Driving carton recycling value chain -...
Transcript of Driving carton recycling value chain -...
Driving carton recycling value chain
April, 2018 @Green Drinks Shanghai
Jiayu WAN
We commit to making food safe and available, everywhere
* All numbers refer to 2015
Number of Tetra Pak packages sold 184 billion
Number of packaging machines in operation 8,850
Number of processing units in operation 74,450
Countries where Tetra Pak packages are available >170
Number of employees 23,600
Offer solutions to guarantee safe foodUHT + Aseptic package
Temp °C
150
100
50
Pasteurisation
Indirect UHTDirectUHT
Time
Core Presentation/2016-0120 / 3
PAPER
75%
Offer solutions to guarantee safe foodUHT + Aseptic package
71% of Population
72% of Milk Sources
Source: 2010 provincial raw milk outputCDIA Documents
Best milk belt in northern hemisphere: 45°north latitude
Our commitment to sustainability is deep-rooted
Reducing food waste
Increasing food availability
Improving resource efficiency
Our founder, Ruben Rausing, was a firm believer that a package should save more
than it costs.
When food is packaged, it canbe transported and madeavailable to consumerseverywhere in a safe, efficient
and affordable way
PROTECTS
WHAT’S GOOD
Environmental Excellence forms part of
our Sustainability approach
We are driven by our vision to make food safe and available, everywhere.
Our innovative and market-leading processing and packaging solutions are
making that vision a reality worldwide.
We make social responsibility a priority when it comes to people. We
seek to support communities wherever we operate and provide opportunities for our employees around the world.
We strive to play an active role in shaping a better future, supporting the
long-term success of our customers’ businesses and driving environmental
excellence across our whole value chain.
We work with industry organizations, non-governmental
and international organizations and several initiatives
Good governance is our fundamental framework for achieving all our sustainability targets
Drive environment excellence of the value chain
Transportation
Product design
Packaging manufacturing
Filling
RecyclingSourcing
We continue to drive environmental excellence
OBJECTIVES GOALS
Reduce environmental
footprint across the value chain
2020 climate goal:
Cap climate impact across value chain at 2010 levels
Develop sustainable
products
Renewable packaging goals:
100% FSCTM-certified paperboard, A 100% renewable package
Increase recycling 2020 recycling goal:
40% global recycling rate
Used cartons are not waste.
They are a valuable raw
material for new products.
We have a strong starting point
Average renewable content in carton packaging material today
accounts for 75%
Value chain impact in 2010*
Tetra PakProduction sites, offices & business travel
6%
Scope 1, 2, 3 of the GHG Protocol
SuppliersPurchased materials for packaging & transportation
38%
Scope 3 of the GHG Protocol
End-of-lifePost-consumer cartons not recycled or recovered for energy
6%
Scope 3 of the GHG Protocol
CustomersUse of sold products –life-time impactProcessing equipmentPackaging equipment
50%
Scope 3 of the GHG Protocol
*2010 baseline data verified by a third party in 2015Accounting based on GHG Protocol standards and guidelines for corporate and value chain climate accounting.
Effective separation and recycling of all layers
Turning used cartons into an asset
Pulp Products
RepulpingCollected
cartons
ProductspolyAl
We have mapped used beverage carton recyclers
globally
Active recycling in 43 countries (trans-border shipments take place in several markets)
Active polyAlrecycling in 24 countries
Key success factors to increase recycling
Increase consumerawareness Support collection
& sorting infrastructure
Boost business opportunities for
recycling entrepreneurs
Expand market opportunities for
recycled materials
Increase consumer awareness
• Drive consumer campaigns• Drive school programmes• Partner with local organisations
We teach school children in Turkey about recycling
Since the start of 2005, the recycling awareness programme “Little Things Renew Nature” has been seen by over a million children in Istanbul, Bursa and Izmir.
Increase consumerawareness Support collection
& sorting infrastructure
Boost business opportunities for
recycling entrepreneurs
Expand market opportunities for
recycled materials
Support collection and sorting infrastructure
Tetra Pak India forms waste dealers club
Tetra Pak India brought together NGOs, recyclers, scrap dealers and street waste pickers in Delhi, India. As a result, the city now has a waste dealers club (Paryavaran Mitra) and the process for collecting used beverage cartons has been significantly improved.
Increase consumerawareness Support collection
& sorting infrastructure
Boost business opportunities for
recycling entrepreneurs
Expand market opportunities for
recycled materials
• Connect collectors and recyclers• Cooperate with key stakeholders
Boost business opportunities for recycling
entrepreneurs
Increased recycling in China
With development support from Tetra Pak, the Chinese recycling company, Hangzhou FulunEcology Technology increased its recycling capacity from 20k tonnes of paper to 35k tonnes (75% increase) in just under 10 years. They now also recycle the plastic and aluminium (PolyAl) from used beverage cartons, and sell it to plastic recyclers and fireworks manufacturers.
Increase consumerawareness Support collection
& sorting infrastructure
Boost business opportunities for
recycling entrepreneurs
Expand market opportunities for
recycled materials
• Recommend recycling solutions • Support technological developments
Expand market opportunities for recycled materials
• Match recycled materials and market needs• Promote recycled end-products
Roofing tiles in Brazil
Since 2000, we have supported the market for roofing tiles made out of plastic and aluminium from recycled beverage cartons. Manufacturers and local universities cooperated to enable material analyses, which led to important product improvements. Now, over 15 roofing tile manufacturers are operating in Brazil, producing a million tiles each year.
Increase consumerawareness Support collection
& sorting infrastructure
Boost business opportunities for
recycling entrepreneurs
Expand market opportunities for
recycled materials
Kraft paper
Toilet paper
Copy paper
Balance paper
Sole pad
Cardboard paper
Plastic wood
Post-consumer waste
Filling waste
Imported/domestic
factory waste
Others
Raw material type Semi-end product End products
Others
Chipboard
• Most recyclers also recycle factory waste and other similar feedstock while recycling
UBC, and their production is mainly for the Kraft paper.
UBC recycling
UBC Recycling Analysis
Recycling value chain overview
RecyclingValueChainOverview
Collection Recycling Application
UBCRecycler(Papermill)
Fibre recycling
UBCRecycler(Fullcartonrecycling)
PolyAL recycling
Papermill
PE
Aluminum
Plasticwood
Chipboard
Paper
PaperSocialcollectionsystem UBC
Collector
Wastepaperpackingstation
TotalInvoicedTonnageofPackagingMaterialin2016is644kt
Incinerator&Landfill
MixedintoOCC
• In 2016, the total invoiced tonnage of packaging material in China market is 644kt, a total of 153kt UBC are recycled, of which Post-consumer waste and Filling waste volume 142kt, UBC mixed into OCC volume 11kt.
Compared with cardboard paper and PET
UBC Collection Analysis
• This diagram sketches up the primary value chain. However disorder among levels and miscellaneous prices make it much more complex.
• The price gap of salvage station:UBC 200RMB, cardboard paper 850RMB, PET 500RMB. Price gap of single category professional collectors, UBC300RMB, cardboard paper 450RMB, PET 700RMB.
ComparisonamongUBC/Cardboardpaper/PET bottlecollectionCollecting
Junkhouse/transit station
Wastecontractors/sortingcenters
cleaner/Junkman
Paper/othersalvagestation
Wastepaperpackingstation
Landfill plant
Recycling
Resident
UBC collector
Plasticpacking/crushing station
UBC recycler
Papermill
PETfactory
UBC/PET/Cardboardpaper:
0RMB/t orlittle
Wastepaperpackingstation
Paper/othersalvagestation
Paper/othersalvagestation
UBC�600-800RMB/t
Cardboardpaper�1600-1800RMB/t
PET�2500RMB/t
UBC�800-1000RMB/t
Cardboardpaper�2500-2600RMB/t
PET�3000RMB/t
UBC�1200RMB/t
Cardboardpaper�3000RMB/t
PET�3400-4000RMB/t
Note 1. UBC pricebetweenlevelIandIIisestimated.2. Allprices aremarketmainstreampriceduring Sep-Octperiod.3. Cardboard paperisAlevel
MargincomparisonamongUBC/Cardboardpaper/PET bottlecollection
1,275
3,000
3,700
800
2,5003,000
0
1,000
2,000
3,000
4,000
5,000
Price Feedstockcost Packingfee Logistic cost Landrent&environmental protection Shippingcosts Margin
UBC Cardboard paper PET bottle
Margin�14RMB/tMargin rate�1%
Margin�300RMB/tMargin rate�10%
Margin�445RMB/tMargin rate�12%
Compared with cardboard paper and PET
UBC Collection Analysis
• Profits of UBC collector are very low because UBC collecting locations are a long way from plants and shipping costs are high.
Waste paper and plastic
Market Overview
Recovered paper (OCC) price Recycled plastic price
• The demand of recoverd paper is expected to increase the coming years due to growthing economies, and UBC price is very competitive compared with OCC under current market environment.
China ban on waste imports
Butterfly Effect
• Not prepared for the change• Need to find a new home for the
waste
• Investing recycling infrastructure, and rebuild the waste management
strategy
&
• Decreased import volume and strict customs inspection
• Shortage of raw material and
looking for alternatives• Overseas investment
• Phase out SME
&
• Potential destination for waste• Not enough capacity to consume the
excessive material
• Expansion and transformation underway
• Reshaping the global supply chain• Additional cost to improve the quality• Volatile market price
• Raise public awareness and trigger further action to tackle waste problems
China ban on waste imports
Impact on UBC recycling
Challenges Opportunities
• Impact on the current collection models, especially for UBC collect with mixed paper
• Lower waste price in some markets positions UBC as a less attractive source of raw material
• Pressure to remove UBC to improve quality
• Recognized as valuable material if it can be collected at a reasonable price
• Investing recycling infrastructure to recycle UBC locally
• Higher waste price encourages UBC
collection and recycling(China)
• Newcomer step into the market due to raw material shortage