CIRCULAR ECONOMY FOR PLASTICS INDUSTRY PERSPECTIVE MARCH 2015 LOUIS LINDENBERG THE DUTCH CENTRE

Packaging Sustainability Look back to 2010

Improving Health &Well-being Enhancing Livelihoods Reducing Environmental Impacts HEALTH & HYGIENE NUTRITION GREENHOUSE GASES WATERWASTE SUSTAINABLE SOURCING BETTER LIVELIHOODS Reduce diarrhoeal disease Improve heart health Improve oral health Improve self-esteem Provide safe drinking water Reduce salt Reduce saturated fat Remove trans fat Reduce sugar Reduce calories Reduce GHG from skin cleansing & hair washing Reduce GHG from washing clothes Reduce GHG from manufacturing Reduce GHG from transport Reduce GHG from refrigeration Reduce water use in agriculture Reduce water use in laundry process Reduce water use in skin cleansing & hair washing Reduce water use in manufacturing Recycle packaging Tackle sachet waste Eliminate PVC Reduce waste from manufacturing Reuse packaging Reduce packaging Sustainable palm oil Sustainable paper & board Sustainable tea Sustainable fruit & vegetables Sustainable soy Sustainable cocoa Help smallholder farmers Support micro- entrepreneurs Sustainable sugar, sunflower oil, rapeseed oil & dairy Provide healthy eating information Our thinking then

MORE WASTE More PeopleMore ConsumptionMore Packaging

Strategy focuses on: -Resource efficiency -Embedding circular design principles Strategic partnerships with EMF and various Academia / Universities to underpin the approach. Reduce Re-think + Reuse / Recycle Recover Packaging Re-thought

Packaging Sustainability From… To… Circular Economy design Today’s and tomorrow’s technology Business solution for Sachet waste a corporate priority Focused recycling effort on specific materials in relevant geographies Renewed waste ambition Many packs not recyclable Today’s technology Sachets a risk Small scale approach to recycling

GAME CHANGING TECHNOLOGY Develop reduction and regenerative technologies which are radical GAME CHANGING TECHNOLOGY Develop reduction and regenerative technologies which are radical TRANSFORMIN G MARKETS Open up technologies to move the entire industry TRANSFORMIN G MARKETS Open up technologies to move the entire industry Packaging Sustainability DESIGN FOR CIRCULAR ECONOMY Move from product design to systems design DESIGN FOR CIRCULAR ECONOMY Move from product design to systems design RECYCLING & RECOVERY Collaborate for maximum value – businesses, the environment and society RECYCLING & RECOVERY Collaborate for maximum value – businesses, the environment and society Resource reduction & next use strategic thrusts

Packaging Sustainability FLEXIBLE FILMS AND LAMINATED FILMS Poor to no infrastructure Some mono-layer materials are recycled At best end up in waste 2 energy Very little investment in industry solutions FLEXIBLE FILMS AND LAMINATED FILMS Poor to no infrastructure Some mono-layer materials are recycled At best end up in waste 2 energy Very little investment in industry solutions RIGID / SEMI RIGID CONTAINERS Fair infrastructure Most cascaded into lower value propositions No common industry drive to generate find harmony NO INCENTIVE for brands to develop / re- use recycled content RIGID / SEMI RIGID CONTAINERS Fair infrastructure Most cascaded into lower value propositions No common industry drive to generate find harmony NO INCENTIVE for brands to develop / re- use recycled content RIGID BOTTLES Good infrastructure PET & HDPE highly collected More can be done on B2B to improve circularity NO INCENTIVE for brands to re-use recycled content RIGID BOTTLES Good infrastructure PET & HDPE highly collected More can be done on B2B to improve circularity NO INCENTIVE for brands to re-use recycled content Our perspective on the current situation

Packaging Sustainability RIGID BOTTLES Good infrastructure PET & HDPE highly collected More can be done on B2B to improve circularity NO INCENTIVE for brands to re-use recycled content RIGID BOTTLES Good infrastructure PET & HDPE highly collected More can be done on B2B to improve circularity NO INCENTIVE for brands to re-use recycled content What can be done Increased consumer messaging (public & private) Investment in advanced sorting technology Colour batching Circular rather than cascading Consider financial mechanisms to incentivise the use of recycled content

Packaging Sustainability RIGID / SEMI RIGID CONTAINERS Fair infrastructure Most cascaded into lower value propositions No common industry drive to generate find harmony NO INCENTIVE for brands to develop / re- use recycled content RIGID / SEMI RIGID CONTAINERS Fair infrastructure Most cascaded into lower value propositions No common industry drive to generate find harmony NO INCENTIVE for brands to develop / re- use recycled content What can be done Harmonious nationwide collection Investment in advanced sorting technology Investment in developing higher quality recyclates Consider financial mechanisms to incentivise the use of recycled content Increased consumer messaging (public & private)

Packaging Sustainability FLEXIBLE FILMS AND LAMINATED FILMS Poor to no infrastructure Some mono-layer materials are recycled At best end up in waste 2 energy Very little investment in industry solutions FLEXIBLE FILMS AND LAMINATED FILMS Poor to no infrastructure Some mono-layer materials are recycled At best end up in waste 2 energy Very little investment in industry solutions What can be done Invest in high output value technologies i.e. chemical recycling Investment in sorting technology – mono, multi and composite materials Intense consumer messaging campaigns Incentives to use maximum amounts of recyclates Public / private “discovery” schemes

Systems conditions - conflicting legislation, - conflicting infrastructure, - conflicting messaging New business models - financing mechanisms, - collaborations, - supply-chain Reverse logistics - EPR & Kerbside collection, - Retailers collection, - Consumer habits Designing for circularity - material choices, - combinations, - disassembly