Sustainable Packaging Emerging Materials and Sustainable Alternatives

Mike Bashaw Product Development Manager Veritiv Corporation

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Leading distributor of packaging, printing, and facility supplies in North America 170 distribution centers in the U.S., Canada and Mexico Additional offices and facilities in Europe, South America and Asia More than 9,000 employees and $9 billion annual revenue NYSE: VRTV

Veritiv Design Capabilities

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Material development – Material neutral and offer a variety of materials that are rapidly renewable, recyclable and compostable. Design and engineering – World class, award winning global design teams work seamlessly with engineering teams to develop brand differentiating solutions. On-Site Prototyping - After developing the materials and design of package, we can turn your concept into real samples in the Technology Centers. Quality control testing – Certified test lab completes an extensive evaluation of the packaging to make sure it matches the specs provided. Performance testing – Testing your packaging solution in the ISTA certified testing labs to assure that your package will protect the product throughout the distribution process. Cost structure analysis – Developing new manufacturing processes and technology to continue driving down the price of sustainable packaging. Analyze the current cost structure of your entire supply chain and provide recommendations on how to lower costs and production time.

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Bagasse, wheat straw and bamboo for molded pulp Bagasse paperboard – tree free alternative Alternatives to poly coated paperboard. Veritiv is material neutral.

Technology Development Center Our state-of-the-art Technology Development Center, located in Chandler, AZ, enables Veritiv to bring new packaging technologies to market faster. With a full complement of metrology equipment and manufacturing lines, our expert team can design, prototype, measure and test new packaging innovations unlike any other company. Next generation of molded pulp manufacturing :

Product Solutions: • Molded cushioning • Food service trays • Retail packaging

Sustainable Materials: • Recycled Paperboard • Bagasse • Wheat Straw • Bamboo

Sustainable Packaging – Bagasse for molded pulp and paperboard

Providing a Sustainable Solution • • • •

Turn a waste material into a cash crop for farmers Create sustainable jobs in an innovative renewable economy Help reduce the environmental impact Provides a value added product from a material that was once treated as waste

Sustainable Packaging – Sugar Cane Paperboard

Benefits • • • • • • •

Rapid renewable resource (12-14 months) - Harvested all year Recyclable, just like other papers Compostable – where facilities exist No bleaching chemicals used – uses natural color No wood used (no depletion of forests) Result is a rapid renewable alternative using 100% Sugar Cane Sugar Cane Paper Mill Certifications: – ISO 9001: 2000, Quality Management System – ISO 14001: 2004, Environmental Management System – OHSAS 18001: 2007, Occupational Health and Safety System

• All grades are FDA approved for food contact – 21 CFR 176.170: Contact with Aqueous and Fatty Foods – 21 CFR 176.180: Contact with Dry Foods

Sugar Cane Paperboard Production Process

Sustainable Packaging – Sugar Cane Paperboard

Sugar Cane Paperboard Grades • Earth Pact Natural Base Stock – Hard sized for Extrusion Coating – 12pt to 18pt; uncoated natural cream color both sides

• Earth Pact Natural Uncoated Board – 12pt to 18pt; uncoated natural cream color both sides

• Earth Pact Natural Coated C1S Board – 15pt and 17pt, Coated print side, natural cream color both sides

• Earth Pact White One Side C1S Board – 12pt to 18pt, White print side, natural cream color inside

• Earth Pact Grease Resistant – Kit Level 7 – 12pt to 18pt, uncoated natural cream color both sides All grades are FDA-compliant for contact with most dry, fatty and aqueous foods. Lighter grades are also available.

Barrier alternatives for polycoated board • • • •

Food grade barrier board – Up to Kit level 12 Water resistant coatings Grease resistant coatings Earthshield - Proprietary extrusion coating from Veritiv – Recognized as a recyclable package (using how2recycle.info guidelines) – Repulpable (testing provided by Georgia Tech University) – FDA approved for direct food contact – 40% mineral based content – Offers greater barrier performance and a better sustainable solution than poly coated SBS. – MVTR barrier improvement performance of 30-50% PAPER

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Quantifying sustainability Designing sustainably Life Cycle Analysis Tree Savings using sugar cane Use sustainability to increase market share Educate the consumer on recycling End of life options

Quantifying Sustainability •

Sustainability Department, comprises of LCA experts, compiling detailed Life Cycle Reports on 20 years of data collected through the GaBi database.

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We can provide an unbiased evaluation of the entire life of your packaging from cradle to cradle.

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Provide complete transparency into how your packaging was produced, how it will affect the environment throughout its life, and how proposed modifications can optimize its impact.

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We specifically look at key impact drivers, such as: Sustainable raw material procurement (FSC, SFI, etc.) Sustainable manufacturing methods Engineering optimization Logistics complexity End-of-life scenarios.

Designing Sustainably The environmental impact of making raw materials, whether its refining oil to make plastic or growing fibers to make paper, often accounts for a big part of the product’s overall environmental impact - this is why material selection is so important.

Packaging Material Flows

Raw Material Selection

This diagram reflects the flow of packaging from material sourcing to material recovery.

Life Cycle Analysis Example: Underwear Packaging Paperboard Box with window vs. Polybag with resealable feature Paperboard Package weight

Renewable resources

Plastic X

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Water

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Energy

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GHG

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End of Life Package Cost

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Veritiv can provide Life cycle analysis using GaBi software from PE International

Tree Savings – SBS vs. Sugar Cane Board Customer: Veritiv Sample Cartons

Original: 18pt SBS Materials: 100% Virgin SBS

Redesign: 18pt Coated Sugar Cane Board Materials: 100% Rapid Renewable Fiber

• One ton of coated virgin board uses approximately 16 trees (40ft tall, 6-8” diameter)1 • Package Weight = 14.77 grams • Annual Quantity = 10,000,000 cartons • Annual Tons = 162.89

Annual Tree Savings = 2,606 Trees Roughly 6.5 Football Fields of Trees 2

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Source: Recycled Papers: The Essential Guide (Cambridge, MA: MIT Press, 1992) Norampac EcoCalculator (401 trees per football field)

Sustainable Packaging – Sugar Cane Paperboard

Use sustainability to increase market share

Condiment Packets | Bakery | Candy | Display Trays | Ice Cream Containers | Folding Cartons | Nutraceuticals | Cosmetics

Educate the Consumer on Recycling http://www.how2recycle.info The How2Recycle™ Label is a voluntary, standardized labeling system that clearly communicates recycling instructions to the public. • Reduce confusion by creating a clear and well-understood label • Provide a labeling system that follows Federal Trade Commission Green Guides • Increase the availability and quality of recycled material.

RECYCLE: All food, beverage and other plastics labeled #1 - #7. Rinse and leave screw-on lids on the containers. Snap-on lids (sour cream, cottage cheese, etc.) must be labeled #1 - #7 to be placed in the recycling cart. Pumps from hand soaps and other products should be placed in the garbage. Solid Waste & Recycling Services ©1997-2015 City of Minneapolis, MN

End of Life Options

End of Life Recovery Rates • Paper 71% • Steel 69% • Aluminum 36% • Glass 33% • PET 24% • HDPE 16% • LDPE/LLDPE 12% • PS 4% • PP 2% • PVC 0%

www.epa.gov/osw/nonhaz/municipal/msw99.htm Is there a market for recycling your packaging ?

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