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?

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

22

Metaphor for Sustainability

Is this Cup Sustainable?

Sustainablity is not an intrinsic property of a material.

You cannot know by just looking.

How about this one?

4

Which is More Sustainable?

Plastic

Paper
5

Which is More Sustainable?

10 hours

1 mile

Financial Approach to Looking at Benefits

Why Not the Same Approach for Sustainability?

Sustainability Impact

Sustainability Impact
PET
Packaging

17

Petroleum

6619

Natural gas

8037

Coal

6439

Gasoline

2495

Sand and
Gravel

13923

O
O

30%

PET

Material

per Capita
Consumption
(lb/yr)

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%

Cement

512

Iron ore

340

Salt

403

Beef

54.3

Chicken

55.7

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

10

Impact of Food Waste on GHG Emissions

11

PERFORMANCE MATERIALS DIVISION

Meat: Product vs. Packaging

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
Home
Cooking
Home14%

Storage
14%
Transportation
& Retailing
5%

Packaging
5%

Food Supply
62%

Source: Table for One The Energy Cost to Feed One Person, INCPEN
12

PERFORMANCE MATERIALS DIVISION

Adding Packaging Can Actually Reduce Waste

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.

Per 1,000 packages

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%.
Source: Ron Cotterman presentation: How Packaging
Prevents Waste and Enhances Sustainability, 2011
13

| Global Sustainability

Food Packaging Impact for Chicken

40 kWh/kg
~22% wasted
Pimentel and Pimentel, 2003
FAO, 2012
14

Flexible Packaging Helps Increase Shelf Life

Source: INCPEN

15

Plastic Packaging vs Alternatives

16

Packaging Conversion to a Stand-up Pouch

Impact per 100 oz Cereal

Package
Type

Contents

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%

See more details at:

http://www.kraftyespack.com/full/sustainability.aspx#

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PE Strong Geographic Market Growth

40

Global PE Consumption Per Capita

38
36

32.6 kg per person

US/Can & W. Europe

34
32

W. Eur

30

(kg per person)

2012 P E Dem and per Capita

NAA

28
26
24
22
20
18

China

16
14

LAA E. Eur

11.2 kg per person

12
10
8

4.5 kg per person

India, Africa & SE Asia

India

SE Asia

2010
2005
2000

2010
2005
2000

Africa

Japan
ME

2010
2005
2000

2
0
0

1,000

Source: Dow, IHS

2,000

3,000

4,000

5,000

6,000

7,000

P opulation (m illions)

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Packaging Market Trends

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)

Plastic Packaging Is Rapidly Growing

Growth Forecasts for Packaging Materials, 2011-2016
6%
5%

3.3% Projected Global GDP

4%
3%
2%
1%
0%
Rigid Plastic Flexible Plastic Flexible Foil Flexible Paper
Packaging
Packaging
Packaging
Packaging
Source: Vision Gain Market Research

Board

Metal & Glass

Source: PIRA-2011 figures shown with AAGR

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Dow Performance Plastics Competitive Advantage

Packaging

Hygiene &
Medical

Infrastructure
& Construction

Consumer
Durables

Transportation

Growth Markets Value Technology-driven Solutions

Attractive
Markets

Strong
Technology
Portfolio

Brand Recognition for High Performance from Differentiated Technology:

LLDPE, HDPE, LDPE, Elastomers, EVA, Acrylic Binders, Adhesives,
Barrier Films, Fibers, Sealants, Tie Layers, Formulated Products

Advantaged Business Model

Industry
Leading Brands

Strategic
Advantage

21

Dow Focused Across Packaging Applications

Flexible Food
Packaging

Adhesives

Broad portfolio
Growth
of resin
portfolio of
technologies
innovative
that enhance
packaging and
packaging
laminating
functionality and
adhesives
deliver
sustainability
benefits

Secondary and
Tertiary
Packaging

Resin
technologies
for improved
performance
and lightweighting
(Stretch Film,
Shrink Film,
Stretch Hood)

Rigid
Packaging

Resin
technologies
that enable
light-weighting
without
compromising
organoleptics
(Caps &
Closures, Food
& Beverage
Applications)

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PERFORMANCE MATERIALS DIVISION

The Plastic Packaging Lifecycle

23

Dow Performance Plastics Sustainability Focus

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

Performance
or
Value
Resources
or
Footprint
24

Catalysis Improves Process Sustainability

Polyethylene: Higher Efficiency and Plant
Throughput Through I m proved Catalyst Design

Increasing Thermal Stability and Efficiency

25

Downgauging Enabled for HDSS and Stretch Film

Industrial Sacks

Pallet Stretch Film

26

Enhanced Stretch Film Performance

Dow Solution
(12)
Conventional Film
(23)

Real Case after 16 hours

Lean testing

27

High Performance Collation Shrink Films

Downgauged Dow solution

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

FILM Conventional

28

High Performance Polyethylene Sealants

29

Dow Foamed Film Solutions

DOW RESTRICTED

30

Polyethylene Stand-up Pouch

31

PacXPERT Flexible Packaging Solution

32
Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow

Designing Resins to Meet Customer Needs

What Our
Customers Want
Resins that are:
Lighter
Faster
Cleaner
Aesthetically
Appealing
Delivers
Functionality
(Barrier,
Reclose,
Scavenging)

Molecular Design

What We Control

Average
Molecular
Weight

Monomer /
Chemistry Used

Molecular
Weight
Distribution

Process
Technology
Catalyst Used

Density

Reactor
Conditions

Short Chain
Branching
Distribution

Comonomer
Additives

Long Chain
Branching

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Key Capabilities from Discovery to Development

Design the Polymer
Molecule

Discovery High
Throughput Research

Computer modeling

Scale Up
and Development

Pilot Plant
Capability

Proven Discovery, Development

and Implementation
Drive Speed to Market
Global Technology
Implementation

Commercial Scale Testing

Product Prototyping

34

Packaging Innovation Centers (Pack Studios)

Multivac Horizontal Form/Fill/Seal (HFFS)

Sensory Science Lab

Vertical Form/Fill/Seal (VFFS)

Analytical Capabilities

Physical Testing Lab

Blown Film:

7 layer coex line

5 layer coex line

2 x mono lines

Adhesive Lamination
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Value Chain Collaboration on Packaging Design

36

Market Driven Innovation Model

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

Application Development

Material Science

Converter

Supplier/Equipment
Manufacturer

Global Customer Centers

Brand Owner
Process
Research

Catalyst
Research

Shanghai

Freeport

Horgen

Jundiai
Retailer

Development

Research

Development

Commercialization

Commercialization
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A Proven Track Record of Innovation

2014
40s-50s

60s-70s

80s

90s

2000s

10s
38

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

Investments Enable Accelerated Global Growth

USGC
Investments
Performance Packaging Markets

1535 kta

Investment

Startup

St. Charles Ethylene Restart

2012

Louisiana Ethane Flexibility

2015

PDH Propylene

2015

USGC Ethylene & Performance Plastics

Units

2017

Sadara

2015-2016

Sadara
Performance Packaging and
Performance Materials Markets

1300 kta
Creating the Foundation for Global Growth for Years to Come
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The Benefits of Plastic Packaging

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.

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Thank
You