Plastics Briefing Strategic Responses and Potential Solutions

Plastics Briefing Strategic responses and potential solutions

NICK BROWN CAROLINE FRÉRY WILL PICKETT Head of Sustainability at Head of Business ICRS Secretariat and Coca-Cola European Development - Europe Junior Partner at Partners at Terracycle Carnstone @WeAreICRS #ICRSWebinar

1 I Institute of Corporate Responsibility and Sustainability HOW CAN PLASTICS BE SUSTAINABLE?

NICK BROWN, COCA-COLA EUROPEAN PARTNERS We are taking action on sustainability by using our business and our brands to build a better future. More choice. Protect. More information. Reduce. For people. Less sugar. Replenish. For the planet.

Our packaging. Halve emissions. Our resource. Renewable electricity.

A force for good. Sourcing sustainably. For everyone. Sourcing responsibly. What’s the issue with Plastic and why the public interest now? What’s really happening? Global & Local Material Leakage? How should businesses respond? A strong track record of leadership in Sustainable Packaging

2016 36g 26g 24g 19.9g

https://www.youtube.com/watch?v=EI gthryckME

https://www.youtube.com/wat >50% >50% 25% ch?v=aEVVJxqWaZ8

https://www.youtube.com/watch?v=uyolVMKlfrQ &feature=youtu.be Our sustainable packaging strategy HOW CAN PLASTICS BE SUSTAINABLE?

“If you can’t look after it – it’ll be taken away!” ELIMINATING THE IDEA OF WASTE

Make everything Make everything Eliminate the recyclable from waste concept of waste TERRACYCLE IS A GLOBAL LEADER Active in 21 Countries

TerraCycle Locations

• Brazil • Norway • Canada • Spain • Mexico • Sweden • US • Switzerland • Austria • UK • Belgium • China • Denmark • Japan • France • South Korea • Germany • Australia • Ireland • New Zealand Regionally, TerraCycle is partly owned by several • Netherlands large waste management companies to leverage In Process of Opening their expertise and credibility across the globe.

• India • Taiwan

12 SAMPLING OF PARTNERS TerraCycle has five major business units focusing on partnering with consumer product companies (CPG), retailers, facilities, municipalities and small business / individuals. Beverage

…and many more RECYCLING THE NONRECYCLABLE Most products and packaging are considered non-recyclable only because of economics. Examples below:

WHEN: WHEN:

NON- LOGISTICS PROCESSING VALUE RECYCLABLE LOGISTICSNON-RECYCLABLEPROCESSING VALUE RECYCLABLE

RECYCLABLE NOT RECYCLABLE

Beauty Products PET

Coffee Capsules Aluminum

Polypropylene Complex Closures HDPE Uncoated Paper Flexible Plastic Packaging

SOMEWHAT RECYCLABLE Cigarette Butts Glass

14 MAKE EVERYTHING RECYCLABLE Today we live in a linear world where most products are made, used once and then discarded.

Extraction & Landfill or Incineration Manufacturing MAKE EVERYTHING RECYCLABLE TerraCycle’s first goal is to recycle products and packaging that do not currently have a solution to give materials a second life.

Extraction & Recycle Manufacturing THE TERRACYCLE PROCESS

LOGISTICS SOLUTION VALUE TerraCycle creates custom TerraCycle develops the TerraCycle works with collection logistics for each science and technology each client to drive recycling program. Programs are to recycle the previously significant ROI and designed to best suit the client non-recyclable waste into scalability through their and their waste stream. a new raw material. recycling program.

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17 SAMPLING OF TERRACYCLE’S LOGISTICS MODELS TerraCycle operates in a private recycling supply chain that works with partners to create a supply chain that makes sense for their products.

Consumers recycle contact lenses at Customers use turnkey optometrists offices Zero Waste Boxes to using collection boxes. Target guests can trade in old smoothly collect and car seats at retail locations. recycle empty adhesive Target aggregates the seats at packaging. distribution centers, and Employees collect TerraCycle picks them up by cigarette butts placed freight for recycling. into city-wide receptacles.

Frito Lay manufacturing Kiehl’s shoppers visit sites ship TerraCycle Bloomberg uses stores to drop off used excess film waste permanent bins to personal care through freight collect & recycle snack packaging. logistics. packaging in their offices.

18 DIRECT CONSUMER ENGAGEMENT TerraCycle’s recycling program allows your consumers to engage with your brand through an authentic sustainability platform.

Location Leaders Collection Locations Community of Collectors The leader of a location coordinates and Locations can be at a school, office, Location leaders encourage people in their community promotes the program in their community community center, or someone’s home to collect and recycle your brand’s waste

19 HOW TERRACYCLE PROCESSES WASTE

TerraCycle receives packages of your 1 brand’s waste at its local warehouses Check In and checks them in.

Once a package from your program is 2 checked in, the contents of the package are aggregated with similar materials in Aggregate preparation for processing.

TerraCycle works with strategic partners to process individual waste 3 streams (by material composition) into Processing a new format.

4 This new format is used as a raw material to New Products create a new finished product.

TerraCycle will not landfill or incinerate any of the waste we receive. 20 Sustainability

Colgate Awarded The Supplier Leadership Award for sustainability as a result of their partnership with TerraCycle 87% Litter Reduction of Cigarette Butts experienced by Sydney, AU where collection receptacles were installed 97.3% Waste Diversion Rate experienced by GreenBiz using Zero Waste Boxes at their event Marketing & Communication

96% of consumers more likely to purchase Febreze R I products after being involved the Air Care Recycling Program RETURN ON Brand Perception Is 78% “More Positive” in survey about a nutrition brand due to their TerraCycle program Garnier Was Featured In A Leading Industry Publication INVESTMENT due to their Personal Care and Beauty Recycling Program Drives sustainability, marketing, communication and sales ROI. Sales 40% Re-purchase Rate Experienced By Kenco after an on-pack TerraCycle promotion 100+% Sales Increase for a home care brand during a TerraCycle promotional window 43,000+ Target Coupons Redeemed through Target Car Seat Trade-in Program through 2-week promotion 20-40-60 Yearly Sales Increase 21 experienced by a Northeast grocery chain following a TerraCycle promotion CASE STUDY | COLGATE PLAYGROUNDS

Colgate has driven incremental 2 displays by executing consumer promotions with multiple key accounts (ShopRite, Meijer, Albertsons etc.) that allows consumers to win a recycled playground (made from oral care waste) for a school in Consumers are directed to promotional website (managed their community. by TerraCycle) vote for their Consumers see promotional school to win the recycled prize display at retail.

5 4 3

TerraCycle installs the playground at the TerraCycle updates the website with Communities can vote by recycling winning school . a leaderboard of vote totals. (previously non-recyclable) waste through the Oral and Care Recycling Program 22 MAKE EVERYTHING FROM WASTE TerraCycle second step is to integrate unique recycled materials back into your products.

Extraction & Recycle Manufacturing CATEGORIES OF STORIED PLASTICS Storied plastics create a strong & unique narrative for products driving significant marketing, communications and sustainability ROI.

COMPELLING CLOSED LOOP PURPOSEFUL 1. 2. INTEGRATION 3.

Integrating recycled Telling a story by using Using highly noticeable and materials of a given product one waste stream to problematic waste streams back into the making of that create a relevant to speak to an emotional same product. (but distinct) product. consumer connection.

24 CASE STUDY: P&G LEVERAGES BEACH PLASTIC

25 ELIMINATE THE IDEA OF WASTE TerraCycle's third step is to redesign products to enter into a reuse platform, completely eliminating the idea of waste.

Redesign

Reuse Loop Giving consumers a more convenient, premium product experience, all while eliminating the idea of waste.

By TerraCycle

Launching in NYC & Paris area Customers detail their after global announcement at the subscription by selecting World Economic Forum. Jan ‘19 which & how many products 2) they want in each cycle.

Loop pick packs & ships product in Customer receives products durable and reusable shipping tote. 3) in Loop tote and enjoys.

Loop manages/handles customer service inquiries.

1) Customers sign up for Loop via major retailers. NO Partners redesign packaging to be durable, refillable and with more features. WASTE Design TBD Move package from being a COGS to an asset. Customers put empty 4) containers back in Loop tote.

Loop’s shipping partner picks up the Loop tote.

= Customer Experience As soon as customers send back their = Loop/Partner Operations empty product, Loop will automatically 5) fulfill with new product.

Loop professionally cleans the reusable bottles and sends to Partners for refilling. CONTACT US

CAROLINE FRERY Head of Business Development TerraCycle Europe

+33(0)9 75 18 09 85, Ext.1025

[email protected] Questions? Plastics: Strategic responses and potential solutions

29 I Institute of Corporate Responsibility and Sustainability 30 I Institute of Corporate Responsibility and Sustainability