1. 1 The VinylPlus Initiative in Europe Stepping stones towards sustainability in the PVC industry Brigitte Dero, General Manager ECVM DGM VinylPlus Fifth PVC Andean Forum Bogota, 25th September 2012

2. 2 OUR MISSION To minimise the impact of PVC products throughout their entire life cycle and improve their contribution towards sustainable development What is VinylPlus? ENVIRONMENT SOCIETY ECONOMY SUSTAINABLE DEVELOPMENT OUR COMMITMENT TO

3. Table of contents  Founding Members  Vinyl 2010: ten years achievements  Accountability and Transparency, Annual progress report, Funding  From Vinyl 2010 to VinylPlus  About VinylPlus  5 Challenges  Controlled-loop management  Organochlorine emissions  Sustainable use of additives  Sustainable energy and climate stability  Sustainability awareness  VinylPlus in few sentences  The future ahead 3

4. What is VinylPlus? Looking back on 10 years of achievements Year 2000 4

5. Vinyl 2010 Founding Members PVC VALUE-CHAIN The European Council of Vinyl Manufacturers The European Council for Plasticisers and Intermediates The European Stabilisers Producers Association The European Plastics Converters 5

6.  Close to 1 million tonnes of post- consumer PVC recycled.  Cadmium stabilisers have been phased out from PVC productions in the EU‐27.  Lead stabilisers substitution well ahead of schedule  -75.9% in EU-15 in 2010  -72% in EU-27 in 2010  Set to disappear in EU-27 by 2015. Vinyl 2010 Achievements Sajjad Karim, Member of the European Parliament “Legislation is not necessary to best answer in every situation. Vinyl 2010 is a perfect example of an industry doing something on a voluntary basis to act in the interest, not only of themselves or of consumers, but of the European Union as a whole.”  Ongoing research, testing and expert evaluations on plasticisers have led the industry towards non-classified high phthalates (>80% market).  Research and Development programme on recycling and recovery technologies. Vinyl 2010: Ten-year achievements 6

7. A novel process: Vinyloop®  Vinyloop® Process  Patented process developed by Solvin  Separates the PVC compound from other materials (other plastics, rubber, metal, textile and others) by selective dissolution and filtration. After solvent evaporation, PVC compound precipitates into micro granules.  The VinyLoop® process is using a solvent that is constantly turning in a closed loop.  A fully operational commercially running plant handling 10 kT per year exists at Ferrara, Italy. Photos courtesy of Solvin

8. Vinyloop® - Products  Vinyloop® Products  VinyLoop® R-PVC is a regenerated PVC compound produced from plasticized and composite PVC wastes.  The regenerated PVC compound (R-PVC) can be re-processed by extrusion, injection or calendering.  It provides a new life to valuable resources and demonstrates controlled-loop recycling  Vinyloop® is a major contributor to the VinylPlus targets  Details available from:  http://www.solvayplastics.com/sites/solvayplastics/EN/Companies/vinylo op/Pages/VinyLoopProcess.aspx

9. A commitment to transparency Independent Monitoring Committee measuring our progress 9 Industry Academics

10.  Audited by external verifiers  Fundamental document for transparency, credibility and accountability  Dissemination to policy makers, media, industry Annual progress report 10

11. Vinyl 2010 - Summing up  Recognition by stakeholders that Vinyl 2010 is an excellent tool to make progress towards sustainability  Key issues across the whole life-cycle addressed  Measurable targets and transparency  Positive impact on the image  Positive impact on the business  Decision was taken to build up on Vinyl 2010 11

12. But…  The world has changed a lot since the year 2000.  Concerns about long-term availability of energy sources have increased  Climate change widely recognised as a major challenge  Citizens are demanding both better and more affordable products  Sustainable development is increasingly becoming a critical component for successful businesses 12

13. From Vinyl 2010 to VinylPlus 13

14. A profound thinking process Extensive consultations of internal and external stakeholders 14

15. Plenty of good ideas 15

16. Welcome to the VinylPlus journey! 16

17. VinylPlus : The new ten year programme  Strong foundations  Commitment of the PVC Value chain to go ahead with a new ten year programme – signed in June 2011 17

18. Who are the Partners? PVC VALUE-CHAIN 500,000 JOBS 6 million t/y PVC production €80 billion Turnover The European Council of Vinyl Manufacturers The European Council for Plasticisers and Intermediates The European Stabilisers Producers Association The European Plastics Converters * The Natural Step Framework is an internationally recognised method for sustainability planning that integrates the science of sustainability with business decision-making. It is an openly published and peer-reviewed model promoted by the international NGO, The Natural Step, along with its network of scientists, business and community leaders. (www.thenaturalstep.org)www.thenaturalstep.org 1 NGO In total, 180 companies contributing financially

19. VinylPlus in a few sentences….  Recycling  Reducing emissions  Sustainable use of chemical substances  Reducing energy and raw material use  Awareness raising and open communication with all stakeholders 19 30 Measurable and concrete targets organised around 5 challenges for PVC Controlled- loop management Organo- chlorine emissions Sustainable use of additives Sustainable energy & climate stability Based on The Natural Step System Conditions for a Sustainable Society

20. Controlled Loop Management  Recycle 800,000 tonnes/year of PVC by 2020.  Innovative technology to recycle 100,000 tonnes/year difficult to recycle PVC material  Address ‘legacy additives’ More efficient use and management of PVC throughout its entire lifecycle CHALLENGE 1 20

21. Organochlorine Emissions  Compliance with PVC resin Industry Charters in first Quarter 2012  Engage with external stakeholders in the discussion of the organochlorine emissions and develop a plan to deal with such concerns by end 2012  Risk assessment for the transportation of major raw materials, in particular VCM, by end 2013  Targeting zero accident rate with VCM release during transportation CHALLENGE 2 Strict production control to reduce emissions 21

22. Sustainable Use of Additives  Lead replacement by end of 2015 in EU 27  Develop robust criteria for the ‘sustainable use of additives’, status report by end 2012  Validation of the criteria with the downstream value chain – status report by end 2014 CHALLENGE 3 Review the current use of PVC additives in order to move towards more sustainable solutions 22

23. Sustainable Energy Use  Resin producers to reduce their specific energy consumption, targeting 20% by 2020, targets for converters by end 2012  Develop suitable environmental footprint measurements (CO², water, land use, …) by end 2014  Establish Renewable Materials task Force by end first Q 2012, and report status by end 2012 CHALLENGE 4 Reduce energy and raw material consumption to minimise climate impact 23

24. Sustainablity Awareness CHALLENGE 5 We will continue to build sustainability awareness across the value chain - including stakeholders inside and outside the PVC industry - to accelerate resolving our sustainability challenges Controlled- loop management Organo- chlorine emissions Sustainable use of additives Sustainable energy & climate stability  Monitoring Committee, twice a year  Annual progress report audited and proactively promoted to key stakeholders  Membership certificate to acknowledge and recognise converters' contribution  Product label to differentiate sustainable PVC products in the marketplace  Responsible purchasing, public and private  External stakeholders’ meetings  NGOs, academia, government, brand holders, etc.  Promotion of VinylPlus worldwide 24

25.  257 kt of post-consumer PVC waste recycled in 2011  Third party verification of emission limits for PVC manufacturing completed. Compliance 96%.  Lead stabilisers substitution well ahead of schedule. Reduction of 81.8% in lead stabiliser consumption from 200 until 2001  Product label criteria defined in partnership with the building Research Establishment (BRE) a Certification body specialised in responsible sourcing  VinylPlus programme registered in the UN RIO+20 Registry of Voluntary Commitments  VinylPus included as best practice case study in the International Chamber of Commerce Green Economy Roadmap  Progress report reporting 2011 results audited and published VinylPlus: achievements today

26. 26 Rio+20: Ban urges world leaders to build on sustainable development commitments Secretary-General Ban Ki-moon. UN Photo/Maria Elisa Franco 22 June 2012 – In his remarks at the ceremony, the UN chief said he was also encouraged by the more than 700 concrete commitments registered at the Conference from governments, business, industry, financial institutions and civil society among other groups. A wide range of actions have also been pledged, such as planting 100 million trees, empowering 5,000 women entrepreneurs in green economy businesses in Africa, and recycling 800,000 tons of polyvinyl chloride (commonly known as PVC) – one of the most widely used plastics – per year.

27. The future ahead  The industry is on the right path to achieve the objectives set in the Voluntary Commitment  An expanded, more competitive industry is being created :  Investment on R&D to create innovative processes, solutions and products 27  New applications  More jobs  Increased efficiency  Less energy-intensive

28. For Additional Information 28 www.vinylplus.eu

29. Some regulatory challenges in Europe  RoHS  Serious attempts to ban PVC, but…  In the end, no change  Lead and cadmium restricted  No restriction on PVC and other additives  REACH  Not an issue for PVC resin and VC monomer  EDC on Candidate List, potentially subject to authorisation  Four low molecular phthalates DEHP, BBP, DBP, DiBP  Restriction proposal not supported by EU Committees  Authorisation will be necessary as from 2015  Issue for PVC recycling: Domino effect?  WASTE LEGISLATION  ‘End of Waste’ criteria for plastics  Review of hazardous waste criteria 29

30. Other challenges in Europe  Economic crisis hits construction and hence PVC  Recycling activities also affected  Eco-labels and ‘green’ public procurement  PVC still occasionally discriminated  Opportunity for recycling  PVC substitution actions by brand holders and a few retailers  VinylPlus is a big help 30

31. 31 Thank you

32. Contact us VinylPlus head office Brigitte Dero Avenue E. van Nieuwenhuyse 4/3 B-1160 Brussels Belgium Telephone +32 (0)2 676 74 45 Fax + 32 (0)2 676 7447 E-mail info@vinylplus.eu 32 http://www.vinylplus.eu/