Rethinking Plastics. A Circular Economy Blueprint. Steve Davies Director Public Affairs NatureWorks

Transcription

1 Rethinking Plastics A Circular Economy Blueprint Steve Davies Director Public Affairs NatureWorks

2 NatureWorks - Some Quick Context Play

3 Ellen MacArthur Foundation The New Plastics Economy A Circular Economy Blueprint for Packaging Plastics The Foundation aims: to bring together for the first time a comprehensive global perspective of the broader plastic packaging economy, to present a vision and propose a roadmap as well as a vehicle for progressing this roadmap to provide a much needed global focal point to carry this agenda forward THE NEW PLASTICS ECONOMY Rethinking the Future of Plastics looking for systemic change to overcome stalemates in today s plastics economy in order to move to a more circular model

4 Plastics Production Increased Twenty-Fold Over The Last 50 Years

5 Plastics Production Increased Twenty-Fold Over The Last 50 Years Production expected to double again in 20 years, and quadruple by 2050 Plastic Packaging is single largest application (26% of total today)

6 Plastic Packaging is an iconic linear application 95% of plastic packaging material value (US$ bn) is lost annually after a short first use

7 Ambitions of the New Plastics Economy Capturing the opportunity

8 Definition of Sustainable Packaging Sourcing Manufacture Use After Use

9 How the Plastics Industry is rethinking itself from a Circular Economy Perspective Where do Bioplastics Fit? What the plastic is made from Sourcing Future Current, Incumbent Plastics Ideal Material How plastic is recovered After Use 20 0 Manufacture How the plastic is made Use plastic characteristics - functionality and performance

10 Let s talk about bioplastics sourcing & manufacture Sourcing After Use 20 0 Manufacture Use

11 Let s talk about bioplastics sourcing & manufacture Sourcing With an expected 40 surge in consumption, After Use 20 0 negative externalities related to plastics will multiply 60 Manufacture World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company, The New Plastics Economy Rethinking the future of plastics (2016, Use

12 An Example: Negative Externality Resulting from Manufacture Polypropylene 1.6 HDPE 1.8 PET 2.2 Polystyrene kg CO 2 (eq) generated /kg material produced Source: PlasticsEurope

13 An Example: Negative Externality Resulting from Manufacture Polypropylene HDPE PET If the current strong growth of plastics usage continues as expected, 1.6the emission of greenhouse gases by the global plastics sector will account for 15% of the 1.8global annual carbon budget by 2050, up from 1% today 2.2 Polystyrene World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company, The New Plastics Economy Rethinking the future of plastics (2016, kg CO 2 (eq) generated /kg material produced Source: PlasticsEurope

14 Implications of Renewably Sourced - Carbon Footprint Comparison Ingeo 0.6 Peer Reveiwed Benchmarking Polypropylene 1.6 HDPE 1.8 PET 2.2 Polystyrene kg CO 2 (eq) generated /kg material produced EU Producers - PlasticsEuropem

15 And Carbon Credentials Matter (November, 2015): Unilever to become carbon positive by 2030 (Paris, November 9, 2015): Danone commits to ambitious new climate policy Target: zero net carbon emissions within its direct and shared scope of responsibility (November, 2015): Nestlé acclaimed as world leader for action to tackle climate change (June, 2015): Ikea to spend 1bn to tackle climate change

16 An Example Bio PET in Packaging Sourcing 20% biobased carbon today After Use Manufacture Use

17 both revolutionary and evolutionary change is needed

18 moon shot examples in the bioplastics space..

19 Bioplastics Directly from GHG (methane) the AirCarbon production process begins with concentrated methane-based carbon emissions Mango Materials produces a naturally occurring biopolymer from waste biogas (methane) R&D Program: US Federal & State level funding for one step fermentation of methane to lactic acid, the Ingeo building block PHA polymers (close functionally to polyolefin materials) Ingeo

20 What does direct GHG conversion mean? NatureWorks Actively Investing in Joint Collaboration & Development methanotrophic bacteria Lactic acid cyanobacteria NatureWorks' Continued Assessment and Evaluation 2014 NatureWorks 20

21 Industry Wide Engagement & Interest in Next Generation Feedstocks 6-7 December 2016, Maternushaus, Cologne, Germany The NatureWorks feedstock project is but one example of a rapidly gathering critical mass of interest in the industry in direct GHG conversion

22 Let s talk about bioplastics functional material characteristics in use Sourcing After Use 20 0 Manufacture Use

23 New Material Innovations Fuel Wholly New Markets, Applications, and Business Models

24

25 Bio-benign materials choices for manufacture 1.PVC 2. PU, PS, ABS, PC 3. PET 4. PE, PP 5. Biobased polymers THE NEW PLASTICS ECONOMY Rethinking the Future of Plastics Greenpeace s Pyramid of Plastics (1) p. 27

26 Benign by Design rethinking toys

27 Sustainable Packaging Opportunity?

28 The Challenge Growth of Single-Serve Plastic Capsules In 2016 Plastic Capsule Market Growth 35.4bn / 20 CAGR 10% 16/ 20 CAGR 8% PLASTIC 2016 CAPSULES ,000 20,000 30,000 40,000 50,000 60,000 Volume (Million Units) Value ($ Million) - AMI Consulting, Single Serve Beverage Capsules - Market Overview, 2016

29 The Opportunity - Functional Compostable Diverting Organic Waste from Landfill 579 million kgs of coffee was consumed via capsules in 2016 by the 3 largest consuming regions (USA, EU, AUS) in Fills the Empire State Building 2.6x 1. Capsules 90% of brewed pod is coffee valuable organics mostly lost to landfill 1. Estimated based on 13g coffee in volume of average K-Cup

30 We ve designed functional Ingeo materials to perform in multitude of capsule designs & components FILM LIDDING FIBER LIDDING FIBER FILTERS Nonwovens with custom basis weight CAPSULES **For high & low pressure systems Compression molding Thermoforming Injection Molding

31 Functionality in the market Lavazza Nespresso System Compatible

32 More Functionality in the market Lavazza Compatible Keurig Compatible

33 Let s talk about bioplastics after-use Getting Circular Sourcing 100 After Use 80 Manufacture Use

34 A NatureWorks Example Incumbent Plastics Ingeo Mechanical Recycle Ingeo Recovery Options Feedstock Recovery Compost Anaerobic Digestion Energy Recovery Landfill X X

35 Organics Diversion from Landfill US the 28% Opportunity US Example: Total US MSW Generation (by material), 2013 Where Composting infrastructure exists, Compostable plastics like Ingeo provide a tool for organics diversion from landfill Yard trimmings 13.5% Wood 6.2% Food Scraps 14.6% Other 3.3% Rubber, leather & textiles 7.6% Plastics 12.8% Paper 27.0% Metals 9.1% Glass 4.5% Source: Advancing Sustainable Materials Management: Facts & Figures 2013, USEPA, June, 2015

36 Cultural Influence of Sports While 13% of Americans say they follow science, 61% say they are sports fans Source: National Resources Defense Council

37 nearly Total Members 145 Teams 156 Venues 12 Leagues

38 GROWING PORTFOLIO OF SUCCESSFUL CASE STUDIES IN ZERO WASTE

39

40 Recycling, Or, How to avoid being part of the 86%) Most plastics (and bioplastics) can be recycled, yet very few are PLA Example: Long routinely recycled at post industrial level Initial collection programs beginning at consumer level Collecting Converting End-Markets PLA bale specification & pricing set Flake specifications & process development underway r-pla product development underway

41 Rethinking Plastics Sourcing After Use Manufacture Use

42 Thank You Rethinking Plastics A Circular Economy Blueprint Steve Davies NatureWorks