Copyright 2019 CPI Card Group 1

Payment Industry Introduces

Recovered Ocean-BoundPlastic Card

Copyright 2019 CPI Card Group

Copyright 2019 CPI Card Group 2

Abstract

83%

58%

Found the idea of a cardmade with recovered

ocean plastic appealing

Would switch to anotherfinancial institution if such acard were offered with the

same features and benefits.

According to a November 2018 CPI Card Group survey of debit

and credit card users, 96% say they are “concerned” about

plastic waste in the oceans, and 63% are “very concerned.”

Consumers are highly attuned to the challenge of ocean plastic waste. According to a November 2018 CPI Card Group® survey of debit and credit card

users, conducted by an independent research company, 96 percent say they

are “concerned” about plastic waste in the oceans, with 63 percent being “very

concerned.”1 Moreover, consumers (especially millennials2) seek to patronize

companies that are environmentally-aware. To serve this growing consumer

demand, engender customer loyalty and demonstrate corporate ecological

responsibility, environmentally-conscious companies are upcycling ocean plastic

and other waste materials to create products with unique value, reduce harmful

waste and combat society’s reliance on non-renewable resources. CPI Card

Group has developed a way to manufacture high-quality, dual interface capable,

credit and debit cards with recovered ocean-bound plastic, offering issuers and

their cardholders an opportunity to be a part of the solution. In fact, 83 percent of

respondents in CPI’s survey found the idea of a card made with recovered ocean

plastic appealing, and 58 percent would switch to another financial institution if

such a card were offered with the same features and benefits.

Copyright 2019 CPI Card Group 3

Introduction Plastic waste in our oceans is a growing environmental

challenge. Scientists estimate between 4.8 and 12.7 million

metric tons of plastic refuse enters the oceans annually3,

much of it in the form of single-use plastic. Ninety-five

percent of all plastic packaging is used just once, resulting

in a total of $80 to $120 billion in single-use plastic

discarded each year4.

Research currently available estimates that there are

over 150 million tons of plastics in the ocean today and

in a business-as-usual scenario, the ocean is expected to

contain 1 ton of plastic for every 3 tons of fish by 2025,

and by 2050, more plastics than fish (by weight)5.

Ocean plastics threaten the delicate coral reef ecosystem,

increasing the likelihood of devastating coral disease by

a factor of 206. This is critical, as coral reefs feature an

astounding array of biodiversity, with tens of thousands of

marine species calling them home. In fact, although coral

reefs occupy less than one percent of the ocean floor, they

shelter more than a quarter of all marine life7.

Consumers are taking note. According to CPI’s survey, while 63 percent of consumers are very concerned

about plastic waste in the oceans, 49 percent are already reducing their plastic usage by bringing reusable

bags to the grocery store, and 47 percent choose to purchase items made of recycled materials8.

With roughly six billion plastic cards manufactured each year9, the use of recovered ocean-bound plastic in those

cards can help reduce the amount of plastic waste being dumped into our oceans and cardholders are ready to

lead the charge.

To meet this need, CPI has developed Second WaveTM – a dual interface capable payment card with a core

made from upcycled recovered ocean-bound plastic to support consumers’ desire for eco-friendly products.

4.8-12.7 millionmetric tons of plasticenter the oceans annually

Between

If nothing changes by 2050plastic will outweigh fish in the ocean

>95%

of all plastic packagingis used just once

$80-$120 billionin single-use plastic

is discarded each year

Copyright 2019 CPI Card Group 4

In response to both consumer and business demand,

card manufacturers and issuers are actively working

together to develop environmentally-conscious,

sustainable solutions to the plastic waste problem.

The challenge for card manufacturers is in sourcing

materials that are not only durable, but able to handle

the complex security and technology requirements of

today’s evolving payment standards, including both

EMV® and contactless payment functionality.

One of the most exciting eco-friendly alternatives to

traditional first-use plastic is the sourcing of recovered

ocean-bound plastic. Recovered ocean-bound plastic

addresses a serious environmental challenge, helping

to reduce the usage of first-use plastic, divert plastic

waste from entering the oceans or reduce the amount of

plastic waste in the oceans. It also meets the demanding

requirements of today’s diverse payment systems.

CPI defines recovered ocean-bound plastic as plastic

waste collected from land areas where the plastic

would otherwise be highly likely to enter the ocean.

Recovered ocean-bound plastic is typically recovered

within 50 kilometers of a seashore, or near streams and

rivers that lead to the ocean, in countries or regions

that lack adequate waste management infrastructure.

CPI considers recovered ocean-bound plastic to be a

subset of recovered ocean plastic, which also includes

plastic debris that is collected directly from the ocean.

Recovered ocean-bound plastics are already used in

a variety of consumer applications, like athletic shoes,

eyeglass frames, buttons and zipper pulls. But, there

are also opportunities for this versatile material in the

payment card arena. CPI’s Second Wave™ payment

card made with recovered ocean-bound plastic will

help address issuer and consumer demand for more

eco-friendly payment options.

This is not the first time pioneers in the payment

industry have sought to introduce eco-friendly card

options, but to date they’ve had only modest success.

The primary barriers associated with alternative eco-

friendly materials have been achieving sufficient

durability, minimum certification requirements and

quality standards.

Second Wave™ payment cards meet the durability,

certification and quality standards while offering a

triple benefit to society - the cards use less first-use

plastic, help to divert plastic waste from entering the

ocean, and help raise public awareness about a serious

environmental challenge.

CPI estimates that for every one million Second Wave™

payment cards produced, over one ton of plastic will be

diverted from entering the world’s oceans, waterways

and shorelines.

A Sustainable Solution

EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.

Copyright 2019 CPI Card Group 5

Cards Made with Recovered Ocean-Bound Plastic Offer Tangible Benefits

�Attract�millennial�wallet�share:�The influential millennial segment tends to hold companies accountable for

their environmental awareness. According to a 2017 Nielsen survey, 85 percent of millennial respondents

worldwide felt it was “extremely” or “very” important for companies to help improve the environment10.

And, according to another 2017 study, members of the millennial segment were more likely than other

Americans to research whether corporate efforts are authentic. 76% of millennials will verify the authenticity

of a corporate stand on environmental issues, more than 10 points higher than other Americans11.

Position�as�a�socially-conscious�organization:��As illustrated by the success of companies like Patagonia®,

Zappos and Ben & Jerry’s®, socially-conscious organizations achieve greater customer loyalty and attract

legions of fans. In fact, 81 percent of global respondents to Nielsen’s online survey felt strongly that

companies should implement programs to help improve the environment12. Although millennials, Gen Z

and Gen X respondents are the most supportive, a strong majority across all generations and genders are

passionate about issues of corporate social responsibility13.

�Help�the�environment�and�improve�human�health:�We can help fish and other aquatic lifeforms by diverting

plastic from entering the ocean and further harming our critical coral reef ecosystems14, and lessening the

amount of plastic waste that ends up in our food. According to a 2017 Nielsen online survey, 60 percent of

North American consumers are concerned or extremely concerned about packaging and food waste, and

68 percent are worried about water pollution15.

Support� a� circular� plastics� economy:� � Lastly, adopting payment cards that utilize recovered ocean-

bound plastic supports an after-use plastics market. For the highest environmental impact, current market

forces that drive the disposal of plastic products will have to change. Products that replace first-use plastic

with used plastic can reduce leakage into the ocean, usage of fossil fuels, and according to the World

Economic Forum “create better environmental outcomes”16.

For financial institutions and their cardholders, the introduction and promotion of payment cards made with

recovered ocean-bound plastic offers real, tangible benefits. Issuers will be able to:

Copyright 2019 CPI Card Group 6

An Ocean of Opportunity Awaits

With the wide reach of credit and debit cards, millions of cardholders can easily and visibly become a

part of the solution. Their excitement and demand for sustainable solutions, including payment cards, can

promote and encourage the production of a diverse array of products using upcycled plastic waste and

other eco-friendly materials. As alternatives to first-use plastic are developed, financial institutions will

be presented with attractive opportunities to offer environmentally-friendly options that address their

customers’ needs and the demands of the marketplace.

If you are ready to consider Second Wave™ payment cards made with recovered ocean-bound plastic,

contact CPI Card Group. CPI is committed to supporting environmentally-conscious payment options. We

look forward to working with you to support your sustainability commitments.

7

Sources

1 CPI Card Group. “Consumer Insights Study,” conducted by an independent research firm, Schor Insights and Strategy,

among 529 debit and credit card users between 18 and 65 years of age, November 1-2, 2018.2 Nielsen. “Global Consumers Seek Companies That Care About Environmental Issues.” 2018.

www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/3 Jambeck, et al. “Plastic waste inputs from land into the ocean.” Science 13 February 2015: 768-770.

https://science.sciencemag.org/content/347/6223/768.4 World Economic Forum. “The New Plastics Economy; Rethinking the future of plastics.” 2017.5 ibid6 Lamb, JB. “Plastic waste associated with disease on coral reefs.” Science January 2018: 460-462.

https://science.sciencemag.org/content/359/6374/460.7 National Oceanic and Atmospheric Administration. “Shallow Coral Reef Habitat.”

www.fisheries.noaa.gov/national/habitat-conservation/shallow-coral-reef-habitat8 CPI Card Group. “Consumer Insights Study,” conducted by an independent research firm, Schor Insights and Strategy,

among 529 debit and credit card users between 18 and 65 years of age, November 1-2, 2018.9 Nilson Report #1139. “Payment Card Shipments.” 2017.10 Nielsen. “Global Consumers Seek Companies That Care About Environmental Issues.” 2018.

www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/11 Cone Communications. “CSR Study.” 2017. http://www.conecomm.com/research-blog/2017-csr-study.12 Nielsen. “Global Consumers Seek Companies That Care About Environmental Issues.” 2018.

www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/13 ibid14 Lamb, JB. “Plastic waste associated with disease on coral reefs.” Science January 2018: 460-462.

https://science.sciencemag.org/content/359/6374/460.15 Nielsen. “Global Consumers Seek Companies That Care About Environmental Issues.” 2018.

www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/16 World Economic Forum. “The New Plastics Economy; Rethinking the future of plastics.” 2017.

www.cpicardgroup.com1-800-446-5036

CPI Card Group® is a payment technology company and leading provider of credit, debit and prepaid solutions

delivered physically, digitally and on-demand. CPI helps our customers foster connections and build their brands

through innovative and reliable solutions, including financial payment cards, personalization and fulfillment, and

Software-as-a-Service (SaaS) instant issuance. CPI has more than 20 years of experience in the payments market

and is a trusted partner to financial institutions and payments services providers. Serving customers from locations

throughout the United States, CPI has a large network of high security facilities, each of which is registered as PCI

compliant by one or more of the payment brands: Visa, Mastercard®, American Express and Discover®. Learn more

at www.cpicardgroup.com.

About CPI Card Group

Copyright 2019 CPI Card Group