CLOSING THE LOOP TOGETHER

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1 CLOSING THE LOOP TOGETHER LEGALLY COMPLIANT I SUSTAINABLE ECOLOGICAL I INTERNATIONAL ELS Dual, your partner for packaging take-back and recycling systems

2 2 I contents 3 Foreword 4 Your partner ELS 9 ELS Austria 10 Take-back and recycling systems 12 ASCON Holding 17 Documentation and declaration of completeness 18 Legal background and impact 19 A brief history of waste disposal

3 over 25 years of PAckAGInG recycling A SuccESS Story with A GLoBAL DImEnSIon foreword Dear readers, 3 we are all aware of the fact that raw materials are finite. Sustainability, sustainable development and a green economy are the major challenges faced by a modern economy, your company and, of course, each and every one of us. for over 25 years now, packaging licensing has become a standard procedure for companies that do business in Germany. An ecological success story, already a quarter of a century old, that ELS Europäische LizenzierungsSysteme GmbH is committed to. together with its customers, ELS closes material loops. Behind the idea of packaging recycling is the concept of EPr extended producer responsibility. According to this principle, the producer of a product is responsible for ensuring that its packaging and also products such as batteries, electronic waste and much more are recovered and enter a high-grade recycling system. the aim of EPr is a functioning circular or closed loop economy to conserve Earth s finite natural resources. All business activities of ELS and its parent company AScon Holding are guided by EPr and the establishment of a circular economy. we intend to extend the recycling of packaging to many other valuable material and component substance flows and these are indeed numerous. thanks to high-grade recycling systems, Germany is now on course to becoming a raw material supplier country even though the country does not actually have any natural raw material deposits whatsoever. Germany and many other European countries are not the only nations to strictly pursue this course; it is also increasingly becoming an established approach all over the world as the basis for a functional circular economy. AScon Holding and ELS are already successfully going in this direction join us! certainly, we guarantee that you will meet all of the requirements prescribed by the German Packaging ordinance regulations in a legally compliant way. our lean and efficient company structure results in fair prices and a business relationship based on mutual trust. out team will give you comprehensive advice, provide a full documentation service and will integrate your individual structures into the ELS packaging licensing system. Benefit from changing to ELS, just like numerous renowned industrial and retail companies already do. By the way: ELS Austria also licenses any packaging you introduce to the cycle in Austria. we are looking forward to meeting you. Sascha Schuh (ceo ELS GmbH)

4 your PARTNER ELS Benefit from the services offered by ELS: Full-service implementation of the German Packaging Ordinance Licensing ELS Dual Integration into our take-back and recycling systems ELS transport packaging 4

5 5 I your PArtnEr ELS who we ArE ELS Europäische LizenzierungsSysteme GmbH fulfills all obligations resultant from the German Packaging ordinance for companies. with our dual system ELS Dual, we are your strong partner for you in this market. we license, analyze and optimize your packaging for you, advise you along the entire value chain and deal with your packaging waste through our own takeback and recycling systems. we also come up with solutions for licensed German customers that export already packaged goods. Each Eu member state implements the Eu Packaging and Packaging waste Directive with very different systems, which leads to numerous questions and issues that need to be resolved. we are happy to assist you with this. furthermore, we support international distributors that deliver to the German market. your PArtnEr In July 2014, the German Bundesrat passed new regulations for the collection of packaging waste. this seventh amendment to the German Packaging ordinance is designed to permanently ensure the nationwide disposal of sales packaging by retention of producer responsibility. far-reaching changes that affect all packaging producers are the prohibition of take back at PoS and the considerably more difficult operation of industry solutions. with the aim of making the chain of evidence fully transparent from the manufacturer to the accumulation point, industry solutions may only be set up if the respective accumulation points are integrated into the commercial waste disposal structure. All industry solutions must be registered and inspected by an expert who then issues the necessary certificate. ELS Dual, our own dual system that complies with Section 6.3 of the German Packaging ordinance, allows ELS to take on all of the responsibilities that arise from this ordinance for you; internationally, for a fair price and in a legally compliant and sustainable way.

6 ELS DuAL 2016: ELS Austria commences operations in Austria 2015: A host of renowned retail and industry customers 2015: Impressive ELS Dual kick-off in Germany 6 I your PArtnEr ELS 2014: Starting of the dual system ELS Dual, established nationwide in record time : Start of the operational business: licensing and disposal of retail and transport packaging, initially in the area of industry solutions : Establishment of the German company ELS Europäische LizenzierungsSysteme GmbH the executives and managers of ELS have been active in the area of systematic waste disposal since the early 1990s we are thoroughly familiar with the markets

7 ELS EuROPÄIsCHE LIZENZIERuNGssYsTEME Advice tailored to the respective demand of the individual customer s business is a prerequisite for legally compliant and financially optimised packaging licensing. We attach particular importance to cooperating with our licensees on a basis of mutual trust and fairness. As a full-service provider, we assist our German customers with all mandatory licenses and recycling documentation throughout Europe to ensure that they comply with the respective laws and regulations. Vice versa, we also support international customers exporting to Germany. The licensing method selected is certified by an independent expert, which allows the individual company to submit its annual declaration of completeness to the respectively responsible chamber of commerce. If necessary, we are also happy to issue a carbon certificate. VERPACKUNGS- TICKET by ELS GmbH NEW: License your packaging online EAsY I AFFORDAbLY PRICED I secure NO FIXED TERM I NO MINIMuM VOLuMEs PAckAGInG AnALySIS the licensing process begins with an analysis of your packaging portfolio carried out by one of our experienced advisors. we carefully review your existing packaging, for example with regard to the classification of a packaging material, the material groups or the correct weight, and advise you on the allocation to sales and transport packaging or to repackaging. It may be possible to optimize your portfolio under consideration of ecological and financial aspects. LIcEnSInG SErvIcE we license your sales and transport packaging for you and take care of all your mandatory registration and documentation requirements such as the declaration of completeness (vollständigkeitserklärung, ve). we want to reduce your workload, rather than add to it: of course we will take over your existing structures, use them as a basis and make optimization recommendations, if necessary. you only have one dedicated contact at ELS, which saves you time and allows you to focus on your core business. ELS-vErPAckunGStIckEt you can license your packaging without any effort, a term contract or a minimum quantity via our online shop Starting at 5 euros for small quantities and up to an upper limit of 50,000 euros, you can meet your obligations under the German Packaging ordinance simply and in a legally compliant way via our online shop.

8 ELS AUSTRIA

9 ELS AuStrIA ELS AusTRIA GMbH on 1 January 2015, the Austrian monopoly on the release from the respective obligations, collection and recycling of household packaging was broken up, and there is now competition in this field. ELS Austria is a new collection and recycling system for household and commercial packaging waste established by us in may on 1 July 2016, ELS Austria was approved and is now active in the Austrian market for household and commercial packaging waste. the new company benefits from the German system ELS Europäische LizenzierungsSysteme GmbH s experiences in this field and from the dual system ELS Dual, which deals with the take-back and recycling obligations of producers in Germany. we can therefore offer our German ELS customers a first international one-stop take-back and recycling service. ELS Austria belongs to AScon resource management Holding GmbH an expert for world-wide circular economy. ELS Austria GmbH brings a breath of fresh air to the packaging disposal system solutions business and offers its customers fair prices for a reliable and legally compliant service. we are convinced that the Austrian economy looks positively on the liberalization of the market and will benefit from this long-term as competition results in high quality services for a fair price, a fact already proven in many other European countries. 9 we ALSo manage your PAckAGInG waste In AuStrIA

10 TAKE-BACK AND RECYCLING systems we promise you that we will close loops together. you own valuable packaging you entrust to ELS through licensing. we offer the next stages in the loop both nationally in Germany through our own, certified take-back and recycling system as well as locally with regional partners. the other AScon Holding companies also operate their own take-back and recycling systems and rely on long-established structures to do so. In accordance with the German battery law (Batteriegesetz, BattG), which specifies mandatory take-back targets for the volume of standard batteries to be returned, we recover used batteries and recycle them correctly. we also offer the same legally compliant service for used electric and electronic appliances ( waste Electrical and Electronic Equipment, weee ), which we also recover, sort and arrange to have recycled. Sortcycle GmbH has been awarded the contract for the recovery and recycling of glass collected in the city of Aachen. Since January 2017, we have been in charge for recovering the glass collected in the containers there and ensure that it is sustainably sorted and recycled. 10 ELS SyStEmS

11 PHArmAcycLE AScon GmbH is the only company in Germany with an established nationwide, independent disposal structure for out-of-date medicines. within the scope of the extended producer responsibility concept, we recover out-of-date medicines and the respective packaging. Besides out-of-date medicines, we also recover used batteries, sales packaging, paper and board packaging and fully empty plastic packaging (blister packs, tins, rigid and flexible tubes). AScon handles all recycling from the collection point onwards. we thereby ensure that the individual materials and component substances are successfully recycled, including melting for reuse, in a way that meets all quality standard system requirements. AGrocycLE In cooperation with machinery rings or raiffeisen cooperatives throughout Germany, AScon GmbH also recovers plastic agricultural films, which are again very valuable secondary raw materials that should no longer simply be burnt. we offer farmers and larger accumulation points the option of pressing plastic films and packaging directly on site with own mobile presses. they can then be turned into high quality reusable materials. Besides plastics, we also take back and recycle batteries and tires. AutomotIvEcycLE until a few years ago, there was no waste disposal structure in place for automobile repair shops. the reason generally given was that this waste is often difficult to recycle due to contaminants, substances that may adhere to it and potentially hazardous contents. films and other materials are therefore often disposed of only by burning them which is not in line with the urgently needed sustainable handling of raw materials. over the past few years, AScon has developed an alternative concept for the recovery and recycling of this waste and now takes over the complete recycling process from the accumulation point onwards. this has been enabled through the establishment of a system in cooperation with car repair shops, car dealerships and other automotive industry branches. the AScon concept is based on the collection of not only the usual secondary raw materials produced by automotive businesses but also of the packaging from central collection points or directly from the repair shops in cooperation with other companies under consideration of all legal requirements. the aim is to implement a more efficient recycling by presorting the materials. SEconDAry raw material centres AScon Holding is increasingly active in the operational business. with own raw material centers all over Germany, ELS closes the recycling loop together with AScon. A wide variety of material types from the holding company s collection systems are consolidated here, refined through sorting, pressed into new bales of material, if necessary, and passed on to expert recycling companies that use them to manufacture new products. we also use the centers for the transfer and improvement of secondary raw materials, always with the aim of making the recycling process as environmentally friendly as possible. 11 I ELS SyStEmS

12 AScon HoLDInG WORLD-WIDE ACTIVITIEs OF THE ASCON GrOUP Bonn Vienna New York Sales markets Secondary raw materials East Asia Consultancy projects mena countries waste management SyStEmS 12 Sao Paulo Buenos Aires Montevideo

13 ASCON HOLDING ELS is a subsidiary of ASCON Resource Management Holding GmbH, a group of closed loop recycling management companies that carries out financially and ecologically balanced environmental and waste management. PAckAGInG LIcEnSInG through own DuAL SyStEmS StrAtEGIc AnD SuStAInABLE material AnD component SuBStAncE flow management ProDuctIon AnD ProcESSInG of AnD trade In valuable SEconDAry raw materials IntErnAtIonAL consulting SErvIcES regarding the EStABLISHmEnt AnD operation of waste management SyStEmS AuDItS AnD certifications In the ArEA of PAckAGInG waste DISPoSAL, ALSo In AccorDAncE with EucErtPLASt take-back AnD recycling SyStEmS In the usa AnD SErvIcES for companies that DELIvEr to EuroPE are just some of the business sectors AScon Holding is involved in all over the world. the AScon Holding companies have established an extremely efficient full-service concept for the recovery, sorting and recycling of recyclable materials and thereby guarantee sustainable waste management both nationally and internationally. All of its subsidiaries act cohesively under the umbrella of the AScon Group: ELS Europäische LizenzierungsSysteme GmbH, ELS Austria GmbH, AScon Gesellschaft für Abfall und Sekundärrohstoff consulting mbh, EuPvcycle, Sortcycle and the AScon resource management corporation. In march 2015, AScon Holding successfully gained mountain cleantech AG ( mct ) and its fund II as a financial investor; one of the main investors in fund II, which is jointly managed by mct, is IkEA Greentech AB. this fund makes mountain cleantech a venture capital company that focuses on growing companies with sustainable business models, particularly in the Germanspeaking and nordic countries. By way of an equity increase, the mountain cleantech fund II has become a minority shareholder in AScon Holding. on the basis of this cooperation, AScon Holding will continue to expand its market position in Germany, and push ahead with the strategic development of new business areas in Europe and world-wide. the company s own equity increase, its comprehensive expertise and a professional team make AScon resource management Holding a reliable partner and a company that is now even more competitive

14 14 I AScon GESELLScHAft für ABfALL und SEkunDärroH- Stoff consulting Mitglied im bvse

15 ASCON GMbH AScon has been successfully active in the field of environmental management both nationally and internationally for over 15 years. operationally, it acts as a reliable partner for other companies; it is a raw material producer and also active in the international raw ma-terial trade. AScon runs its own recovery and recycling systems that operate throughout Germany. we have the expertise that is required in order to deal with all of the stakeholders involved, such as customers, service providers, policy makers, technology firms and so on. Another key area are consulting services. AScon finds solutions for its customers, for example when it comes to the commercial recovery of waste and the recovery of household waste, the development of international markets for innovative sorting and treatment systems and also the implementation of environmental laws, and for customers that launch innovative new packaging products. the AScon team has more than 25 years of experience in the waste management industry and in complying with environmental policies which the ELS team also benefits from. International experience is another AScon staff trademark. we are currently involved in consultancy projects that focus on the implementation of sustainable waste management systems in Bahrain, in Jordan/ Amman and in Iraq/kurdistan/Erbil. In cooperation with various South American chambers of commerce, we advise on the implementation of EPr and a circular economy and are going to establish platforms for companies that export to Europe and have to comply with the respective local laws on packaging, batteries and weee. 15 I AScon GmBH AScon GmbH has prepared a study on the potential implementation of a dual system in thailand for the kfw Group, and was commissioned with the planning of a modern waste collection and recycling system for Qatar by the Qatari royal family Al thani. GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) also relies on AScon s expertise; AScon s ceo held a comprehensive workshop on waste and recycling for GIZ in uzbekistan. ASCON S CORE EXPERTISE: EXtEnSIvE know-how In the ArEAS of collection, SortInG AnD recycling LEGAL foundations current market DEvELoPmEntS AnD trends AnD much more...

16 16 I AScon GrouP EuPvcycle complying with the German Packaging ordinance regulations is a complex challenge, not just for packaging manufacturers and distributors but also for recycling and waste management companies. with EuPvcycle, our European Audit company for Packaging recycling, we help our customers to strictly comply with the legal requirements. our team of experts, auditors and tax advisors, Sortcycle Established in June 2016, Sortcycle GmbH is the youngest member of AScon resource management Holding GmbH. Sortcycle s focus is mainly on the operational material flow management of recyclable materials, the recycling of own volumes collected through the Group s own dual system ELS all officially appointed and sworn in by the German International chamber of commerce, offers advice and practical support to our clients. our portfolio includes, for example, advice on the implementation of the seventh amendment to the German Packaging ordinance, a packaging analysis including Dual and the operation of own take-back and recycling systems. Sortcycle therefore operates its own site in cologne-hürth; additional recycling centers and capacities are currently being established. A first major commission for Sortcycle GmbH is the contract for the management of waste glass the determination of the correct weight, a review of the legally required declaration of completeness and advice on industry solution models that meet the requirements of the seventh amendment. we also certify plastic packaging in accordance with the German Packaging ordnance and Eucert- Plast, the European plastics recycling industry quality label. collected in the city of Aachen, which is set to commence in with these activities, Sortcycle complements the AScon Holding portfolio and closes loops always with the challenges of a functioning circular economy in mind. AScon resource mangement corporation In April 2016, AScon Holding established the AScon resource management corporation in the usa. the registered company head office is located in Downtown manhattan, new york. the purpose of this business is the establishment, organization and operation of EPr systems, systems for the implementation of the extended producer responsibility concept and all associated areas of business in the usa. AScon resource management corp. will also set up the takeback of various volume flows for recycling in its own plants and plants owned by third parties in the usa. we offer internationally active American companies comprehensive solutions when it comes to meeting their obligations arising from the Eu packaging legislation in a way that complies with the respective laws. By setting up the AScon corporation in the usa, AScon Holding is pushing ahead with the Group s internationalization, which is a firmly established corporate goal.

17 we close the LooP DOCUMENTATION AnD DEcLArAtIon of completeness the German Packaging ordinance also specifies other obligations that every stakeholder must meet. on the one hand, they must document the volumes and waste fractions that have been correctly recycled by their waste disposal partners. Secondly, packaging producers that exceed a certain volume of packaging must submit a declaration of completeness annually on 1 may for the sales packaging they have introduced to the cycle during the previous calendar year. this must be examined by a certified accountant, a tax advisor, a sworn in auditor or an independent expert and lodged with the responsible chamber of commerce (IHk). the respective documentation and the declaration of completeness result in a lot of work for you that is not relevant to your core business. our sister company EuPvcycle (Europäische Prüfgesellschaft für verpackungsrecycling) is happy to undertake this work for you. our team of experts, auditors and tax advisors helps our customers to properly meet the legal requirements. 17

18 LEGAL BAckGrounD LEGAL BACKGrOUND AND IMPACT you SHouLD ALwAyS LIvE off the IntErESt AnD not off the capital Earth s natural resources are becoming increasingly scarce; the recovery and use of secondary raw materials is becoming increasingly important. that is why numerous laws and ordinances have been passed over the last few decades to regulate the take-back and recycling of transport and retail packaging, used electrical appliances and even batteries. the aim is to create a functioning circular economy in order to use less of our precious resources, or to turn waste into raw materials. the German Packaging ordinance ( verpackv ), which was passed in 1991, was the first such instrument anywhere in the world to place the responsibility for packaging products on their producers and distributors. Anyone who introduces packaging to the cycle is also responsible for its collection, sorting and recycling. the German Packaging ordinance is an element of the subordinate legislation belonging to the German circular Economy and waste management Act. It is intended to contribute to the reduction of environmental pollution caused by packaging waste and to promote the reuse or recycling of packaging. the currently valid version is the seventh amendment passed by the Bundesrat on 11 July the philosophy behind the German Packaging ordinance and its implementation have received a great deal of attention internationally. Product responsibility and circular economy have become catchphrases in the international discourse on this subject. the German ordinance became an exemplary model for many countries in Europe and around the world as they designed their own national measures. It also inspired the 1994 Eu Packaging Directive that must be adopted as a national law by all Eu member states. GErmAny BEcomES now A raw material SuPPLIEr country Since the introduction of the Packaging ordinance in the 1990s, the recycling of packaging has become established in Germany and has increasingly become more efficient in ecological as well as financial terms. the treatment processes are now high-tech and consequently, the recovered secondary raw materials are also of an increasingly better quality. thanks to sophisticated recycling techniques, Germany is now on course to becoming a raw material supplier country even though the country does not actually have any natural raw material deposits whatsoever. this development is a huge opportunity for the German industry to gain a high profile internationally thanks to its expertise; it also reduces Germany s dependency on raw materials, on extremely volatile prices and on politically unstable exporting countries. 18

19 A brief HIsTORY OF WASTE DISPOSAL 1. JANUARY 2015: Seventh amendment to the German Packaging ordinance comes into effect 1. OCTOBER 2014: Abolition of own take-back systems and point of sale regulation 11. JULY 2014: Adoption of the sixth and seventh amendment to the Packaging Ordinance ProDucInG waste IS A SInGuLArLy HumAn ActIvIty. fauna AnD flora waste nothing. they ArE our role models; this IS our AIm PErfEctLy closed LooPS. 1. JANUARY 2009: fifth amendment to the German Packaging ordinance comes into effect APRIL 2002: Approval of the national Sustainability Strategy 1996: circular Economy and waste management Act comes into effect JUNE 2012: Amendment to the circular Economy Act (krwg) comes into effect SEPTEMBER 1994: circular Economy and waste management Act (krw-/abfg) passed 1994: European Packaging Directive 94/62/EG passed 1991: German Packaging Ordinance passed introduction of the principle of extended producer responsibility 1986: Inclusion of waste avoidance in the waste Disposal Act 1972: waste Disposal Act passed 1935: General compulsory connection to and use of municipal waste collection services and the sewage system laid down in Germany s municipal by-laws. most waste is simply tipped onto 50,000 randomly created landfill sites 1896 IN HAMBURG: construction of the first waste incinerator in Germany 1435 IN HANNOVER: A transport company was given the responsibility for cleaning the streets, and two wheelbarrows were purchased for the removal of waste. MIDDLE AGES: A step backwards; excrements and rubbish were simply thrown out of the house onto the street. Pigs became a fairly efficient waste disposal system. RO MANS: the romans built the cloaca maxima, a sewage system which many households were connected at their own expense. STONE AGE: Even Stone Age settlements already featured large heaps of rubbish consisting of bones, shards, ash and organic materials that were burnt from time to time. HIStory

20 ELS Europäische LizenzierungsSysteme GmbH Margaretenstrasse 1 I Bonn Germany P: F: E: service@els-systeme.de Company of Ascon Resource Management Holding GmbH Design: GRAFIKundDESIGN [info@neffdesign.de] As at: 11 / 2016 I