Corporate R&D Materials Science. Stephen Sikra
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1 Corporate R&D Materials Science Stephen Sikra
2 A Company of Leading Brands COUNTRIES WE OPERATE IN 70 COUNTRIES WHERE OUR BRANDS ARE SOLD > 180 ANNUAL SALES (FY15/16) ~ $65 BILLION CONSUMERS SERVED DAILY ~ 5 BILLION
3 Responsibility and Opportunity Doing the Right Thing Ensure products are safe, in regulatory compliance, and growth is responsible. Be a good corporate citizen. Opportunity Develop products that enable consumers to be environmentally sustainable. Reduce costs. Connect brands with social issues.
4 P&G s Long-Term Sustainability Vision Reduce our environmental footprint. Enable consumers to be more sustainable. Materials 100% renewable or recycled materials Energy 100% renewable energy at our plants Consumers Provide sustainable product choices Landfill Zero consumer and manufacturing waste
5 OUR 2020 PACKAGING GOALS 20% less per consumer use Double recycled resin in plastic packaging 90% recyclable or programs in place to create the ability to recycle it
6 Consumers first; no trade-offs in performance or value
7 Consumer at the Center Considering Making Using her her her Purchase Decision Product
8 Recyclable and biodegradable, most important global packaging attributes Countries ranking importance of packaging attributes, 1 is MOST important, 10 is LEAST important Brazil China Germany India Japan Russia SA UK US is recyclable is biodegradable is made using some recycled material is made from renewable material Price is as low as possible is made using renewable energy is compostable has a 3rd party sustainable certification has a very little amount of packaging looks beautiful and has no aesthetic blemishes Green highlighted numbers are ratings under 5, meaning they are on the important side of the rankings Germany s higher importance rating may be due to their higher awareness of the term compostable Conversely, Japan s lower importance ratings of biodegradable and compostable may be due to their lower awareness of the terms NOTE: Data is not normalized.
9 Simple 135 R s.and counting
10 Ellen Macarthur Foundation
11 European Parliament
12 A Circular Economy in the Netherlands by 2050
13 These Concepts guide corporate decisions Serious business do try to simplify Be Responsible Do the Right Thing Use Science Consider the life cycle, Follow the Waste Hierarchy Build the Business View it as an Opportunity
14 US EPA And EU EA Waste Management Hierarchy
15 Our Role in Recycling 1. Design packages for recycling 2. Inspire consumer participation in recycling 3. Advance the recycling Infrastructure 4. Provide consistent Demand for PCR
16 Recycling Value Chain Focus Areas Access to Collection Participation Separation End Markets
17 Films HDPE Bottles Colored PET Bottles Clear PET Bottles Supply Demand x Participation x Separation x End Markets = Recycling Rate Access to Collection Japan, Food Grade 90% 90% 90% 100% 73% EU 85% 80% 75% 100% 51% NA 67% 67% 72% 100% 32% Japan Food Grade 0% 0% 0% 0% 0% EU Bottles 85% 80% 70% 30% 14% NA Bottles 67% 67% 70% 50% 16% EU 85% 67% 85% 40% 19% NA, natural 67% 67% 85% 100% 38% NA, colored 67% 67% 85% 90% 34% US Store Take Back 60% 1% 95% 90% 1% US Curbside (bag-in-bag) 1% 33% 5% 90% 0.01%
18 Films HDPE Bottles Colored PET Bottles Clear PET Bottles Supply Demand x Participation x Separation x End Markets = Recycling Rate Access to Collection Japan, Food Grade 90% 90% 90% 100% 73% EU 85% 80% 75% 100% 51% NA 67% 67% 72% 100% 32% Japan Food Grade 0% 0% 0% 0% 0% EU Bottles 85% 80% 70% 30% 14% NA Bottles 67% 67% 70% 50% 16% EU 85% 67% 85% 40% 19% NA, natural 67% 67% 85% 100% 38% NA, colored 67% 67% 85% 90% 34% US Store Take Back 60% 1% 95% 90% 1% US Curbside (bag-in-bag) 1% 33% 5% 90% 0.01%
19 Films HDPE Bottles Colored PET Bottles Clear PET Bottles Supply Demand x Participation x Separation x End Markets = Recycling Rate Access to Collection Japan, Food Grade 90% 90% 90% 100% 73% EU 85% 80% 75% 100% 51% NA 67% 67% 72% 100% 32% Japan Food Grade 0% 0% 0% 0% 0% EU Bottles 85% 80% 70% 30% 14% NA Bottles 67% 67% 70% 50% 16% EU 85% 67% 85% 40% 19% NA, natural 67% 67% 85% 100% 38% NA, colored 67% 67% 85% 90% 34% US Store Take Back 60% 1% 95% 90% 1% US Curbside (bag-in-bag) 1% 33% 5% 90% 0.01%
20 Some of our Actions, Partnering to Improve: Access to Collection Inspire Participation Improve Separation Increase End Markets The Recycling Partnership Closed Loop Fund Retail Stores-FFRG-WRAP Design for Recycling-APR Guidelines Evaluating Tracers/Watermarks - Sortation Material Recovery For the Future (MRFF) On-Pack Messaging H2R Label (SPC) Flexible Film Recycling Group (FFRG) Brand Web Sites 2X PCR in P&G packaging Keep America Beautiful Non clear rpet (NAPCOR) Terracycle Beach Plastic Durable Good film PCR use (MRFF
21 Designing for recycling and providing PCR Demand Tide Video Partnership In Action
22 Video
23 Some Facts 1. P&G has been using PCR for > 28 years 2. 2X PCR goal: 26 to 52 kta, now at ~ 34kta 3. 90% Recyclable Packages, now at ~ 86%
24 Opportunity How2Recycle Label: Expanding & Positively Impacting Change
25
26 Goal Educate and inspire consumers to recycle plastic film, bags and wraps Build on the successful I Want to Be Recycled national public service campaign with new creative focused on educating, motivating and activating the public to recycle film, bags and wraps.
27 Vision Why Recycling Flexible Packaging is Important Today Program Overview Research MRF Pilot What s Next 27
28 MATERIALS RECOVERY FOR THE FUTURE Research Collaboration 28
29 Hosted By: Foundation For Chemistry Research & Initiatives: 29
30 O U R V I S I O N Flexible packaging is recycled, and the recovery community captures value from it. 30
31 MRFF IS ONE OF MANY EFFORTS TO RECYCLE FILMS AND FLEXIBLE PACKAGING IN THE U.S. MAJOR EFFORTS IN THE U.S. Dow/FPA Energy Bag ACC- FFRG SPC ILC How2Recycle ACC/SPC/APR - WRAP Recycling Action Program SPI Recycling Committee and FFBD SPI FFBD and Recycling Committee Materials Recovery for the Future APR-Film Committee
32 Why Recycling Flexible Packaging is Important Today 32
33 CONSUMERS WANT PACKAGING THAT CAN BE RECYCLED ACROSS A RANGE OF CATEGORIES % consumers indicating recyclable packaging is very/somewhat important to their purchase of the following types of products Household cleaning 80% Personal care 73% Food and beverage 73% * Source: Natural Marketing Institute research
34 CONSUMERS ARE INTERESTED IN WHAT COMPANIES ARE DOING TO LESSEN PACKAGING AND REDUCE THE WASTE THEY PRODUCE About 1 out of every 2 consumers are interested in learning more about what companies are doing to Use more recycled contents in their products and packaging (46%) Use less packaging (45%) Reduce the amount of trash and other waste they produce (51%) Companies have an opportunity to build strong brand loyalty with interested customers that want to see more environmentally-friendly packaging practices. * Source: Natural Marketing Institute research
35 TOTAL LIFE CYCLE MANAGEMENT IS THE EXPECTATION FOR PACKAGING While flexible packaging performs well from a life cycle perspective, many stakeholders expect end-of-life management options to improve. SOURCING MANUFACTUR E USE END OF LIFE *Flexible Packaging: Less Resources, Energy, Emissions & Waste
36 THE RECYCLING PROBLEM: Flexible Packaging Is A Processing Challenge for Today s MRFs 36
37 PACKAGING EVOLUTION RISK TO OPPORTUNITY Flexible packaging is showing up at Material Recovery Facilities (MRFs) from curbside recycling streams in increasing quantities Flows with paper in a MRF and affects bale quality What if we could turn a negative impact into a positive outcome by upgrading MRFs to sort, bale and sell flexible bales? Reduces QC labor costs for pickers Increases quality of paper bales Creates new source of revenue with flexibles bale Eliminates landfill disposal cost of flexibles
38 2016 RESEARCH PROGRAM OVERVIEW MAJOR QUESTIONS DEFINED 1 ACCESS Bagged or Loose Collection? 2 MRF How can it be affordably sorted at the MRF? 3 PLASTICS RECOVERY FACILITY How can increased value be created for the material? 4 NEW PRODUCTS OR ENERGY What are viable end markets for the range of materials? 38
39 R E S E A R C H R E S U L T S Baseline Test Equipment Testing MRF Testing 39
40 1 Baseline Test 2 Equipment Tests 88% of FPP flowed with fiber Optical sorters extracted stream of mostly FPP Screens and optical sorters were overwhelmed 90% of FPP was sorted from the test stream Identified ejection and recognition challenges 3 MRF Test 1 4 MRF Test % 70% of the test material flowed through the optical sorters Optical sorter efficiency (% of FPP recovered) Large quantity of paper with the ejected FPP 85% 89% of FPP captured by 2 passes of optical sorting of FPP captured by 3 passes of optical sorting Still a sizable quantity of paper with the ejected FPP
41 KEY FINDING FOR 2017 PHASE OF TESTING Airflow control over acceleration conveyor and in collection hood plays a major role in successfully sorting flexible packaging from paper OPTICAL SORTER SCHEMATIC Collection Hood Infeed Light Source Sensor Acceleration Conveyor Ejection Air Nozzles Fiber Flexible Plastic Packaging (FP) 41
42 FLEXIBLE PACKAGING SORTATION AT MATERIALS RECOVERY FACILITIES Research Report 42
43 I M P O R T A N T P A R T N E R S H I P S F O R M E D : M R F T e s t T e a m s Larry Baner, Nestle Purina Michael Timpane, RRS Emmie Leung, Emterra Environmental Jeff Wooster, Dow Steve Sikra, P&G Kerry Sandford, RRS Brennan Madden, RRS Chris King, RRS Jon Pyper, Dow Susan Graff, RRS Sandi Childs, APR Nevil Davies, Emterra Environmental 43
44 2017 MRF PILOT PROGRAM 44
45 OBJECTIVE Demonstrate flexible packaging recycling with a partner at a community MRF, with a plan to sort both PE and other FPP; and, expecting our MRF partner will require equipment modifications and testing perform lab testing when necessary in support of the implementation at the MRF Work Streams End Market Assessment Identify Community MRF Pilot Equipment Testing Communications and Recycling Industry Engagement 45
46 END MARKET ASSESSMENT 2017 Work Streams End Market Assessment Identify Community MRF Pilot Equipment Testing Communicate & Report Engage the Recycling Industry 46
47 2017 END MARKET ASSESSMENT Objective: Answer key MRF questions What s expected in the bale, and where am I going to sell this material? Develop a description of the MRF Flexible Packaging Bale Describe expected fiber, resin and contaminant content Identify potential end markets Mixed resin mechanical recycling Sorted resin mechanical recycling Chemical recycling Energy and fuel Evaluate pre-processing needed to prepare material for market Sorting Washing Other needs 47
48 MIXED RESIN PRODUCT EXAMPLES IN EUROPE 48
49 COMMUNITY MRF PILOT IDENTIFICATION 2017 Work Streams End Market Assessment Identify Community MRF Pilot Equipment Testing Communicate & Report Engage the Recycling Industry 49
50 COMMUNITY MRF PILOT PROGRAM BASICS Business Model: Adding flexibles is cost-neutral or better for the MRF Employs MRF Economic Feasibility Model to determine individual facility s costs and benefits to add flexibles 50
51 Key Considerations for Pilot Selection Community support Local officials interested in adding flexible packaging to recycling collections Supportive policy and economic environments o Encourages increased diversion, zero waste o Large flexibles stream available to MRF Single stream MRF processes 20 tons/hr minimum Existing end markets in region support value proposition High tip fees favorably impact MRF net system cost 51
52 How the MRF Pilot Program Works RRS will apply the model for MRFs considering pilot participation Output is a customized MRF pro forma for adding flexibles estimating net system costs and benefits based on local conditions RRS inputs capital & operating costs MRF provides to build pro forma MRFF will provide co-financing, technical support, and stewardship of funding sources for pilot (e.g., Closed Loop Fund) 52
53 Equipment Testing 2017 Work Streams End Market Assessment Identify Community MRF Pilot Equipment Testing Communicate & Report Engage the Recycling Industry 53
54 2017 EQUIPMENT PERFORMANCE GOALS Optical sorting goals Maximize extraction of flexible packaging from fiber Minimize fiber in flexible packaging product Maximize throughput If practical, use airflow or other technology to separate flexibles from rigid plastics that might be ejected with them Specific goals that RRS believes will assure project success are as follows: >90% eject of flexibles from fiber (by weight) <30% of flexible product is fiber (by weight) [<15% desired] 10 tons per hour throughput Mechanical sorting goals Capture 30-50% of flexible packaging before optical sorting 54
55 Communications & Industry Engagement 2017 Work Streams End Market Assessment Identify Community MRF Pilot Equipment Testing Communication s & Recycling Industry Engagement 55
56 2017 COMMUNICATION & INDUSTRY ENGAGEMENT GOALS Take MRFs, communities and the packaging value chain with us on our journey ACC Press releases for specific accomplishments and activities Outreach and information exchange with the recycling industry to build community of practice for recycling films and flexibles (e.g., industry association speaking engagements and EPA webinars) Continued Member recruitment campaigns at major brand owner and retail convenings Regularly update materialsrecoveryforthefuture.com website with content for municipalities and MRF community 56
57 WHAT S NEXT
58 Immediate Next Steps: Now thru June 2017 Stakeholder analysis - short list of MRFs candidates as prospective pilot partners Talking now with select MRF operators / communities in PA, CT, MN, WA, TX Build Community of Practice to exchange information Recycled Product Samples (deck boards, pallets, posts, etc.), June
59 MATERIALS RECOVERY FOR THE FUTURE Long term Strategy Flexible Plastics Research Program Address Key Challenges Through Existing Technologies Re-imagine System of the Future* Plastics to Fuel or Fuel Substitutes Potential solutions for smaller communities or those that want to target the broader mix of plastics not currently recycled MRF Equipment Testing Program research program aimed at testing most feasible solution based on net system costs and adaptation of existing sortation technology MRF Pilot Program 2017/18 community MRF pilot. Demonstration, improve sorting efficiency, evaluate reprocessing cost/feasibility, and characterize product bales for end market. Define System of the Future Continued Value Chain Collaboration with recycling industry and municipalities to further develop recovery infrastructure to accept packaging and improve design for recyclability *Looking for partners to participate in these programs
60 WE INVITE YOU TO BECOME PART OF THE SOLUTION Success depends on value chain collaboration to demonstrate and scale the solution. Transparent sharing of data. Join our mailing list to to receive MRFF news and research findings. Join Us! Sponsors and MRF partners are needed to support the Pilot Program; plan recycling systems of the future 60
61 For more information or to join contact: Sarah Lindsay American Chemistry Council Susan Graff RRS Principal Vice President, Global Corporate Sustainability materialsrecoveryforthefuture.com 61
62 How to ensure plastics recovery grows? Supply Innovation Demand TSR Innovate in areas of Supply & Demand Take Responsibility across the entire value chain- all of us Plan for the long-haul, continued, year-on-year participation Collaborations no one company is big enough It is tough work, let s partner, let s continue!!
63 THANK YOU! Stephen Sikra Touching lives, improving life.
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