1 I Institute of Corporate Responsibility and Sustainability

Plastics BriefingStrategic responses and potential solutions

NICK BROWN

Head of Sustainability at

Coca-Cola European

Partners

CAROLINE FRÉRY

Head of Business

Development - Europe

at Terracycle

WILL PICKETT

ICRS Secretariat and

Junior Partner at

Carnstone

@WeAreICRS #ICRSWebinar

HOW CAN PLASTICS BE SUSTAINABLE?

NICK BROWN, COCA-COLA EUROPEAN PARTNERS

More choice.More information.Less sugar.

Our packaging.Our resource.

Protect.Reduce.Replenish.

Halve emissions.Renewable electricity.

We are taking action onsustainability by using ourbusiness and our brandsto build a better future.

For people.For the planet.

A force for good.For everyone.

Sourcing sustainably.Sourcing responsibly.

What’s the issue with Plastic and why the public interest now?

What’s really happening?

Global & Local Material Leakage?

How should businesses respond?

A strong track record of leadership in Sustainable Packaging

36g 26g 24g 19.9g

2016

>50% >50% 25%

https://www.youtube.com/watch?v=uyolVMKlfrQ&feature=youtu.be

https://www.youtube.com/watch?v=aEVVJxqWaZ8

https://www.youtube.com/watch?v=EIgthryckME

Our sustainable packaging strategy

HOW CAN PLASTICS BE SUSTAINABLE?

“If you can’t look after it –it’ll be taken away!”

ELIMINATING THEIDEA OF WASTE

Make everything recyclable

Make everything from waste

Eliminate the concept of waste

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TERRACYCLE IS A GLOBAL LEADERActive in 21 Countries

• Brazil • Canada • Mexico • US • Austria • Belgium • Denmark • France • Germany • Ireland • Netherlands

• Norway • Spain • Sweden • Switzerland • UK • China• Japan

• South Korea • Australia • New Zealand

• India • Taiwan

TerraCycle Locations

In Process of Opening

Regionally, TerraCycle is partly owned by several large waste management companies to leverage their expertise and credibility across the globe.

Beverage

…and many more

TerraCycle has five major business units focusing on partnering with consumer product

companies (CPG), retailers, facilities, municipalities and small business / individuals.

SAMPLING OF PARTNERS

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RECYCLING THE NONRECYCLABLEMost products and packaging are considered non-recyclable only because of economics. Examples below:

NON-RECYCLABLE

SOMEWHAT RECYCLABLE

VALUE RECYCLABLEPROCESSINGLOGISTICS

WHEN: WHEN:

PROCESSINGLOGISTICS VALUENON-

RECYCLABLE

Aluminum

Polypropylene

Flexible Plastic Packaging

Coffee Capsules

Uncoated Paper

PET

HDPE

Beauty Products

RECYCLABLE

Cigarette ButtsGlass

Complex Closures

NOT RECYCLABLE

MAKE EVERYTHING RECYCLABLEToday we live in a linear world where most products are

made, used once and then discarded.

Extraction &Manufacturing

Landfill or Incineration

MAKE EVERYTHING RECYCLABLETerraCycle’s first goal is to recycle products and packaging that do not currently have a solution to give materials a second life.

Extraction &Manufacturing

Recycle

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THE TERRACYCLE PROCESS

LOGISTICS SOLUTION VALUETerraCycle creates custom collection logistics for each

recycling program. Programs are designed to best suit the client

and their waste stream.

TerraCycle works with each client to drive significant ROI and

scalability through their recycling program.

TerraCycle develops the science and technology to recycle the previously

non-recyclable waste into a new raw material.

IMAGE

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Frito Lay manufacturing sites ship TerraCycle

excess film waste through freight

logistics.

Target guests can trade in old car seats at retail locations.

Target aggregates the seats at distribution centers, and

TerraCycle picks them up by freight for recycling.

Employees collect cigarette butts placed

into city-wide receptacles.

Kiehl’s shoppers visit stores to drop off used

personal care packaging.

Bloomberg uses permanent bins to

collect & recycle snack packaging in their offices.

Customers use turnkey Zero Waste Boxes to smoothly collect and

recycle empty adhesive packaging.

TerraCycle operates in a private recycling supply chain that works with partners to create a supply chain that makes sense for their products.

SAMPLING OF TERRACYCLE’S LOGISTICS MODELS

Consumers recycle contact lenses at

optometrists offices using collection boxes.

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Location LeadersThe leader of a location coordinates and

promotes the program in their community

Collection LocationsLocations can be at a school, office,

community center, or someone’s home

Community of CollectorsLocation leaders encourage people in their community

to collect and recycle your brand’s waste

DIRECT CONSUMER ENGAGEMENTTerraCycle’s recycling program allows your consumers to engage with your brand through an authentic sustainability platform.

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HOW TERRACYCLE PROCESSES WASTE

1Check In

2Aggregate

3Processing

4New Products

This new format is used as a raw material to create a new finished product.

TerraCycle works with strategic partners to process individual waste streams (by material composition) into a new format.

Once a package from your program is checked in, the contents of the package are aggregated with similar materials in preparation for processing.

TerraCycle receives packages of your brand’s waste at its local warehouses and checks them in.

TerraCycle will not landfill or incinerate any of the waste we receive.

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Sustainability

Marketing & Communication

Sales

R IRETURN ON

INVESTMENTDrives sustainability, marketing, communication and sales ROI.

96% of consumers more likely to purchase Febreze products after being involved the Air Care Recycling Program

40% Re-purchase Rate Experienced By Kenco after an on-pack TerraCycle promotion

100+% Sales Increase for a home care brand during a TerraCycle promotional window

Brand Perception Is 78% “More Positive” in survey about a nutrition brand due to their TerraCycle program

43,000+ Target Coupons Redeemedthrough Target Car Seat Trade-in Program through 2-week promotion

20-40-60 Yearly Sales Increaseexperienced by a Northeast grocery chain following a TerraCycle promotion

97.3% Waste Diversion Rateexperienced by GreenBiz using Zero Waste Boxes at their event

Colgate Awarded The Supplier Leadership Awardfor sustainability as a result of their partnership with TerraCycle

Garnier Was Featured In A Leading Industry Publication due to their Personal Care and Beauty Recycling Program

87% Litter Reduction of Cigarette Buttsexperienced by Sydney, AU where collection receptacles were installed

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CASE STUDY | COLGATE PLAYGROUNDS

Consumers see promotional display at retail.

Consumers are directed to promotional website (managed by TerraCycle) vote for their school to win the recycled prize

Communities can vote by recycling (previously non-recyclable) waste through the Oral and Care Recycling Program

TerraCycle updates the website with a leaderboard of vote totals.

TerraCycle installs the playground at the winning school .

Colgate has driven incremental displays by executing consumer promotions with multiple key accounts (ShopRite, Meijer, Albertsons etc.) that allows consumers to win a recycled playground (made from oral care waste) for a school in their community.

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2

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MAKE EVERYTHING FROM WASTETerraCycle second step is to integrate unique recycled

materials back into your products.

Extraction &Manufacturing

Recycle

2424

CATEGORIES OF STORIED PLASTICS Storied plastics create a strong & unique narrative for products driving significant marketing, communications and sustainability ROI.

CLOSED LOOP1.

Integrating recycled materials of a given product back into the making of that

same product.

COMPELLING INTEGRATION

Telling a story by using one waste stream to

create a relevant (but distinct) product.

2. PURPOSEFUL

Using highly noticeable and problematic waste streams to speak to an emotional

consumer connection.

3.

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CASE STUDY: P&G LEVERAGES BEACH PLASTIC

Redesign

ELIMINATE THE IDEA OF WASTETerraCycle's third step is to redesign products to enter into a

reuse platform, completely eliminating the idea of waste.

Reuse Loop

By TerraCycle

Launching in NYC & Paris area

after global announcement at the

World Economic Forum. Jan ‘19

Giving consumers a more convenient, premium product experience, all

while eliminating the idea of waste.

Customers detail their subscription by selecting

which & how many products they want in each cycle.

Loop pick packs & ships product in durable and reusable shipping tote.

Customer receives products in Loop tote and enjoys.

Loop manages/handles customer service inquiries.

Customers put empty containers back

in Loop tote.

Loop’s shipping partner picks up the Loop tote.

As soon as customers send back their empty product, Loop will automatically

fulfill with new product.

Loop professionally cleans the reusable bottles and sends to Partners for refilling.

Customers sign up for Loop via major retailers.

Partners redesign packaging to be durable, refillable and

with more features.

Move package from being a COGS to an asset.

1)

2)

3)

4)

5)

Design TBD

NO

WASTE

= Customer Experience

= Loop/Partner Operations

CONTACT US

CAROLINE FRERY Head of Business DevelopmentTerraCycle Europe

+33(0)9 75 18 09 85, Ext.1025

caroline.frery@terracycle.com

29 I Institute of Corporate Responsibility and Sustainability

Questions?Plastics: Strategic responses and potential solutions

NICK BROWN

Head of Sustainability at

Coca-Cola European

Partners

CAROLINE FRÉRY

Head of Business

Development - Europe

at Terracycle

WILL PICKETT

ICRS Secretariat and

Junior Partner at

Carnstone

@WeAreICRS #ICRSWebinar

30 I Institute of Corporate Responsibility and Sustainability