CIRCULAR ECONOMY: IT S REAL AND IT COMES WITH PLASTIC FOOD PACKAGING. THE ILIP CASE

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1 CIRCULAR ECONOMY: IT S REAL AND IT COMES WITH PLASTIC FOOD PACKAGING. THE ILIP CASE Nicola Ballini ILIP S.R.L. General Manager A business of

2 I.L.P.A. Group The structure I.L.P.A. S.p.A. I.L.P.A. U.K. Branch ILIP S.r.l. MP3 S.r.l. AMP Recycling S.r.l.

3 I.L.P.A. S.p.A. At a Glance Foundation 1962 Employees > 590 Turnover I.L.P.A m Turnover ILIP m Production plants I.L.P.A. 3 (2xBologna, 1xFerrara) Companies Markets served Export 3 (ILIP Srl, MP3 Srl, AMP Recycling Srl) Retail chains, food processing industries, foodservice companies, caterers, horticultural packaging, automotive industry, plastic converters > 55 Countries (5 CONTINENTS) B2B Customers approx

4 Average Number of Employees I.L.P.A. S.p.A. At a Glance I.L.P.A. Group Average Number of Employees from 1996 to 2016 (in 2012 acquisition of AMP Recycling based in Ferrara) Year

5 I.L.P.A. S.p.A. At a Glance ILIP Srl Business Units: Foodservice Packaging Fresh Produce Packaging Fresh Food Packaging

6 I.L.P.A. S.p.A. At a Glance - MP3 Srl Business Areas: Semi-finished products Thermoformable and FF&S reels Cut Sheets

7 I.L.P.A. S.p.A. At a Glance - AMP Recycling Srl Business Areas: PCW PET Recycling r- PET films extrusion Horticultural packaging

8 ILIP HOW DO WE STAND OUT FROM THE CROWD

9 Serving and preserving freshness is what we do best With over 50 years of experience, we are one of the leading European producers of high quality thermoformed rigid plastic food packaging. Our consistent strive for the best in terms of quality, innovation, service and sustainable answers are the main drivers for all our business activities.

10 ILIP take care We produce products that help food stay fresh longer, and to be delivered and enjoyed in a safe and convenient way. 10

11 Why ILIP? Since 1962 a family run successful business Our Roots Our Values We spread our Passion for Packaging at all levels in our organization

Furthermore, ILIP promotes more sustainable and innovative packaging systems and invest in the development of active packaging aimed to reduce food waste & losses 2.

12 Sustainable development&circular economy: concrete solutions vs. green washing 3 R s - ILIP s three main commitments are: 1. REDUCE packaging weight (DOWNGAUGING) without compromising the safety and shelf life of the packaged products. Furthermore, ILIP promotes more sustainable and innovative packaging systems and invest in the development of active packaging aimed to reduce food waste & losses 2. RECYCLING has become economically and environmentally sustainable. ILIP is part of I.L.P.A. Group vertical integration of the r-pet supply chain: a CLOSED LOOP SYSTEM from post consumer water bottles to a new packaging designed to protect fresh food 3. RENEWABLE RESOURCES: bioplastics, plastics from plants, are renewable and compostable. ILIP is the only European manufacturer with complete ranges of disposable tableware, foodservice packaging and fresh produce packaging made with PLA 12

13 1 st R : REDUCE a) PRODUCTS DOWNGAUGING Reduce packaging weight (DOWNGAUGING), without compromising its intended purpose, the safety and convenience for the consumer and the hygiene and shelf life of the packaged foodstuff, is environmentally and economically sustainable. Since 2010 we have continuously reduced the average weight of our products: Avg. weight reduction -7,94% equals to: 2.458t raw materials (PET, r-pet, PP) savings (2015 vs. 2010) Sustainable development&circular economy: concrete solutions vs. green washing 16,00 15,50 15,49 Avg. weight g 15,00 14,50 14,80 14,46 14,18 14,18 14,26 14,00 13,50 13,

function it serves. Such an assessment will show that in the context of sustainability, packaging should be considered as part of the solution and not part of the problem.

14 Sustainable development&circular economy: concrete solutions vs. green washing 1 st R : REDUCE b) TACKLING FOOD LOSSES&WASTE= FIT4PURPOSE PACKAGING= SUSTAINABILITY «packaging can only be assessed in relation to the product it contains and the function it serves. Such an assessment will show that in the context of sustainability, packaging should be considered as part of the solution and not part of the problem.» Efficient and effective packaging results in maximum food protection, minimum food wastage and therefore minimum environmental impact. UNDERPACKAGING= OVERPACKAGING= FIT4PURPOSE PACKAGING= (Source: EUROPEN - Green Paper on Packaging and Sustainability. An open dialogue between stakeholders - October 2011)

15 Sustainable development&circular economy: concrete solutions vs. green washing 2 nd R : RECYCLING CLOSING THE LOOP WITH r-pet FOOD PACKAGING ILPA is a concrete example of circular economy, the only group in Europe to have integrated vertically its rpet manufacturing cycle, from postconsumer bottles to new packaging solutions, while ensuring the origin and traceability of the material. EFSA approved our superclean process for 100% food grade rpet for direct food contact. We recycle about 30,000 tons of post-consumer PET/year to obtain secondary raw materials, avoiding the production of a corresponding quantity of virgin PET. The results of this process is a new packaging for foodstuff. ILIP s rpet punnets and trays has an average content of recyclate of 85%. Our multi-layers sheet coextruded A-B-A complies with: Reg. (EC) n 1935/2004 Reg. (EU) n 10/2011 Whilst our mono-layer sheet complies with: Reg. (EC) n 282/2008

16 Sustainable development&circular economy: concrete solutions vs. green washing CLOSING THE LOOP WITH r-pet FOOD PACKAGING 16

polymers. For this reason, many products in our assortment are made from PLA (polylactidacid), Mater-bi and other biopolymers.

17 Sustainable development&circular economy: concrete solutions vs. green washing 3 rd R : RENEWABLE RESOURCES BIOPLASTICS Renewable resources such as bioplastics for specific intended purposes and specific situations are a valid alternative to fossil polymers. For this reason, many products in our assortment are made from PLA (polylactidacid), Mater-bi and other biopolymers. Since 2002 we process bioplastics to make foodservice and fresh produce packaging. All these items are certified and comply with the European norm EN The life of these products ends with organic recycling (composting) when appropriate and available and the results of this process is compost. Ilip s High Performance plates are compostable and heat resistant up to 85 C

18 Sustainable development&circular economy: concrete solutions vs. green washing CONCLUSIONS COMPLEXITY NEEDS A (COMPLEX) SYSTEMIC APPROACH Simple and easy solutions don t solve complex problems which encompass several aspects: from business related aspects (industrial and economic developments and jobs) to environmental issues; from political demands to consumers related aspects (behaviours, hygiene, safety, convenience and life-style). Furthermore, according to the Packaging and Packing Waste Directive 94/62/EC, any decision and solution, has to be based on objective analyses and life-cycle assessments. A complex systemic approach based on circular economy and recycling (mechanical, chemical, organic) could be the driver to improve the competitiveness of the European industry and the right leverage to new investments.

19 THANK YOU! Watch on:

Working Group Biodegradable Packaging Recovery Project REPORT

Working Group Biodegradable Packaging Recovery Project REPORT 01.10.2012 0 CONTENTS Preface 2 Report 3 1. Working Group (WG) 2. Working Group Goals 3. Working Procedure 4. Studies, tests and results a)