Dow

The Revoloop Case in Latin America

Authors

Alejandro Rivera Hidalgo

Alejandro Rivera Hidalgo

Jose Arturo Salgado

Jose Arturo Salgado

Margarita Rodriguez

Margarita Rodriguez

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

Christiane Molina

Christiane Molina

Global Goals

8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action

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Summary

In the packaging marketplace, REVOLOOP™ Recycled Plastics Resins are creating a platform for change. Partnerships around the world are increasing the quality of the waste value chain and providing a dependable, consistent flow of desirable post-consumer recycled (PCR) content. Together, we are building a circular ecosystem with a growing portfolio of recycled plastics resins.

With REVOLOOP™ Recycled Plastics Resins, we are decreasing plastic waste, decreasing new resin production, and decreasing energy output and greenhouse gases. Sustainability is at the forefront of our manufacturing processes. REVOLOOP™ Recycled Plastics Resins are manufactured in accordance with strict international toxicological protocols to assure safety for all.

REVOLOOP™ Recycled Plastics Resins offer many grades as a single-pellet solution, fully formulated and ready to use. Simply choose the grade best suited for your requirements and move forward with confidence.

Innovation

As a leading materials science company, Dow intends to be at the forefront in driving the transformational change needed to become carbon neutral and accelerate the circular economy for plastics. This kind of radical change will demand outstanding materials science and engineering skills as Dow will continue to apply our expertise and technology to solve the world’s biggest challenges. It will be the source of innovation for a circular and low carbon future, because our science enables sustainability.

Dow has an important role to play in ensuring plastics production at the lowest carbon emissions rates, in developing technically recyclable resins, as well as developing resins made of recycled material, and finally in contributing to initiatives that ensure that waste does not enter our environment.

At Dow, we have the expertise, the track record, and the commitment. Sustainability has been part of our goals for more than 25 years, and we are dedicated to go further and faster. We are a bold, innovative, and responsible enterprise that will take care of the planet and the people while doing business using cutting-edge technology and material science.

Dow is working closely with in-country partners across the region to offer reliable, high-quality post-consumer recycled (PCR) plastic resins. REVOLOOP™ Recycled Plastics Resins can be incorporated into different applications that seek to include recycled content, while maintaining processability and supporting quality and performance. * Not suitable for primary food packaging.

The industrial ecosystems in Latin America

In addition to REVOLOOP™ Recycled Plastics Resins, Dow has developed a model In Latin America for triple impact: helping to close the plastics waste loop, encouraging inclusive recycling, and helping brand owners achieve their sustainability goals. This is possible through collaboration with local organizations in waste collection and management, such as Recycling for a Change in Brazil.

Recycled material bought from waste cooperatives and recycling companies is used to produce REVOLOOP™ Recycled Plastics Resins. Besides its environmental impact, the partnerships across the region have a social impact as well, they help strengthen and formalize the work of waste pickers.

Dow Latin America has created 3 grades for each of the countries in which we have developed the relationship with our partners of the was cooperatives in Argentina, Brazil and Colombia and we are still working on further developments in other countries such as Mexico and Chile.

REVOLOOP™: Dow developed an innovative resin made with recycled plastic called REVOLOOP™, representing our worldwide efforts to make mechanical recycling a reality. This innovative technology enables the incorporation of high-quality PCR into our everyday plastic packaging and other applications, therefore helping to close the loop on plastic waste. REVOLOOP™ is a solution that helps brand owners to achieve their sustainability goals.

In Latin America, REVOLOOP™ is produced in partnership with key companies (Fig. 1) through business models that generate positive environmental and social impact:

• Boomera LAR: in Brazil, REVOLOOP™ is produced through a partnership between Dow and Boomera LAR. The recycled material is bought from waste cooperatives and then used to produce Dow’s innovative resin REVOLOOP™ at Boomera LAR facilities. Besides its environmental impact, the project also has a social impact, since it contributes to strengthening and formalizing the work of waste pickers.

• Enka: Dow has partnered with Enka, Colombia's producer of synthetic fibbers and polymers, to produce Dow’s REVOLOOP™ resin in the country. Enka has a long history in the recycled materials market and a deep knowledge of the waste chain in their country. The combination of Enka’s capabilities with Dow’s material science expertise resulted in a successful partnership to produce Dow’s REVOLOOP™ resin for flexible packaging, made from PET bottle caps and, in addition, gave an economic boost to thousands of Colombian recyclers.

• Association of Argentine Cooperatives (ACA): produced in partnership with the Association of Argentine Cooperatives (ACA), the REVOLOOP™ resin was launched in Argentina. Made from the recovery of silo bags, REVOLOOP™ can be incorporated into different applications that seek to include recycled content, maintaining processability and ensuring quality and performance.

The Revoloop Case in Latin America

Inspiration

Dow’s sustainability journey continues to evolve as we get closer to reaching our ambitious 2025 Sustainability Goals. By forging ahead with collaboration from like-minded partners, we can envision a stronger future together through a more sustainable planet and society and because of that we have a solid strategy and ambitious goals. Our sustainability targets (Fig 2) are:

• Protect the climate: as part of our action plan to put us on a path to carbon neutrality by 2050, we are committed to implementing and advancing technologies to manufacture our products using less resources. By 2030, Dow will reduce its net annual carbon emissions by 5 million metric tons compared to its 2020 baseline (15% reduction). By 2050, Dow intends to be carbon neutral (scopes 1 + 2 + 3 plus product benefits).

• Stop the waste: we are collaborating to invest in key technologies and infrastructure to significantly increase global recycling. By 2030, Dow will enable 1 million metric tons of plastic to be collected, reused, or recycled through its direct actions and partnerships.

• Close the loop: we are committed to redesigning and promoting reusable or recyclable packaging applications. By 2035, Dow will enable 100% of Dow products sold into packaging applications to be reusable or recyclable.

Overall impact

Dow has been recognized as a Global Supplier Engagement Leader by CDP, a global nonprofit that helps companies disclose their environmental impacts. Dow scored among the top 8% of companies that disclosed data to CDP and achieved an “A” score on their Supplier Engagement Rating System.

In response to growing consumer demand and government directives, most major brand owners working with Dow have targets to include at least 30% post-consumer recycled (PCR) content in their products or packaging by 2030. We are helping them achieve these targets and meet the strong demand for PCR-based products, including collation shrink and stretch wrap films, detergent packaging, heavy-duty shipping sacks and even artificial turf.

Dow’s global line of mechanically recycled plastic resins, branded REVOLOOP™ Recycled Plastics Resins, offers a family of products that can be used in either flexible or rigid plastic packaging applications and is our first PCR product to incorporate up to 70% of recycled plastic.

In 2022, we commercialized 12 product grades of REVOLOOP™ resins, with applications ranging from rigid bottles and collation shrink to e-commerce bags and protective packaging, in addition to other market offerings across the globe.

REVOLOOP™ Polyethylene Resins won gold in the subcategory: Plastic Upcycling and received a Special Recognition for inclusive recycling in the Corporate Social Responsibility category, which honors an organization's efforts to be a greater corporate member of society, from a local to global level.

Business benefit

As part of our sustainability targets, Dow intends to transform the waste to deliver 3 million metric tons per year of circular and renewable solutions by 2030. Only in Latin America, there are 541 million tons of solid waste generated daily and 9% of that involves plastic waste (Fig 4), so Dow aims to close the loop by enabling 100% of Dow products sold into packaging applications to be reusable or recyclable by 2035.

To support our expanded target, as well as increase accountability and robust decision-making around transforming our plastics franchise, we formed a new business platform, Circular & Renewable Solutions (C&RS), aligned within our Packaging & Specialty Plastics operating segment.

There is substantial demand for recycled plastics and, through C&RS, we will continue to collaborate across the value chain to improve recycling rates. This, in turn, will enable Dow to scale our production of circular and low-carbon emissions solutions and help our customers around the world meet their sustainability goals.

Social and environmental benefit

Climate change has serious consequences for the global economy and people’s health and well-being.

Dow’s “protect the climate” targets reflect our commitment to accelerate our work with our suppliers, customers and value chain partners to ensure Dow’s ecosystem is carbon neutral by 2050. We want to hold ourselves accountable every step of the way – from our raw materials through the end of life of our products.

Plastics are indispensable part of a low-carbon future – they make cars lighter and more fuel efficient, homes more energy-efficient and reduce food waste – a major contributor to the world’s carbon emissions. At the same time, we are facing an unacceptable consequence: Too much plastic is lost to waste and is entering our environment. Our “transform the waste” and “close the loop” targets are aimed at making a world without plastic waste a reality.

Reducing emissions

Dow’s action plan on its path to carbon neutrality by 2050 has two primary areas of focus:

• Ensuring the products, we sell to customers continue to be more sustainable than any alternative.

• Advancing our manufacturing operations.

Enabling industrial ecosystems

Our work to transform the waste and close the loop, enabling a circular ecosystem includes:

• Helping customers design packaging applications for recyclability.

• Demonstrating the value of recycled plastics and helping customers to use recycled plastics in their products.

• Investing in key infrastructure projects and technologies alongside our partners to enable industrial ecosystems.

Interviews

Ivan Trillo Minutti, C&RS LAA Regional Leader

Juan Pablo Espinosa Chacon, Associate TS&D Scientist

Magdalena Flores, Business Communications Manager

Mauricio Alvarado Blanco, Geographic Communications Leader

Ana Michelle Bernard Martinez, Associate Geographic Communications Specialist

Business information

Dow

Dow

Sao Paulo, Worldwide
Business Website: https://www.dow.com/en-us
Year Founded: 1897
Number of Employees: 10000+

Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $55 billion in 2021. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.