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Hello and happy Monday funday!

Boy howdy do we have lots to talk about!

Drum roll please….I FINALLY finished my presentation on my Recycling Report for Sustainable Plastics Packaging 2010 in Atlanta, December 8th and 9th! I had no idea how hard it would be to convert a 10 page report into a half an hour presentation while not boring the audience to death with all the technicalities that is recycling. It sort of reminded me of when I was invited to present my Senior Thesis to a class of freshmen at DePaul—not that the audience of this Conference is comparable to college freshmen—but insofar as there is way too much to explain in the confines of a half an hour. Before I could even begin talking about the state of recycling clamshells in America, I had to set up a foundation for understanding the economics of recycling in general, including the “process” of recycling from collection through reprocessing/remanufacturing. All I know is that I have over 80 slides, which means I have to go through almost 4 slides a minute. I talk fast, but that is super fast…

Here is the structure of my presentation:

Introduction: What is “recyclable,” why, and why we care
Part 1: Explain the economics of recycling packaging in America with reference to abstract concepts
Part 2: Contextualize said concepts by explaining them in tandem with the state of recycling thermoform packaging in America:
Section 1: Supply and Demand Considerations
Section 2: Sortation Considerations
Section 3 Specs and Baling Considerations
Section 4: Contamination Considerations
Part 3: Discuss where we should go from here to work towards recycling thermoforms.
Conclusion: Discuss what progress is being made in recycling thermoforms with reference to NAPCOR

While normally I would post my presentation to my blog for your viewing pleasure, I am going to wait until after my presentation because I think it gives the content a sense of drama! And, who doesn’t like creating drama via anticipation?

That which was also difficult to convey in my presentation was the “why” component: that is, why do we care about recycling in general, and recycling thermoforms in particular? After all, while I am interested in recycling because I am interested in just about anything (ahem, degree in Religious Ethics anyone?), the audience for this conference will be anyone from brand owners to material suppliers; each of which, has different motivations for attending the conference. Therefore, while creating the content for this presentation, I thought it was important to situate recycling within the larger picture i.e. what does this do for me as a packaging professional? Granted I think recycling in and of itself is the “right thing to do” because it conserves our natural resources and therefore should be discussed in an open forum, most “business people” are more concerned about the bottom line than saving the planet. SOOOO this is what I came up with:

We care about recycling packaging because…

• Introduction of Walmart Packaging Scorecard;
• Increase demand for sustainable packaging and products by CPGs/retailers/consumers;
• Increased awareness that a products’/packages’ end of life management is crucial to its “sustainability.”
• Increased demand for PC content in packaging and products by CPGs and retailers.
• Advances in Extended Producer Responsibility.
• And, an increased understanding that our Earth’s resources are finite.

Obviously for each point I expand; hence, the point of a “presentation.”

I then talk about the “green consumer” and reference various market research that shows that if deciding between competing brands/products, consumers are more likely to buy the “green” product than the product not touting any environmental benefit (assuming same price, performance and quality).

Then I move onto a quick discussion of why we care about recycling thermoforms specifically, quoting NAPCOR’s 2009 Report on Post Consumer PET Container Recycling:

The dramatic growth in PET thermoformed packaging has resulted in pressures… for a recycling end-of-life option. Although additional post-consumer RPET supply is arguably the most critical issue facing the industry, a variety of technical issues have prevented existing PET bottle reclaimers from including PET thermoforms in the bottle stream. As a result, the potential value of this growing PET packaging segment is not being successfully realized.

By emphasizing NAPCOR’s opinion that additional PC PET supply is a critical issue facing the industry, I imply that only by adding PET thermoforms into the PET recycling stream, either within the PET bottle stream or a PET thermoform only stream, can said demand be met. In other words: recycling thermoforms will provide additional PC PET material for application in a multitude of end markets, be it bottles, thermoforms, or other.

Are you convinced that recycling is the way to go?!? Perhaps this will persuade you.

I plan to present my presentation to my Dordan colleagues sometime next week to get their feedback…my main concerns is that there is too much content and not enough time to get though it all…more details to come!

Shall we move on to a brief recap of Pack Expo, as I have yet to give you any feedback from this insanely huge event?

Pack Expo 2010 was a roaring success: Dordan had more direct traffic (people looking for Dordan as opposed to just wandering by) than any other year we exhibited past! Our booth looked super great and our Bio Resin Show N Tell and COMPASS tutorials generated a lot of interest among the Show attendees.

Our Bio Resins Show N Tell definitely got the most attention, as Show attendees explained how nice it was to have objective research accompany the latest alternative resins, which Dordan converted via thermoforming for seeing and feeling pleasure. I was happy to hear that like Dordan, the onslaught of environmental marketing claims in the context of bio based/biodegradable/compostable resins was confusing the heck out of packaging professionals, as every study you read contradicts the last study published. After the Show, Dordan was contacted by a ton of Show attendees, who all requested the information displayed alongside our Bio Resin Show N Tell. Due to Dordan’s ethic of corporate transparency, we were thrilled to share our research with the interested parties. Hopefully interest like this will move our industry in the right direction, away from confusing environmental claims and towards a more qualified understanding of packaging and sustainability.

This is sort of random but one of my old college professors, with whom I still speak, was featured on NPR Friday. His interview was really cool, and while on the NPR site, I found a session within the “Environment” heading that dealt specifically with the plastic vs. paper debate.

Check it out here.

That which I found the most interesting, however, was around the 15 minute mark when Jane Bickerstaffe of INCPEN explains how packaging has become the scapegoat for the perceived problems with how humans relate to our natural environment. She explains…

We did some research looking at the average household energy use for everything:

81% of energy is consumed by the products and food we buy, central heating and hot water in homes, and private transport. Packaging, however, accounts for just 3% of our energy expenditures.

She concludes:

People need to get a sense of perceptive…they drive their SUVs to the grocery store and then stand there agonizing over whether to choose paper or plastic; it’s actually a tiny tiny impact.

Right on! Granted the way in which we produce and consume things can always become more “sustainable,” the bag and bottle bans make my head hurt because the concern is so misplaced when you are wearing Gucci shoes manufactured by children in Indonesia. Alright, now I am getting a little melodramatic, but you get the idea, right? And speaking of overseas manufacturing, I just bought this book. My next research project is on the ethics of sourcing product/packaging from China. Exciting!

And how ironic, Dordan CEO says the EXACT same thing in our recently published interview in PlasticsNews.

Hurray for PlasticsNews!

Alright, I got to go: I am on a deadline to research and write a white paper providing evidence that “seeing it sells it” i.e. market research demonstrating that consumers’ identification of the product via transparent packaging results in higher sales. While all the sustainability research in the context of paper vs. plastic I have compiled is helpful, Dordan's Sales Force tells me again and again that regardless of the environmental profiles of the different packaging materials, packaging buyers want the packaging medium that will sell the product. Period. Time to sales savvy marketing piece to our bag of tricks! Wish me luck!

But I will leave you with this informative article about recycled plastic markets from Recycling Today. Enjoy!

Happy Friday! This Saturday is my sister’s bachelorette party at Cuvee in Chicago, which is a super posh champagne lounge. I will let you know if I see any celebrities!

So I FINALLY finished my work on PET recycling for a Canadian retailer, which is good, as I leave on Tuesday!

Check it out! It’s sort of a lot, and it’s really detailed, so sorry if I bore you! Oh, and it’s broken into a couple different sections:

1. Summary of a super huge document titled, “Best Practices and Industry Standards in PET Recycling.”
2. Supply and demand of PET bottles post consumer, North American context.
3. Supply and demand of PET thermoforms post consumer, North American context.
4. Interview with StewardEdge and Stewardship Ontario’s Plastics Market Developer.
5. Case studies of PET recycling, bottle to bottle, bottle to thermo, and thermo to bottle.

Seriously, this is the post of all posts! And when I copied and pasted my report into the Blog software, it messed up my outline--sorry!

Hello my packaging and sustainability friends! I am feeling tip top today after having a four-day hiatus from work: I slept, I swam, I sunbathed, I ate…good times. I hope you all had an equally relaxing Memorial Day weekend, too!

AND know what’s even weirder—I actually missed work. That’s right, I missed the act of being productive…go figure!

So my last post was a little all over the place. I do believe, however, that this article may tie it all together, which then gets me on another rant of sorts. First, observe:??

NAPCOR: US efforts to recycle falling short

By Mike Verespej | PLASTICS NEWS STAFF

Posted May 28, 2010

SONOMA, CALIF. (May 28, 10:45 a.m. ET) -- Longtime plastics recycling advocate Dennis Sabourin said “bold steps” are needed to increase supplies of not just recycled PET bottles but all plastics and recycling materials.

The executive director of the National Association for PET Container Resources in Sonoma, Calif., and a former Wellman Inc. executive said it is time for extended producer-responsibility laws and eco-fees on products. Also needed are public-policy initiatives that provide funds for recyclers to create green jobs and for stakeholders to come together, in coalition-style, to advance the recycling of all materials.

Even with the green movement, Sabourin said, “recycling is still not a front-burner issue,” as it was in 1995, when the PET recycling rate climbed to nearly 40 percent. That rate plummeted to less than 20 percent by 2003 before rebounding in 2008 to 27 percent — based on the most recent numbers available.

?“Why not have a national initiative to divert some of the stimulus funds to recycling on a broad-based effort?” he asked. “That would create jobs in the United States.”

He called initiatives introduced by Vermont and Rhode Island, and the extended producer-responsibility law passed by Maine earlier this year, steps in the right direction. “They will not give us any immediate relief from a supply standpoint, but EPR will bear fruit down the road,” he said, noting that an EPR law in Canada has given recycling rates there a huge boost. Canada’s return/diversion rate for non-alcoholic beverage containers is 64 percent.

He said the biggest obstacle to more recycling is the lack of a concerted public policy to motivate consumers to recycle, a move that would create jobs.

?“There are plenty of materials out there and plenty of markets for those materials. We have to reach out and start working together to get more materials collected,” he said.

For the full article, visit http://www.plasticsnews.com/headlines2.html?id=18730&channel=260.

This article was referred to me by my co-lead of the PET subcommittee for Walmart-Canada because it illustrates the infrastructural differences between recycling in America and recycling in Canada, where I am now focusing a lot of my research/work.

ANYWAY, what I am trying to imply between my last post and Sabourin’s argument (that some sort of legislation must be put on the books that REQUIRES industry/municipalities to meet recycling targets in order to increase the diversion rates in the States), is, touch?! I believe that until there are some extended producer responsibility requirements implemented in the States that forces industry and municipalities to work together to divert more materials from the landfill, my recycling initiative will continue to be just that—an initiative, with little sight of implementation.

While there are some positive signs like retailers advocating post-consumer content in products and packages or recycling drop-off centers (think Whole Foods), I see little improvement across-the-board in regard to the amount of materials recycled in America until EPR legislation is implemented. As mentioned here and again throughout my blog, we need: SUPPLY, which we don’t have because no one is collecting it or they don’t wish to compete with China for purchasing post industrial/consumer scrap; DEMAND, which we don’t have with the crash of the economy, although this is changing as CPG companies look for quality streams of post-consumer plastics; and, INVESTMENT, which we defiantly don’t have because it has not been an economic priority (why worry about recycling plastics when the cost of virgin resins is so low?!?).

BUT then enter EPR, which requires producers i.e. brand owners, first importers, product manufactures (those responsible for putting the product/package on the shelf) to FUND the recovery of their product’s packaging waste post-consumer. Then all of a sudden organizations like Fost Plus in Belguim or Stewardship Ontario in Canada develop to help manage the money transfer from industry to municipalities and viola, the recovery rates of packaging—all packaging—would increase. I am sure it’s not that easy but you get the gist…

Anyway, I wished to include this argument in our June Newsletter (we send out newsletters each month updating all our contacts in regard to what is new at Dordan and what is new in the industry), but was met with some hesitation from some of the more “business-minded” folk at Dordan. According to these colleagues, EPR legislation would probably not do well by domestic manufactures because all of a sudden, our packages would become more expensive (or the product would become more expensive, or the cost to manage the waste would be pushed throughout the supply chain) than those produced overseas in say, China, where they have no EPR legislation on the books. But the first importers would be required to pay for managing Chinese packaging waste post-consumer, right? If so, would that provide an incentive to source packaging domestically? Now I’m confused.

SOOOOO our CEO called me into his office to discuss EPR and its implications into our business because I wanted to highlight this article in our June newsletter, and he wanted to ensure that we were not shooting ourselves. What he basically said, like any good American dream manifestation, is: why is our industry being targeted as irresponsible with our waste while CPG companies source TONS of products and packages from overseas, where little environmental and labor regulations exist? In a nut shell: What are the ethics of being “environmentally friendly” in the context of sourcing international manufacturing?

AND enter new research project: I am now going to be researching all that is Chinese manufacturing to come up with an argument that highlights the contradictions between trying to be “green” and sourcing manufacturing overseas.

I sent one of my former professors the following email, which marks the beginning of my research journey:

Hello!

This is Chandler Slavin—I graduate last spring from the Religious Studies Department and took your class on inter-faith engagement (I had the Turkish versus Greek debate) my senior year. Remember?

I hope this email finds you well.

I was wondering if you could help me with something: I work for my family business, which is a domestic manufacturer of plastic packaging for the consumer electronics industry. I am the Sustainability Coordinator, which means I research issues pertaining to sustainability and packaging in order to stay ahead of the curve and market ourselves as a “green” manufacturer. In our industry, there is a lot of concern over the “sustainability” of a product or package and many retailers have invested considerable amounts of time and money into trying to “green up” their image by switching packaging materials, having recycling drop-off centers, and labeling various products as “environmentally friendly.”

Anyway, often times we sell packaging based on discussions of sustainability. However, our biggest competitor isn’t other green plastics manufacturers but Chinese manufacturers, who can sell packages at a much lower cost into our economy, while we are unable to sell our packages into their economy without paying some sort of tax or entering some kind of agreement with the Chinese government.

Our CEO wants me to research this contradiction:

While American product producers are being pressured to green up their products/packages (I have been working on a recycling initiative for months now) or dispose of products/packages responsibly (its called “extended producer responsibility” and CA has some of these laws on the books in regard to managing electronic waste), many American product producers i.e. brand owners, are sourcing the manufacturing of their product and package overseas, where lax environmental regulations and labor laws allow for unsustainable production profiles and cheap products. Basically, when everyone in our industry is obsessing about the sustainability of a package (market research shows that consumers are more likely to buy products labeled as “green”), we are constantly competing with overseas manufacturers, who have absolutely no environmental or social platform in the context of “sustainability.”

Wow, that’s a lot. Because you work on environmental policy I was wondering what you knew about Chinese economic and social development in the context of the environment. If willing, could I come visit you and perhaps you could point me in the right direction? Seriously, any insight you could provide would be very well received. Think of it as the ethics of green marketing vs. overseas manufacturing…sounds intriguing, no?

Thanks for your time!

Best,

Chandler Slavin

Tune in tomorrow for more goodness!

Happy Monday Funday! I hope the weather is as beautiful for you as it is for me—sunny and 70, what more can a girl ask for?

SO where were we…that’s right, recapping the SPC spring meeting.

Oh, before I forget, there was one more thing I wanted to tell you about the Walmart Expo.

Prior to the Expo, in preparation for the Walmart SVN meeting (Sustainable Value Network), we were asked to do a little homework: this entailed going to a local Walmart and finding a package that needed a “sustainability makeover.” We were supposed to fill out a “packaging opportunities template,” which basically inquired into how one would redesign the package to increase its environmental profile while saving costs. This is what our team came up with:

PackagingOpportunitiesTemplate, FINAL

We decided to pick on a thermoformed package because we are thermoformers, although this one looks as though it was manufactured overseas, due to the perimeter sealing. Therefore, it’s not like we would be able to steal the business…I wonder what the sustainability profile is of an overseas manufacturer versus a domestic supplier…Ha!

Anywhoozy, it turns out that during the SVN meeting several of these “packaging opportunities” were to be presented to the entire conference—and guess what—I was one of the lucky four selected to present.

Basically I suggested that the package be right-sized and thermoformed out of RPET instead of PVC. The panel then inquired into how I would convey the same marketing presence with a reduced package AND prevent against pilferage. I was stumped. Perhaps include a recyclable paperboard backing, I offered? That totally stunk, however, because it suggested that paperboard is more “sustainable” than plastic, which I would not argue having performed extensive research on the topic. AND, according to the recent E.P.A. reports, the paperboard used in clamshell alternatives (labeled “other paperboard packaging” in the MSW report) HAS NO RECOVERY DATA—literally it is listed as neg., which means negligent. I wish I had known this during my presentation as it would have served our industry well. Rats!

Visit http://www.epa.gov/epawaste/nonhaz/municipal/pubs/msw2008data.pdf to see the break down of what is recycled and what is not in the paper world.

I guess my obsession with the recycle-ability of paperboard versus thermoforms can be summed up as follows:

I am at the Walmart Expo, working the booth. A prospect comes by, with whom I have had casual conversation in the past. Having seen his product at a competitor’s booth, I hassle him saying, “I saw your thermoformed trays at our competitor’s booth…and here you have been blowing me off all year…not very nice!” And he responds with, “we are getting out of thermoformed trays because they are not recycled.”

UG! What do you say to that? Prior to knowing that paperboard, which would be the alternative used for his packaging application, has no data for recovery post-consumer according to the E.P.A., I assumed that it was the more sustainable material because of its end-of-life recovery. But now that I know that in most cases, both thermoformed trays AND paperboard trays end up in landfills, I should have articulated a better argument for why thermoformed trays are still a wonderful packaging option.

It’s like when you have some kind of social confrontation and find yourself tongue-tied only to later come up with the best “come-back” ever! That’s what this was like; I needed a good come back, both for the “packaging opportunities” presentation and the fellow who thinks paperboard is better due to its end of life recovery. Next time…

A couple other points about the Walmart Expo:

As discussed in a previous post, the Walmart Scorecard has a “transport module,” which takes into account the inputs/outputs of shipping a package from the point of conversion/manufacture to the point of fulfillment. Supposedly the filled packages’ journey to the point of purchase is covered in another metric…

Anyway, I asked if the scorecard takes into account/intends to take into account the environmental ramifications of overseas manufacturers versus domestic manufactures. After all, long before my appointment at Dordan, we lost business to China because of the super duper low prices of labor and therefore commodities. And considering all this sustainability jazz, one would think that sourcing domestically would have some kind of impact on ones Score (think shipping, environmental regulations, labor regulations, etc. in China versus the States)…unfortunately, that is not the case. According to a member of the SVN, Walmart considered having a “point of origin” metric but determined that it was unquantifiable and would not resonate with their suppliers. Go figure!

A SVN member then articulated the following inquiry, which tickled me pink: Is the Scorecard going to take into account the inks, laminates, and sealants used on paperboard packaging? The member who voiced this inquiry qualified this question with some data, specifically, that even the tiny amounts of hazardous material in these various substances can have a high toxicity on the social and environmental environments.

This inquiry was answered as follows: Again, they considered adding this metric into the Scorecard but did not because they didn’t believe that these factors had a large enough effect on the overall “environmental profile” of a package. Supposedly, if we prove otherwise, they will consider adding this metric into the scorecard…

Lastly, Walmart is rolling out their Scorecard to other countries. I asked if each Scorecard used different recovery rates depending on the country it was being utilized for. In other words, Canada has a better recovery rate for most packaging materials that the U.S.; therefore, is their Scorecard going to use Canadian recovery data or American? According to the SVN, each Scorecard will be country specific, using recovery data from the country considered.

Wow, another marathon of an email. I’m sorry to keep rambling, I just have so many thoughts! I will continue tomorrow with the SPC recap and quickly move into resuming my clamshell recycling initiative.

Go packaging!