Meeting #

Meeting - Y2019

GPCA Plastics Committee

1

Tuesday, 8th January, 2019

14:00 – 17:00

42

1

GPCA Offices

Dubai

Meeting OpeningChairman

2

Attendance Review

3

Total members 19

Quorum needed 13

Confirmed 18

Regrets 1

Tentative 0

Awaiting Response

0

# Name Company Status

1 Ahmed Omar Abdullah (C) Borouge Confirmed

2 Abdullah Al-Zahrani Al-Watania Plastics Confirmed

3 Javier Ferriero BASF Confirmed

4 Khalfan Almhairi Borouge Confirmed

5 Maitha Al-Marashi Borouge Confirmed

6 Walid Najjar Cosmoplast Confirmed

7 Alessandro Corticelli DOW Chemical Confirmed

8 Muayad Al Faresi EQUATE Petrochemicals Confirmed

9 John Lefas Ingenia Polymers Confirmed

10 Mohamed Azougagh LyondellBasell Confirmed

11 Yousef Fakhro Muntajat Regret

12 Issam Chaaya NAPCO Confirmed

13 Hamed Al Rumhy ORPIC Confirmed

14 Mubarak Al-Mubarak RCJY Confirmed

15 Ayoub Al Ghamdi S-Chem Confirmed

16 Awadh Al-Waridah SABIC Confirmed

17 Tarek Al-Arnaout Sadara Confirmed

18 Sultan Al Zahrani Tasnee Confirmed

19 Roberto P. Ribeiro Townsend Solutions Confirmed

3

Meeting Protocol

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Do Don’t

Ensure strict compliance to the following steps to minimize the risk of violating competition laws

Prior to meetings:

• Draft detailed agenda that accurately reflects what is to be discussed. Agenda and meeting documents must not include issues relevant to competition law

During meetings:

• Limit discussions to topics included on the agenda• Take minutes of the full meeting• In case of spontaneous statements relevant to

competition law, react immediately and actively dissociate yourself from the violation:

o Point out to participants that this issue must not be discussed

o If necessary, postpone the discussion until you have received relevant legal clarifications

o If the discussion continues, notify your objection in the protocol, suspend the meeting or leave the meeting space

o Inform the GPCA Secretary-General or your company about the incident

After meetings:

• Minutes of meetings should be short and straightforward

Discuss, formally and informally, exchange information about or reach agreement with competitors about:

Prices:

• Pricing, price differentials, and pricing strategies

• Individual sales and payment terms, individual discount, credits and credits conditions

Production:

• Production capacity, design plans, production rates, production methods and proposed changes thereto

Transportation:

• Rates or rate policies for shipments, including zone prices and freight charges

Future Market Behavior, in particular:

• Plans of individual companies concerning technology, investment, design, production, distribution and marketing of certain products

• Agreement on market allocation either geographically or by costumers

• Matters related to actual or potential suppliers or customers, particularly if this might have the effect of excluding them from any market or influencing the business conduct of other companies toward them

Agenda

# Agenda Item Objective Time Presented byPre-reading required?

1

Meeting opening • Welcome Note• Attendance Review• Introduction of New Members• Agenda Review

• Opening • Alignment

1400 – 1410Chairman &

Sec. Gen. -

2 PlastiCon 2019 – Program Update • Update 1410 – 1445 Udit Arora Program

3Update on SASO oxo-degradable standard issue

• Update 1445 – 1505Awadh Al-Waridah & Udit Arora

-

4 Project CIRCLE • Update 1505 – 1530 Udit Arora -

Coffee Break 1530 – 1545

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Agenda (cont’d)

# Agenda Item Objective Time Presented byPre-reading required?

5Recycling Landscape Study• Oman• UAE

• Update 1545 – 1615 Udit Arora -

6Global Updates• World Plastics Council• UNEA 4

• Update 1615 – 1650 Udit Arora -

7

Close of Meeting• Any Other Business• Meeting Review• 2019 Meetings Calendar • Closing Remarks

• Closing• Alignment

1650 - 1700Chairman,

Sec. Gen. &Udit Arora

-

66

Javier Ferriero Rodriguez, BASF

Head of Emerging Markets and Regional Polymer Producers Accounts

in EMEA

Previous roles at BASF (1996 – Present):

• Senior Sales Manager Middle East, Russia, Turkey and Africa

• Sales Manager MEA, Turkey, Russia, Eastern Europe (Additives)

• Key Account Manager Plastic Additives

• Business Manager Styrodur® Iberia

• Country Manager Masterbatch Iberia

• Technician - Color & Additive batches

Education:

• Master of Marketing & Sales Management (2006-2007)ESIC Business & Marketing School

• CFGS Chemistry (1999 – 2002)IESP

Professional Memberships:

• Andimat, Anape and President of Aipex, the XPS Association in 2015 7

Maitha Al-Marashi, Borouge

VP - Sustainability

Professional Career:

• CSR Advisor, Borouge

• Various roles, Dubai Petroleum

Education:

• MBAAmerican University of Dubai

• Masters in Engineering, Hons. – Chemical Engineering & Environmental TechnologyUniversity of Manchester, UK

8

Alessandro Corticelli, DOW Chemical

Sales Director for Packaging, P&SP -MEAT

Professional Career:

• Sales Director - Adhesives and ICT, P&SP for Middle East, Africa and Turkey (2017-2018)

• Market Development Manager for Plastics and Specialty Packaging at Dow Middle East (2014-2016)

• Sr. Account Manager for Polyethylene in Italy and Spain managing Industrial Films and Pipes (2010-2014)

• Account Manager (2005-2010)

• Export Key Account, Nortek S.p.A. (2004-2005)

Education:

• Postgraduate in International Relations (2003)L.U.I.S.S Guido Carli

• Exchange Program, Economics (2001)Charles University, Prague

• Master degree in Economics (1997-2002)University of Bologna 9

Ioannis (John) Lefas, Ingenia Polymers Corp.

Founder & Owner

Professional Career:

• Business & Project Planner, Imperial Oil Limited (1980-1982)

• Production Planner, Imperial Oil Limited (1982-1984)

• Planning Manager, Imperial Oil Limited (1984-1986)

• Plant Designer, Carbonica S.A. (1977-1979)

Education:

• MBA in Finance & Economics (1979-1981)University of Toronto

• Chemical Engineering Degree (1975-1980)National Technical University of Athens

10

Tarek Al-Arnaout, Sadara

Product Director, Hydrocarbon Product Management

Professional career:

• In current role since 2016

• Trader, Vitol (2006-2016)

• Marketing Assistant – Product & Sales Department, Saudi Aramco (2002-2006)

• Planning & Programming Analyst, Saudi Aramco (2001-2002)

Education:

• Bachelor of Science, Economics (1997-2001)Penn State University

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PlastiCon 2019 – Program UpdateUdit Arora

12

Format, Content Overview

Sustainability is no longer just a corporate responsibility, it is now a key business objective driving investment, innovation and change throughout the plastics value chain. From helping global brand owners move to fully recycled and recyclable packaging to ensuring sustainable export growth and job creation for the region’s youth and promoting the establishment of a robust plastics recycling and reuse industry, the region as we know it is beginning to transform.

With a practical approach, this 3-hour workshop will provide a deep-dive assessment of sustainability driven implications & opportunities for plastic convertors, including application level trends in material substitution from bio-based and recyclate materials, an update on recycled content regulations and a look at key developments in the chemical recycling space.

This interactive workshop will be facilitated by Townsend experts, with interaction and participation by attendees encouraged & welcome.

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Workshop Agenda (Draft)

12 March 2019

• 12:30 - Check-in & Networking

• 14:00 - Introduction

• 14:10 - Track 1: Sustainability Overview

• 15:00 - Track 2: Recyclates and Bioplastics

• 16:00 - Break

• 16:20 - Track 3: Implications and Opportunities for Plastic Convertors

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Track 1: Sustainability Overview

• Benefits of shifting to a circular economy

- Sustainability as a key business objective, not just corporate responsibility

- Adherence to GCC national visions

• Value Chain Partners & Stakeholders

- Governments, NGOs, Media

- Producers, Suppliers

- Brand-owners, Retailers

- Consumers

• Societal influences & megatrends

• Circular models

• Regulations

- Recycled Content

- Policies

- Bans

• Technology advancements

- Feedstocks & Catalysts

- Plastic Processing

- Chemical Recycling

• Key levers impacting innovation and investment

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Track 2: Recyclates & Bioplastics

• Application level demand, current & forecast (5 & 20 years)

- North America

- Central & South America

- Western Europe

- Central & Eastern Europe

- China

- India

- Japan

- Asia Pacific

- Middle East

- Africa

• Application level trends & drivers by region

• Applications at greatest risk for sustainability driven demand shifts

Recyclates Bioplastics• Application level demand, current &

forecast (5 & 20 years)

- North America

- Central & South America

- Western Europe

- Central & Eastern Europe

- China

- India

- Japan

- Asia Pacific

- Middle East

- Africa

• Application level trends & drivers by region

• Applications at greatest risk for sustainability driven demand shifts

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Track 3: Implications & Opportunities for Plastic Convertors

• Impact of sustainability aspects on growth rates

- Polyethylene

- Polypropylene

- PVC

- PET

• Sustainability driven implications for the viability of present manufacturing assets and future expansions

• Sustainability driven opportunities

- A new value proposition

- Green investments

- Circular workforce

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Sponsorship Package

Package Amount Value Status

Diamond Sponsor $115,000 Sold, Borouge

Platinum Sponsor $85,000 Sold, SABIC

Gold Sponsor $70,000

Silver Sponsor $55,000 Sold, S-Chem

Stationery $18,000

Delegate Bags $25,000

Lanyard $25,000 Sold, SABIC

Conference App & Mobile charging Stations $20,000

Corporate Gift + Branding $22,000

Event Guide/ Pocket Program $15,000

Branding $10,000

Meeting room (available upon request)

Bespoke Packages (on request)

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Exhibition Package and Fees

SINGLE STAND SPACE

• 3x2sqm exhibition stand space• Logo branding visibility:

➢ Marketing promotion❖ Website❖ Brochure❖ E-shots

➢ Delegate book➢ Entrance/agenda board

• Invitation to all social programs ( Networking breaks and luncheon, Gala dinner)• Conference app access - for pre-event meeting and networking arrangements• Complimentary half page advert on delegate book• Complimentary registration for two exhibitor passes

Exhibition fees: GPCA member - $3,000Non GPCA member - $4,000

19

Registration Fees

Delegate FeesEarly Bird Rate

(valid until 25 January) Standard Rate

GPCA Member $900 $1,100

Non GPCA Member $1,200 $1,400

Converter $500

Academic $400

20

Project CircleUdit Arora

21

Coalition for

Innovation in

Recycling towards a

Closed

Loop

Economy

Project CIRCLE - Ambition

• Investigate the mechanisms that drive economic and environmental benefit through a closed loop model for packaging recovery in Abu Dhabi & Dubai

• Develop a model that would inform recommendations around recovery and recycling of packaging throughout the UAE

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Members

23

Status Update

24

• Frost & Sullivan voted in as the consultants. Other bid was received from EY & Tactical Solutions (joint)

• Project has a 6 month timeline and is kicking-off end of January 2019

• Technical Committee has been formed:

✓ Marcelo Piva (TetraPak)

✓ Udit Arora (GPCA)

✓ Siva S. (Nestle)

✓ Olivier Coullon (Coca-Cola)

✓ Elle Runton (Emirates Nature-WWF)

✓ Sara Jackson (Independent consultant), also acting as Coalition Coordinator

• Next meeting – 23rd January 2019

Update on SASO Oxo-degradable IssueAwadh Al-Waridah & Udit Arora

25

Recycling Landscape StudyUdit Arora

26

Oman – Volume Flow

27

Oman – Volume Flow

28

UAE – Volume Flow

29

UAE – Value Chain

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Global UpdatesUdit Arora

31

World Plastics Council

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• WPC has been granted accreditation on 22 Oct’18

• Expanded Management Committee:

✓ Steve Russell, ACC Plastics Division

✓ Karl Foerster, PlsaticsEurope

✓ Stewart Harris, ACC Plastics Division*

✓ Anne-Gaelle Collot, PlasticsEurope*

✓ Udit Arora, GPCA

✓ Ralph Schneider, Covestro/ WPC

✓ Richard Amberger, BASF/ WPC*

• New member from SABIC: Waleed Al-Shalfan, General Manager -Technology Management of Petrochemicals SBU

New Members 2018

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WPC Action Portfolio

34

Stakeholder Engagement Solutions Support Industry Capacity Building

High Level Conferences (World Ocean Summit, Our Oceans…)

Technical Policy Events (UN, Basel, G7)

Funding (Circulate Capital, TFSA, …)

Knowledge Transfer (Ellen MacArthur)

Global Plastics Alliance Support

Basel ConventionProposals by Norway – Changing Plastics Waste Trade

35

Change classification of Plastics Waste ANNEX IX → II (Other Waste):

1. Mandatory approval (import, export, transit countries)

2. Mandatory insurance of the shipment

3. NO waste trade between OECD and non-OECD countries

Creation of a Partnership on Plastics Waste

1. Creation of a work program to identify issues, define improvement actions and enable joint actions

2. Documentation of action

Position of the World Plastics Council

36

• Environmental Sound Waste Trade is essential element for a globally fully functional circular economy, connecting end-of-life plastics with the production of new goods around the world.

• Lacking Waste Collection Capacity (32%) is the major driver for waste leakage.

• Trade barriers will significantly hinder a fast creation of 100% waste collection needed globally.

• We oppose the proposal to change the Plastics Waste Classification.

• It is solving little of the addressed issues and open new local and fragmented challenges.

• The WPC agrees: There are cases of unsound waste trade which need systematic solution development.

• We support the Partnership on Plastics Waste as the right way to jointly develop such solutions.

Basel ConventionAdvocacy Approach of WPC

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Tactics:

• Engage with governments towards establishment of a Partnership

• Prevent or Postpone the Annex Change to allow the Partnership to enable informed decision making

• Demonstrate commitment of private sector to solutions on marine litter

• AND Partnership may help to reduce pressure at UNEA for development of new legally binding agreement (treaty)

Positioning and Input:

• We are developing comments

• Terms of Reference for “Partnership on Plastic Waste” –comments due 17 December

• Norway’s updated proposal to amend the annexes regarding mixed plastic waste – comments due 31 December

• Creation of letter template to inform national ministries e.g. in EU27

UN Environment - Towards UNEA-4AdHocOpenEndedExpertGroup, InterGov.Rev. 4, ...

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UNEA-3

11.2017

UNEA-4

03.2019

Timing creates Urgency

Major risk

A binding Global Plastics Treaty

& Bans on SUPs

UNEA-5

02.2021

UNEA-4 a major milestone for change

39

A binding Global Plastics Treaty: • Driven by Civil Society & UN Environment

• Its driver: Create a global legally binding framework similar to Paris Agreement, CFC programme

• Major possible threats → Binding targets and commitments • A global EPR/ Taxation

• A global ban on e.g. SUP or a commitment to reduce plastics production

• Phase out of fossil feedstocks & Stop new waste to energy capacities

• Status: Various parties are drafting proposals behind the scenes

• Ad Hoc Expert Group: Essential to engage and understand content

Global measures on “single use plastics”:

• Draft Ministerial document includes anti "single-use plastics" statement: "We develop strategies to phase out single-use plastics, starting with plastic bags, straws, plates, cups and cutlery by 2025, and encourage the private sector to find affordable and eco-friendly alternatives. We introduce economic incentives to upscale or recycle plastic bottles."

UNEA-4 a major milestone for change (2)

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Build convincing case, making a treaty is not needed

• Build trust that change is happening: The Global Alliance to End Plastics Waste is of key importance

• Strengthen the Basel Convention’s proposal to form a Partnership

• Address to governments the trade offs & redundancy of a FURTHER global treaty

Policy Engagement Milestones:

• Ad Hoc Open Ended Working Group 1 & 2, Dec. 2018: • Will be very important due to NGO concentration

• UN Env. Committee of Permanent Representatives, 03. 2019: • Final Preparation before UNEA-4

How to engage:• Developing comments for GPA members to share with national governments• Inform national states about efficient solutions as alternatives to a plastics waste

treaty• Side Event at UNEA-4

A new global alliance to help end plastic waste

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42

The current landscape is heavily fragmented, focused on developed countries, and lacks comprehensive approach including infrastructure investment

43

Solution:A new & different approach

The largest global, CEO-driven, cross-value chain initiative of its kind

Comprehensive to develop integrated solutions that leverage experience of each segment of the value chain from raw material to design, use, and post-use

Action-oriented to achieve tangible results through on-the-ground projects and investment in infrastructure

Market-oriented by deploying strategies to increase the value of plastic waste streams to support investment

Collaborative to bring industry, government, communities and civil society together in this fight

I N N O V A T I O N

Innovate new sustainable materials, designs, technologies and business models based on sound science and economics

C L E A N U P

Develop solutions to address and clean up areas of existing plastic waste in the environment

E D U C A T I O N

Engage and collaborate with governments, industry and consumers to drive effective solutions

I N F R A S T R U C T U R E

Catalyze investment in enhanced waste infrastructure to prevent plastic from reaching the environment

Proposed Alliance Strategic Pillars

44

Mutually-funded, philanthropic, alliance-branded programs

Company contribution: $1–$25M USD over 5 years

Aggregated company-sponsored & directed investments into waste management infrastructure or technologies supportive of the alliance mission

Company contribution: $15–$50M USD over 5 years

*including commitments to the Asia Plastics Coalition, The Ocean Fund, etc.

Investing $1.5B USD over 5 yearsNot for Profit 501(c)(3) status supports global operations, eligibility for foundation grants and potential tax benefits

PART A: $0.5 B USD Part B: $1B USD*

2 P A T H S T O P R O G R E S S

F O U R P A R T S T R A T E G Y

I N N O V A T I O N C L E A N U PE D U C A T I O N &

E N G A G E M E N TI N F R A S T R U C T U R E

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E X E C U T I V E C O M M I T T E E

Composed of CEOs of alliance member companies balanced across geography, value chain, and participation level

B O A R D O F D I R E C T O R S ; A L L I A N C E M E M B E R S

Composed of all companies who have committed to the Alliance efforts (Part A & B), including brand, retail, chemical/plastic, converter and waste management company members

Part B programs Part A programs

B O A R D O F D I R E C T O R Scomprising all alliance members

E X E C U T I V E C O M M I T T E E

Governance proposal

Strategic Partners

Supporters(Option for small/local companies to participate by making a set minimum contribution)

Advisory Panel

46

Executive Committee*

Board of Directors*

*Interest expressed, as of Nov. 14, 2018

Officers

47

(80 countries)

(79 countries)

(>100 countries)

(33 countries)

(70 countries)

(120 countries)

(30 countries)

(58 countries) (80 countries) (38 countries)

(50 countries)

(108 countries)

(50 countries)

(70 countries)

(130 countries)

(80 countries)

(53 countries)

ALLIANCE MEMBERS AND THEIR GLOBAL PRESENCE

(USA)

(33 countries)

(9 countries)

(5 countries)

(10 countries)

48

TimelineWBCSD, ICCA and CEFIC meetings

P&G confirmed as initial Chairman

WBCSD role affirmed

Oct 23-26

Oct 29-30

Our Oceans Conference -Asia Plastics Coalition and various other commitments (e.g., New Plastics Economy Global Commitment) announced

Nov 15

APEC meeting Public launch

Mid-January

Oct 10

Articles of Incorporation filed

Deadline for pre-launch commitment

Dec 14

49

Complementary Focus of Activities

50

Alliance to End Plastic Waste World Plastics Council

Membership Cross-value chain (chemical, resin, retail,consumer goods, plastic converter, waste management, etc.)

Resin producers

Stage Early stage formation Formed/accelerating

Purpose Investments into solutions to help end plastic waste; Sponsor innovations in sorting, processing and treatment

Advocacy on global level(UN, G20/G7, Basel) Communication both to external stakeholders and internally to members.Voice of plastic resin producers

Dues Commitments range from ~$1M USD/year to $15M USD/year for the largest companies

20,000 €/year

Close of MeetingChairman, Secretary General & Udit Arora

51