Slides Plastic Promises AsYouSow_20240612.pptx

Plastic promise in future

1. Welcome to the Plastic Promises Scorecard Webinar June 12, 2024

2. Download at www.asyousow.org /reports Link in chat Report now live!

3. As You Sow Kelly McBee Circular Economy Manager & report author VBDO Freek van Til Project Manager Sustainability & Responsible Investment Ellen MacArthur Foundation Aisha Stenning Global Commitment Program Manager Ubuntoo Venky Kini Co-Founder & report partner

4. Report Findings & Highlights 20 Insights: EMF Global Commitment 10 Insights: VBDO Investor Action 10 Audience Q&A 20 Gather reception to follow Agenda

5. Use the Q&A window to send your questions Q&A Window

6. Mission: to promote environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies Founded in 1992 on the belief that corporations must be an active part of the solutions to society’s environmental and human rights issues; 30-year track record of promoting values-aligned investing and securing positive, lasting corporation change; We communicate directly with corporate executives to collaboratively develop and implement business models that reduce risk, benefit brand reputation, and protect long-term shareholder value while simultaneously bringing about positive change for the environment and human rights.

7. Plastic pollution poses risks to business, people, & planet

8. Plastic pollution poses risks to business, people, & planet

9. Plastic pollution poses risks to business, people, & planet

10. Plastic pollution poses risks to business, people, & planet

11. Plastic pollution poses risks to business, people, & planet

12. 225 Companies 15 Industries Revenue $1B+ Series of scores: Overall, Action, Ambition, and by Pillar Methodology

13. Interactive Data Tool OVERALL PLASTIC PACKAGING SCORE RECYCLABILITY REDUCTION REUSE EPR Ambition Ambition Action Ambition Action Ambition Action Ambition Action OVERALL ACTION SCORE OVERALL AMBITION SCORE RECYCLED CONTENT RECOVERY Action 19 scores for each of the 225 companies

14. No “A” scores; No industry or company is doing enough. Key Finding:

15. Top Scoring Companies, 4% of total, “B” range

16. Venky Kidi Ubuntoo Co-Founder and Report Partner

17. FINDINGS Most Companies Have Recyclability Goals, 147 of 225 Goals Unlikely To Be Met, 22 Companies on Track RECOMMENDATIONS Certify Recyclability in Practice and At Scale Flexible Packaging: Reduce, Recycle at Scale, or Eliminate Eliminate Toxic Chemicals 1. Recyclability

18. Deep Dive Recyclability “ in practice” and “at scale”

19. FINDINGS Plastic Intensity Increasing Despite Virgin Plastic Reduction Goals RECOMMENDATIONS Decouple Plastic Use from Growth Disclose Units of Packaging Sold 2. Plastic Reduction

20. Deep Dive Plastic Use Intensity revenue unit/unit of plastic

21. FINDINGS Most Companies Have Recycled Content Goals, 145 of 225 RECOMMENDATIONS Certify Recycled Content Prioritize Post-Consumer over Post-Industrial Content Support Beverage Container Deposits to Improve Recycled Content Availability 3. Recycled Content

22. FINDINGS Few Companies Have Goals to Avoid Packaging Pollution; Just 4%, 9 Companies RECOMMENDATIONS Adopt Recovery Goals Align Recycling Contributions with Packaging Footprint 4. Recovery

23. FINDINGS Commitments Focused on Reuse Investigation, Not Adoption 43 Companies Piloting Reuse RECOMMENDATIONS Set Reuse-Specific Targets Improve Data Tracking and Data Transparency on Reusables 5. Reuse

24. FINDINGS EPR Action Is Growing. 73 Companies or 33% Are Engaged in Proactive EPR Engagement RECOMMENDATIONS Adopt Public-Facing Support Positions on EPR Align Recycling Contributions with Plastic Use Intensity 6. Extended Producer Responsibility (EPR)

25. Ellen MacArthur Foundation Presented by Aisha Stenning, Global Commitment Program Manager

26. To accelerate the transition to a circular economy OUR MISSION

27. Regenerate nature Eliminate waste and pollution Circulate products and materials The circular economy is designed to:

28. Sectors Plastics Food Fashion Built environment Finance

29. Elimination of problematic or unnecessary plastic packaging through redesign, innovation, and new delivery models is a priority All plastic packaging is reused, recycled or composted in practice Reuse models are applied where relevant, reducing the need for single-use packaging All plastic packaging is 100% reusable, recyclable, or compostable by design All plastic packaging is free of hazardous chemicals , and the health, safety, and rights of all people involved are respected The use of plastic is fully decoupled from the consumption of finite resources 1 2 3 4 5 6 THE NEW PLASTICS ECONOMY VISION

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31. Photo by David Marcu on Unsplash

32. Photo by David Marcu on Unsplash

33. Photo by David Marcu on Unsplash

34. Photo by David Marcu on Unsplash

35. 39 3 MILLION TONNES Virgin plastics avoided annually compared to BAU 2.5 MILLION TONNES CO2 avoided per year 15 MILLION Barrels of oils a year

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38. Pivotal Hurdles Take reuse from niche to scale

39. Pivotal Hurdles Take reuse from niche to scale Tackle flexible plastic packaging waste in high-leakage markets

40. Pivotal Hurdles Establish infrastructure to collect and circulate packaging after use Tackle flexible plastic packaging waste in high-leakage markets Take reuse from niche to scale

41. Business action Policy action Actions from businesses and governments are mutually reinforcing, resulting in an ambition loop

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43. VBDO - Collective Investor Engagement Engagement with 38 FMCGs and retailers on plastic packaging 12 June 2024 Freek van Til Project Manager Sustainability & Responsible Investment Contact: [email protected]

44. Phase I: Research on topic, scope and expectations (2021-2023) Plastic crisis, lack of transparency, coherent reporting, adverse target setting Plastic lobbying activities hampering ambitious EU and UN regulations (PPWR & GPT) Phase II: Exploring collective engagement with investors (2023) Round table presenting research and expectations to discuss next steps Form core group to co-create investor statement Phase III: Public engagement (2023-) Seek further support (185+ investors) Publication of statement and further steps Phase IV: Collaborative investor engagement (2023-) Engagement letters and calls to companies Investor letters to EU MEPs and ministers Webinars to continue knowledge sharing and adequately responding to ongoing developments of GPT, EU, and companies VBDO’s work on plastic

45. I: Support ambitious plastics policy for effective outcomes Supporting EU PPWR and UN Global Plastics Treaty “We expect companies to publicly support the ambition of the PPWR reform, to refrain from lobbying to reduce this ambition and to ensure that industry associations to which they are a member act in accordance with this position.” II: Commit to – and start delivering – absolute reduction of single-use plastic packaging, including through implementing reuse systems “We expect companies to establish a clear plan of action to reduce material consumption in absolute terms, prioritising eliminating the need for single-use packaging altogether, including through upscaling reusable packaging systems, to be achieved by clearly defined timescales and subjected to external verification.” III: Address toxicity in value chains “We expect companies to commit to identifying and eliminating the use of hazardous substances in products and packaging and to publicly report their progress in doing so.” Expectation setting

46. Increasing threats to society and nature.. The whole plastics lifecycle poses a serious and growing threat to the environment, climate, biodiversity, human rights and public health. .. resulting in issues globally.. Plastics imposes an estimated externality cost on society of $US 350 billion per year arising from greenhouse gas emissions, ocean pollution and collection costs .. putting long-term value creation at risk. These risks include regulatory risks arising from bans, taxation and extended producer responsibility costs, reputational risks , increased momentum in plastic-related litigation and increased raw material costs . Companies that do not proactively address these risks with actions aimed at reducing their dependence on single-use plastics may face higher costs or lose business opportunity, therefore putting long-term value creation and investment returns at risk. Why the focus on plastic?

47. Key takeaways from 30+ engagements 2025 → 2030 Hazardous chemicals CSRD is coming Companies are replacing 2025-targets with 2030-targets Level of ambition is not increasing Focus remains on recycling/recyclability Reuse and Refill targets are few and limited Lack of public policies and reporting Increasing recycled materials should lead to increased assessments and audits (not the case) Alignment with international lists (e.g., ChemSec) is limited The link between health (impacts & risks) and (recycled) plastic packaging is increasing Most companies are not ready for CSRD with regard to plastic disclosure Companies are stating that plastic is not or no longer a material topic (to report on) Some companies are actively working together with stakeholders (including investors) to better understand CSRD and its reporting

48. Next steps Continue collaborative investor engagements Increase focus on Global Plastics Treaty Engage the full lifecycle (producers) Knowledge building on developments in the sector

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52. Thank you for joining us! Download the report: ​ https://www.asyousow.org/report-page/2024 For Report Questions: ​ ​ Kelly McBee [email protected] Media/Press Contact:  ​ ​ Sophia Wilson ​ [phone]​ [email protected] ​