Transcript Slide 1

Introducing
Evolving to Recycling 2.0
September 12, 2014
CONFIDENTIAL
What makes something recyclable?
Collection
Pros
1. Single stream allows for
broader collection and more
types of materials collected
(pro and con)
2. It increases recycling
volumes collected
3. It allows for collection
efficiencies
Cons
It is wet, dirty and contains
broken glass
Flatten materials get mis-sorted
Marketing
Processing
1. Requires technology and
labor.
2. Films plastic collected in
curbside programs have no
markets due to moisture
and dirt from collection and
processing
3. Wet material and food
impede recycling,
contaminating other
material.
©2014 Waste Management
1. Markets are global
2. WM exports 33% of our
material – mostly paper,
some PET, HDPE and some
3-7 plastics.
3. There is a robust market for
clean and dry film plastics
collected in take-back
programs. None for film
collected at curbside.
4. Volume plus value = markets
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The Recycling World Has Changed
And continues to evolve—we need to keep up!
•The material we use daily has evolved tremendously
The evolving ton •We use less paper (50% reduction in newspaper readership), more
plastic and there is no growth in metal
Single-stream
recycling
•Enables us to put all recyclables in one, convenient
cart. Flip side is that it invites materials that aren’t
recyclable
•When in doubt, ~25% of people put something in
recycle bin anyway
Packaging
•Food and other product packaging is
constantly changing, and often made
of so many different materials whose
recyclability varies
•Further compounding
confusion about what
Recycling
programs vary by is recyclable from Area
to Area—internally and
region
for our customers
© Waste Management
Page 3
Changing Materials Stream
The Shrinking Newspaper
• This is a reduction of
50% over eight years
North American shipments of
newspaper in millions of
metric tons:
15.8
12.7
2000
2005
7.8
7.3
6.7
6.4
2010
2011
2012
2013
• The crunch created by
high export demand,
changing consumer
practices and a crushing
recession has been
toughest on the
domestic paper industry
Courtesy: Resource Recycling Magazine
©Waste Management
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Changing Materials Stream
The Evolving Package
• Light-weighting & increasing recycled content
• Projected increase in film packaging
• Flexible packaging expected to grow 3.5% annually in the
next few years
Glass jars, metal cap
to PET jar, PP cap
HDPE Bottle, PP Cap
to multi-layer,
flexible film pouch
*Courtesy: Flexible Packaging Institute
©Waste Management
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Changing Materials Stream
Lighter plastics
• At the same time that paper grades have changed, plastics
volumes are increasing
• Use of single serve containers and plastic packaging is up.
• Plastic bottles have “light weighted” – water bottles take up
the same space (volume) but weigh 25% less.
• Non-carbonated bottles can be thinner which means that we
have to spend more money to process more of them to get to a
tons of bottles.
The changing waste stream means that we process more
volume with less weight which leads to higher processing
costs.
©Waste Management
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Changing Materials Stream
The Increase in Non-Recyclables
• Non-recyclables in loads is on
average 16% of inbound tons
and increasing.
• Non-recyclables can be up to
50% of incoming loads
• Non-recyclables cost an average
of $140 per ton
• Markets are demanding reduced
contamination (Green Fence)
• Processing costs have increased
by 20% in two years, which is
driving up cost to customers
©Waste Management
800,000
Contamination%
18.0%
16.0%
700,000
14.0%
600,000
12.0%
500,000
10.0%
400,000
8.0%
300,000
6.0%
200,000
4.0%
100,000
2.0%
-
0.0%
Inbound Tons
Residue %
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Changing Markets
Operation Green Fence
• Started in February 2013
• Part of overall effort to reduce pollution in China
• Enforces existing regulations
• New Chinese government policy to vigorously inspect imports
at customs as part of their
• Targeted materials include paper and mixed, low grade
plastics
Changing Markets
Expected Long-Term Impacts of Operation
Green Fence
• PET and HDPE plastics have sufficient markets and are not impacted
by OGF
• Historically, the only market for mixed & low-grade plastics (No. 3-7,
films, Mixed Rigids, ABS) has been China. We hope domestic markets
will respond and develop for these materials.
• MRFs are increasing their processing to reduce the amount of nonrecyclable plastics and other prohibitives.
• Many of these materials are part of curbside recycling programs
across the U.S.
• Attention is focused on quality and pricing of these materials
The Simple Math
Increased Processing
Costs
• Decreased quality (due to
single-stream, confusion)
• Decrease in traditional
recyclables (like fiber)
• Constricted Markets
• Regulation on bale quality
due to OGF
• More non-recyclables
• Lighter recyclables
• More marginal recyclables
Decreased Revenue
Opportunities
©Waste Management
Page 10
Recycling is a Global Issue
Other independent groups are working to solve same matter
• SWANA
• Manufacturers
• Large CPG companies
• EPA
• We have the
opportunity to be
trend-setters and
leaders
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How is this effecting customers?
• Consumers are confused about what is
recyclable. While only 20% of participants
admitted they weren’t always sure of what to
recycle, up to 65% of participants improperly
placed non-recyclable items in the recycling in
practice.
• Consumers can recycle more. Only 9% of the
total plastic waste generated in 2012 was
recovered for recycling. 55% of aluminum beer
and soft drink containers generated were
recycled
• Messages need to be simple and targeted for
change behavior
©Waste Management
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What is acceptable Single Stream?
Our Residential Single Stream concept simplifies recycling by allowing participants to
place all acceptable recyclables into a single container for subsequent collection and
processing, eliminating dual pick-ups and increasing recycling percentages by 30%.
Commingled is not accepted in plastic bags. Newspapers should not be bundled or
tied. Bottle caps and jar lids are not accepted and should be removed and placed in
trash.
Acceptable Single Stream Materials are as follows:
Fiber
 Old Corrugated Cardboard,
 Newspapers Mixed Papers including: Mail Catalogs, Magazines, Copier paper, Printer paper, All other office
paper
Commingled Containers
 Aluminum Food and Used Beverage Containers (emptied/containing no residue)
 Ferrous Cans (tin, iron, steel)
 Plastic Containers as follows:
• PET plastic containers where the neck is smaller than the base of the container
• HDPE natural plastic containers (milk, iced tea containers, etc.) where the neck is smaller than the base
of the container
• HDPE pigmented plastic containers (detergent, shampoo bottles, etc.) where the neck is smaller than
the base of the container
• Glass bottles and jars
Month XX, 20XX
©20XX Waste Management
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What items are not acceptable in your streams?
The items listed below may either cause injury to our employees, damage to our
recycling equipment, create processing issues, and or have a negative impact the
environment if not handled correctly.
 Commercial or Bulk Household Wastes (including bulk paper rolls, plastic strapping, wood pallets,
string, rope, wire, coat hangers, construction materials (i.e. sheetrock, stone..etc.), bulk metals, mirrors,
windows or auto glass, porcelain, ceramics, glass cook/bake ware)
 Plastic Wrap/Film Plastics/Cellophane/Aluminum foil/ aluminum foil products
 Plastic/trash bags (Note: All attempts should be made by sales team to have materials delivered
loose, hence eliminating usage of bags)
 Food Products/Organics Wastes
 Wood, Trees, Leaves, Brush, Other Yard Wastes
 Kitchen/Restroom Wastes (paper/foam plates, paper/foam cups, tissues, paper towels)
 CFC Containing Appliances (refrigerators, air conditioners)
 Special Wastes (Light bulbs, Batteries, All Electronic Scrap, ink cartridges)
 Prohibited Wastes (car/truck tires, radioactive, volatile, corrosive, flammable, explosive, biomedical,
infectious, bio-hazardous, regulated medical or hazardous waste, toxic substance or material, as defined
by, characterized or listed under applicable federal, state, or local laws or regulations, or other waste not
approved by WM.
Month XX, 20XX
©20XX Waste Management
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Impacts of Non-Recyclables at MRF
Month XX, 20XX
©20XX Waste Management
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What items are not acceptable in your streams?
Yard/string
E-Scrap
Month XX, 20XX
©20XX Waste Management
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Questions?
Month XX, 20XX
©20XX Waste Management
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