The Evolving Role of Packaging Suppliers and Brand Owners in the Sustainable Packaging Arena
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1 The Evolving Role of Packaging Suppliers and Brand Owners in the Sustainable Packaging Arena Betsy Dorn, Director USA Consulting Practice RFT-SWANA Issues Forum January
2 What I Will Cover. About Reclay StewardEdge Trends overview Key drivers prompting change Global happenings A look into the future A few considerations about what else is needed 2
3 Reclay StewardEdge
4 Assisting companies across the product stewardship continuum
5 Evolving Producer Responsibility Landscape
6 Sustainable Packaging The Past Little consideration of environmental impact during package design Consumers gave little thought to package s environmental footprint when purchasing products End-of-use management largely local government responsibility with some industry-sponsored recycling programs Retailers and producers were hands off and policy averse 6
7 Sustainable Packaging Today Carbon footprint considered during design, but still disconnect regarding recyclability for many Consumers prefer recyclable packaging, assuming no cost or performance difference Individual producer responsibility practiced by same few companies with limited success Growing industry collaboration in exploring solutions, but limited investment 7
8 Producer Responsibility Drivers
9 Consumer Behavior Consumer demand for recycling access and green products Opportunity to act Desire to avoid guilt Use of Internet and social media Smart mobs Use of video and images 9
10 Zak Noyle/A-FRAME Zak Noyle/A-FRAME Wayne Sentman
11 Customer Demand Achieve corporate sustainability goals and improve brand image Fueled by consumer demand Exercise buying power to influence supplier behavior 11
12 Legislation - Spreading Globally Not included: USA deposit legislation, litter taxes
13 Legislation - Increasing across USA Current Threats Bottle bills Packaging bans Labeling requirements Future Threats More packaging bans EPR for Packaging 13
14 Demand for Recovered Materials Example Materials U.S. Recovery Rate Industry Goals Aluminum Cans 65% Aluminum Association: Raise Used Beverage Can (UBC) recycling rate to 75% by 2015 PET Bottles 29% PepsiCo: industry recycling goal for 50% of PET, glass bottles and aluminum cans by 2018 NWNA: industry recycling goal of 60% by 2018 Fiber 67% AF&PA: exceed 70% recovery for recycling by 2020 Glass Containers 33% GPI recycling goal: 50% or higher recycled content by
15 Corporate Global Recovery Goals Company Recycling Goals Recyclability Goals Coverage Reach 40% recycling rate for Tetra Pak cartons by 2020 (Recycling rates comprise ~5% of managers annual performance evaluations) Reach 75% recovery rate of bottles and cans by 2020 Increase recycling and recovery rates 5% by 2015 and 15% by 2020 Improve recyclability of TP products Use up to 30% plantbased material for all Coke PET plastic bottles by 2020 Increase recycled material content in Unilever packaging to maximum possible levels by 2020 Global Developed markets Top 14 countries 15
16 Producer Responsibility Good and Bad Actors
17 Producer Responsibility Good Actors Teammates Participate in industry forums, seeking to move recovery needle Cheer Leaders Implement promotion campaigns and provide incentives to increase consumer recycling behavior Visionaries Propose game-changing approaches to advance packaging recycling Advocates Promote adoption of specific policy tools and recycling best practices Builders Invest and participate in recycling infrastructure development 17
18 Producer Non-Responsibility Bad Actors Magicians Promote solutions for implementation by others to deflect responsibility Storytellers Greenwash or overly inflate claims of recycling and recyclability Blockers Claim it s not broken and doesn t need fixing Ostriches Duck and cover and avoid engagement of all forms Secret Agents Become involved in stakeholder forums and work to thwart decision-making 18
19 Leadership Examples
20 Traditional Actor - Going Beyond the Traditional Example - Alcoa Invested $24 million to double can recycling capacity of Knoxville plant Launched Action to Accelerate Recycling Pursuing 3 Pillar strategy: Infrastructure, public awareness and policy Collaborating with Clinton Global Initiative, KAB, Net Impact, CURC, Southeast Recycling Development Council Call to Increase Recovery Sponsor Recycle Mania, Bin Grant program, America Recycles Day and now KAB Recycling at Work program Support National Ad Council recycling ad campaign Working to expand Curbside Value Partnership Advocating for VPR+ 20
21 Packaging Manufacturer Example - Tetra Pak Founding Carton Council member which has grown cartons recycling access from 18% to 45% and from 26 to 45 states in 3 years Expanded domestic cartons markets from 1 to 8 mills Worked with communities to add cartons recycling - now covering over 52.5 M households Increased MRFs to 58 that are finalizing or under contract to accept and sort cartons for marketing as a distinct grade Promoting VPR+ Co-chair of AMERIPEN Recovery Work Group promoting collaboration in packaging recovery initiatives Playing leadership role in SERDC Call to Increase Recovery Initiative 21
22 Beverage Industry Example - Coca-Cola Working to realize opportunities to enhance curbside recycling and educate consumers about how and why to recycle Providing >$2.5 M over 5 years for 50,000 curbside recycling carts and awareness and incentive program to encourage Chicago residents to recycle Expanding opportunities for Recycle on the Go KAB Recycling Bin Grant Program. > 32,000 bins awarded 5 Reimagine beverage container recycling centers located in Dallas Kroger shopping centers processed >15 Million containers Work with colleges and universities, professional sports venues, NASCAR tracks, major fairs and festivals to develop beverage container recovery plans Uses recycled content when feasible and is committed to increasing amount used Co-chair of AMERIPEN Recovery Work Group promoting collaboration in packaging recovery initiatives; participant in SERDC Call to Increase Recovery 22
23 Beverage Industry Example - Nestle Waters NA Formed and provides ongoing support for Recycling Reinvented, a nonprofit working to advance EPR legislation in the USA Partnered with Carbonlite in California to do bottle to bottle recycling, putting rpet back into bottles, and is working to expand production of rpet to increase recycled content across more brands over time Sponsor of various KAB recycling programs: $10,000 grants to 12 KAB affiliates for "Recycle On The Go programs Recycle-Bowl youth recycling competition at 1500 elementary schools 23
24 Consumer Product Goods Example: Aveda Cap Free Seas program, and now Full Circle Recycling program Partnership with g2 revolution Customers can return Aveda packaging not accepted by municipal programs to all 107 US Aveda retail locations Packaging will be recycled, reused, or burned for energy recovery with intention of creating new Aveda packaging or accessories g2 revolution will: donate funds enabling West Ohio Food Bank to purchase 2½ pounds of food for every Full Circle recycling bin processed for recycling pay UPS to purchase certified carbon offsets to balance emissions produced by shipment transportation.
25 Food Service Industry Example: Starbucks Goal: Implement front-of-store recycling in all company-owned stores (97% of stores) by 2015 Increased from 5% to 24% of stores in 2 years Also recycling packaging from back of store Active member of FPI Paper Recovery Alliance 25
26 Key Emerging Trends
27 Trend 1 Collaboration in Design for Recyclability Examples SPC, Éco Entreprises Québec (EEQ), and PAC NEXT Sustainable Packaging Design Guide project Eastman Chemical Full Wrap Label Consortium - investigating solutions for recycling challenges of full wrap labels on PET bottles APR-ISRI collaboration on development of mixed plastic bale specs 27
28 Trend 2 Convergence of Thinking Role of producers Role of government and policy Program tools to increase recovery 28
29 Trend 2 Convergence of Thinking Examples Tetra Pak Alcoa Coca-Cola Waste Management AMPERIPEN Voluntary Industry Actions to Improve Recycling POLICY TOOLS State Goals Recognized as Effective at Boosting Recovery Mandatory Recycling Pay As You Throw Disposal Bans PROGRAM TOOLS Recognized as Effective at Boosting Recovery Rollout Carts/Single Stream/MRF Upgrades Public Space Recycling Bins Promotion & Education Schools/Universities Recycling 29
30 A Look Ahead Ongoing collaboration on design for recyclability as well as compostability Further collaboration on research to overcome materials sorting and quality barriers (e.g., Carton Council led MRF study) Ongoing industry investment in incentives, recycling promotion, best practices tools/education, recycling bins and carts Growing support for complimentary public policy driving participation and materials recovery, leading to advocacy and technical assistance Continuing debate regarding role of Extended Producer Responsibility as a policy tool for packaging and printed paper recovery and recycling 30
31 Still Needed Greater industry participation and investment via agreement on equitable funding mechanisms and commitment to paying fair share Filling region-specific infrastructure gaps to provide for access to recycling everywhere (home, work, school, and play) Harmonization of: Materials to be collected Participation instructions Use of terms, symbols and colors Continuous improvement regarding elimination of use of nonrecoverable/recyclable/compostable packaging Solve the marine debris problem 31
32 Thank you!
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