A Quick Look at Dow Feeding the World Life Cycle Analysis Role in Improving Food Supply

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A Quick Look at DowFeeding the WorldLife Cycle Analysis Role in Improving Food SupplyQuestions and Answers

Agenda

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A Quick Look at Dow

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Our Mission• To passionately innovate what is essential to human progress by

providing sustainable solutions to our customers

Key Facts• Founded in 1897 by Herbert H. Dow in Midland, Michigan, USA

• Supplies a broad range of products and services to customers in approximately 160 countries

• More than 5,000 products manufactured at 188 sites in 35 countries

• Employs ~50,000 people worldwide

• Sales revenue of USD 53.7 billion in 2010

• 2010 R&D spending of USD 1.7 billion3

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Source: 2010 Dow estimates

Metal, Glass & Other $160 Billion

Rigid Packaging $114 Billion

Paper & Board$145 Billion

Flexible Packaging $81 Billion

Dow in Packaging: $8 billion

• Packaging resins• Specialty adhesives• Specialty films

Global Packaging Industry = $500 Billion

Packaging – a Strategic Focus for Dow

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A Quick Look at DowFeeding the WorldLife Cycle Analysis Role in Improving Food SupplyQuestions and Answers

Agenda

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• Population is growing 200,000 new mouths to feed every night

– Global population will grow by >30% between now and 2050

• Arable land for food production is finite– Will grow by only 5% by 2050 – mostly in

Sub-Saharan Africa and Latin America

• In 2008, homo sapiens became a majority urban species*; most of the world’s food now has to travel great distances from farm to mouth

We Need More Food on the Global Dinner Table

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* According to 2011 State of the World – Innovations that Nourish the Planet, The Worldwatch Institute, published January 12, 2011

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• One-third of the food produced for human consumption in both developing and developed markets – about 1.3 billion tons per year – gets lost or wasted*

• Innovative food packaging can improve both, food preservation and food safety

100% of food harvested globally

28% lost to post-harvest spoilage and animal feed

40% lost in processing,

distribution and household handling

* Source: Food and Agriculture Organization of the United Nations, May 2011

More Food on the Global Dinner Table

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More People with Greater Need for Good Packaging

Increasing wealth around the world can lead to increased demands on packaging– Consumerism

• Easy opening• Re-closable• On the go consumption• Portion Packs• From freezer to microwave

– Healthy food– Food safety –

increased regulations

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Innovative Packaging can be One Answer

Innovative packaging can be• Lighter and easier to transport

• Preserving food longer than traditional packaging

• Adapted to address specific geographic needs

• Delivering new or added functionality

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A Quick Look at DowFeeding the WorldSustainability and Life Cycle Analysis (LCA)Questions and Answers

Agenda

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“Sustainability requires making every decision with the future in mind. 

It is about our relationship with the world

around us – creating economic prosperity and social value while contributing to the preservation of the planet." 

Dow Thoughts on Sustainability

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Understanding Sustainability

• Narrow definitions of sustainable products– Bio-based / renewable– Compostable / biodegradable– Recycled

• The problem with these definitions– Sustainable attributes ≠ sustainability per se– Traditional products different sustainable attributes

• Our approach– Full life cycle thinking = key to understanding

sustainable solutions

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Life Cycle Analysis/Thinking

Source: UNEP13

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LCA Examines Many Different Parameters

• For example:– Total energy requirement of the value chain

to deliver the functional unit

– Global warming potential (carbon footprint)• Measures emissions of all greenhouse gases in units of carbon dioxide

equivalents (CO2- eq) by weight;

Note: Carbon footprint is just one derived parameter from LCA– Total system fresh water requirement;– Ozone depletion potential;– Acidification potential;– Photochemical ozone creation potential (POCP);– Etc.

Focusing on just one parameter can be misleading!

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Which One is Best?

• Generally, in any LCA comparison, one solution will look better against some parameters and worse against others. Decisions frequently involve trade-offs

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Packaging

PO43-

CH4

NOx

CO2

Resources

Life cycle thinking & life cycle assessment decision support is crucial

16Reworked graph from L. Lundquist, Nestlé Research Center

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Consider the Needs of the Entire Product Life Cycle

Resins, Adhesives,

Films Suppliers

Package Manufacturing

Product Mfg. and Packaging

Distribution and Retail Consumer Use End-of-Life

MATERIALS SUPPLIER• Energy Efficiency• Bio-based Materials

and/or Additives• Renewable

Feedstocks

PACKAGE MFRS.• Easier extrusion• Reduced scrap• Down-gauged or

Light-weighted materials

PRODUCT MFRS. • Mfg Efficiency• Faster Packing Speeds• Improved Product

Protection• Less re-work

DISTRIBUTION AND RETAIL• Better Food Preservation and

Product Protection• Lower/Easier Transportation• Longer Shelf Life• Reduced Need to Restock

END-OF-LIFE• Re-use/Recycle• Recycle-to-Energy• Chemical

Transformation• Composting• Landfil• Litter/Marine Debris

CONSUMERS • Easier to Open/Close• Easier to Cook• Less Refrigeration• Longer Shelf Life• Greater Pkg.

Functionality

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Life cycle thinking is an objective, scientific approach and provides a comprehensive view of a product from cradle to grave:

It is critical to look at a product’s application and its function.– It is not appropriate to compare a Kg of one material to a Kg of another

material because different materials require different weights.

A balanced look at end-of-life options is also necessary.– Being compostable is a desirable attribute where composting is readily

available, but could be undesirable if the item is disposed of in a landfill.

Packaging is part of a product delivery system, not separate from it.– Reducing the amount of packaging, and then throwing away the product

because of damage or spoilage, wastes far more resources.

Make Lasting Change with Life Cycle Analysis (LCA)

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Beverage Packaging

Product Weight

Package Weight

Product/ Packaging Ratio

Pkg. Weight per 100g Product

MSW Landfill per 100g product

Energy Consumption MJ/8 oz

Emissions Kg CO2e/ 8 oz

Glass Bottle and Metal Cap

8 ounces(236 g) 198.4g 1:1 83.9 g 54.5 g 3.36 0.29

Plastic PET Bottle and Cap

12 ounces(340 g) 22.7 g 10:1 9.6 g 6.0 g 3.00 0.18

Aluminum Can 8 ounces(236 g) 11.3 g 21:1 4.7 g 2.4 g .99 0.08

Stand-up Flexible Pouch

24 ounces (680 g) 5.7 g 35:1 2.8 g 2.8 g .45 0.02

LCA Helps Make Better Choices for Beverage Pkg.

Beverage Packaging• The flexible beverage pouch:

• Consumes ½ the energy of the closest alternative• Generates 75% less emissions than the closest alternative• Significantly reduces greenhouse gases released and energy

consumed in transport of unfilled packages from converter to filling operation

Source: Flexible Packaging Association; Cradle-to-grave energy consumption and CO2 emissions data developed by Battelle Memorial Institute

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LCA Helps Make Better Choices for Cereal Pkg.

Package Type Contents

Impact per 100 oz Cereal

Landfill Discards

* (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%

Dow internal calculations based on:• System boundary: Raw Material Cradle-

to-Gate, plus recycle• *Discards = package mass – recycle

stream• Cereal box assumptions

― 100% recycled content― 30% recovered to recycle stream †

• **Lifecycle inventory data sources: ― Paper: Environmental Defense-

www.papercalculator.org― EVA: The Dow Chemical Company― Other Plastics: Boustead Model V5

• †From The ULS Report, February 2007

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Plastics LCA Extends Far Beyond Food Packaging

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Conclusion

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Life cycle thinking is an objective, scientific approach and provides a comprehensive view of a product from cradle to grave:

It is critical to look at a product’s application and its function. It provides a balanced look at end-of-life options. It provides a tool that can be shared across the value

chain and promote better, linked decision making.

Conclusion – LCA is the Right Tool for this Industry

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Thank You!

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