LARC Sustainability

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Dear Friends,

It’s time for real change.

In an era where technological advancements shape the landscape of high-value industries, LARC presents a groundbreaking solution to propel your company towards sustainability goals, transforming the age-old logistics paradigm. Our innovation, the LARC CRATE, stands as a testament to a new era in supply chain efficiency, particularly for companies dealing with cutting edge technologies like servers and other high-value products.

From boxes found in millennia-old Egyptian tombs to today's billion-dollar data centers, the reliance on wood crates is a story that persists over 4000-years, as a stagnant relic that we still use today to transport the most advanced and important products in the world - THAT MAKES NO SENSE Why are we moving smart products in dumb packaging? LARC shatters this archaic norm with a revolutionary modular crate, catapulting your supply chain into the vanguard of the circular economy, driving real, measurable results for your Green Initiatives. LARC empowers our partners to embrace innovation; where others are satisfied to think outside the “box” , LARC simply reinvented the box.

LARC CRATES are not just a pursuit of a better environment; they stand as a testament to our unwavering commitment to empowering our partners to achieve solid sustainability results Switching to reusable packaging is one of the most important changes an organization can make to meet their sustainability goals

Every facet of our CRATE platform design stems from years of customer input and a continuous comprehensive assessment of market needs to provide a greener, cleaner, safer, stronger, total packaging solution. This partnership has not only magnified our sustainability practices to an unparalleled degree, but has also harmonized our solution with the meticulous requirements of bleeding-edge companies that are transporting critical, high-value products LARC’s CRATE platform establishes new benchmarks for efficiency, efficacy, and sustainability in demanding, high-volume scenarios

Our platform is not merely a container, but a reflection of our relentless pursuit of excellence from ideation to implementation. LARC invests time in understanding each partner's unique needs, coauthoring designs that stand the test of time. Remarkably, we have yet to decommission a single LARC CRATE, underlining the durability, longevity and incredible sustainability of our solutions. In choosing LARC, you're not just adopting a simply better solution; you're embracing a sustainable future tailored to your company's bold sustainability initiatives Join us in The Circular Economy.

Welcome to real change. Welcome to LARC.

www larcnow com

Waste from just one fluted cardboard packaged server rack!

Better? No.

"But, we switched from wood to cardboard solutions...isn't that an improvement?"

Switching from wooden crates to fluted cardboard with wood pallets might seem like a more environmentally friendly option at first glance, but in reality, it may not be any better. While cardboard and wood pallets are often viewed as more sustainable due to their recyclability, they tend to be single-use items, unlike sturdy wooden crates that can be reused multiple times. This leads to a significant amount of waste generated with each use, with up to 200 lbs. of discarded materials including cardboard, wood, plastic, and metal strapping. Despite their initial appearance as eco-friendly alternatives, the disposable nature of fluted cardboard and wood pallets contributes to environmental degradation and resource depletion in the long run. Therefore, it's crucial to carefully evaluate the sustainability implications of packaging choices beyond surface-level considerations.

While both wooden crates and cardboard solutions may offer very limited reusability, neither can compare to LARC CRATES, which can be reused hundreds of times, making them a Zero-Waste solution that stands dramatically out against both wood and cardboard alternatives.

LARC CRATE: A Sustainable Solution:

100% Reduction in Single-Use Plastics: Unlike conventional packaging reliant on single-use materials, LARC CRATES are crafted from durable, reusable plastic materials, entirely eliminating the need for single-use plastics and mitigating the global plastic pollution crisis.

Recyclability and Circular Economy: LARC CRATES embody a circular economy ethos, being fully recyclable at the end of their lifecycle. This contributes to a closed-loop system where materials are perpetually reused and recycled, thereby reducing resource consumption and waste generation

Waste Diversion: With a steadfast commitment to 100% waste diversion, LARC CRATES substantially diminish the volume of packaging waste destined for landfills By instituting efficient recycling protocols and advocating responsible disposal practices, LARC ensures every CRATE is repurposed or recycled into new products.

Water Usage and Environmental Impact: In stark contrast to wooden crates, notorious for their intensive water usage and chemical treatments, LARC CRATES boast a minimal environmental footprint The production process consumes less water and energy, fostering overall resource conservation

Longevity and Durability: Engineered for unparalleled durability, LARC CRATES surpass traditional packaging materials in longevity, thereby reducing the need for frequent replacements and further curbing resource consumption and environmental footprint over time.

Key Performance Indicators (KPIs) for Sustainability:

In addition to inherent sustainability features, LARC CRATES demonstrate excellence in tracking specific KPIs that underscore their environmental benefits. Here's an in-depth analysis of these KPIs:

Supply Chain Waste: LARC CRATES facilitate comprehensive waste tracking across the supply chain, from raw material procurement to end-of-life disposal, fostering minimal environmental impact at every production stage through collaboration with waste-conscious suppliers.

Recycling Rates: Boasting high recycling rates, LARC CRATES ensure a substantial portion of materials are diverted from landfills, promoting a circular economy model by repurposing materials for new products.

Greenhouse Gas Emissions/Carbon Footprint: By optimizing transportation efficiency and curbing energy consumption during production, LARC CRATES contribute to greenhouse gas reduction, aiming for net-zero emissions through tracking of Scope 1, Scope 2, and Scope 3 emissions.

Load Density: Maximizing load density during transportation, LARC CRATES optimize shipment efficiency, minimizing resource utilization while maximizing cost savings for all stakeholders.

Water Use: Implementing water conservation measures throughout production, LARC CRATES minimize water usage and waste generation, ensuring responsible water stewardship and ecological footprint reduction

Green House Gas Protocols

Scope 1 Emissions:

LARC CRATES significantly mitigate Scope 1 emissions by reducing the need for traditional packaging materials such as wooden crates and paperboard, which often necessitate fuel-intensive processes for manufacturing. By utilizing reusable plastic materials, LARC CRATES eliminate the emissions associated with the production of single-use packaging, including those from boilers, vehicles, and equipment typically used in manufacturing and transportation. Additionally, LARC's commitment to waste diversion ensures minimal fugitive emissions, such as chemical leaks or spills, commonly associated with traditional packaging materials' disposal.

Scope 2 Emissions

:

While Scope 2 emissions primarily stem from purchased electricity and energy consumption, LARC CRATES indirectly contribute to emissions reduction in this area. By streamlining production processes and optimizing transportation efficiency, LARC reduces the overall energy consumption associated with packaging manufacturing and distribution Additionally, LARC's focus on durability and longevity minimizes the need for frequent replacements, further decreasing the energy expended in the production of new packaging materials

Scope 3 Emissions:

LARC CRATES significantly impact Scope 3 emissions, particularly in upstream and downstream operations By offering a sustainable alternative to traditional packaging, LARC reduces emissions associated with various aspects of the supply chain, including transportation and distribution, waste disposal, and the use of products sold Moreover, the durability and recyclability of LARC CRATES contribute to a reduction in emissions throughout the product lifecycle, including end-of-life disposal Furthermore, LARC's emphasis on waste diversion and responsible stewardship extends to leased assets, capital goods, and investments, minimizing emissions across the value chain 01 02 03

Two trees. A world of difference.

Timber Trouble: CO2 Cuts & O2 Oasis

The felling and processing of two timber trees to create just one standard wood crate have significant environmental implications that extend far beyond the immediate impact on the forest. These trees play a crucial role in carbon sequestration, absorbing carbon dioxide (CO2) from the atmosphere and storing it within their biomass. When trees are cut down, this carbon sequestration capacity is lost, leading to the release of CO2 into the atmosphere, thereby contributing to climate change. Additionally, the transportation and processing of timber into wood products require substantial energy consumption, primarily derived from traditional fuels, further exacerbating carbon emissions

Moreover, the loss of mature trees disrupts ecosystems, affecting biodiversity and ecosystem services such as soil stabilization and water regulation. Replanting trees to replace those harvested takes considerable time, typically ranging from 15 to 25 years for newly planted trees to reach maturity and sequester carbon at levels comparable to the trees they replaced. Overall, the process of harvesting timber for wood crates exacts a significant toll on the environment, from carbon emissions to habitat destruction, underscoring the urgent need for sustainable alternatives such as reusable plastic crates

A typical timber tree can absorb approximately 48 pounds (22 kilograms) of carbon dioxide (CO2) per year, although this amount can vary based on factors such as species, age, and environmental conditions. Through the process of photosynthesis, trees utilize sunlight, water, and CO2 to produce oxygen and carbohydrates, thereby sequestering carbon and contributing to the reduction of greenhouse gases in the atmosphere. As trees grow, their carbon storage capacity increases, with larger and older trees generally having a higher capacity for carbon sequestration In addition to absorbing CO2, a typical timber tree can produce around 260 pounds (118 kilograms) of oxygen per year through photosynthesis, providing a vital contribution to oxygen production and supporting life on Earth

Water.

Water Savings Through LARC Reusable Crates

Wood and paperboard packaging are known to consume significant amounts of water during production, contributing to water scarcity and environmental strain The manufacturing processes for wood and paperboard involve various stages, including harvesting, processing, pulping, and forming, each of which requires substantial water usage Additionally, the treatment of wood with chemicals, such as pesticides and preservatives, further increases water consumption and poses risks to water quality.

In contrast, switching to LARC reusable crates presents significant water savings benefits. LARC CRATES are constructed from durable plastic materials, which require considerably less water in their production compared to wood and paperboard The manufacturing of plastic crates involves processes such as injection molding or blow-molding, which generally consume less water and are more efficient than traditional wood processing methods

Moreover, the longevity and durability of LARC CRATES reduce the need for frequent replacements, further conserving water resources. Unlike wooden crates that may degrade over time and require continuous replenishment, LARC CRATES offer a remarkably longer lifespan and maintain their structural integrity even after even hundreds of uses, minimizing water consumption associated with replacement cycles.

Furthermore, the use of LARC CRATES promotes responsible water stewardship throughout the supply chain By encouraging the adoption of reusable packaging solutions, companies can minimize water usage at various stages, including production, transportation, and end-of-life disposal Additionally, the closed-loop system enabled by reusable crates facilitates efficient water management practices, ensuring that resources are utilized sustainably and waste is minimized.

Overall, the transition from wood and paperboard packaging to LARC reusable platforms offers substantial water savings benefits, contributing to water conservation efforts and promoting environmental sustainability in the packaging industry By embracing innovative solutions that prioritize resource efficiency and minimize environmental impact, businesses can play a crucial role in mitigating water scarcity and building a more resilient and sustainable future

Wood.

CRATE™

The choice is clear...very clear.

The choice between traditional wooden crates and reusable LARC CRATES is clear, with the latter emerging as a far superior option for modern logistics and supply chain management. While wooden crates have been a staple in the industry for decades, their single-use nature and susceptibility to damage pose significant drawbacks In contrast, LARC CRATES offer numerous benefits that make them a more sustainable and cost-effective choice

Firstly, LARC CRATES are designed for multiple uses, significantly reducing waste and resource consumption compared to traditional wooden crates, which are often discarded after a single use.

Additionally, the lightweight construction of LARC CRATES reduces fuel consumption and carbon emissions during transportation, contributing to environmental sustainability Moreover, LARC CRATES are engineered to withstand rough handling and harsh environmental conditions, ensuring the safe transportation of goods and minimizing the risk of damage or loss

Furthermore, the modular design of LARC CRATES allows for easy assembly and disassembly, optimizing storage space and improving operational efficiency. Overall, the clear advantages of reusable LARC CRATES in terms of sustainability, durability, and cost-effectiveness make them the preferred choice for modern supply chain operations. in terms of sustainability, durability, and cost-effectiveness make them the preferred choice for modern supply chain operations

Waste from just one truckload of wood crated server racks!

Facts shed light on the current state of packaging and its environmental impact:

Over the past five decades, the generation of containers and packaging in the United States has surged significantly, from 27,370 thousand U.S. tons in 1960 to 95,300 tons in 2023, as reported by the Environmental Protection Agency (EPA).

Paper and cardboard contribute to 17% of the global waste generated, ranking second only to food and green waste, according to the World Bank

The EPA estimates that packaging waste constitutes approximately 30% of total U.S. waste annually, highlighting the substantial environmental footprint of packaging materials.

Pallet production in the United States consumes over 7 billion board feet of virgin lumber annually, utilizing approximately 43% of hardwood and 15% of softwood lumber produced in the country

With more than 1 8 billion pallets in service daily in the U S , a staggering 93% of them are crafted from wood, emphasizing the pervasive use of wooden packaging materials.

Pallets and wood crates, particularly those utilized in international shipping, are typically treated with methyl bromide (CH3Br) or heat to meet international phytosanitary standards, posing risks to human health and the environment

Expanded polystyrene (EPS) foam, commonly employed for shock protection in wood crates, is a single-impact material with no viable recycling market Consequently, EPS products contribute significantly to landfill space, comprising up to 30% of all landfill volume and often ending up in marine environments and beaches.

These facts underscore the urgent need for sustainable alternatives in packaging, such as LARC CRATES, to mitigate environmental degradation and promote a circular economy.

There is a better way.

Environmental Analysis of Using LARC CRATE Per 100 Shipments

Environmental Impact Reduction through LARC CRATE Adoption:

In today's rapidly evolving technological landscape, the importance of sustainability and environmental consciousness cannot be overstated As industries strive to minimize their carbon footprint and embrace ecofriendly practices, the significance of packaging solutions in reducing environmental impact has come to the forefront. This brief white-paper explores the environmental benefits of adopting LARC CRATES over traditional single-use wood crates, specifically focusing on the context of large OEM (Original Equipment Manufacturer) Racked Server shipments

Background: A large OEM, delivering high-quality server racks worldwide moving from wood crates to LARC CRATE solutions. With a significant volume of deliveries each year, the choice of packaging for these shipments plays a crucial role in determining environmental impact Traditional packaging solutions, such as single-use wood crates, have long been the norm However, advancements in sustainable packaging, exemplified by LARC CRATES, present a compelling alternative

Environmental Impact Comparison in Real World Scenario Per 100 Shipments:

Per 100 Deliveries/Year:

Racked Server Shipments (3-Tier CRATE):

LARC Returnable CRATE:

- 4-Week Cycle Time = Only 8 5 LARC CRATES Required/Year

- 0.71 Metric Tons CO2 Released

Single-Use Wood Crates:

- No Return = 100 Wood Crates Needed/Year

- 478.09 Metric Tons CO2 Released

Results: Environmental Savings using LARC CRATES Vs Wood Crates per 100 Shipments:

477 38 Metric Tons CO2 Released

200 Timber Trees Cut Down

300 Gallons of Fuel Utilized for Transporting and Processing Wood

40,000 lbs of Wood Processed

Conclusion: The data presented in this white-paper underscores the significant environmental advantages of adopting LARC CRATE over traditional single-use wood crates for large OEM & Cloud Operator Racked Server shipments By reducing CO2 emissions, minimizing deforestation, and decreasing fuel consumption, LARC CRATES emerge as a sustainable packaging solution aligned with modern eco-conscious principles As industries continue to prioritize sustainability, embracing innovative packaging solutions like LARC CRATES becomes imperative for a greener future

Materials/Emissions Profile: Three-Tier LARC CRATE

HDPE: High Density Polyethylene is a thermoplastic polymer derived from petroleum with a generalized chemical formula (C2H4)n. The HDPE formula represents the repeating monomer unit of ethylene and forms a poly-ethylene molecular chain.

EPDM: Ethylene propylene diene monomer, or EPDM, is a type of synthetic rubber that is commonly used across many industries Made from ethylene, propylene, and diene monomers and is a very versatile and durable type of rubber with many applications

Aluminum: : Aluminium is the most abundant metal on earth however, it doesn't come in its pure form. It has to be extracted from its ore, called bauxite.

Steel: : Steel is an alloy of iron and carbon with improved strength and fracture resistance compared to other forms of iron Many other elements may be present or added Stainless steels, which are resistant to corrosion and oxidation, typically need an additional 11% chromium

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