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-Our business-Innovation-Sustainability goals-Stakeholder partnerships-Recycling IS critical!
Stephen SikraGlobal Package DevelopmentMemphis, Oct 2011
Procter & Gamble ProfileLeadership BrandsBrands that endure. Innovation for everyday
Global Footprint300 Brands selling in over 180 countries
130 plants in over 40 countries127,000 employees worldwideOverview
Founded in Ohio (USA) in 1837$80 Billion in net sales (FY 2011)
Categories served:Beauty & GroomingFabric & Home CareHealth CareSnacks & Pet CareBaby Care & Family Care
Product Innovation
Product InnovationConsumer Insight
Sustainable Innovation
Products
Product InnovationScience Based Approach
Example of Sustainable Innovation ProductsSIPs, FYs 07-10
These products have a significantly reduced (>10%) environmental footprint vs a previous or alternative version without negatively impacting the overall sustainability profile of the product.
SIPs, FY 10/11
Operational Improvements since 2007
12%reduction
in CO2
57%reduction in solid waste
22%reduction in water
16%reduction in energy
Issues ofSustainability:
Not Barriers… but Business Opportunities
Water
• Shortages in Western US and the developing world
• Water availability is limiting the growth of others.
Solid Waste
• Packaging fees, extended producer responsibility programs, take-back programs
• Lack of infrastructure in the developing world
Climate
• Regulations on carbon are inevitable
Chemicals
• Increasing regulations (REACH, TSCA reform, Safe Cosmetics Act)
Sustainable Consumption
• It is estimated that natural resource consumption now exceeds the global carrying capacity by ~30%.
Powering our plants with 100% renewable energy
Designing products that
delight consumers while maximizing the conservation
of resources
Using 100% renewable materials
or recyclate for all our productsand packaging
Having zero consumer
or manufacturing waste going to
landfills
Long-term vision
2020 Goals
10-Year Goals for Products
Replace Petroleum-Based Materials with Sustainably Sourced Renewable Materials
25%*
Cold Water Washing 70% of total washing machine loads
Packaging Reduction 20% (per consumer use)*
Consumer solid waste Pilot studies in both developed and developing markets to understand how to eliminate landfilled/dumped consumer solid waste
* vs. 2010 baseline
10-Year Goals for Operations
Renewable Energy Powering our Plants
30%
Manufacturing Waste < 0.5% (disposed)
Truck Transportation Reduction 20% (km/unit of volume)*
* vs. 2010 baseline
Powering our plants with 100%
renewable energy
Using 100% renewable or
recycled materials for all products and
packaging
Zero consumer and manufacturing waste going to
landfill
All issues of Sustainability will be solved by innovation
P&G Development Needs…..specific to plastics recycling
•A future which fosters innovation
•A recycling infrastructure beyond PET and HDPE
•Expansion of the recycling infrastructure to account for materials beyond 1 & 2 bottles
•A methodology for understanding industry needs (what must be true to expand beyond 1s & 2s?)
•Brands will continue to use PET and HDPE but have a need for expanded use of 3-6 materials and beyond
What is P&G doing specifically withplastics recycling in NA?
Using recyclate, of course, and…
Working with industry stakeholders; partnering to deliver advances in the recycling infrastructure
•The APR Rigid Plastics Recycling Program is answering the call to innovation.
APR Rigid Plastics Recycling Program
Liz Bedard, Director
Stephen Sikra, Chairman ‘09, ‘10, ‘11
APR Rigid Plastics Recycling Program
The is a membership committee and represents rigid
plastic stakeholders –
• generators, collectors
• recyclers, reclaimers
• brand names companies
• resin producers
• public policy makers
At the table, committed to expanding rigid plastic recycling beyond #1 & #2 bottles.
APR Rigid Plastics Recycling Program
• American Chemistry Council
• Avangard
• Berry Plastics
• Blue Ridge Plastics
• BWAY
• Clean Tech Inc.
• ConAgra Foods
• Custom Polymers Inc
• Dow Chemical Company
• Entropex
• Envision Plastics
• Estee Lauder Companies, Inc.
• Graham Recycling Company
• Harris Materials
• Haycore Canada Inc.
• IntegriCo Composites
• Kimberly‐Clark
• Kraft Foods
• KW Plastics Recycling
• LyondellBasell Industries
• Merlin Plastics Supply Inc.
• Milliken & Company
• Moore Recycling
• NAPCOR
• NatureWorks LLC
• North Carolina Div. of Pollution Prevention
• Procter & Gamble Company
• Pure Tech Plastics
• ReCommunity
• Recyc RPM
• Rehrig Logistics
• Ropak Manufacturing Company
• Solo Cup
• Starbucks Coffee Company
• Talco Plastics, Inc.
• Waste Management – Recycle America
APR Rigid Plastics Recycling Program
Funded by APR Rigids Plastics Recycling Program members.
An overview of where non‐bottle rigid plastics recycling currently stands and what potential there is to
expand it into the future.
APR Rigid Plastics Recycling Program
Bales from US and Canadian locations were sorted into 82 categories and various sources of data was
reviewed to determine ‐
The types, volumes & destination of rigid plastics currently being recycling.
The type & tonnage of rigid plastics available for recycling.
APR Rigid Plastics Recycling Program
Executive Summary of the Report has been completed and will be publically available within the next few
weeks.
APR Rigid Plastics Recycling Program
Estimated annual volume & resin type of recyclable rigid plastics generated in medium to large grocery stores
Identified obstacles preventing future rigid plastics recycling
Gathered data from five grocery store chains, representing 1,214 stores from throughout US.
APR Rigid Plastics Recycling Program
Project Results
Two Predominant Resin Types
#5 Polypropylene (ranging from 45% to 70%)
#2 HDPE (30% to 55%)
Rigid Plastics Generation Rate
Total – 354 million pounds/year
Easily recoverable – 212 million pounds/year
Bulky ‐ 142 million pounds/year
APR Rigid Plastics Recycling Program
Next Steps?
1. Pilot successful grocery store rigid plastics recycling programs….underway now.
2. Based on pilots – develop “How To” guidelines for implementing grocery store rigids plastic recycling.
3. Partner with others to increase rigid plastics recycling in grocery stores nationally.
How interested is P&G in recycled materials?
VERY INTERESTED…now and for years to come!
Please see:www.pg.com/sustainability for our full report
Stephen W. SikraGlobal Package Development
The Procter & Gamble Company