1. Product Stewardship Forum Seattle; June 3, 2009 PERFORMANCE GOALS for EPR PROGRAMS Neil Hastie, President & CEO Encorp Pacific (Canada)

2. 2 OUTLINE 1. Encorp Pacific 2. Oxymoron 3. Reporting 4. 3 Key Questions 5. 4 Considerations 6. Q & A

3. 3 Encorp Pacific (Canada) 1. Product Stewardship Corporation 2. Industry Organization 3. Not for Profit 4. Operate private depot collection network  $150 Million  Staff of 25  Outsource all Logistics  170 Return It™ Centres  Recover 84% beverage containers  All products including milk  E-Waste (cpu and display devices)

4. OXYMORON Framework Principles= Non Prescriptive = Focus on the Plan =Demand Full Reporting OR Legislated Targets=Ultimate Prescription =Focus on the Statistics =Demand Compliance 4

5. 5 ReturnIt™ DEPOT Beverage Containers Paint HHW & E-Waste BLUE BOX Printed Papers Packaging Newsprint RETAIL Tires Batteries Pharmaceuticals Used Oil, Filters CONSUMER

6. 6 Tires $5 Battery $3 Paint $1 POP $.12 Solvent $2 Oil $5 TV $25 CPU $10 WALMART

7. 7 NOW IS THE TIME 1. Core Programs-Mature Beverage Paint & HSW Tires Lead Alkaline Batteries Used Oil, Filters, Containers Pharmaceuticals 2. New Programs-Harmonized Packaging & Printed Papers Electronics

8. 8 3 KEY QUESTIONS 1. What Drives Performance? Beware Politics over Progress Outcomes ≠ Measures 2. Does Timing Matter? Goals Need Science Science Takes Time 3. Is 3 rd Party Validation Needed? Quantitative vs. Qualitative Transparency is Everything

9. 9 4 CONSIDERATIONS 1. Stage of Development 2. High Performance Measure≠Outcomes 3. Shifting Producer & Consumer Behavior 4. Role for Penalties

10. 10 GROWING UP Stewardship Stages: 1. Formation Convenience & Awareness 2. Operational Tons Diverted 3. Strategic Socio Economic 4. Value Life Cycle/GHG

11. 11 FOUNDATION 1. Measures Awareness Behaviour Access Convenience Utilization Costs Governance Reporting 2. Outcomes Collection Metrics Environmental

12. 12 BEING DIFFERENT 1. Goals Resource Conservation Design for Environment 2. Signals Regulatory vs. Market? Both 3. Target Consumers vs. Producers? Competition Drives Change EPR can Support

13. 13 DISCIPLINE 1. Requirements: Level Playing Field Outcomes Based Regulation Mandatory Public Reporting Waste Audits 2. Role for Penalties Absent from Canadian Laws Last Resort Commensurate to Risk

14. 14 Q & A www.encorp.ca