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Rethinking Recycling in the U.S. Extended Producer Responsibility Food Industry Association Executives November 14, 2012 1.

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Presentation on theme: "Rethinking Recycling in the U.S. Extended Producer Responsibility Food Industry Association Executives November 14, 2012 1."— Presentation transcript:

1 Rethinking Recycling in the U.S. Extended Producer Responsibility Food Industry Association Executives November 14,

2 Our Company Purified Water Brand International Brands Regional Spring Water Brands

3 Sustainability from source to bottle, and from “cradle to cradle” How we harvest and monitor water sources How the water is tested and bottled How the bottle is captured and recycled for its next use Our Vision

4 In 2010, we conducted research to understand the environmental footprint of bottled water and other beverage choices. The findings indicated: Water is the best beverage option for the environment – Tap water has the lightest footprint of all beverages examined in this study. – Bottled water is the best packaged beverage option for the environment among drinks examined. – Consumers can reduce the overall environmental impact associated with drinking a bottle of water by 25% by recycling the bottle after use. – Available online at The Water’s Edge

5 Our drive to reinvent recycling is rooted in our 2008 Corporate Citizenship Report, where we committed ton increase PET beverage recycling to 60% by “PET plastic can be recycled and reused almost indefinitely, but in order to do that, we have to get the bottles back.” Kim Jeffery, NWNA CEO We want our bottles back

6 6 Recycling in the U.S. Today In 2009, Americans produced about 243 million tons of municipal solid waste, or about 4.3 pounds of waste per person per day. Much of what we’re throwing can be recycled. Recent estimates indicate that the market value of discarded packaging may exceed $20 billion annually… yet –Diversion rates are not improving –Costs are rising –Programs are aging and poorly designed –Government budget crises jeopardize the viability of programs Total MSW Generation 2009 (243MM tons)

7 7 Recycling in the U.S. Today The business case for recycling Manufacturers need high quality, low cost material Current systems are not keeping up Collapse in newspapers is imperiling curbside program revenues* –Largest source of curbside recycling program revenue –Newsprint consumption down 50% in one decade –Recovered tonnage down 37.9% since 2006 –San Antonio: From 50% of net revenues to 33% –Frederick County, Md., recycling program costs $6.3 million annually, with revenue at $2.9 million Government respond mandating taxes, fees, retailer take-back schemes, and narrowly-focused “one-off” programs * Source: David Refkin, GreenPath Sustainability Consultants, 11/1/2012 Best if used by: 1982

8 Extended Producer Responsibility A policy approach in which a manufacturer’s responsibility for a product is extended to the post-consumer stage of a product’s life cycle. Also called product stewardship, its goal is to boost the development of waste diversion and recycling programs. Features: Internalized costs Industry management A market-based approach to meet demand for recyclable material Advantages: Lower net recycling costs Recycling for all types of packaging More private sector investment and employment Mitigated supply chain volatility Valuable material kept in use/reuse Hedge against municipal budget shortages

9 TODAY Consumers pay hauler or city for recycling service Enterprise fees, utility bill, general taxes Typical household cost = $30-40 per year UNDER EPR Government sets the goal Brand owners set up producer responsibility organization (PRO) PRO designs stewardship program – Funding, cost assessment, material collection, processing, recycling, governance, education, clear performance standards – Existing infrastructure used, when efficient PRO executes program Consumer pays with new product – Fees internalized in cost of products – Individual companies determine degree to which costs are passed to consumers Government tracks progress How it Would Work

10 Designing a uniquely American system Establishing a level-playing field Setting a common definition of sustainable packaging Collecting accurate data before targets are set Ensuring accountability and transparency of costs Maintaining industry/PRO control of funding and programs Designing cost-effective and efficient programs Harmonizing among EPR programs and state laws Supporting all modes of recycling: drop-off, curbside, industrial, commercial, institutional Generating robust public education Recognizing role clarity: Industry, government, consumer Challenges

11 11 Consumer convenience from strengthened curbside systems and away-from-home programs Increased education/awareness and enhanced participation A broader approach than isolated take-back mandates, bottle bills, to drive better environmental outcome A reliable consistent supply of recycled materials for re-use New businesses, new jobs The Payoff: Benefits of a U.S. EPR Model

12 Canada’s first permanent, province-wide beverage container recycling program launched in Manitoba in Run by Canadian Beverage Container Recycling Association—a voluntary organization supported by beverage companies. Results to-date (new report pending) : Created over 100 municipal partnerships Recruited 65 non-municipal partners Deployed a total of 2,500 bins Participated in 115 event days in 2010 Worked cooperatively with Multi-Material Stewardship Manitoba to increase beverage container recovery rates in the Blue Box (residential) collection system Designed a material tracking system (MTS) to gather information on beverage container recovery province-wide. Case Study: Manitoba, Canada

13 EPR is not a food tax EPR does not require in-store take back Producers do not drive trucks around Government does not control producer fees or determine associated costs, industry does Where NWNA and the SAIC study agree… Not all EPR is the same EPR’s power to change packaging design is limited EPR should not be a tool for funding government Where we hope we agree… There is more to learn Conversation needs to continue It is critical to be at the table What EPR is Not…

14 14 What Nestlé Waters is Doing Engaging stakeholders –Manufacturers, retailers, haulers, recyclers, government Listening, learning, measuring, studying Building the business case with peer companies Fostering discussions already under way Partnering on non-EPR recycling pilot programs Sparking dialogue in other places Seeking introduction of state laws in 2013/14 Recycling Reinvented

15 15 Thank you.

16 Contact: Brian Flaherty, VP, Government Affairs (203) Michael Washburn, Ph.D., VP, Sustainability (203) Resources:

17 Appendix


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