Resource Scarcity Is An Undeniable Issue With Real Implications for Business

Did You Know?

Fossil fuels, including oil and natural gas, are predicted to run out in the next 30 - 70 years, depending on consumption rates.

Source: “What Is Renewability In Packaging and Why Should We Care?” http://f9e0dfa8cad947a5e53c-bf2639f3dc0fdb0366ce44291f9e8418.r68.cf2.rackcdn.com/What-Is-Renewablity-In-Packaging-and-Why-Should-We-Care.pdf

As a whole, humanity extracted resources more than 52 percent faster than they could be regenerated.

Source: The Carbon Trust http://www.carbontrust.com/news/2013/03/how-businesses-are-sleepwalking-into-a-resource-crunch

If people cannot change their behavior by 2030, even two planets won't be enough to support modern society.

Source: WWF http://internationalpresentationassociation.org/2012/05/report-over-consumption-threatening-earth/

51 percent of business executives and thought leaders think core business objectives will be affected by natural resource scarcity in 3-5 years.

Source: Ernst & Young LLP http://www.ey.com/US/en/Newsroom/News-releases/Companies-recognizing-sustainability-related-risk

75 percent of American adults reported that they purchased “green” products or services within the last year.

Source: MeadWestvaco (MWV): http://newsroom.mwv.com/press-release/corporate/consumption-compact-opportunity-brands

56 percent of millennials are willing to pay more for sustainable products.

Source: Tork/Harris Interactive http://www.torkusa.com/Resources/news/News/2014-Tork-Green-Business-Survey-US/

42 percent of consumers believe brands and manufacturers are most responsible for sustainability.

Source: MeadWestvaco (MWV): http://newsroom.mwv.com/press-release/corporate/consumption-compact-opportunity-brands

37 percent of consumersregularly check forenvironmental logoson food packaging.

Source: Tetra Pak http://www.tetrapak.com/documentbank/Environmental_Trends.pdf

77 60M

177% 51%

Access to carton recycling is on the rise in the US

77 of the top 100 US cities have access to carton recycling

60 Million Households in 8,422 communities can recycle cartons

177% increase in access since 2009

51% of households have access to carton recycling

HOW CARTONS ARE RECYCLED

Cartons are mainly made from a renewable resource, paperboard, from selectively harvested, regrown trees. Then they are filled with food and beverage products like orange juice, milk or broth and shipped to retail stores.

Once the product is consumed, the carton is placed in a recycling bin or cart.

A collection truck takes the cartons, along with other recyclables, to a local recycling facility for sorting and baling.

Cartons are then sorted from other materials and separated, then baled for shipping to a paper mill.

At a paper mill, fiber from cartons is extracted and made into pulp by mixing the cartons with water in a machine called a “hydrapulper.”

Cartons and the materials om cartons, can be made into paper products (paper towel, tissue and other) or green building materials ceiling tiles and backerboard.

The Originsof Cartons

1 2 3 4 5 6At Home Collection Sorting

and BalingPulping Recycling

Used cartons are not waste �

They are a valuable raw material for new products

equals 11 billion cereal boxes

equals 1 billion plastic pens

equals 12 million bicycle frames

Paper

Plastic

Aluminum

Our used cartons make a difference

Lots of new products were made from the 39 billion cartons recycled globally in 2012!

Recycle

Moving to the front

The Packaging Life Cycle

But We Must Move Beyond Current Practices

Recycling Alone Is Not Enough To Achieve Genuine Sustainability

If we expand attention to the front end of the packaging lifecycle, we will achieve bigger wins for business and the planet.

Source: Tetra Pak http://www.tetrapak.com/documentbank/Environmental_Trends.pdf

Food industry stakeholders rank bio-based materials as one of most important environmental trends in packaging today.

2013 32 billion packages FSC certified in 53 countries 41% of paperboard certified by FSC

2014 100% of packages from responsibly managed sources

Tetra Pak’s CommitmentSustainable Sourcing and Renewable Resources

2013 1.1 billion packages made with bio based polymer caps

2014 Bio based LDPE for package layers in Brazil

Long-term ambitions100% renewable materials�from responsibly managed sources

Source: McKinsey http://www.mckinsey.com/insights/manufacturing/how_much_will_consumers_pay_to_go_green

Upward of 70 percent of consumers would pay an additional 5 percent for a green product if it met the same performance standards as a non-green alternative.

70%

SALES

Not Just RhetoricUse of renewables: a competitive advantage

Long term business growth: secured long term supply of resources, retailer pressure, consumer demand

Better risk management: more reliable supply chain with less business disruption around supply of resources, better ability to manage costs and experience less price volatility.

Brand equity and Reputation: ability to make an emotional connection with consumers as the awareness around resource scarcity grows; ability to meet climate change goals

12

3

Renewable resources contribute to low carbon footprintBoard is ~74% of weight but only 20% of carbon emission contribution

Base materials in Tetra Pak cartons

Gre

en

ho

use

gas

em

issi

on

s(C

O2 e

qu

ivale

nts

)

As Renewables Go Up, Carbon Emissions Go Down

HeliCap 27 - green option

Overcapmadeof HDPE

Green HDPE share 44% of total closure�Renewable share +7 % pts.*CO2 cap only - 19 % pts. *CO2 full package - 2.1 % pts.

Overcapmadeof HDPE

DreamCap 26 – green option

*Based on internal Tetra Pak packaging material assessment (for Tetra Prisma Aseptic 1000ml using /jll PoB).

Green HDPE share 40% of total closure�Renewable share +7 % pts.*CO2 cap only - 17 % pts. *CO2 full package - 3.9 % pts.

*Based on internal Tetra Pak packaging material assessment.