PACKAGING MATERIAL CIRCULARITY: PERSPECTIVE FROM A GLOBAL END-USER. Packaging & Converting Executive Forum Amsterdam, March 6

Transcription

1 PACKAGING MATERIAL CIRCULARITY: PERSPECTIVE FROM A GLOBAL END-USER Packaging & Converting Executive Forum Amsterdam, March 6

2 CONTENT OF THE PRESENTATION Short presentation of DANONE. Key elements of the revised EU Waste Legislation Proposal. DANONE improves the impact of packaging on the environment: 1. Plastic Packaging Context. 2. Analysis of the packaging put on the market. 3. Design for circularity. 4. PET from renewable feedstock. 5. Evian pledge. 6. Problematic packaging: plastic foil and PS cups. Collection of PET bottles: Organized countries: via EPR or via Deposit Refund Schemes? Non organized countries : a closed look at PET collection in two emerging countries: Brazil and Russia. Collaboration with external partners in the packaging industry?

3 A GLOCAL COMPANY WITH PORTFOLIO OF PRODUCTS FOCUSED ON HEALTHY FOOD Fresh dairy products Water Baby food Medical nutrition 50% 21% 22% 7% No. 1 worldwide* No. 3 worldwide*** No. 2 worldwide* No. 1 in Europe** All rankings are in value / * source: Nielsen / ** source: IMS Europe / *** source: Canadean

4 KEY ELEMENTS OF THE REVISED WASTE LEGISLATION PROPOSAL A common EU target for recycling 65% of municipal waste by 2030; A common EU target for recycling 75% of packaging waste by 2030; A binding landfill target to reduce landfill to maximum of 10% of municipal waste by 2030; A ban on landfilling of separately collected waste; Promotion of economic instruments to discourage landfilling ; Simplified and improved definitions and harmonized calculation methods for recycling rates throughout the EU;

5 PACKAGING WASTE RECYCLING OBJECTIVES Material 2014 objective (%) 2014 perf. (%) 2025 objective (%) 2030 objective (%) Municipal waste Packaging waste 55 min 80 max Landfilling max Plastic 22, Paper/board Ferrous metal Aluminium Glas Wood

6 EU PLATICS STRATEGY: THE POSSIBLE IMPACT ON PACKAGING 100% recyclable plastics packaging by through EPR modulation fees. Reviewing the essential requirements and reviewing recycling targets for plastics by 2030 in the PPWD. Boost the market for the secondary raw materials. Voluntary agreement on recycled content of packaging VAT reduction for recycled content Reduce fossil-based fuels feedstock and shift to local feedstock. Increase R&D and use of biopolymers Force reduction of litter & marine litter. EPR and deposit-return schemes are seen as two solutions that co-exist

7 DANONE'S SPECIFIC ACTIONS TO IMPROVE THE IMPACT OF PACKAGING ON THE ENVIRONMENT.

8 1. PLASTIC PACKAGING CONTEXT

9 GROWTH IN GLOBAL PLASTICS PRODUCTION ( ) MT MT MT

10 DANONE = A LOT OF PLASTIC PACKAGING DAIRY EARLY LIFE NUTRITION WATERS MEDICAL NUTRITION

11 PLASTIC PACKAGING IS KEY TO OUR MISSION AND HAS VALUABLE FUNCTIONS

12 WITH NEGATIVE EXTERNALITIES Unsustainable Growing negative externalities Plastic Share of global Oil consumption 6% 20% 2. Ratio Plastic to fish in the ocean 1:5 >1:1 3. Plastic share of Carbon budget 1% 15%

13 2. ANALYSIS OF THE PACKAGING PUT ON THE MARKET.

14 SIGNIFICANT PACKAGING FOOTPRINT

15 3. DESIGN FOR CIRCULARITY

16 Packaging Ecodesign Tool for Environmental Responsibility (PETER) Based on : - Good practices internal & external - Internal DANONE 2020 objectives - The 4R strategy : Reduce ; Replace ; Recycle; Respect Excel file based on technicals informations : - Type of Packaging Material - Type of packaging material transformation - Logistic data Provide : - 7 Keys Packaging parameters - 3 Life Cycle Indicators - 3 packaging scenario compared 16

17 RESPECT DESIGN FOR RECYCLING RULES Size & shape Weight Caps & closures Liners, seals & valves Resin grade Labels & sleeves Colorants Adhesives Barrier technologies Inks Additives Other components

18 EUROPEAN PET BOTTLE PLATFORM Main objective : Evaluate PET bottle manufacturing technologies and products Allow new PET bottle innovations, while minimizing the economic and environmental consequences for the European PET recycling industry.

19 DESIGN GUIDELINES

20 4. DECOUPLE PLASTIC PACKAGING FROM FOSSIL FEEDSTOCK

21 BIOPLASTICS : PLASTICS DERIVED FROM DIFFERENT RENEWABLE FEEDSTOCKS Today Cassava, corn starch, sugar cane, beet Feedstock potentially suitable for food or feed Industrial in 2020 Bagasse, wood chips, switch grass, straw Feedstock not suitable for food or feed Industrial in 2025 Algae -Syngas (gasified organic matters or ind. off-gases) Feedstock not suitable for food or feed

22 FOCUS ON A COMMERCIAL BIOPLASTIC : BIOPET-30% BioPET-30% = bio-poly(ethylene terephthalate) = drop-in solution to replace oil based PET Oil BTX PTA Poly(ethylene terephthalate) 30% biobased Molasses ethanol Bio-MEG PET with biomeg = 30% biobased mass content Danone lanched in 2011 Also used by our competitors = Coca- Nestle etc..

23 USE BIO-SOURCED MONOMERS AND OTHER TECHNICAL SOLUTIONS. Circular economy is frequently the result of a combination of different techniques!

24 UNDER DEVELOPMENT WITH DANONE : PEF can replace PET in bottles application with better barrier properties to gas (O2, CO2, water) sparkling and oxygen sensitive products Fructose HMF FDCA Poly(ethylene furanoate) Molasses ethanol Bio-MEG But potential conflict with PET regarding recycling (Max 5% PEF in PET)

25 BENEFITS OF USING BIOPLASTICS Benefits Savings of fossil resources Reduction of the environmental footprint of our packaging Using a feedstock with a lower price volatility vs oil Improving the acceptability to many households Exemple The production of 1kg PLA instead of 1kg PS saves 1,31 kg of oil-equivalent (*) Carbon footprint PLA = 0,62 kgco2e/kg vs PS = 3,25 (**) Oil volatility in the last 10 years = 100% vs 6% for wood (*) Ref. Natureworks (**) Ref. Braskem Bioplastic bottle is seen by our consumer as the bottle of the future (that will replace the PET one)

26 5. EVIAN PLEDGE

27 EVIAN 100% CIRCULAR BRAND PRESS RELEASE OF 18 JANUARY 2018 evian will become a 100% circular brand by evian will make all of its plastic bottles from 100% recycled plastic by 2025 adopting a circular approach to plastic usage.

28 6. PROBLEMATIC PACKAGING: PLASTIC FOIL & POLYSTYRENE CUPS

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31 POLYSTYRENE OF THE YOGHURT CUPS Advantages of polystyrene Not expensive Easy to transform Good performance on filling lines Good adhesion of sealing Disadvantages of polystyrene Poor barrier properties Small amount to recycle Very poor recycling future

32 PLASTIC PACKAGING COLLECTED IN FRANCE Category Quantity sorted out in 2016 (kg/hab/y.) Clear PET bottles and flasks Coloured PET bottles and flasks HDPE and PP bottles and flasks PE films PET pots and trays PE and PP pots and trays PS pots and tays TOTAL sorted out Other plastic packaging in sorting refusal Total plastic packaging collected 2,7 kg 0,8 kg 1,3 kg 0,8 kg 0,3 kg 0,6 kg 0,1 kg 6,6 kg Between 1,5 and 2 kg About 8,5 kg

33 TECHNICAL AND FINANCIAL CHALLENGE Choose an alternative packaging material for PS. Worldwide more than 210 filling lines Cost = average 5M per line!! Possible alternatives : PET (Polyethylene terephtalate - same material as for beverage bottles) PP (Polypropylène) Board (Back to history!) PLA (Polylactic Acid, a biodegradable polymer)

34 COLLECTION OF USED PACKAGING IN ORGANIZED COUNTRIES

35 EXTENDED PRODUCER RESPONSIBILTY SCHEMES (EPR)

36 36 DOOR TO DOOR

37 37 BRING SYSTEM

38 38 AND USED PACKAGING COLLECTION SYSTEMS IN PUBLIC SPACES. Airports Beaches

39 Too much differences between EU member states

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41 TOO MUCH LITTER!

42 DEPOSIT REFUND SYSTEMS FOR BEVERAGE CONTAINERS (DRS)

43 DRS IS CURRENTLY IN PLACE IN 10 COUNTRIES AND UNDER CONSIDERATION IN 8 OTHER EU COUNTRIES. UK England and Scotland are considering implementing DRS Probability: High Belgium DRS to be mandatory in 2019 if anti-litter programs unsuccessfull: High DRS systems in place in 10 countries. Most recent implementation was in Lithuania in 2016 DRS systems under consideration in 8 countries. France DRS trials in some regions Probability: Low Hungary Ongoing pressure for DRS Probability: Medium Spain Laws under consideration in coastal provinces Catalonia and Valencia but plans currently on hold Probability: Low Italy DRS trials underway for beer / mineral packaging in public spaces Probability: Medium Bulgaria Proposal for Germany-type DRS system under discussion Probability: Low

44 DEPOSIT SYSTEM CHARACTERISTICS PLUSES MINUSES 80-98% of packages put to the market are collected Extremely clean and high quality material, 100% recyclable High littering risk (incl marine littering) of beverage packages taken under control Very fast results due to monetary incentive Non- environmental friendly consumers contribute and get educated Transparent data and reporting Potential consumer/producer/retailer fraud, needs detailed controlling logics from day one Stakeholder (producer, retailer) management, needs very active coordination especially in the beginning Simple logic for consumer, but quite complex organisational side. Extract valuable plastic material that contribute to financing EPR schemes.

45 PLASTIC PACKAGING COLLECTED IN FRANCE Category Quantity sorted out in 2016 (kg/hab/y.) Clear PET bottles and flasks Coloured PET bottles and flasks HDPE and PP bottles and flasks PE films PET pots and trays PE and PP pots and trays PS pots and tays TOTAL sorted out Other plastic packaging in sorting refusal Total plastic packaging collected 2,7 kg 0,8 kg 4,8 kg 1,3 kg 0,8 kg 0,3 kg 0,6 kg 0,1 kg 6,6 kg Between 1,5 and 2 kg About 8,5 kg

46 COLLECTION OF USED PACKAGING IN NON ORGANIZED COUNTRIES

47 MEXICAN PEPENADORES

48 PROJECT IDEA: IMPROVING RECYCLING FLOW Recollection firm Landfill Final Buyer Intermediate Buyer Waste pickers

49 PROJECT IDEA: IMPROVING RECYCLING FLOW Recollection firm Segregation Plant Final Buyer Landfill

50 THE «NOVO CYCLO» PROJECT IN BRAZIL Supported by DANONE ECOSYSTEM FUND AIM: Professionalize waste pickers through creating waste management centers, setting up sale and resale cooperatives, delivering management training to help them manage their own business independently. IMPACTS: Social : consolidates existing jobs and creates new ones in a safer working environment. It will also raises awareness of conditions for waste pickers in the country. Business : Danone Brazil develops its rpet industry through the development of sustainable waste management practices.

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53 In Brazil : 600 cooperatives working with wastepickers on a total of officially recognized in the country (In reality there are more than 1 million)

54 RUSSIA 143 million inhabitants 57 million tons solid household waste annually 90% landfilling 1000 lanffills = km² 5-7% recycling

55 Volumes (kt) DANONE PACKAGING WASTE MANAGEMENT IN RUSSIA AND OTHER COUNTRIES Russia Danone average recycling rate 42% Mexico Turkey USA Argentina Poland Morocco Brazil South Africa Canada Indonesia France China Spain UK Japan Germany Belgium 0% 10% 20% 30% 40% 50% 60% 70% 80% Average recycling rate (%) EPR in place Formal systems or infant EPR No formal collection scheme

56 Human Development Index (UN) 70% OF PACKAGING VOLUMES ENTER A SYSTEM WHICH HAS LOW REGULATORY MATURITY Informal Informal + Formal Formal (EPR) USA Formal (DRS + EPR) Group 1 Group 2 Group 3 Group 4 Volumes 260 kt 600 kt 280 kt Fee av. - ~5 /t /t kt 40 kt /t Fee - 1,5 M /y 47 M /y - 4,5 M /y Ecosystem 1 M (GHA+IDN) 3 M (ARG+BRA+MEX) 1 M (FR+SP) - -

57 5. COLLABORATION WITH EXTERNAL PARTNERS.

58 Naturall Bottle Alliance Partnership with : Nestlé Waters Origin Materials

59 NATURALL BOTTLE ALLIANCE : What is our objective? Create and launch at commercial scale PET plastic bottles to be made from 100 % sustainable and renewable resources 2017 Deloitte SAS 59

60 From sustainable feedstocks to bio-pet water bottles Origin technology Partners Feedstocks Shredded wood Previously Used Cardboard (Paraxylene - px) (terephtalic acid - pta) PET resins Bio-PET Water bottles Rice hulls, etc Deloitte SAS 60

61 Partnership with the Ellen Mac Arthur Foundation Three-year partnership to : accelerate the global transition to a circular economy. further embed circular economy principles both inside and outside Danone. benefit extensive education and training to generate widespread understanding of the circular economy and drive behavioural change. enjoy advise and support in Danone s effort to transition brands toward circular economy. leveraging cross-sector collaboration to re-think and redesign the future of plastics,

62 DANONE new pack policy is now on line! NE.COM/EN/FOR- ALL/SUSTAINABILITY/ POSITION-PAPERS- AND-POLICIES/

63 GOALS OF THE NEW PACK POLICY GOAL 1: GOAL 2: GOAL 3: GOAL 4: GOAL 5: Use sustainable resources Optimize weight and move towards 100% circular by design. Zero plastics to landfill for our industrial waste. Innovate to ease life of consumers and engage them to sort & recycle. Create a second life for all plastics.

64 THANK YOU!