Flexible Plastic Packaging Sustainability: Will the

Industry be Ready for2025?

Pierre Sarazin AIMCAL R2R Conference &SPE FlexPackCon

Myrtle Beach, SC – October 6-9,2019

A Closer Look at Plastic Sustainability

• In nature, there is no concept of waste• We should try to not only protect, but actively improve the environment

• Design is at the root to prevent waste and pollution• Around 80% of environmental impacts are the consequences of decisions made at the design stage• Eliminate unnecessary plastics

• Be able to close the loop on packaging materials so they don’t end up in landfill• Recycling, composting

https://www.ellenmacarthurfoundation.org/circular-economy/what-is-the-circular-economy

Cradle-to-gate

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Cradle-to-grave

Cradle-to-cradle** or closed loopproduction

• Life cycle assessment is the key• Difficult to determine what is the best for the environment without the full

picture• Unfortunately, the general public only deems the plastic sustainability to

the visible waste generated

What is Awaiting the Packaging Industry?

2026 2028 20292022 2023 2024 20252020 2021 2027 2030

Ocean Plastics Charter(06/2018)

21 governments, 60 businesses &

organizations so far• 100% reusable, recyclable, or, where viable

alternatives do not exist, recoverable plastics• Recycled content by at least 50% in plastic

products where applicable• Recycling and reuse of at least 55% of

plastic packaging• The recovery of 100% of all plastics by 2040

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20AA

http://www.wrap.org.uk/content/what-uk-plastics-pact Pacte National sur les emballages plastiques, Ministère de la TransitionÉcologique et Solidaire, République Française, Février 2019 A European strategy for plastics in a circular economy, European Commission, 2017 https://www.canada.ca/content/dam/eccc/documents/pdf/pollution-waste/ocean-plastics/Ocean%20Plastics%20Charter_EN.pdf

1 European Strategy for Plastics in a

Circular Economy(Started in 12/2015, Adopted 01/2018)

• All plastics packaging placed on the EU market is either reusable or can be recycled in a cost-effective manner

• More than 50% of plastics waste generated in Europe is recycled

• Sorting & recycling capacity x4 compared to 2015

Ellen MacArthur Foundation’s NPE

UK (04/2018),

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FR (02/2019), Chile (04/2019)

1. Eliminate problematic plastic packaging

2. 100% of plastic packaging isreusable, recyclable, or compostable

3. 60% recycled in 2022 (F), 70%effectively recycled or composted in 2025 (UK)

4. Increase recycled content in plastic packaging (30% average)

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What is Awaiting the Packaging Industry?

2026 2028 20292022 2023 2024 20252020 2021 2027 2030

20AA

New Plastic Economy, Global Commitment, June 2019 Report: https://www.newplasticseconomy.org/about/publications/global-commitment-spring-report

(10/2018)1. Priority: elimination of problematic or unnecessary plastic2 . Reuse models are applied where relevant3. All p last ic packaging i s 100% reusable , recyclable, or

c omp os t a b l e4. All p last ic packaging i s r eused, recycled, or c omp os t ed

in pract ice5. The use of plastics is fully decoupled from the consumption

of finite resources6. All plastic packaging is free of hazardous chemicals, and the

health, safety, and rights of all people involved are respected

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NPEC• Today’s focus:

Global Commitment: Overview of Bus iness Signatories

• Business signatories account for more than 20% of global plastic packaging volumes• The tracking of the advancements is to be reviewed every 18 to 24 months

New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 2019

CPG compagnies: 6 of the top10global fast moving consumergoods (FMCG) companies

Plastic packaging producers:7 of the top 10global producers

Recyclers and other afteruse

Retail & hospitality: 5 of the top 15global retailers

Durable goods producers Suppliers to plastic packaging industry

Raw material producers: almost exclusively in compostable plastics

Investors

CPG compagnies: 6 of the top 10 global fast moving consumergoods (FMCG) companies

Retail & hospitality: 5 of the top 15 global retailers

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Concrete Actions Taken by CPG Companies & Retailers

• Several companies have no real claimed concrete actions so far…• In the report, their commitments are split in 5 categories:

Take action to eliminate Take action to move from 100% of plastic packaging Set an ambitious 2025* Commit to collaborateproblematic or single-use towards reuse to be reusable, recyclable, post-consumer recycled towards increasing reuseunnecessary plastic models where relevant by or compostable by2025* content target acrossall /recycling/compostingpackaging by 2025* 2025* plastic packaging used rates for plastics

• Focus on the companies below for categories #1, #3,#4:• CPG companies above $ 10bn annual revenues• Retail & Hospitality companies above $ 1bn annual revenues

1 432 5

New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 2019 *2025 refers to December 31, 20256

Eliminate Problematic Plastic Packaging

Resin & Structure changes Other actions

CPGcompanies

• Phase out PVCquickly• PS, EPS, PVdC, coloured PET also

targeted• Eliminate oxo-degradable• Alternative to incompatible

multilayers• Alternative to black plastics or

detectable black

• Eliminate plastic bags• Alternative to plastic straws• Food compaction• Eco-design• Optimize packaging in e-commerce• Decrease packaging weight

Retail & Hospitality companies

• Phase out PVC, PVdC,EPS• Prohibit the useof oxo-degradable• Convert shrink wrap to LDPE• Reduce / eliminate fossil-based

plastics• Convert plastic to paper &

cardboard (bag closure, blister)

• Reduce single-use plastic bags; Replace by reusable / paper / biodegradable shopping bags

• Charge for plastic bags• Phase out plastic in straws & disposable items, plastic cutlery,

cotton swabs• Identify / reduce unnecessary packaging for fruits & vegetables• Remove non-recyclable for organic fruits/vegetables• Reduce packaging use for fresh products (ex: cheese plastic trays)• Reduce the thickness• Alternative solutions for food trays and structural packaging• Re-design

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New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 20197

100% of Plastic Packaging to be Reusable , Recyclable, or Compostable

Resin & Structure changes Other actions

CPGcompanies

• Phase out or be able to convertopaque PET

• Develop a recycling stream for PS• Recycle PP and use rPP• (Compostable)• Eliminate multilayers

• Recyclable paper bags• Eliminate caps, labels• Eco-design• Make plastics out of pyrolysis feedstock & chemical recycling

Retail & Hospitality companies

• Transition from PS, PVC,black plastic to recyclablematerials

• PP bakery bags to home-compostable cellulose bags

• Printing with vegetable-based ink (carboardpackaging)• Replace plastic trays by PET or cardboard trays• Use monomaterials where possible• Plastic collection• Home compostable• 50% rPET content for all baking trays• Recyclable shopping bags with 80% recycledcontent

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New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 20198

Set an Ambitious 2025 PCR Content Target

Resin & Structure changes Other actions

CPGcompanies

• rPET• rPE• PCR Food grades

• 20% to 100% PCR• Target secondary and tertiary packaging• Use pyrolysis, chemical recycling

Retail & Hospitality companies

• Replace PLA with rPET! • 20 to 50% recycled content in the packaging on average• PET: 25 to 85% rPET• Reusable plastic bags made from plastic collected in the stores• Renewable based plastics• Meat trays with 50%recycled• Trash bag with 100%recycled

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New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 20199

Initiative: Example of Walmart

APR-Plastics design for recyclability webinar series – Part 1: an overview of plastic packaging, July 11, 2019

• Packaging is one pillar of the Project GigatonTM, for which Walmart clearly describes its sustainability priorities

• “For private brands, encouraged for national brands”

• Education: from July to end of October 2019, a series of 6 webinars hosted byWalmart and presented by theAPR

Signatory of the

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walmartsustainabilityhub.com

Walmart’s Sustainable Packaging Playbook

• Are described the best practices for suppliers to help identify ways toimprove packaging recyclability:

• Package designed with PET, HDPE, LDPE, LLDPE, P P• Preferably natural, lighter or transparent color• No degradable additives added• Label, closure, attachments of the same resin a s the package• PCR content (typically at least 20%)

□ Recyclable at retail drop-off□ LDPE, MDPE, LLDPE, HDPE□ Unpigmented is best or white or light

colors□ No degradable or biodegradable

additives□ Ensure density of blend is less than 1□ Labels in PE or directly printed□ Currently no minimum PCR content

□ Recyclability challenges• Food-contact packages : design for easy cleaning• Multi-material packages (not all PE): use recycling

compatible options• Materials: any non-PE resins mixed in, dark colors,

PVC, PVdC, metalized layers, fillers altering the filmdensity (>1), starch resins, degradable additives

• Attachments, c losures: challenges with metal, foils, PET, PLA, PP, PS, PVC

• Labels: the same + metalized printing, paper

PE ba gs and Films

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Ships everywhere in North America

QUEBEC, CAN

• 100 000 sq ft facility

• 14 extrusion lines

PolyExpert Inc.

https://www.polyexpert.com/enSatellite Warehouses

What About PolyExpert?

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Consumer

Retailer

Food Service

Health Care

Provider

Co-packer

Consumer Packaged

Goods CompanyConverter

MaterialSupplier

Equipment Supplier

PolyExpert in the Packaging Value Chain

From B.A. Morris, The science and technology of flexible packaging, Multilayer films from resin and process to end use, 2017, Elsevier

Printing, lamination, sealing…

Manufacturer of blown films

End of life options:

Recycler

Composting

Converter

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Product Sustainability at PolyExpert

• Select R&D projects by focusing on sustainability

• Ecoresponsible Certification: Level 2 «Performance» in progress

Plasticpackaging vs. Substitutes

Plastic recycling innovations

Flex. Food Pack. Circular Economy

Biodegradables & Oxo-degradables

Recycled & Compostable

resins

Downgauging(HDSS, MWPB)

Transition to PE for

recyclability

Transition to Flexible

(sealant webs) Sustainability Barrier

Structures

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• Educational presentations for our team & our customers

Product Sustainability at PolyExpert: Resin Sources

• Post Industrial (PI)• From film retains or unused bags□ PolyExpert uses PI resins in several film products ranging from 25 to 70%□ Secured PI supply

• PCR• From bags and packaging products retrieved from various recycling

processes after consumer usage□ PolyExpert is making films with 25 to 95%□ Secured PCR supply• Upcoming FDA PCR trial

• Compostable plastics□ The design is applied to the product or packaging a s a whole□ The facilities to compost the films are existing (specific applications)□ The product would not be recycled anyway e.g. due to contamination

• PolyExpert already produces films with these resins (several millions lb/year)

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What We Tell our Customers

• Not a unique solution!• The complete value chain of the packaging should be examined• The complete packaging must be examined• It will imply a change: process, aspect, cost…• Should be addressed:

• What is the end of life of the product?• If it was recyclable, could it be recycled?• If it was compostable, could it be composted?• What are the properties that could be changed?• Converting the film: do you have room for process modification?

• What would be the perception of the end-users?

“Why do you want to

improve the packaging

sustainability?”

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Will the Industry be Ready for 2025?

• Hard to say after just one year of the Global Commitment and six years ahead of us• We need more concrete implementation• Is more persuasion needed?

• UK: Tax on plastic packaging containing less than 30% recycled content, starting April 2022• Portugal: no tax for plastics over 2 mils incorporating at least 70% recycled

What will it take:

Raw Materials

Residual Waste

Let’s discuss tomorrow morning!

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• SPE/FlexPackCon

• October 8th, 8:30 AM

“Flexible Food Packaging in the Context of Circular Economy”

Will the Industry be Ready for 2025?

What is your opinion?

Raw Materials

Residual Waste

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Thank you!Pierre SarazinR&D Manager & Technical Services psarazin@polyexpert.com1 877 384-5060

www.polyexpert.com

Thanks to Nathalie Laganière, Florence Perrin andEmma Sarazin for their assistance in reviewing this presentation

Websites

• CEFLEX (Circular Economy for FLEXible packaging) https://ceflex.eu/who-we-are/• APR (Association of Plastic Recyclers) https://plasticsrecycling.org/• Sustainable Packaging Coalition (SPC)https://sustainablepackaging.org/• The Recycling Partnership (US) https://recyclingpartnership.org/• TerraCycle’s & Loop https://www.terracycle.com/en-US &https://loopstore.com/• How2Recycle label https://www.how2recycle.info/• On-Pack Recycling Label https://www.oprl.org.uk/• Materials Recovery for the Future https://www.materialsrecoveryforthefuture.com/• Flexible Packaging Europe https://www.flexpack-europe.org/en/fpe/home.html

Re ferences

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2. Move from single-use towards reuse models

New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 2019

Resin & Structure changes Other actions

CPGcompanies

• … • Reusable/refillable packaging• Concentrate the packaged products• TerraCycle’s Loop trials

Retail & Hospitality companies

• … • Reusable bags• Choice of reusable packaging for fresh products (bread, meat,

seafood, deli)• TerraCycle’s Loop for e-commerce

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5. Commit to collaborate towards increasing reuse/recycling/composting ra tes for plastics

Collaborations

• Drop-boxes & improve access to collection• Consumer education• Take part to Bio-PETdevelopment

CPGcompanies

Retail & Hospitality companies

New Plastics Economy Global commitment – June 2019 Report, 235 pages, June 17, 2019

• Curbside recycling for flexible packaging:

• The European Forum for the Flexible Packaging Industry:

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