De-Junking Our World with Tom Szaky

Transportation Coordinator (TC) Webinar

April 22, 2020

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Tech Tips

2

Overview

• Welcome and Introductions

• Tom Szaky: Eliminating the Idea of Waste

• Good News You Can Use

Meet Our Guest Speaker

Tom SzakyFounder & CEO

TerraCycle, Loop

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ELIMINATINGTHE IDEA OF WASTE

Make it Recyclable

Make it from Recycled Materials

Make it Reusable

Innovate with Waste

6

TerraCycle For-Profit

TERRACYCLE IS A GLOBAL LEADERTerraCycle manages a range of platforms across 20 countries. Our newest initiative Loop is expanding across a growing number of cities worldwide.

Legend TerraCycle Non-Profit Markets =

…and now a bit of context

the founding moment

CLICK TO EDIT MASTER TITLE STYLE

the raw material

Photo of gin

worm poop production line

1212

The original TerraCycle HQ Building

1313

Extract Waste

The Linear Economy

Product

Product

Make it Recyclable

Extract

Recycling

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The Economic Equation of Recycling

COST OF

LOGISTICS

COST OF

PROCESSINGMATERIAL

VALUE RECYCLABLE<

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WHAT DETERMINES RECYCLABILITY Virtually everything has a technical processing solution; the key question to recyclability is whether consumers have practical access to a local recycling solution.

SOMEWHAT RECYCLABLE

Aluminum

Polypropylene

Flexible Plastic Packaging

Uncoated Paper

PET

HDPE

Beauty Products

LOCALLY RECYCLABLE

Cigarette Butts

Glass

Complex Closures

NOT LOCALLY RECYCLABLE

Aerosol Canisters

(limited geographic access or restrictions around recycling)

Blister Packs

logistics processing value recyclable logistics processing value non recyclable

A complimentary copy of The Future of Packaging (that further explains the concept of technical recyclability vs.

practical recyclability) is available upon request.

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HOW TO CREATE ROI

BY RECYCLING THE NON-RECYCLABLE

TerraCycle determines the

logistics model that best fits

a client’s needs, including

collection mechanic,

incentive structure and the

movement of material for

recycling.

Collection

ProcessingValue

TerraCycle’s in-house

technical teams develop

the science and

technology to recycle the

waste and works with

established strategic

vendors to process the

material into a new raw

format.

TerraCycle sells the

resulting recycled material

to companies who use

the material in new

products. The resulting

value acts as a subsidy.

<$ ROI

AR

RO

WS IN

DIC

ATE

RA

NG

E O

F D

RIV

ING

CO

ST

EFFI

CIE

NC

IES

Return on

InvestmentRendering your waste

recyclable unlocks a

multitude of

opportunities to drive

marketing, sales,

communications and

other business ROI, such

as driving positive brand

perception and PR,

increased sales lifts at

retail through

incremental display,

and more.

(see side 9)

Everything can go circular

USA TerraCycle Office (Trenton, NJ)

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Upcycling Has Promotional ValueStephen Colbert rocking Doritos Upcycled Jacket by TerraCycle.

TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766.

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CASE STUDY: CLOSED LOOP APPLICATION

Side Wall

TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766.

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TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766.

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35

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Diaper recycling in Amsterdam

TerraCycle ®, the TerraCycle Logo ®, and Brigade® are all Trademarks of TerraCycle Inc. used under license, www.terracycle.com, Toll-free 866.967.6766.

39

*Online Placements Only –

Valuation provided by M)eltwater News

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41

42

Product

Make it Recyclable

Extract

Recycling

RecyclingRecycled

ProductExtract

Make it from Recycled Materials

New Product Manufacturing

46

CASE STUDY: P&G LEVERAGES BEACH

PLASTIC

48

49

50

RecyclingRecycled

ProductExtract

Make it from Recycled Materials

New Product Manufacturing

Make it Reusable

Product

53

HIGHLY CONFIDENTIAL – MANUFACTURER OVERVIEW

Loop is a global platform that enables consumer product

companies and retailers to shift from a disposable supply

chain to a durable one.

WISDOM FROM THE PASTRefillable durable packaging used to be the norm.

When a package is considered an asset its allocation per fill is the cost divided by the number of uses it can bear. The more

durable the package the lower the cost

per fill.

ASSET

THE CURRENT REALITYDisposability is cheap and convenient.

COGS

When a package is considered a COGS (Cost of Goods Sold) its cost is fully allocated per fill. The cheaper the package the lower

the cost per fill.

Glass (Reuse) Aluminum PET Bottle Cartons Pouches

Recycle Rate & Consumer Delight Degradation

% R

ec

yc

led

(U

S D

ata

)

0%

89%

Manufacturers reduce the weight of their packaging to save on costs

and minimize environmental impact. In the process, recycling rates and

consumer delight have deteriorated.

How do we solve the unintended consequences of

disposability while maintaining its virtues?

Loop fundamentally changes the ownership of packaging.

$0.10

Packaging cost

Increasing consumer delightCOGS to Brand Asset to Brand

Cost per use

$0.10

$3.00

$0.03+ cost of cleaning

1 use 100+ uses

Durability enables

reusability, design & new features.

Add clorox

ADD COKE AND/OR EVIAN

ADD COKE AND/OR EVIAN

A

MOVING FROM SINGLE TO MULTI-USE PACKAGING

Step 1: From Single Use To Reuse

Loop works with brands and helps them move

from single use to reusable packaging

Step 2: Distribution of Reusable Products

Loop works with our brand partners to distribute their

new product via Loop retailer partners and/or DTC

Step 2

Distribution

Step 1

Design

SINGLE USE

REUSEABLE

see next slide

DISTRIBUTION CHANNELS FOR LOOP PRODUCTS

Once brands have created their Loop packaging, there are several

distribution options available

Loop Stand-Alone Distribution

Brands automatically have the option to sell on Loop’s own

e-commerce site. The Loop stand-alone sites (always 1x per country)

are suitable as a low-volume test-and-learn platform

Integrated Retail Distribution

Integrated retail distribution provides brands with a scalable sales channel

through Loop retail partners’ e-commerce and/or in-store platforms

and many

more …

Brand DTC Distribution

Brand DTC models provide brands the opportunity to sell their Loop products

directly in their own stores or through their own e-commerce sites.

Brande-commerce

Retailer e-commerce

LOOP OPERATIONAL MODEL

Brand

consumer

retailer$Y

Brand sells Loop product to retailer

content [$X] and deposit [$Y].

Product Cost Structure

$X Wholesale for Content

$Y Deposit for Bottle

Consumer enjoys productand returns empty container to

Loop via retailer.

Loop pays [$Y] to consumer

Loop DC receives, checks in, stores and cleans empty packaging.

[$Y] is charged to brand upon Loop receiving package.

Loop ships clean packaging to brand to be refilled and re-sold.

Brand pays Loop’s cost of operational services to check in, store and clean

(transparent cost + 25% margin)

Retailer sells product to consumer their digital and physical stores.

Consumer pays content [$X + margin] and deposit [$Y].

$X $X(+margin)

$Y

$Y$Y

$X(+margin)

LOOPSTORE.com

US - range

Carrefour will be launching an integrated retail

distribution model via their e-commerce platform during

the spring of 2020. Later in 2020, Carrefour will also begin

to offer Loop products on-shelf in select Carrefour stores.

Kroger is launching an in-store integrated

retail distribution model in 29 stores in the

Portland area in Q4 2020. Kroger will

launch this model under the Fred Meyers

banner allowing consumers to buy their

Loop products directly in-store.

Early in-store vision

MAKING REUSE FEEL LIKE DISPOSABILITY Loop is creating a network featuring retailers, fast food restaurants, courier locations,

municipalities, commercial spaces, etc. making reusability as convenient as disposability.

or

Buy Your Products at your favorite retailer

and return anywhere!

Municipal Bins

Fast Food Restaurants

Retailer Out-Of-Store Bins

Commercial Spaces

Retailer In-storeBins

DHL / CourierLocations

Good News You Can Use

Valley Bike Month Rolls On

• ShareTheRide.com has free contests for bicyclists –ALL bike trips count!

• ShareTheRide’s Commuter Challenge competition is heating up!

• Request Valley Bike Month t-shirts for your employees who ride.

Design by Jon Arvizu.

Model: Angie Wilkie, Valley

Metro Commute Solutions

Earth Day Goes Digital

• Keep Phoenix Beautifulprovides tools to empower communities and improve overall quality of life.

• Check out Earth Day Phoenix – Digital Editionand find “green” Arizona businesses.

Showing Gratitude

• Valley Metro is proud to join cities and organizations across Arizona to #LightAZBlue in support of healthcare workers & first responders, and our own fron line transit system operators and maintainers.

• Tempe Town Lake light rail bridge will continue to shine blue throughout this dark time.

ShareTheRide Reboot

• After decades with the same vendor, we’re launching a new version of ShareTheRide.comthis summer

• Enhanced features, easier use, smarter mobile app

• Hear ShareTheRide Success Stories or sign up to learn more about a custom sub-site for your organization

Support Local – Safely

Local First Arizona helps you support local firms.

• Explore carry out, curbside pick up, gift cards and more.

• Learn about small businesses resources.

Tempe Boosts Biz

The City of Tempe invested $25K to support local shops and restaurants during the pandemic.

• The business gets cash immediately; voucher can be used now or later.

• Interested retailers can sign up online.

People Shine

• Check out these uplifting scenes of coronavirus solidarity around the world

• Little free librariesprovide food, supplies during pandemic

• Phoenix neighbors send positive vibes with chalk

• De-Junking Our World with Tom Szaky

• Good News You Can Use

• Upcoming webinars

• May 27, 10 a.m. – TRP Record Keeping and Communication

• June 24, 10 a.m. – Bus Rapid Transit Overview

• July 22, 10 a.m. – Winning Strategies for Clean Air Campaign Award

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