Rethinking Plastics
A Circular Economy Blueprint
Steve Davies
Director – Public Affairs
NatureWorks

NatureWorks - Some Quick Context
Play

Ellen MacArthur Foundation – “The New Plastics Economy”
A Circular Economy Blueprint for Packaging Plastics
THE NEW PLASTICS ECONOMY
Rethinking the Future of Plastics
The Foundation aims:
• “to bring together for the first time
a comprehensive global
perspective of the broader plastic
packaging economy,
• “to present a vision and propose
a roadmap as well as a vehicle
for progressing this roadmap
• “to provide a much needed global
focal point to carry this agenda
forward…
“looking for systemic change to
overcome stalemates in today’s
plastics economy in order to move
to a more circular model…”

Plastics Production Increased Twenty-Fold Over
The Last 50 Years

• Production expected to double again
in 20 years, and quadruple by 2050
• Plastic Packaging is single largest
application (26% of total today)
Plastics Production Increased Twenty-Fold Over
The Last 50 Years

“Plastic Packaging is an iconic linear application…”
“95% of plastic packaging material value
(US$ 80-120 bn) is lost annually after a
short first use …

Ambitions of the New Plastics Economy Capturing the
opportunity

Sourcing
Manufacture
Use
After Use
Definition of Sustainable
Packaging

How the Plastics Industry is rethinking itself from a
Circular Economy Perspective
0
20
40
60
80
100
plastic characteristics - functionality and performance
After
Use
Sourcing
Use
Manuf-
acture
How
plastic
is recovered
How the
plastic
is made
What the plastic is made from…
Ideal Material
Current, Incumbent Plastics
Future…
Where do
Bioplastics
Fit ?

Let’s talk about bioplastics
sourcing & manufacture…
After
Use
Sourcing
Use
Manuf-
acture
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60
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100

Let’s talk about bioplastics
sourcing & manufacture…
After
Use
Sourcing
Use
Manuf-
acture
0
20
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60
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100
“With an expected surge
in consumption,
negative externalities
related to plastics will
multiply“
World Economic Forum, Ellen MacArthur Foundation and McKinsey
& Company,
The New Plastics Economy – Rethinking the future of plastics
(2016, http://www.ellenmacarthurfoundation.org/publications).

An Example: Negative Externality Resulting from Manufacture
2.3
2.2
1.8
1.6
0 0.5 1 1.5 2 2.5
Polystyrene
PET
HDPE
Polypropylene
kg CO2 (eq) generated /kg material produced
Source: PlasticsEurope www.lca.plasticseurope.org

An Example: Negative Externality Resulting from Manufacture
2.3
2.2
1.8
1.6
0 0.5 1 1.5 2 2.5
Polystyrene
PET
HDPE
Polypropylene
kg CO2 (eq) generated /kg material produced
Source: PlasticsEurope www.lca.plasticseurope.org
“If the current strong growth of plastics
usage continues as expected, the emission
of greenhouse gases by the global plastics
sector will account for 15% of the global
annual carbon budget by 2050, up from 1%
today“
World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company,
The New Plastics Economy – Rethinking the future of plastics
(2016, http://www.ellenmacarthurfoundation.org/publications).

Implications of Renewably Sourced - Carbon Footprint Comparison
2.3
2.2
1.8
1.6
0.6
0 0.5 1 1.5 2 2.5
Polystyrene
PET
HDPE
Polypropylene
Ingeo
kg CO2 (eq) generated /kg material produced
EU Producers - PlasticsEuropem www.lca.plasticseurope.org
Peer Reveiwed Benchmarking

And Carbon Credentials Matter
• (November, 2015): “Unilever to become ‘carbon
positive’ by 2030”
• (Paris, November 9, 2015): “Danone commits to
ambitious new climate policy Target: zero net carbon
emissions within its direct and shared scope of
responsibility”
• (November, 2015): “Nestlé acclaimed as ‘world leader’
for action to tackle climate change
• (June, 2015): “Ikea to spend €1bn to tackle climate
change”

An Example – Bio PET in Packaging
After
Use
Sourcing
Use
Manuf-
acture
20% biobased
carbon today

both “revolutionary” and
“evolutionary” change is needed

“moon shot” examples
in the bioplastics space..

Bioplastics Directly from GHG
(methane)
“Mango Materials
produces a naturally
occurring biopolymer
from waste biogas
(methane) …
“the AirCarbon
production process
begins with
concentrated
methane-based
carbon emissions …”
R&D Program:
US Federal & State
level funding for one
step fermentation of
methane to lactic
acid, the Ingeo
building block …
Ingeo
“PHA polymers
(close functionally to polyolefin materials)

20© 2014 NatureWorks
What does “direct GHG conversion” mean ? …
Lactic
acid
methanotrophic
bacteria
cyanobacteria
NatureWorks Actively Investing in
Joint Collaboration & Development
NatureWorks' Continued
Assessment and Evaluation

The NatureWorks feedstock project is but one example of a rapidly
gathering critical mass of interest in the industry
in direct GHG conversion
Industry Wide Engagement & Interest
in “Next Generation Feedstocks”
6 - 7 December 2016, Maternushaus, Cologne, Germany

Let’s talk about bioplastics functional
material characteristics in use…
Sourcing
0
20
40
60
80
100
After
Use
Use
Manufacture

New Material Innovations Fuel Wholly
New Markets, Applications, and
Business Models …

“Bio-benign” materials choices for
manufacture
THE NEW PLASTICS
ECONOMY
Rethinking the Future of Plastics
Greenpeace’s
“Pyramid of Plastics”(1)
http://www.greenpeace.org/usa/wp-
content/uploads/legacy/Global/usa/planet3/PDFs/this-vinyl-house.pdf, p. 27
1.PVC
2. PU, PS, ABS, PC
3. PET
4. PE, PP
5. Biobased polymers

“Benign by Design” – rethinking toys

Sustainable Packaging Opportunity?
http://www.killthekcup.org/

The Challenge…
In 2016…
35.4bn
PLASTIC
CAPSULES
0 10,000 20,000 30,000 40,000 50,000 60,000
2012
2016
2020
Plastic Capsule Market Growth
Volume (Million Units) Value ($ Million)
‘16/’20 CAGR 8%
‘16/‘20 CAGR 10%
- AMI Consulting, Single Serve Beverage Capsules - Market Overview, 2016
Growth of Single-Serve Plastic Capsules

The Opportunity - Functional Compostable
Capsules
579 million kgs of
coffee
was consumed via capsules in
2016 by the 3 largest consuming
regions (USA, EU, AUS) in 2016.
Fills the Empire State
Building 2.6x1.
90% of brewed pod is coffee
valuable organics mostly lost
to landfill
1. Estimated based
on 13g coffee in
volume of average
K-Cup
Diverting Organic Waste from Landfill

We’ve designed functional Ingeo materials to perform in
multitude of capsule designs & components
CAPSULES
**For high & low pressure systems
Compression molding
Thermoforming
Injection Molding
FILM LIDDING
FIBER FILTERS
Nonwovens with custom
basis weight
FIBER LIDDING

Functionality in the market …
Nespresso System Compatible
Lavazza

Functionality in the market…
Lavazza Compatible Keurig Compatible
More…

Let’s talk about bioplastics after-use
Sourcing
80
100
After
Use
Use
Manufacture
Getting
Circular

A NatureWorks Example
Ingeo
Recovery
Options
Mechanical
Recycle  
Feedstock
Recovery 
Compost

Anaerobic
Digestion 
Energy
Recovery  
Landfill X X
Incumbent
Plastics Ingeo

Organics Diversion from Landfill
• US – “the 28% Opportunity”
• Where Composting infrastructure
exists, Compostable plastics like
Ingeo provide a tool for organics
diversion from landfill
Food
Scraps
14.6%
Other
3.3%
Paper
27.0%
Glass
4.5%
Metals
9.1%
Plastics
12.8%
Rubber, leather
& textiles
7.6%
Wood
6.2%
Yard
trimmings
13.5%
US Example: Total US MSW
Generation (by material), 2013
Source: Advancing Sustainable Materials Management:
Facts & Figures 2013, USEPA, June, 2015

Cultural Influence of Sports
“While 13% of Americans
say they follow science, 61%
say they are sports fans”
Source: National Resources Defense Council

nearly
300
313
Total Members
145
Teams
156
Venues
12
Leagues

GROWING PORTFOLIO OF SUCCESSFUL
CASE STUDIES IN ZERO WASTE

Recycling, Or, “How to avoid being part of the 86%)
• Most plastics (and bioplastics) can be recycled, yet very few are
• PLA Example:
– Long routinely recycled at post industrial level
– Initial collection programs beginning at consumer level
Collecting Converting End-Markets
• PLA bale
specification &
pricing set
• Flake specifications &
process development
underway
• r-PLA product
development
underway

Rethinking Plastics
After
Use
Sourcing
Use
Manuf-
acture

Rethinking Plastics
A Circular Economy Blueprint
Steve Davies
NatureWorks
Thank You

The
Circular Economy
in the
Asia Pacific Region