging-Compared-to-Substitutes.pdf

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