Sustainability and Plastics: Innovation at Dow Performance Plastics Drives Sustainable Solutions Bob Maughon Global R&D Director Performance Plastics and Feedstocks The Dow Chemical Company

Sustainability is Unsustainable?

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http://imgs.xkcd.com/comics/sustainable.png

2

Metaphor for Sustainability

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How about this one?

Is this Cup Sustainable?

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Sustainablity is not an intrinsic property of a material. You cannot know by just looking.

Which is More Sustainable?

Plastic

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Paper

Which is More Sustainable?

10 hours

6

1 mile

Financial Approach to Looking at Benefits

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Why Not the Same Approach for Sustainability?

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9

Sustainability Impact

Sustainability Impact Material

per Capita Consumption

(lb/yr) PET Packaging 17

Petroleum 6619

Natural gas 8037

Coal 6439

Gasoline 2495

Sand and Gravel 13923

Cement 512 Iron ore 340 Salt 403

Beef 54.3

Chicken 55.7

OO

O

O

O

OO

O

OO

PET

data from HIS, 2012 ERS USDA, 2011 National Mining Assoc., World Bank

30%

100% renewable PET (not yet

available) would required ~80 2 L bottles to offset

burning 1 gallon of gasoline or about

400 at todays 30%

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Impact of Food Waste on GHG Emissions

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P E R

F O

R M A

N C E

M A

T E R

I A L

S D

I V I S

I O N

Meat: Product vs. Packaging

Source: Table for One The Energy Cost to Feed One Person, INCPEN

Food Supply62%

Packaging5%

Transportation& Retailing

5%

Home Storage

14%

Home Cooking

14%

104 MJ / person / week energy used to produce and deliver meat and meat products (UK)

5% for primary and secondary packaging (all materials)

Packaging is All Types

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P E R

F O

R M A

N C E

M A

T E R

I A L

S D

I V I S

I O N

Adding Packaging Can Actually Reduce Waste

| Global Sustainability

Source: Ron Cotterman presentation: How Packaging Prevents Waste and Enhances Sustainability, 2011

21 g of packaging protects 3.6 kg of meat.

Bone punctures caused rework and packaging failures. 70% of bone punctures occurred during retail display.

Addition of 25% more packaging (a small patch) reduced damage during retail display by 73%.

Result was a net reduction in total carbon footprint across the supply chain of nearly 6%.

Per 1,000 packages

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14

Food Packaging Impact for Chicken

40 kWh/kg

~22% wasted

Pimentel and Pimentel, 2003

FAO, 2012

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Flexible Packaging Helps Increase Shelf Life

Source: INCPEN

Plastic Packaging vs Alternatives

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Packaging Conversion to a Stand-up Pouch

Package Type Contents

Impact per 100 oz Cereal

Landfill Discard

s* (g)

Process GHG**

(kg CO2 Eq)

Total Energy**

(MJ)

Paperboard and HDPE Liner

11 oz 380.0 .861 12.1

Stand-Up Pouch 12 oz 117.5 .265 9.25

Reduction vs Box

Landfill Discards 68%

GHG 69% Energy 23%

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Rigid to Flexible Packaging Conversions

Reduction vs Rigid Packaging Alternative

Landfill Discards 50%

Plastic Used 60%

GHG 70%

Energy 50%

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See more details at: http://www.kraftyespack.com/full/sustainability.aspx#

PE Strong Geographic Market Growth

0

2

4 6

8

10 12

14 16

18

20 22

24

26 28

30

32 34

36

38 40

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

India Africa

SE Asia

China ME

Japan

W. Eur

NAA

11.2 kg per person

2012

P

E D

eman

d pe

r C

apit

a

(kg

per

pers

on)

Population (mill ions)

4.5 kg per person India, Africa & SE Asia

32.6 kg per person US/Can & W. Europe

2000

2005

2000

2005 2000 2005

2010

2010 2010

LAA E. Eur

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Global PE Consumption Per Capita

Source: Dow, IHS

Global trends support continued growth for packaging Opportunity to differentiate and enhance consumer benefits with plastic

packaging Flexible plastic packaging provides functionality and an excellent

sustainability position

2012 Global Packaging Market ($698B)

Source: Vision Gain Market Research

0%

1%

2%

3%

4%

5%

6%

Rigid Plastic Packaging

Flexible Plastic Packaging

Flexible Foil Packaging

Flexible Paper Packaging

Board Metal & Glass

Growth Forecasts for Packaging Materials, 2011-2016

3.3% Projected Global GDP

Plastic Packaging Is Rapidly Growing

Source: PIRA-2011 figures shown with AAGR

Packaging Market Trends

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Transportation

Dow Performance Plastics Competitive Advantage

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Brand Recognition for High Performance from Differentiated Technology: LLDPE, HDPE, LDPE, Elastomers, EVA, Acrylic Binders, Adhesives,

Barrier Films, Fibers, Sealants, Tie Layers, Formulated Products

Packaging Hygiene & Medical

Consumer Durables

Infrastructure & Construction

Advantaged Business Model

Growth Markets Value Technology-driven Solutions

Strategic Advantage

Industry Leading Brands

Strong Technology

Portfolio

Attractive Markets

Broad portfolio of resin

technologies that enhance

packaging functionality and

deliver sustainability

benefits

Secondary and Tertiary

Packaging Adhesives Flexible Food Packaging

Rigid Packaging

Resin technologies for improved performance

and light-weighting

(Stretch Film, Shrink Film,

Stretch Hood)

Growth portfolio of innovative

packaging and laminating adhesives

Resin technologies that enable

light-weighting without

compromising organoleptics

(Caps & Closures, Food

& Beverage Applications)

Dow Focused Across Packaging Applications

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P E R

F O

R M A

N C E

M A

T E R

I A L

S D

I V I S

I O N

The Plastic Packaging Lifecycle

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Resources or

Footprint

Performance or

Value

Dow Performance Plastics Sustainability Focus

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Improving our production footprint

Replacing alternatives with larger footprints

Developing new materials with enhanced performance

Enabling recycling opportunities

Providing advantages in use for customers / consumers

Catalysis Improves Process Sustainability

Increasing Thermal Stability and Efficiency

Polyethylene: Higher Efficiency and Plant Throughput Through Improved Catalyst Design

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Downgauging Enabled for HDSS and Stretch Film

Industrial Sacks Pallet Stretch Film 26

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Enhanced Stretch Film Performance

Conventional Film (23)

Dow Solution (12)

Real Case after 16 hours Lean testing

FILM Conventional

Downgauged Dow solution 20% thickness reduction = 25% more product packaged with the same amount of film

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High Performance Collation Shrink Films

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High Performance Polyethylene Sealants

Dow Foamed Film Solutions

DOW RESTRICTED 30

Polyethylene Stand-up Pouch

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PacXPERT Flexible Packaging Solution

Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow

Designing Resins to Meet Customer Needs

Molecular Design What Our Customers Want

Average Molecular

Weight

Molecular Weight

Distribution

Density

Short Chain Branching

Distribution

Long Chain Branching

Resins that are:

Lighter

Faster

Cleaner

Aesthetically Appealing

Delivers Functionality

(Barrier, Reclose,

Scavenging)

What We Control

Monomer / Chemistry Used

Process Technology

Catalyst Used

Reactor Conditions

Comonomer

Additives

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Key Capabilities from Discovery to Development

Proven Discovery, Development and Implementation

Drive Speed to Market

Scale Up and Development

Discovery High Throughput Research

Pilot Plant Capability

Global Technology Implementation

Design the Polymer Molecule

Product Prototyping Commercial Scale Testing

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Computer modeling

Blown Film:

7 layer coex line

5 layer coex line

2 x mono lines

Adhesive Lamination

Sensory Science Lab

Analytical Capabilities

Physical Testing Lab

Vertical Form/Fill/Seal (VFFS)

Packaging Innovation Centers (Pack Studios)

Multivac Horizontal Form/Fill/Seal (HFFS)

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Value Chain Collaboration on Packaging Design

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Development Commercialization

Material Science

Process Research

Catalyst Research

Application Development

Research Development Commercialization

Market Driven Innovation Model

Global Customer Centers

Shanghai Freeport Horgen Jundiai

Converter

Supplier/Equipment Manufacturer

Brand Owner

Retailer

An average of 40 new products are launched globally each quarter driven by innovations in packaging

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A Proven Track Record of Innovation

40s-50s 60s-70s 90s 2000s 80s 10s

2014

38 Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow

Investments Enable Accelerated Global Growth

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USGC Investments

Performance Packaging Markets

1535 kta

Sadara Performance Packaging and

Performance Materials Markets 1300 kta

Creating the Foundation for Global Growth for Years to Come

Investment Startup

St. Charles Ethylene Restart 2012

Louisiana Ethane Flexibility 2015

PDH Propylene 2015

USGC Ethylene & Performance Plastics Units 2017

Sadara 2015-2016

Reduces material use 2 lbs of plastic deliver the same amount of liquid as 3 lbs of aluminum, 8 lbs of steel, or 27 lbs of glass.

Saves energy One truck of empty flexible packaging replaces 25 trucks carrying cans for the same amount of food.

Reduces emissions Organic waste in landfills emits methane: a GHG with 23 times more global warming potential than CO2 and plastic packaging helps keep food out of the landfill.

Saves resources By preventing food from spoiling and protecting consumer goods from damage during distribution.

Reusable resource Can be recycled to polymer or for energy at the end of its initial life.

The Benefits of Plastic Packaging

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Thank You

Sustainability and Plastics:Innovation at Dow Performance Plastics Drives Sustainable SolutionsBob MaughonGlobal R&D DirectorPerformance Plastics and FeedstocksThe Dow Chemical CompanySustainability is Unsustainable?Metaphor for SustainabilityIs this Cup Sustainable?Which is More Sustainable?Which is More Sustainable?Financial Approach to Looking at BenefitsWhy Not the Same Approach for Sustainability?Slide Number 9Sustainability ImpactImpact of Food Waste on GHG EmissionsMeat: Product vs. PackagingAdding Packaging Can Actually Reduce WasteSlide Number 14Flexible Packaging Helps Increase Shelf LifePlastic Packaging vs Alternatives Packaging Conversion to a Stand-up PouchRigid to Flexible Packaging ConversionsSlide Number 19Packaging Market TrendsSlide Number 21Dow Focused Across Packaging ApplicationsThe Plastic Packaging LifecycleDow Performance Plastics Sustainability FocusCatalysis Improves Process SustainabilityDowngauging Enabled for HDSS and Stretch FilmEnhanced Stretch Film Performance Slide Number 28High Performance Polyethylene Sealants Dow Foamed Film SolutionsPolyethylene Stand-up PouchPacXPERT Flexible Packaging SolutionDesigning Resins to Meet Customer NeedsKey Capabilities from Discovery to DevelopmentPackaging Innovation Centers (Pack Studios)Value Chain Collaboration on Packaging DesignMarket Driven Innovation ModelA Proven Track Record of InnovationInvestments Enable Accelerated Global GrowthThe Benefits of Plastic PackagingSlide Number 41