Leadership Council Meeting March 5th, 2013

PAC NEXT Welcome New Members! Co-Chairs: Kim Rapagna – Target Canada Angela Dennis – Nestlé Canada Inc. PAC NEXT Welcome New Members!

that Support Harmonization Co-Chairs: Scott Cassel – Product Stewardship Institute Ryan Modlin – Owens- Illinois, Inc. Policy Best Practices that Support Harmonization

Policy Harmonization HIGHLIGHTS Project Objectives Develop a fact base of global best practices related to EPR and other recovery policies, with a focus on measurable cost, quality and quantity metrics Coordinate efforts and outcomes with complementary initiatives Provide PAC NEXT members insights into policies that have worked elsewhere and facilitate industry consultation with governments on issues relating to resource recovery 2012 Accomplishments Developed EPR program summary template and received expert reviews on each of the 11 programs. Completed draft summaries for Québec, Ontario, Manitoba, British Columbia, Austria, Belgium, Germany, France, the Netherlands, the U.K., and Australia

2013 Objectives Revise key performance indicators (KPI) and program parameters and compile data for each of the 11 programs Conduct multi-factorial analysis using KPI tool to determine trends among programs and practices that would lead to high program performance in a given context Establish glossary of terms used Clearly define “best performing programs” Develop report of EPR program “best practices”

FYE 2013 FYE 2014 Timelines Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Complete draft summaries for 11 EPR programs Refine and finalize information on EPR program summaries Draft list of KPIs and Program Practices and Parameters Establish glossary of terms Clearly define “best performing programs” Develop report on EPR program best practices Coordinate progress with policy and other committee members

System Optimization Co-Chairs: Al Metauro, Dan Lantz – Cascades Recovery Inc. Das Soligo – County of Wellington System Optimization

System Optimization HIGHLIGHTS Project Objectives Review current promotion, collection and recovery systems to identify issues and opportunities Establish a baseline process map of how the recovery process and supporting infrastructure function today Propose recommendations to improve the current process and optimize current infrastructure 2012 Accomplishments Developed a Materials List that identifies 117 materials that are being captured in current collection systems Developed a Systems Map to understand the flow of materials through collection systems; Identified eight capture points and six collection methods Developed a Systems Model and interactive spreadsheet based on Ontario and Quebec data that allows for comparison of different management methods and the implications on overall recycling and recovery rates.

2013 Objectives Determine the costs of the current collection systems Approach will be to benchmark costs in Ontario and Quebec and to analyze MRF material balance Determine what is the ideal future collection system that can handle/process all 117 materials that are being captured in current collection systems Approach will be to consider a greenfield system and determine a service delivery model and the costs of managing all 117 materials Determine what is required to transition from an existing infrastructure to the ideal future system infrastructure Develop cost and material balance models based upon the above study items Define and support a pilot / trial program with the Materials Optimization team that assesses the impact of a package design change / improvement that increases collection and economical recovery with a viable and profitable end market

Timelines FYE 2013 FYE 2014 Develop Materials Flow Model Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Develop Materials Flow Model Determine the costs of the current collection systems Determine what is the ideal future collection system that can handle all 117 materials Determine what is required to transition from an existing infrastructure to ideal infrastructure Develop cost and material balance models based upon the above study items Support a pilot / trial program with Material Opt that assesses the impact of a package design change Coordinate with work of other groups e.g. Material Opt Communicate results

Material Optimization Co-Chairs: Guy McGuffin – Guy McGuffin Consulting Frances Gamache - Sobeys Material Optimization

Material Optimization HIGHLIGHTS Project Objectives Prioritize high impact materials that are not currently recovered and recycled effectively based on quantifiable data Develop strategies to improve the efficient recovery of high impact materials Develop next life strategies for the recovered materials to increase their value 2012 Accomplishments Identified industry challenges through Collection, Sortation, Processing and Reprocessing, Markets, and Innovation Proposed study of flexible films as first high impact material

2013 Objectives Address recovery barriers and broadening scope for PET thermoforms through voluntary initiatives concerning 1. Adhesives; 2. Florescent additives; 3. Lookalike plastics Address issues concerning shrinkwrap full sleeve bottle labels Provide next steps as a result of the CPIA/SO/CIF flexible film study

FYE 2013 FYE 2014 Timelines Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Provide next steps as a result of the CPIA/SO/CIF flexible film study Address recovery barriers and broadening scope for PET thermoforms Address issues concerning shrink wrap full sleeve bottle labels Propose voluntary trial program/pilot for flexible films Coordinate with work of other groups e.g. System Opt Complete trial program/pilot for flexible film Roll Out approach to new material categories

Consumer Engagement Co-Chairs: Mark McKenney, MGM Management Keith Fanta, P&G Consumer Engagement

Consumer Engagement HIGHLIGHTS Project Objectives Identify consumer attitudes and behaviors about packaging when making product purchase and end-of-life decisions Organize collected consumer insights and generate key observations; Identify knowledge gaps Develop an action plan to share insights with appropriate stakeholders that may lead to the development of intervention programs that will educate and inform consumers and engage them in the process of effectively recovering packaging material 2012 Accomplishments Collected information on consumer attitudes and behaviors Active engagement with the National Zero Waste Marketing Council Continued exploration of opportunities to bring the SPC’s How2Recycle on-pack label to Canada Completed successful workshop to share project ideas to identify best practices for consumer engagement when introducing new materials to a recycling program

2013 Objectives Create and utilize survey template to acquire data regarding public engagement when introducing new materials to a recycling program and tools used to measure success Continuously seek opportunities to collaborate with municipalities Understand how producers communicate packaging sustainability to consumers

FYE 2013 FYE 2014 Timelines Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Collect information on consumer attitudes & behaviors Identify knowledge gaps about consumer behaviors that might require further investigation Create and utilize survey template to acquire data regarding public engagement Seek opportunities to collaborate with municipalities Organized collected consumer insights and generate key observations Generate case study report based on key observations Support other PAC NEXT committees and consumer engagement/education programs

Sustainable Innovation Center of Excellence Co-Chairs: Carol Zweep, GFTC Ena Popic, Loblaw Brands Ltd. Sustainable Innovation Center of Excellence

Sustainable Innovation HIGHLIGHTS Project Objectives Develop a technical process to review packaging innovations to assess their environmental impact as well as their impact on current end-of-life systems to anticipate and avoid negative impacts Develop a fact-based, scientifically rigorous resource base that can help inform industry positions on new materials and processes 2012 Accomplishments Developed an evaluation tool in a decision tree format that applies to the current Canadian recycling infrastructure Completed Plastic PET decision tree that was successfully reviewed at the November 6, 2012 workshop Completion of draft decision trees for the remaining material categories - HDPE, LDPE, PVC, PS, PP, Other Plastics, Glass, Aluminum, Steel, Paper & Paperboard

2013 Objectives Publish decision trees based on the current Canadian recycling infrastructure Develop decision trees as it applies to other end-of-life scenarios e.g. Composting, energy recovery, etc. Applying the decision trees to the U.S. Monitor upcoming packaging/processing technologies; Develop panel of experts to keep information updated

Timelines 2013 2014 Phase I Phase II Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Establish draft decision tree/flow chart Review with subject matter experts Test decision tree/flow chart on materials outside of the pilot Publish decision tree/flow chart Develop other end-of-life scenarios e.g. Composting, energy recovery, etc Apply the decision trees to the U.S. Phase II Establish resource database Panel of experts to monitor upcoming packaging/processing technologies

Sustainable Packaging Design Guide Co-Chairs: Marina Pietrosel, ÉEQ Adam Gendell, SPC Sustainable Packaging Design Guide

Sustainable Packaging Design Guide HIGHLIGHTS Project Objectives To facilitate the exchange of information related to packaging sustainability between supply chain partners; Build on the foundation of Éco Entreprises Québec (ÉEQ) Voluntary Code for the Optimization of Containers, Packaging and Printed Matter and the SPC Design Guidelines for Sustainable Packaging; Align with the Global Protocol on Packaging Sustainability 2.0 (GPPS 2.0) metrics and attributes; 2012 Accomplishments Developed online survey and collected responses to address topics to be included in the Sustainable Packaging Design Guide Identified sources of relevant information Mock-up of Design Guide framework Ran a successful workshop on November 6, 2012 to become more familiar with Design Guide approaches and received feedback of proposed layouts Mapping the Web Platform

2013 Objectives BETA Test Mid-April (companies will be solicited to participate) CCME Task Group endorsement Launch Mid-May (Montréal/Toronto) Determine Phase 2 of the Sustainable Packaging Design Guide

Timelines FYE 2013 FYE 2014 February technical committee meeting Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 February technical committee meeting Writing Programing Graphic and visuals Test beta version Launch

Discussion

PAC NEXT eco-map Reporting Tools Initial PKG Design idea or concept Policy Best Practices Materials Opt. End of life solutions Design Guidelines LCA comparisons Stewardship Fees Best practices DESIGN GUIDE (GPPS) Box.com Case Studies Cost Models Decision Trees Case Studies EEQ / SPC Guides LCA Tool Better PKG Designs