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Packaging & Sustainable Waste Management

Meghan StaszSenior Director, Sustainability

Grocery Manufacturers Association

www.gmaonline.org

Grocery Manufacturers Association

*Represents a sample of GMA’s Members

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Sustainable Waste Management

1. What is EPR?

2. Solid Waste and Recycling in the U.S.

3. Why EPR is not an effective solution

4. What Next?

2

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Solid Waste: What is EPR?

What is EPR?• Shifts responsibility for the end-of-life of products and/or packaging from the

municipality to the manufacturer.

How it works (generally)

• Regulators set recycling/recovery targets and put responsibility for collection/recycling onto producers

• Can be product-specific or more generic

• Companies can fulfill those obligations alone, or collectively through special purpose organizations

• Typically financed by manufacturers (i.e., built into price) or by point-of-sale fees to consumers

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Solid Waste: What is EPR?

Common Reasons for EPR

• Gives incentive to brand owners to reduce packaging and/or “design for the environment”

• Increases recycling rates

• Reduces environmental impact because more materials recycled

• Increases system efficiency

• More fair- industry and individuals pay for recycling rather than municipalities

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EPR Proponents in U.S.

Solid Waste: What is EPR?

AK

HI

CA

OR

WA

ID

MT

WY

NV

UT

AZ NM

CO

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL

KY

MI

IN

OH

TN

MS AL

FL

GA

SC

NC

VA

WV

MD

DE

NJ

PA

NY

MENH

VT MA

RI

CT

EPR Legislation Introduced

As of 6/21/12

2012 EPR Legislation

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Sustainable Waste Management

1. What is EPR?

2. Solid Waste and Recycling in the U.S.

3. Why EPR is not an effective solution

4. What Next?

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Solid Waste in the U.S.

Organic Waste Largest Percentage of Landfills:

Glass6%

Metals11%

Plastics21%

Rubber & Leather5%Textiles

8%Wood10%

Organic Waste

35%

Other5%

2010 Landfill Composition

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Solid Waste in the U.S. U.S. Recycling Rates of Packaging

Source: US EPA 2010 MSW Report, 2009 data (last reporting year)

1960 1970 1980 1990 2000 20090%

10%

20%

30%

40%

50%

60%

Packaging/Containers

Overall Recycling

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Solid Waste in the U.S. Landfilling is Decreasing

1960 1970 1980 1990 2000 20090

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

0

0.5

1

1.5

2

2.5

3

3.5

Landfilled Waste (daily pounds per capita)

Landfilled Waste (tons)

Tons

Daily

Pou

nds p

er C

apita

Source: US EPA 2010 Municipal Solid Waste Report

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Solid Waste in the U.S. State Overall Recycling Rates

AK

HI

OR

WA

ID

MT

WY

NV

UT

AZ NM

CO

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL

KY

MI

IN

OH

TN

MS AL

FL

GA

SC

NC

VA

WV

MD

DE

NJ

PA

NY

ME

NHVT

MA

RI

CT

<10%11%-20%20%-30%

CA

30%-40%>40%*Note: 2004 Data

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Bulg

aria

Rom

ania

Czec

h Re

publ

icLit

huan

iaM

alta

Slov

akia

Pola

ndCy

prus

Latv

iaHu

ngar

yGr

eece

Port

ugal

Luxe

mbo

urg

Fran

ceSp

ain

Slov

enia

Unite

d Ki

ngdo

mEs

toni

aFi

nlan

dIre

land

Denm

ark

Italy

Swed

enAu

stria

Neth

erla

nds

Belg

ium

Germ

any

0%

10%

20%

30%

40%

50%

60%

70%

Solid Waste in the U.S.U.S. vs. EU Recycling Rates

*Note: 2007 data

United States

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Sustainable Waste Management

1. What is EPR?

2. Solid Waste and Recycling in the U.S.

3. Why EPR is not an effective solution

4. What Next?

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Solid Waste: EPR is not an effective solution

SAIC Study, Summary of Findings:

• U.S. overall MSW recycling rate is equal to or better than Canada & Europe

• EPR does not cause changes in package design or selection.

• EPR has not decreased system cost. Increases government & administrative costs.

• People ultimately pay for end-of-life management through taxes and utilities

EPR is not an effective solution

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▪ ConAgra Foods was the first company in North America to incorporate post-consumer recycled plastic into frozen meal trays

▪ Unilever instituted packaging innovations to reduce environmental impact

▪ Clorox has focused on reducing paper usage at its facilities and using recycled content where available

AC

TIO

NIM

PA

CT

▪ Use an average of more than 15 percent postconsumer recycled plastic across our frozen foods brands

▪ Diverts eight million pounds of plastic from landfills annually

▪ Suave Body Wash bottles now use HDPE which is recycled at 26-29% in the U.S. instead of polypropylene which is recycled at only 9%

▪ Introduced a 100% recyclable cardboard box for Sun Green Power dishwasher detergent

▪ Clorox has reduced its paper use by 30 percent, with all remaining paper converted to 100 percent recycled content.

▪ Today, 90 percent of U.S. product cartons are made from 100 percent recycled content

SOURCE: GMA Membership Success Story Database, Unilever and Clorox websites

CPG Companies are increasing the amount of sustainable material in their packaging

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4 Billion Pound Packaging Weight Cumulative Avoidance (2005-2020)

19%Average weight

reduction for 2005-2020

-1.5

-4.0

-5

-4

-3

-2

-1

0

1

2

2010 2020

Tota

l Wei

ght

Redu

ced

(bill

ion

poun

ds)

** Cumulative, McKinsey Study and GES study, representing 2005-2020

*McKinsey Study, representing 2005-2010

2005 Baseline

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Solid Waste: EPR is not an effective solution

Additional Questions:

• What happens to existing assets? (MRFs, trucks, employees)

• Anti-trust issues?

• Efficiency: cost per increased percentage point?

• How does this fit with existing recovery programs and policies?

• Overall environmental impact?

EPR is not an effective solution

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What Next?

Holistic, efficient solution needed

GMA’s 5 Part Plan- “What We’re For”

1. Continue our Commitment to Reduce Waste

2. Address Food Waste

3. Increase Recovery and Recycling

4. Evaluate Options for Managing Waste

5. Coordinate Efforts

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L.A. switched to automated single stream collection, the city’s participation rate more than doubled

Only 44% of the United States population has single-stream recycling service, which is significantly easier for consumers

SOURCE: EPA website, wasteage.com

Program Impact

Communities typically report reductions in waste of 25 to 35 percent, including significant increases in recycling

Pay-as-you-throw programs charge for the collection of municipal solid waste based on the volume thrown away

Many Communities Have Increased Recycling Rates

What Next?Solution 3: Increase Recovery and Recycling

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What Next?Solution 3: Increase Recovery and Recycling

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U.S. has One-Fifth Excess Capacity

Recycling of total MSW

Source: McKinsey & Company analysis

Current R

ecyclin

g Rate

Potential

recycl

ing rate

if infra

structu

re is f

ully utilize

d

Potential

recycl

ing rate

if low-te

ch in

frastr

ucture

is upgra

ded0%

10%

20%

30%

40%

50%

60%

What Next?Solution 4: Evaluate Options for Waste

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U.S.EU

Germany

Netherlands

0%

5%

10%

15%

20%

25%

30%

35%

40%Waste to Energy Recovery Rates (2007)

Source: US EPA 2010 Municipal Solid Waste Report

What Next?Solution 4: Evaluate Options for Waste

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What Next?

GMA’s 5 Part Plan- “What We’re For”

1. Continue our Commitment to Reduce Waste

2. Address Food Waste

3. Increase Recovery and Recycling

4. Evaluate Options for Managing Waste

5. Coordinate Efforts

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Food for Thought

• What is the problem we’re trying to solve?

• Is a trash tax the most efficient way to address these challenges?

• Are there other solutions that are less costly?

• Are there more sustainable approaches that are both voluntary and more effective?

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Sustainable Waste Management

Questions?

Meghan Stasz

Senior Director, Sustainability

mstasz@gmaonline.org

202-639-5935