Accredo Packaging, Inc.

Copyright: Accredo Packaging®, Inc. (2009 - Present) Malcolm Cohn, Director of Sustainability– Accredo Packaging®, Inc.

Accredo Packaging, Inc.

In the "LEED® ", … Built on the premise of sustainability

• About Accredo Packaging

• Sustainable Packaging Options

• Summary & Conclusion

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Accredo Packaging, Inc.

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API Family of Companies Global HQ - Sugar Land, TX

Accredo Packaging is a vertically integrated flexible packaging manufacturing plant built on the premise of sustainability. Situated in Sugar Land, Texas, our factory is certified to LEED® Silver certification standards, the only flexible packaging company with this accreditation. In addition, Accredo is the largest purchaser of 100% wind-generated Green Power in the U.S. flexible packaging market*. Our mission is to be the most ecologically aware flexible packaging manufacturer, producing best in class flexible packaging solutions, primarily targeting the Consumer Packaged Goods (CPG) segment.

* US Environmental Protection Agency

Accredo Packaging, Inc.

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Examples of Accredo’s innovation in the last 2 years

(1) Accredo successfully pioneered USDA approved renewably-sourced stand-up pouches. USDA certified 59% renewable content.

(2) First to introduce sustainably produced shrink-film with 3rd-party certified renewable content of 45%. Branded as Shrink Bundle Film.

(3) Using renewably-sourced resin from sugar-cane feedstock, Accredo has successfully developed sustainably produced Towel & Tissue overwrap with a highly renewable content.

(4) At the 2014 Pack Expo, in cooperation with our development partner, Dow Chemicals, Accredo successfully launched a fully recyclable stand-up pouch.

Accredo Packaging, Inc.

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• Packaging sourced from conventional hydrocarbon-based raw materials, but, produced in a more sustainable production process.

Conventional

• Using renewably-sourced resin from sugar-cane, Accredo is able to offer:

• tissue/towel overwraps

• SUP’s and rollstock

• shrink bundle film

Renewable

• Polyethylene SUP’s for Dry Goods and Frozen Food applications. Certified by Recyclers. Conventional PET//PE structures cannot be recycled.

Recyclable

• Product manufacture from certified compostable (ASTM 6400) films.

Compostable

Accredo offers 4 Sustainable Packaging Options

* Product approved for recycling system.

Accredo Packaging, Inc.

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Conventional Option

Our exclusive use of Expanded Color Gamut Process Printing facilitates … ◦ eliminate clean-ups between jobs – ink colors don’t change; ◦ reduce ink waste by up to 95%; ◦ reduce ink consumption by up to 35%; ◦ have less ink inventory; ◦ significantly reduce hazardous return waste; ◦ reduce production and cycle time – increased productivity; ◦ reduce solvent usage by up to 80%; ◦ dramatically avert solvent emissions – 99.5% VOC’s captured and ‘scrubbed’ clean using

‘Regenerative Thermal Oxidizer’.

Any time you reduce waste and increase productivity you are being more sustainable.

Accredo Packaging, Inc.

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Compostable or ‘Organic Recycling’ Option

• Accredo was the first company globally to manufacture a zippered stand-up pouch made from components certified compostable in accordance with ASTM 6400 standards for compostability in industrial composting facilities.

• New developments in compostable film technology enable us to produce compostable packaging that achieves the highest moisture and gas barriers: ◦ MVTR – 0.15 gm/100 in²/day ◦ OTR – 0.03 cc/100 in²/day

• However, there has been no major traction in this area primarily because of: ◦ Increased cost over conventional structures; ◦ Lack of functionality compared to conventional films.

Accredo Packaging, Inc.

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Renewable Option – Biobased Explained

1Plastics Europe 2Natureworks LLC – CIT (Currently Implemented Technology) 3Preliminary Ecoeficiency Analysis - Espaço ECO Foundation Source: Braskem

A Biobased Alternative

CO2e is a commonly used measure that expresses the global

warming potential of various greenhouse gases in terms of the

amount of carbon dioxide (CO2) required to produce the same effect.

Various packaging materials have different CO2e intensities (tons of

CO2e per ton of packaging). CO2e is the common measure used to

compare different packaging materials. PLA emits 1.3 ton of CO2 / ton

of polymer manufactured

Green PE captures 2.15 ton of CO2 / ton of polymer

manufactured

Hydrocarbon-based PE emits 2.1 ton of CO2 / ton

of polymer manufactured

1 ton of Green PE will prevent 4.25 ton of carbon dioxide emissions from contributing to the Global

Warming Potential (GWP).

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Accredo Packaging, Inc.

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Renewable Option - Accredo’s Offering

Accredo has successfully pioneered sustainably-produced packaging with a highly renewable content.

The Value Proposition - Using renewably-sourced resin from bio-based feedstock (as opposed to petroleum/fossil-based feedstock) reduces CO2 emissions and moves us to zero carbon or carbon neutral footprint --- global warming and climate change.

• Processing: Drop-in replacement – Line speed not compromised.

• Performance: Similar to petroleum/fossil-based feedstock.

• Improved LCA benefits: -2.15 (versus +2.1) ton CO2 eq./ton polymer. (1 ton of Green PE will prevent 4.25 ton of carbon dioxide emissions from contributing to the Global Warming Potential)

Accredo Packaging, Inc.

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Recyclable Stand-up Pouch Option (Pre-made and printed laminate for FFS applications)

• Opportunities for stand-up pouches continue to expand exponentially as vendors compete for limited shelf space.

• Drive to replace rigid plastic, glass bottles and cans with flexible packaging options - packaging cost reduction and consumer convenience. However, multi-material structures (e.g. PET/PE) are non-recyclable.

• Surveys project demand for pouches in the US to grow ~7%/year, approaching 24 billion units in 2018.

• Multi-material film components will add to burgeoning land-fill sites. The preferred alternative is the Recyclable Polyethylene Pouch.

* Where such recycling facilities are provided.

Accredo Packaging, Inc.

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Recyclable Stand-up Pouch Option

• Compared to a non-recyclable multi-material SUP, Accredo’s innovative PE recyclable stand-up pouch offers a more sustainable proposition of recyclability:

◦ Realization of sustainability goals

◦ The same end-use convenience.

◦ Comparable functional performance*.

◦ Recyclable where PE film recycling stream is available (e.g. grocery store drop-off).

◦ Approved by Recyclers to be reprocessed into new products (e.g. composite lumber, park benches).

◦ Waste diversion from land-fill.

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* Check barrier requirements that are suitable for PE SUP applications. ** The How2Recycle Label is a project of GreenBlue’s Sustainable Packaging Coalition® (SPC).

Accredo Packaging, Inc.

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Property Unit PE/PE PET/PE

Thickness mil 4.5 4.5

Elmendorf Tear - MD grams 850 99

Elmendorf Tear - TD grams 3,105 108

Stiffness (1% Secant Modulus) - MD Kpsi 77 82

Stiffness (1% Secant Modulus) - TD Kpsi 86 93

Seal Initiation Temperature (SIT) ºF 203 212

WVTR g/100 in2/day (90%RH) 0.10 0.21

OTR cc/100in2/day (0.0% RH) 34.5 6.4

Recyclable Stand-up Pouch Option

Accredo Packaging, Inc.

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Summary

• Market has a general and growing interest in ‘Sustainable Packaging Options’.

• The primary goal of sustainable packaging is to effectively meet all the elements

required in conventional packaging, … provide convenience, shelf-life, product

protection, containment and information, and to facilitate sales and distribution. All

this while maintaining price parity and product quality of conventional packaging.

• The all-polyethylene stand-up pouch has the potential to be an ‘industry changer’,

moving from co-mingled, multi-material structures whose end-of-life will be land-fill, to

a single-source homogeneous substrate that CAN be recycled and so diverted from

land-fill.

Designed for Sustainability … Built for Success®

Corporate Office: 12682 Cardinal Meadow Drive, Sugar Land, TX 77478

Office: 713-580-4870

www.accredopackaging.com

© Copyright 2009-2015 Accredo Packaging, Inc., Accredo Pack aging®, AccredoFlex®, CO2LLation™, RP™ and the Accredo logo are registered trademarks of Accredo Packaging, Inc. All rights reserved.