February 7, 2012, Austin, TX By Gary Liss & Associates Rick Anthony, 858- Ruth Abbe, HDR, Businesses Building a Zero Waste Economy

Zero Waste Businesses are Leading the Way (>90% diversion)  Anheuser-Busch, Fairfield, CA  Apple Computer, Elk Grove, CA  Atlanta Zero Waste Zone  Epson, OR  Fetzer Vineyards  Frankie’s Bohemian Café, SF  Greens Restaurant, SF  Hewlett-Packard, Roseville, CA  Honda  Mad River Brewery  New Belgium Brewery  Pillsbury  Playa Vista, LA, CA  Ricoh Electronics  San Diego Wild Animal Park  Scoma’s Restaurant, SF  Subaru  Toyota  Vandenberg Air Base  Vons-Safeway  Xerox Corp  2800 Businesses in Japan See

 Saves Money  Reduces GHG and emissions  Reduces Liability  More Efficient  Marketing Edge  Right Thing To Do Why would a business DO this? Source: Gil Friend, Natural Logic

Zero Waste Business Principles  Commitment to the triple bottom line  Use Precautionary Principle  Zero Waste to landfill or incineration  Responsibility: Takeback Products and Packaging  Buy reused, recycled & composted  Prevent pollution and reduce waste  Highest and best use  Use economic incentives for customers, workers and suppliers  Products or services sold are not wasteful or toxic  Use non-toxic production, reuse and recycling processes Source: ZW International Alliance,

Ricoh Zero-Waste-to-Landfill Achieved Feb % Resource Recovery Tons

ZW Partnership With Suppliers Ricoh Green Procurement RETURNREUSERECYCLEREFUSEREDUCE

Toyota  10 “Zero Waste” Plants (95% reduction of waste to landfill from 1999)  1 HQ and 3 Distribution Centers are “Zero Waste to Landfill”  8 Distribution Centers > 90% Recycling Rate

Toyota  $1.3 million in net savings on waste management  Returnable shipping modules saved $5.3M in costs and 3.4M pounds of cardboard, 9.8M pounds of wood  Integrated Waste Management into ISO Environmental Management Systems

Vons Safeway Less Fortunate Fruits & Vegetables… …are shrink wrapped and backhauled to Central Distribution

Hewlett-Packard Roseville, CA  9,000 Employees  94% Waste Diversion  Avoided Disposal Costs: $870,564  Recycle Cardboard, Metal, Foam, Peanuts, LDPE, Instapak, PRS  Reuse and Recycle Pallets

Mad River Brewing Company Blue Lake, CA  34 Employees, 15,000 sq. ft.  98% Waste Diversion  Less than two 90gal. Trash Cans/Week  Total Savings/Year: $35,654  Recycle Scrap, Metals, Glass, Office Paper, Plastics, Pallets, and C&D  Spent Grain & Hops = Animal Feed & Composted

ZERI Brewery Project Namibia (southern Africa)  Good Beer, No Chemicals, No Pollution, More Sales and More Jobs  Produces 7x more Food, Fuel & Fertilizer, 4x as many jobs & 12 more Products, Compared to Conventional Beer Producer  Fully Integrated BioSystem - 40 Different BioChemical Processes Reuse Everything (heat, H20, wastes, CO2) Grow Mushrooms on Spent Grain Chickens Eat Worms in Grain Digest Mushroom, Chicken Feed & Chicken Wastes to Generate Methane Gas for Steam for Fermentation Alkaline Water to Fish Ponds (8 Different Types of Fish + Algae Sold)

ZERI – Natural Kingdoms  5 Kingdoms of Nature are highly productive and adaptive system  Bacteria  Algae  Fungi  Plants  Animals

ZERI Design Principles  Waste is a nutrient or food for another species belonging to another kingdom  Toxin for one organism is a nutrient or neutral for one in another kingdom  In highly complex ecosystems, viruses inactive/disappear without harm if pass through at least 2 other kingdoms

ZERI Design Principles  More local/diverse a system, the more productive and more resilient  When species of 5 different kingdoms interact in autopoetic system, can integrate and separate all matter at ambient temperature and pressure

ZERI Product Cascading Out: In Clean- ing Fish Farm AlgaeIrriga- tion Mush- rooms Earth- worms Total Water 100: : : : 8 100: 0 100: 0 100: 100 Fibers 100: 0 100: 6 100: 0 100: 0 100: : : 100 Mushroom Compost 100: 50 Chickens Manure Source: Pauli, Gunter, Upsizing,”Output-Input Table,” 1998, p. 117,

 Facility Walk-through  Systems information:  Overview of operations  facility layout  Staff roles and concerns  materials flow  Types of waste materials generated  Generation points Commodities Analysis

9 Generating Sources in any Business 1. Warehousing & Distribution 2. Offices 3. Food Services 4. Grounds 5. Construction 6. Manufacturing 7. Vehicular Maintenance 8. Retail 9. Housing & Hospitality

 Sort by functional areas Information about discards at generation point Types and quantities of materials produced by specific operations Commodities Analysis

 Sort of entire facility Info from end of materials flow Quantities of each type of material produced in the entire facility Commodities Analysis

 Purchasing Records Information from beginning of materials flow Cost info for determining benefits of waste reduction Precise quantities for waste materials which are purchased and then discarded within the facility Commodities Analysis

Purchasing for Zero Waste  Precautionary Principle  Return to Vendor  Lease, Rent and Share Equipment  Reduce Packaging  Reusable Shipping Containers  Buy Recyclable, Recycled and Compostable Items  Buy Remanufactured Equipment  Purchase Durables  Buy Less Toxic Products Source: Alicia Culver, Green Purchasing Institute

 Production Records Quantities of materials production data Insights into materials flow Numbers can be adjusted for facilities with varying levels of operation Commodities Analysis

 Hauler Records Information from end of materials flow Total volumes and/or weights of waste hauled Volumes and/or weights of recyclables hauled Waste collection, disposal and recycling costs Commodities Analysis

Stewardship Practices  Reduce packaging  Provide take back options  Work with downstream buyers and users to improve your product  Improve durability

 Businesses takeback products and packaging at no cost to the public  Properly reuse, recycle or compost - don’t export harm  Redesign products to be less toxic & easier to reuse & recycle  Use small, local businesses and nonprofits, not just multinational companies Extended Producer Responsibility

“Rs” for Refuse/Reduce The 5R Concept Applied to Packaging Optimization REFUSE/ REDUCE Reduce Unnecessary Packaging Material  Packaging cost  Packaging time  Freight cost Reduction of:  Labor time for switching cans and cleaning leftover chemicals  Water usage  Packaging material cost Reduction of: 6 individual cases were put into a master carton… Chemical came in many small cans… …now in drums= …no more master carton =

Reuse/Return

Recycle: Last Thing to Do Before Styrofoam glued to the corrugated liner After No glue used, but snaps on type Results 1.No glue to buy and store 2.No drying time 1.Much easier to separate Styrofoam from liner to recycle 2.No more use of a knife to cut the glued joint RECYCLE Optimized Packaging Style & Recycle waste

Employee Training Effort  Total participation  Build culture from top down and bottom up  Wasting no longer tolerated  100% compliance  Emphasis on reward, though

Promotion Everywhere  Every employee must participate  Everyone informed and educated  Everyone does their part  No one left behind

Corporate Culture  Creativity  Innovation  Sharing  Fun  Every little bit helps  Desiccant contest 1 st Place Winners

Plus-Plus Program  + = impressive improvement  ++ = opportunities for improvement  Fun & education = efficiency  No waste cans

Plus-Plus Program  Education practiced internally and externally  Ricoh requires vendors to have zero waste  Ricoh works with communities world wide to achieve its goal of sustainability “The best thing is not what we planted in the ground, but what we planted in the children’s minds.” – Ricoh’s President

Resource Management  Traditional Hauling & Disposal Contracts Contractor Compensation  Unit price based on waste volume or number of pick-ups.  RM Contracts  Capped fee for waste hauling/disposal service. Performance bonuses (or liquidated damages) based on value of resource efficiency savings.

Resource Management  Traditional Hauling & Disposal Contracts Incentive Structure  Contractor has a profit incentive to maximize waste service and volume.  RM Contracts  Contractor seeks profitable resource efficiency innovation.

Resource Management  Traditional Hauling & Disposal Contracts Waste Generator- Contractor Relationship  Minimal generator-contractor interface.  RM Contracts  Waste generator and contractor work together to derive value from resource efficiency.

Resource Management  Traditional Hauling & Disposal Contracts Scope of Service  Container rental and maintenance, hauling, and disposal or processing. Contractor responsibilities begin at the Dumpster and end at landfill or processing site.

Resource Management  RM Contracts Scope of Service  Services addressed in hauling and disposal contracts plus services that influence waste generation (i.e., product/process design, material purchase, internal storage, material use, material handling, reporting).

Resource Management  Traditional Hauling & Disposal Contracts Contractor Compensation  Unit price based on waste volume or number of pick-ups.  RM Contracts  Capped fee for waste hauling/disposal service. Performance bonuses (or liquidated damages) based on value of resource efficiency savings.

RM Compensation Goals  Mutually Beneficial Business Relationship  Drive Inefficiency and Cost Out of System  Cost-effective Resource Efficiency  Share Savings Between Business and RM Contractor  Continuous Improvement in Resource Efficiency

RM Compensation Options  Pass-Through of Service Costs with “Shared Savings” and Performance Bonus  RM contractor provides all required services (e.g., tip fees, hauling fees, container rental) on a “cost pass-through” basis based on the bids received to take over existing services (Base Financial Proposal).  When contractor implements changes to permanently decrease costs, contractor shares in some of those savings.

RM Compensation Options  Examples of savings opportunities include  Diverting more materials  More efficient handling and hauling  “Right-sizing” containers for cost savings and behavioral change (e.g., smaller trash bins)  More prominent recycling stations),  Helping to reduce waste

RM Compensation Options  Shared Savings Options  Share 50/50 (Business/Contractor)  Business get 100 percent of savings up to predetermined level (e.g., 5%). Then split savings above that in ratio that benefits the contractor (e.g. 30/70)  Performance Bonus - increase % to contractor when business meets performance target(s)

RM Compensation Options Options to Tie Diversion Improvement to Contractor Performance Bonus: Diversion RateBusiness/Contractor CurrentX%/Y% Current + 15%X-10%/Y+10% Current + 20%X-20%/Y+20% Current + 25%X-30%/Y+30%

Developing Business Zero Waste Plans  Re-convene management and employee planning team  Designate representation from all business activities  Set time frame to develop plan  Obtain needed expertise  Examine Current System  Process study, redesign, and product review  ID discards by production/generation area  Identify barriers to zero waste & solve them  Examine purchasing and vendor contracts  Assess costs and benefits  Brainstorm, prepare, review, and finalize plan  Adopt plan and modify as needed

 Review Data, Policies and Programs  Participation Strategy  Service Opportunities Analysis  Menu of Policies, Programs and Facilities  Economics And Funding  Draft Zero Waste Plan Zero Waste Plan Scope

Implementing Plans  Establish technical committee  Schedule regular and frequent meetings  Obtain needed resources  Establish work plan/execute tasks  Conduct education  Audit your wasting continually  Conduct +/++ programming  Continually re-evaluate work plan

Implementing Plans  Design wasting out of processes  Durability  Reusability  Recyclability  Compostability  Incentives  Refuse and return programs  Leasing and product stewardship for your products Waste sorting bins on the production floor

Monitoring & Evaluation  Let everybody know how they are doing  Media  Staff meetings  Special Trainings/Retreats  Newsletters  s  Annual reports  Successes and benefits  Exemplary performances  New ideas  Retain Savings in Budget

ID & Develop More Zero Waste Businesses  Ask Local Governments & Businesses To Adopt Zero Waste Goals and Plan for them  Work With Reuse, Recycling, Composting Industry, Manufacturers And Retailers to ID ZW Businesses locally and Develop More  Tell GRRN about Businesses that Divert More than 90% of their Waste

ZW Business Next Steps  Train & Certify Consultants  Ask Businesses to Adopt ZW Goal  Ask Businesses to use Certified Consultants to develop ZW Plans  Ask Socially Responsible Investors to evaluate ZW performance of companies in their portfolios  Ask Groups working on Sustainability to use ZW Business Principles

ZWIA ZW Business Recognition  To recognize businesses that have a Zero Waste goal and have reduced their waste to landfill, incineration or the environment by 90% or more for a facility, a geographic area, or corporate-wide  Four Levels  Achieved 90% Diversion from landfills and incinerators  No Burn & Diverted 90% from landfills  No Burn & Diverted 90% from landfills; and all remaining discarded materials (residues after reuse, recycling, composting or recovery) pre-processed before double- lined landfill that meets EU standards or equivalent  No Burn and No Bury of 100% of all discarded materials

ZWIA ZW Business Recognition  Until all materials are diverted, use of upgraded landfills that meet European Union Landfill Directive or equivalent is preferable to any form of incineration  National Affiliates  NGOs with national focus that have officially adopted ZWIA ZW Definition and Principles  Organizations authorized to recognize businesses in their country that meet ZWIA Definition of Zero Waste and ZWIA Zero Waste Business Principles  GRRN in U.S. initially

US Zero Waste Business Council  Incorporated December 2011  Mission: to educate, inform and document the performance of zero waste businesses using scientific methods to help businesses and communities become more healthy and sustainable.  3 rd Party Certification of meeting ZWIA Zero Waste Principles  1 st National Zero Waste Business Conference June 26-27, 2012 in So. CA

ZWIA ZW Certification Program  ZW Businesses  ZW Training Programs  ZW Professionals  ZW Communities  ZW Facilities  ZW Events  ZW Service Providers

1 st Adopt ZWIA Definition  Federal, State and Local agencies Adopt ZWIA Definition of Zero Waste  Business & Community Zero Waste Plans Use ZWIA Definition of Zero Waste  Sustainability or Climate Change Plans Include ZWIA Definition of Zero Waste

Zero Waste Resources  Austin Adopted ZW Plan:  Austin Adopted Resource Recovery Master Plan: year-plan-reach-zero-waste  Oakland Zero Waste Plan:  GrassRoots Recycling Network:  Zero Waste International Alliance:  Earth Resource Foundation:

If you’re not for Zero Waste, how much waste are you for?