How to close material loops and drive value from innovative partnerships
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Len Sauers of Procter & Gamble outlines the company's goals and initiatives around sustainability. P&G aims to power plants with 100% renewable energy, use 100% renewable or recycled materials for products and packaging, and send zero waste to landfills. Specific 2020 goals include reducing environmental footprint by 20% and ensuring 90% of packaging is recyclable. P&G is working to close material loops through partnerships like the Closed Loop Fund (providing loans to improve recycling infrastructure) and Waste to Worth (creating businesses in developing countries to process waste and create profits). The company also partners to find higher value uses for manufacturing waste rather than sending it to landfill.
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.