NINA GOODRICH EXECUTIVE DIRECTOR, GREENBLUE Moving Towards a Circular Economy: What does it mean and how does it relate to sustainable packaging IOPP Atlanta / April 16, 2015 / NEXTPACK A nonproﬁt dedicated to researching and promoJng the principles of sustainable materials management.
Sustainable Materials Management The Sustainable Packaging CoaliGon •  Membership organizaJon bringing together hundreds of companies & stakeholders since 2004 •  Working together to broaden the understanding of packaging sustainability and develop meaningful improvements •  Reports, packaging design tools, educaJonal courses, conferences, and consulJng Why Circular? take
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State of Green Business 2015 “Companies collecJvely have been nibbling at the edges of challenges like climate change, food security, ecosystems preservaJon, resource eﬃciency and the like. Whether and how they take on the big problems will be another criJcal story to watch.” “Recent improvements in resource eﬃciency, although welcome, are not enough to break the link between economic growth and environmental decay. As a result, the business risks of unsustainable natural capital consumpJon are increasing.” By Joel Makower and the editors of GreenBiz.com •  Corporate investments in “material” sustainability are value enhancing •  Corporate investments in immaterial sustainability are not value enhancing and are not value destroying •  Sustainability AccounJng Standard Board (SASB) deﬁniJons were used to determine “material sustainability and “immaterial sustainability” State of Sustainability March 27, 2014 SPC Spring Mee/ng. Sea2le, WA. March 27, 2014. What are some of the key drivers and challenges? Planetary Boundaries E/MSY = exJncJons per million species-‐ years Biodiversity Intactness Index (BII) Steﬀen, W., Richardson, K.(2015). Planetary boundaries: Guiding human development on a changing planet Science, 347(6223). Resource ConsumpGon & GDP “For every 1% increase in GDP, resource use has risen 0.4%” (“The Circular Advantage.” Accenture analysis based on data from SERI and Difrich M. 2014.Global Material Flow Database. World Bank GDP data, www.data.worldbank.org/) Commodity prices have historically been inversely related to growth, but this relaJonship changed in 2000. (World Bank commodity price data) What is SPC’s/GreenBlue’s Role? Sustainable Materials Management   Inﬂuence the Debate   Enhance Supply Chain CollaboraJon   Create AcJon What are some of the key drivers and challenges? “Our Industry” Key Trends and Drivers   What will be the eﬀect of low fuel prices on the stability of the recycle markets?   What will be the unintended consequences of dirty MRF’s?   What is the role for “Brand/Retailer Regulators”? (Brands selng the agenda) The Value of Waste SERDC Reports: •  Alabama Department of Natural Resources 2012 study on the net loss of value from the disposal of recyclable materials •  Value 193 Million USD •  Disposal Cost 25 Million USD •  NET Value Loss 218 Million USD What is the job that we hire material recovery to do? How Might We (HMW)   HMW improve package design   HMW improve collecJon   HMW encourage consumer parJcipaJon   HMW improve ﬁnancial incenJves for collecJon   HMW insure that recycling is a community value The Importance of “Brand/Retailer Regulators” in seZng the agenda   Recycle Content (Market Pull)   Design for Recovery   Sustainability IniJaJves   Consumer Awareness and EducaJon   Selng the Best PracJce What is a Circular Economy? A circular economy is an industrial system that is restoraJve or regeneraJve by intenJon and design. What is a Circular Economy? A circular economy is an industrial system that is restoraJve or regeneraJve by intenJon and design. McKinsey and Accenture have esJmated this to be a trillion-‐dollar opportunity Q: How Do We Get There? A: CollaboraGon Sustainable Materials Management +Technology Enablers +New Business Models +Policy Frameworks +Financial IncenJves Lifecycle Approach material science design evaluaJon sourcing supply chain educaJon end-‐of-‐life research guidance for recycling The How2Recycle Label Program Examples What’s the SPC doing?   Advising companies on recyclability claims through our How2Recycle labeling system   Establishing the deﬁniGon of access-‐to recycling through stakeholder engagement   Convening funders for a credible, centralized access-‐to-‐recycling study Deﬁning access-‐to-‐recycling   Which types of access count?   What about communiJes with mulJ-‐family housing?   What about communiJes with subscripJon curbside recycling services? Quality Purity   Uncontaminated Material Streams   Single Materials Ease of Re-‐Use   Diversiﬁed opJons for re-‐use   Durability of the material Lifecycle length QuanGty Amount of Material Available Ease of CollecJon Quality and QuanGty High PotenJal Materials Circular Economy New Business Models Access over Ownership Become a Service Industry by Leasing •  Carpet Leasing (Desso) •  LighJng Leasing (Philips) •  Electric Car Bafery Leasing (Renault) www.philips.com/sustainability Circular Economy New Business Models Designed for Circular Use •  WellThread (Levi Straus, Dockers) Ownership ! Access CollaboraGve ConsumpGon Botsman, R. and Rogers, R. “Beyond Zipcar: Collabora/ve Consump/on.” Harvard Business Review. October 2012. Circular Economy Enabling Technologies Digital •  Mobile, Cloud •  Track and Trace •  Big Data Bio-‐Based (Carbohydrate Economy) •  Renewable •  Carbon Capture Life and Material Science •  Recovery Technologies Bio-‐Based Polymers   Sugar Cane to PE (Braskem)   Plant Sugar to PLA (NatureWorks)   Canola to PHA (Meredian)   Eucalyptus Trees to Film (Innovia)   Sugars & non food plant oils to PHA (Metabolix)   Methane to PHA (Mango Materials, Newlight)   Food Waste to PHA (Full Cycle)   Biogas to LacJc Acid (Natureworks) Bio-Based Polymers
  Bio-Based Feedstocks
– Corn
– Sugar Cane
– Algea
– Pulp
– Food Waste
– Methane
  Applications
– Chemical Intermediates
– Polymers
• Drop in
• New materials
• Blends
– Films
• Food & Agriculture
– Foams
–  Rigid Plastics
• Closures
• Containers
• Microbeads
  Compostable Applications
  Recycle Applications
Circular Economy Policy Frameworks EU Smart RegulaGon •  IncenJves: Waste ReducJon, SeparaJon and CollecJon •  Modernizing Waste Policy •  IncenJves for Design for Reuse and Remanufacture •  Chemicals Policy (Free of hazardous and problemaJc) Increase Recycling Rates/Targets •  Harmonizing Categories of Materials and Metrics •  Understanding and Measuring Access Finance and Risk Management Tools •  Design incenJves for longer lasJng products •  Strong Policy Creates a Predictable Environment for Investment Circular Economy Financial Frameworks •  Finance and Risk Management tools and Flexible IncenJves •  Green Bonds •  Impact Investors (Returns and Impact) •  Public-‐Private Partnerships •  Eliminate Environmentally Harmful Subsidies •  Feed-‐in-‐Tariﬀs •  CreaJng Markets for Secondary Raw Materials Project MainStream Launched by The Ellen MacArthur FoundaJon, in collaboraJon with the World Economic Forum and McKinsey & Company. Goals: Demonstrate commitment from key stakeholders, Establish proof of concept of the economic and environmental beneﬁts of a circular economy, Accelerate the transiJon 3 new projects announced January 23rd 2015 in Davos Project MainStream
Eco-‐Design (starJng with paper) The eco-‐design project aims to start with paper, one of the most well-‐recycled products in the world, to achieve proof of concept on establishing eco-‐design rules with approaches that can be replicated in other industries. www.ellenmacarthurfounda/on.org/news/project-‐mainstream-‐launches-‐three-‐new-‐
programmes Project MainStream
1.Global PlasJc Packaging Roadmap This will aim to close the gap between the design of packaging and the design of municipal systems. The goal is to create an authoritaJve global plasJc packaging roadmap to transiJon to eﬀecJve packaging soluJons based on re-‐use and recycling of plasJcs www.ellenmacarthurfounda/on.org/news/project-‐mainstream-‐launches-‐three-‐new-‐
programmes Project MainStream
3. Assef Tracking This program seeks to develop a design and implementaJon toolkit to create befer decision making on what to do with a product when a (ﬁrst) user is ﬁnished with it. The iniJal focus will be on consumer electronics and medical equipment. Globally, consumer electronics and household appliances with a cumulaJve value of roughly $390 billion reach end of life each year. Asset tracking could help unlock a potenJal value of about $52 billion annually in these sectors alone through more reuse, remanufacturing and recycling. www.ellenmacarthurfounda/on.org/news/project-‐mainstream-‐launches-‐three-‐new-‐
programmes Why Circular?   Economic Opportunity   Resource PreservaJon   RegeneraJve Business Models   Because We Must Thank You! Nina Goodrich [email protected]