How to close material loops and drive value from innovative partnerships

1. Len Sauers Procter & Gamble
@ ProcterGamble
How to Close Material Loops and Drive Value
from Innovative Partnerships

2. How to Close Material
Loops and Drive Value
from Innovative
Partnerships
Len Sauers, PhD
Vice President,
Global Sustainability

3. Employees 118,000
Countries Where Our Brands Are Sold 180
Annual Sales $83 billion
Consumers Served ~ 5 billion

4. 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 products
and packaging
Having zero
consumer and
manufacturing
waste go to landfills
Long-term Sustainability Vision
• Enable success in a resource constrained world.
• Drive down our environmental footprint.
• Enable consumers to be more sustainable.

5. 2020 Sustainability Goals
Conservation of
Resources
• Reduce energy consumption, water use and CO2 emissions by 20%.
• Reduce truck transportation by 20%.
• Drive to 70% of total washing machine loads done in cold water.
• Reduce packaging by 20%.
• Double use of recycled resin.
• Ensure 90% of our packaging is recyclable or recycling programs are
developed.
• Provide 1 billion people access to water efficient products.
Renewable
Resources
• Create technologies to substitute our top petroleum-derived raw materials
with renewable materials.
• Increase renewable energy use to 30%.
• Drive to sustainable sourcing of all renewable materials, including pulp
and palm oil.
Worth From
Waste
• Conduct pilot studies in the developed and developing world to understand
how to eliminate landfilled/dumped consumer waste.
• Reduce manufacturing waste to landfill to 0.5% of input materials

6. Closing the Loop in Solid Waste
Solid Waste Management in
the Developed World -
The Closed Loop Fund
Solid Waste Management in
the Developing World -
Waste to Worth
Zero Manufacturing Waste -
P&G Global Asset Recovery
Program

7. The Closed Loop Fund is building a more resilient packaging supply
chain by improving the market and scaling infrastructure for
recycling.
It accomplishes this by providing 0% and low interest loans to cities
and companies to build recycling infrastructure.

8. CLOSED LOOP FUND | PAGE 8
FINANCIAL PARTNERS
(CPG companies and Retailers)
LOANS TO MUNICIPALITIES
SAMPLE LOAN #3
Emerging
technologists
SAMPLE LOAN #2
Processing facility
SAMPLE LOAN #1
Carts for recycling
SAMPLE LOAN #4
Remanufacturing
facility
FUND STRUCTURE
• 0% loans to municipalities for
investments in recycling and waste reduction
infrastructure and programs.
• Below market interest loans to private
companies that build infrastructure for
recycling and waste reduction.
• Loans are repaid via landfill diversion
savings and or commodity revenue from the
increase in recycling.
• Fund expects to co-invest with local
state agencies, economic development
corporations (EDC’s), local banks,
foundations and other relevant institutions,
thereby expanding the amount of capital
invested.
REPAYMENT STRUCTURE
• Investment period is 5 years.
• Loans are on an average of 7 years.
• Goal is to return all principle and interest to
Investors by year 10.
Landfill cost savings and commodity
revenue
Capital returned
and unlock funding
for similar
projects across
the country
Loans to
municipalities
and companies
servicing
municipalities

9. Solid Waste Management in the Developing World
The Issue – Developing geographies
lack the infrastructure to handle
disposed waste and the resources to
create it.
One Solution – Create a business
model whereby one could profitably
process waste in these geographies
and pilot the model in representative
cities.

10. An integrated facility that manages receiving, conversion and the creation of profit
from the handling of an estimated 200 tons per day of municipal solid waste.
Waste to Worth Business Model

11. Current Status
• Memorandums of Understanding have been signed
with two cities in the Philippines - Angeles City and
Cabuyao – that will pilot the model.
• Waste characterization studies have been completed.
Appropriate technologies chosen.
• Final feasibility studies are being conducted in
association with the Asia Development Bank to
include site/traffic assessment, social/impact/financial
analysis and technology integration.
• SURE and JUM Global have formed a joint venture company and will
be responsible for owning/operating the facilities. Equity/debt funding
model being finalized.
• Site selection for the Angeles City facility has been completed and
ground breaking is expected December 2015.

12. Every consumer products company generates waste
Wastewater
treatment
sludge
Washwaters
Part finished
products
(bulk)
Finished
products
(bulk)
Finished
products
(packed)
Scrap
packaging
materials
Scrap raw
materials
(chemicals)
Recyclable
materials
(Paper,
plastics,
metals &
glass)
Non Hazardous
waste
Hazardous
waste
(batteries,
solvents, acids)
Confidential
waste

13. Goal – Drive to Zero Manufacturing Waste to Landfill
Solution – Form partnerships with those that find value
in what we are throwing away.
Beauty care waste into
leather care products.
Toothpaste waste into
a polish for jewelry.
Detergent waste to
wash cars.
Fragrance waste to
potpourri.
Feminine Care product
waste fueling kilns.
Psyllium waste for
landscaping.

14. 70 of P&G’s 142 manufacturing facilities are
now zero waste to landfill.
Our program to avoid manufacturing waste has
created $2 billion in value for P&G in 7 years.