TEXTILES: 60% of MARKET COTTON/POLYESTER > No Go in C2C !!!! Loosing Quality of Resources in Closing the Loop

THE PRACTICAL CHALLENGES + OPPORTUNITIES OF TRANSFORMATION: OLD INDUSTRY, NEW INDUSTRY + DISRUPTIVE TECHNOLOGIES Albin Kälin CEO EPEA Switzerland TODAY: CRADLE TO GRAVE DESIGN PARADIGMA TODAY: LINEAR SYSTEMS AND THEIR DESIGN PROBLEMS

Nutrients

Raw- materials Down- cycling

Cradle to Cradle® provides solutions CONCEPTS OF INDUSTRY TRANSFORMATION: DO THEY FOCUS ON MATERIAL QUALITY IN MULTIPLE LIFECYCLES ? CRADLE TO CRADLE® DESIGN CLOSING THE LOOP AND DEFINE MATERIAL QUALITY FOR FUTURE LIFECYCLES: BIOLOGICAL & TECHNICAL SYSTEMS Design beyond Productdesign

Biological System Technical Systems

GOAL EU COMMISSION WORLDWIDE INDUSTRY PRODUCTION:

• 7 year goal EU Commission: 16% to 20% • Stop deindustrialisation in Europe • Closing the loop of materials • Circular Economy • new technologies • new needs as fundamental drivers for innovation • Stop downcycling, generate upcycling • Design out toxic materials • Implement Circular Economy and Cradle to Cradle® Innovations • Maintain quality of rawmaterials over multiple lifecycles. • Implement cycle concepts in education • Create jobs in closing the loop RESOURCE PRICING SCENARIOS IN 2030: A DRIVING FACTOR FOR THE ECONOMY 1. Scenario: Business as usual • Growth of global demand • Industry dependency on new

resources 2. Scenario: Intermediate • Results of resource efficiency initiatives • Pressure for global agreement is too small • Stessfactors will remain 3. Scenario: «Cradle to Cradle®» «Circular Economy» • Paradigm change with winners and loosers • Impact of global initiatives • Turnaround, tipping point will be reached

© EPEA Switzerland GmbH • Ecology, business and society will benefit (profit, planet, people) RAWMATERIALS PRICING & CLOSING THE LOOP IN EU WASTE EXPORTS ARE INCREASING Plastics Recycling Prices/Volume Plastics Waste Import/Export

Paper&Board Recycling Prices/Volume Paper Waste Import/Export CHEMICAL INDUSTRY: FROM PASSIVE TO ACTIVE PARTICIPATION & PUBLIC ANNOUNCEMENTS OF POSITIVE LISTS e.g: TANATEX CHEMICALS Cradle to Cradle® System integrated chemical solutions for cellulosic fibres

Bleaching Biopolishing Vat dyeing Postscouring Softening

Levelling agent Stabilizer Sequestrant Enzyme Postscouring agent Softener Detergent Lubricant Defoamer

Bleaching Vat dyeing Postscouring Softening

Levelling agent Stabilizer Sequestrant Postscouring agent Softener Detergent Lubricant Defoamer

former: OBA Bleaching Softening

Stabilizer Detergent Softener OBA CHEMICAL INDUSTRY: DEPOLYMERISATION OF POST CONSUMER PRODUCTS e.g.: Polyamide 6 - Aquafil / Julon (IT/SL) URGENCY NEED FOR POLYESTER, pet depolymerisation and motivate investors, bottle to bottle recycling is only a partial solution. e.g: Teijin–Japan Production in Europe 2012: Polyamide 436’000 t/yr (10%) Polyester 1’026’000 t/yr (2%) Production Worldwide 2013: Polyamide 4’220’000 t/yr Polyester 44’620’000 t/yr TEXTILE AND APPAREL: 1. INDUSTRIAL REVOLUTION Today: under attack, suffering of bad image Change is possible: lighthouses e.g.: Trigema Change

Cradle-to-Cradle Polo-Shirt 100 % Organic Cotton, compostable TRIGEMA has developed together with the environmental institute EPEA the WORLD FIRST COMPOSTABLE polo SHIRT. The Wellness short- sleeved shirt made from ecologically degradable organic cotton is equipped with a nice polo collar, three-button placket and two-color Trigema logo. This great top piqué quality is as gentle to the skin and on nature. The material is easy to clean, durable and fade-resistant. Available in larger sizes up to 4XL. TEXTILES: 60% OF MARKET COTTON/POLYESTER > No go in C2C !!!! Loosing quality of resources in closing the loop. Innovation implementation in Europe biodegradable polymer e.g.: Lauffenmühle Germany: Infinito® yarns and reworx® textiles Take-Make-Use-Regenerate: infinito® yarns / reworx® textiles are safe for biological systems, offer a climate control function, are suitable for industrial laundering with excellent performance results for easy care, light fastness, high abrasion and pilling resistance. The product is designed and qualified to be used for work wear as well as for other high performance textile products and applications.

infinito® yarns / reworx® textiles are Cradle to CradleCM certified at gold level: After use and more than 50 cleaning cycles the products will be collected and forwarded to an industrial composting facility where the textiles will safely transform to humus - which then means living space for other organisms: new life is generated. TEXTILES & APPAREL: CLOSING THE LOOP Take Back Systems for Industrial Composting and Depolymerisation, Include industrial composting of industrial goods in EU-legislation: e.g: Lauffenmühle-D: Work Wear, Apparel made from Textiles

Work Wear, Apparel made with reworx® textiles are Cradle to CradleCM certified at silver level: After use and more than 50 cleaning cycles the products will be collected and forwarded to an industrial composting facility where the textiles will safely transform to humus - which then means living space for other organisms: new life is generated.

Lauffenmuehle textile innovation Cradle to Cradle certified Work Wear, Apparels made from reworx® textiles are exclusively produced by licencees of Lauffenmuehle GmbH & Co. KG, Germany, a fully vertically integrated textile manufacturer - with more than 175 years of experience in producing yarns and textiles. Licensees of Work Wear, Apparel made from reworx®: Bierbaum-Proenen (BP) Collection BP Bio Cycle INDUSTRY CONSORTIUMS CREATING KNOWLEDGE + BETTER QUALITY e.g.: WOLFORD + TEXTILE CONSORTIUM AUSTRIA, Representing 13 % of the Austrian Textile Industry

Austria FFG 7 Call COIN-Programme „Cooperations and Networks“ „Cradle to Cradle Competitive Basic Underwear“ Premium Unterwear for international markets according Cradle to Cradle®: 14 consortium members Textile Industry. Projectstart July/August 2014 PACKAGING INDUSTRY: WASTING RESOURCES & USING TOXIC CHEMICALS PACKAGING VISION FOR THE FUTURE, WHERE IS IT ? e.g.: Cleaning Detergent Frosch: Citrus Shower & Bathcleaner - Germany

Pioniers in Europe

Frosch Cleaning Detergents are the first Cradle to Cradle CertifiedCM Gold Level!

But packaging Silver Level! Innovation is needed.

Founder of Recyclat Initiative in Germany http://initiative-frosch.de/Recyclat-Initiative/Recycling-beginnt-beim-Sortieren/

ECOLABELS WITH LOWER STANDARDS ARE LIMITING TRANSFORMATION e.g. Case Study: Green Care Professional - Germany

Performance by Design • All products are based on innovative formulations providing highest and proven cleaning efficiency, confirmed by the EU Ecolabel certification Added value: Providing highest cleaning performance through perfect ecological product design • Outstanding innovative and safe products for use and environment • Comprehensive range for cleaning application - C2C Gold Certified PAPER INDUSTRY: IN A CRISIS AND STILL RESISTING TRANSFORMATION Top NGO Ranking: Paper Industry Van Houtum – Netherlands Toilet Paper

Satino Black wins WWF Paper Award

Van Houtum received the international WWF Environmental Paper Award 2012 on 13 November. We won this award because our Cradle to Cradle- certified hygienic paper, Satino Black, scores highly in the area of environmental performance. A total of 11 companies received the award because they are transparent about their production process or achieve outstanding environmental performance with a specific product. Van Houtum is the only winner from the Netherlands. BUILDING INDUSTRY: THE SECOND LARGEST & WASTING RESOURCES Need for innovations in materials and processing (glues, foams etc.) A vision for the future: Cradle to Cradle® in buildings & within facility management e.g.: Search Field Hochtief Development Schweiz - Switzerland

DNA OF A BUILDING (Raw Materials Bank, Value Agreement on Raw Materials)

• Inventory of all built in raw materials and products • Include cyclability in planning • Assure preservation of raw material quality • Modular construction for a good separability of materials (planning – building – use – renovation – decommissioning – next life in new building) • Presentation of the economic consideration and advantages for investors THE ROLE OF CEMENT 2050: LOW CARBON ECONOMY Vision for the future: Cement for the living environment and next generations and what about: • Flying ash with hazardous chemicals input in new cement ? • Lower environmental standards ?

• Phase out instead of monitoring • Material health as priority Policy recommendations • Develop appropriate indicators to measure resource efficiency based on the entire life cycle so that the most environmentally and economically optimal use of recycled C&DW can always be identified and implemented. • Revise local building codes to encourage increased levels of recycled content for different applications. The success of these codes would be linked to effective systems for materials testing and certification. • Encourage development of building techniques that will allow easy sorting of construction and demolition waste. [1] Source: Sustainable benefits of concrete structures, European Concrete Platform WOOD INDUSTRY: TREATING WOOD WITH CHEMICALS FOR CLOSED LOOP CONCEPTS e.g.: Bauwerk Parquet: Wood Parquet for Generations

Parquet for Generations Bauwerk parquet is designed to last. It should never become a waste product or consume unnecessary or environmentally harmful energy. Raw materials are preserved and the resource water is treated with consideration. Bauwerk acts in a fair and socially responsible manner, both within the company and in public. EPEA Switzerland is assisting Bauwerk in its implementation of the cradle to cradle® vision and supporting the company during the certification process by the cradle to cradle® product innovation institute. Raw materials are analysed as to their composition and environmental impact and traced back to their origin. During the certification process for Bauwerk’s new silente technology, both the suppliers and Bauwerk’s manufacturing facilities were subjected to close scrutiny. EU-27 TREATMENT OF HAZARDOUS + NOTIFED WASTE SHIPPED OUT OF EU MEMBER STATES TO OTHER EU MEMBER STATES OR OUT OF THE EU 2001 TO 2011

Notified waste exports + 230% 2001 - 2011

The EU waste average increased from 22 kg in 2007 to 29 kg in 2011. Closing the loop of materials and maintaining the qualities of resources can create jobs in local employment opportunities and will save money as waste disposal will get more expensive in the future EXPORT OF E-WASTE: ELECTRONIC GOODS AS TECHNICAL NURIENT e.g: Search Field SENS - SWITZERLAND

The table from the report of the technical inspectorate SENS, SWICO Recycling, SLRS 2011 indicates the complexity of todays system. 75% materials of electronics and electronical goods are reused. 50% metals, 25% plastics mostly thermal recycled. However 25% of waste remains and offers a potential . The Cradle to Cradle® approach improves the quality of the rawmaterials in the closed loop and has the goal to eliminate waste. ELECTRONIC GOODS: TODAY‘S RESOURCES CYCLE

Contract Retail Consumer e-recycling.ch Revision

Import Agent Materialflow Collection Point

Manufacturer SENS Component Recycler Suppliers Platform Contract Recycler II Characteristics Controling

Rawmaterial Mining Destruction ELECTRONIC GOODS: CRADLE TO CRADLE® RESOURCES BUSINESS CASE

Education

Contract Retail Consumer e-recycling.ch Revision

Import Agent Materialflow Collection Point Design- + Processmodification Prozessmodification Manufacturer SENS Component Recycler I C2C Suppliers Platform Contract Rawmaterial Processing Recycler II Characteristics Design- + Processmodificaton Controling

Rawmaterial Mining Destruction AUTOMOTIVE INDUSTRY: RECYCLING > DOWNCYCLING e.g: Change regulations from quantity to quality, transformation of industry

FORD - MODEL U FOR CHANGE START 2003 - STOPPED 2006 CLOSING THE LOOP WITH CARBON COMPOSITES ?

• Closing the loop of Carbon composites is downcycling

• Chemistry resolves toxic concerns about carbon fibres

• Solutions ? Need of Innovation and transformation of industry

INTEGRATING CONSUMERS INTO TAKE BACK SYSTEMS WITH DEFINED RESOURCES QUALITY e.g.: Business Case Office Chairs Stoll Giroflex AG, Switerland «Swiss Quality» EDUCATION: ENABLE THE NEXT GENERATION TO TRANSFORM INDUSTRY e.g.: Academic to include Circular Economy and Cradle to Cradle®

Cradle to Cradle® Life Cycle Assessment (LCA) Innovation framework, Business concept (Circular Method for measuring the environmental What is it? Economy), but maintaining the quality of raw impact of products over the entire lifecycle materials It is possible to design products with a positive „All“ products pollute, they all require Philosophy impact on people, the environment and economic extraction of raw materials and there is profit (the three P’s) always some form of waste left over

Eco-efficiency: doing more with less. Eco-effectiveness: developing a product with positive Improving the ratio between economic value Approach qualities. The process is part of the ultimate goal. and environmental impact. The aim is to measure the result, not the process

Use the 3 guiding principles to establish a clear Use hot spots to set priorities for Design support direction: waste = food, renewable energy, Respect improvements. diversity

LCA is used as a measuring instrument in Maximization of positive effects on people, their eco-design, whereby hot spots (life cycle Environmental impact environment and the future availability of high quality elements with the biggest – negative – raw materials. environmental impact) are identified so that designers can set priorities for improvements.

Measure the footprint and let designers Ecological footprint Develop a positive beneficial footprint. decide how to handle with it.

• Is GDP the right measure in a circular economy approach? • Change of Business Models • Stock exchange, who will remain on DAX, Dow Jones etc? • Impact power of legislation, e.g. reach, toxic materials, waste permissions, industrial composting for industrial goods • Integrate in education • LCA scientific debate closing the loop in view of C2C • Consumer behaviour changes > ownership and leasing, renting • Product / Service (do not forget the products) • Change from waste management to resource management • Infrastructure needed to close the loop Industry + chemical industry need to invest to close the loop DESIGN FOR A CIRCULAR ECONOMY MUST CONSIDER DISRUPTIVE TECHNOLOGIES

• Beyond industrial design and recycling • Focus on real consumer needs > disruptive technologies • Infrastructure challenges are local employment opportunities, e.g. remanufacture, repair, reuse, take back, recycle > creating jobs • Keep resources in Europe and invest in technology of resource processing e.g.: reinforced plastics, electronics, fibres • Incentive tax models for ecofriendly products • Quick win circular economy? The future will tell, but there is no other way out

EPEA SWITZERLAND GMBH Seestrasse 119 CH-8806 Bäch / SZ www.epeaswitzerland.com

Albin Kälin, CEO [email protected] Mobile: +41 76 44 22 66 8

Cradle to Cradle® Products Innovation Institute:

http://c2ccertified.org

Cradle to Cradle® is a registered trademark of McDonough Braungart Design Chemistry LLC (MBDC). Cradle to Cradle Certified™ is a certification mark licensed exclusively for the Cradle to Cradle Products Innovation Institute (C2CPII).