Sharing our futures

September 22, 2008

SABIC Innovative Plastics Stock Photo

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Materials for Enclosures, Connectors, & Wire

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Sustainability: Fad or Trend

Just a fad Here to Stay

1 2 3 4 5 6 7 8 9 10

mean mode9% 26%

Natural Marketing Institute, 2008

Survey of US Consumers:

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SABIC Innovative Plastics: Going forward…

Illustration:SABIC Innovative Plastics

Raw Materials

Energy

Recovery

DesignGreen Chemistry

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All recycle is not created equal…

Creative Commons ShareAlike 2.5Bill Bradley

Creative Commons ShareAlike 2.5 Panther/Wikimedia Commons

SABIC Innovative Plastics Photo

Creative Commons ShareAlike 2.0 Aaron Kuhn

Post-ConsumerPre-Consumer

Mechanical Chemical

Source of Recycle

Method of Recycle

Greater Value

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All recycle is not created equal…

Federal Trade Commission (16 CFR Part 260) and ISO14021 define “Recycle Content” in environmental marketing claims.

Recycled Content Not-Recycled Content

• clear definition• high env. benefit

• depends on situation, debatable definition• variable env. benefit

• clear definition• already status quo

e.g. in-house runner/trim scrap reuse

e.g. over supply of runner/trim scrap sold for modest discount

e.g. mfg waste given to recycler for free to avoid land-fill

Valox iQ* technology

Interpretation

Post-Consumer Pre-Consumer/Post-Industrial Home Scrap

Illustration:SABIC Innovative Plastics

Strategy: focus on post-consumer but use pre- consumer to neutralize competitive activity.

1/2 credit

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Valox iQ* chemical upcycling

35% fossil derived input upgrades PET to PBT engineering

resin

Post-consumerPET

Valox iQ* resinDurable Goods

Award Winning Technology:2006 SAE Environmental Excellence in Transportation (E2T) Award2007 Society of Plastics Engineers (SPE) Environmental AwardEcoMark certified by the Japan Environmental AssociationCradle to Cradle certification from MBDC for Valox iQ8280SF

Illustration: SABIC Innovative Plastics

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Life cycle assessment example – CO2eqPreliminary & subject to change - Peer Review in Progress

0

2

4

6

8

PA66 PC PBT ABS PLA Bio-BasedPTT

iQ PBTResin

kg C

O2 /

kg re

sin

raws process pellets molding product use disposal

cradle gate grave

CO2eq Emissions (e.g. Greenhouse Gases)

including transportation

Life Cycle Analysis:(ISO14040-2006)

Illustration: SABIC Innovative Plastics

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Few Trade-offs…

PBTiQ* PBT

Each axis represents a life cycle analysis (LCA) metric(e.g. global warming, land use, etc. )

Preliminary & subject to change - Peer Review in Progress

Valox iQ* technology improves every measure.

Less Impact

More Impact

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Simplified life cycle of plastics

Illustration:SABIC Innovative Plastics

X

X

C,H

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Land use and bio-based plastics based on corn yields - higher yield cane and energy crops would reduce area - carbon feedstock only

2006 US Ethanol Production

Ethanol for US gasoline consumption

Global PE production

Global PC production

Very Short Life

Short LifeDurable Goods

Biomass orFossil Biomass (Oil/Nat.Gas)

CarbonCarbon

Carbon(alternatives: hydrogen / electric )

Illustration: SABIC Innovative Plastics

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Bio-based Cycoloy* resin technology (performance index based on small/hand-held electronics devices)

0 10 20 30 40 50 60

Bio-based Content [%]

Perf

orm

ance

Inde

x*

ControlsPlatform 1Platform 2

Platform 2(Late development stage)

ABS

PC/ABS

EXL PC“Limited Edition”

Platform 1(non-FR today)

* Performance Index is a function of: processing, dimensional stability, impact resistance, strength, stiffness, weld performance, heat-aging, and aesthetics. Normalized to C1200 HF.

Flame retardant versions in development.

SABIC Innovative Plastics Photos

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Flexible Noryl* Resin for Wire & Cable

SABIC Innovative Plastics Stock Photo

• Halogen Free• Heavy Metal Free: No Pb, Cr, Hg, Cd• Phthalate Free: Phthalates =

Plasticizers Typically used in PVC

• Lower Weight: 20%-40% reduction in Specific Gravity vs. PVC, FR-PE, & XLPE

• Robust FR: Improved FR performance w/ thinner walls

• Good Dielectric Strength: ability to reduce wall thickness while maintaining elec. properties

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First Pass Material Flow Analysis - Eng. Resin

0

1000

2000

3000

4000

5000

6000

7000

8000

1950 1960 1970 1980 1990 2000 2010 2020 2030

Net ProductionTot.Discards

• 2x more material available today than in 1995• 100% recycling rates today ~ 40% recycled content• 100% recycling rates in 2020 ~ 50% recycled content

Estimated

Estim

ated

Actu

al

Useful life delay

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Color Complexity

52,577,769.5 48,711,828.2Total =101,289,597.7

0

20

40

60

80

100%

Common Automotive Grade Common Electronics Grade

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Value Chain Design for Recovery and Reuse

Lifetime

Complexity Possible Recycled Material Flows

Advanced Mixed WasteRecycling Technology

Waste to Energy

Plastics in electronics are complex (many colors, many grades, many treatments, many tiers)

Based on Simply Sustain LLC’s model for effective use of materials.

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Thank you!

robert.mckay@sabic-ip.com

If you think consumer waste and valuable resources are polar opposites.....

Above: SABIC Innovative Plastics’ message at the 2008 IDSA (Industrial Design Society of America) Polar Opposites Conference

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SABIC Innovative Plastics Global Disclaimer

THE MATERIALS, PRODUCTS AND SERVICES OF SABIC INNOVATIVE PLASTICS HOLDING BV, ITS SUBSIDIARIES AND AFFILIATES (“SELLER”), ARE SOLD SUBJECT TO SELLER’S STANDARD CONDITIONS OF SALE, WHICH CAN BE FOUND AT http://www.sabic-ip.com AND ARE AVAILABLE UPON REQUEST. ALTHOUGH ANY INFORMATION OR RECOMMENDATION CONTAINED HEREIN IS GIVEN IN GOOD FAITH, SELLER MAKES NO WARRANTY OR GUARANTEE, EXPRESS OR IMPLIED, (i) THAT THE RESULTS DESCRIBED HEREIN WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (ii) AS TO THE \

PRODUCTS, SERVICES OR RECOMMENDATIONS. EXCEPT AS PROVIDED IN SELLER’S STANDARD CONDITIONS OF SALE, SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS PRODUCTS OR SERVICES DESCRIBED HEREIN. Each user is responsible for making its own determination as to the suitability of Seller’s products, services or recommendations for the user’s particular use through appropriate end-use testing and analysis. Nothing in any document or oral statement shall be deemed to alter or waive any provision of Seller’s Standard Conditions of Sale or this Disclaimer, unless it is specifically agreed to in a writing signed by Seller. No statement by Seller concerning a possible use of any product, service or design is intended, or should be construed, to grant any license under any patent or other intellectual property right of Seller or as a recommendation for the use of such product, service or design in a manner that infringes any patent or other intellectual property right.

SABIC Innovative Plastics is a trademark of Sabic Holding Europe BV

* Trademark of SABIC Innovative Plastics IP BV