2019 NextWave Plastics Annual Report

Rethinking Plastic NextWave Plastics 2019 Annual Report & 2020 Strategy March 2020

Member-Driven, Convened by Lonely Whale

Contents Executive Summary

3

Letter from the Managing Director

5

Initiative Background: 2017–2019 in Review

7

Looking to 2020

17

Summary and Next Steps

21

Appendices

22

Photo by Cristina Mittermeier, SeaLegacy Cover Photo Ocean-Bound Plastic Raw Material and Finished Use Cases, Photo by Thandiwe Muriu

Executive Summary Bureo

In 2017, NextWave Plastics set out to turn off the tap on marine plastic pollution by keeping plastic in the economy and out of the ocean.

Recognizing that no one company could solve plastic pollution alone, Dell Technologies, Lonely Whale, and the seven other original member companies established a consortium based on transparency and radical, open-source collaboration. The consortium’s aim is to develop the first global network of ocean-bound plastic supply chains, by empowering member companies to integrate ocean-bound plastic into their products and permanently remove the material from the waste stream.

In just two years, NextWave has grown to 10 members, which have collectively prevented more than 850 metric tons of plastic from entering the ocean. With a total of 10 established use cases, or products integrating recycled oceanbound plastic content, our member companies have demonstrated impact and uncovered key obstacles to sourcing ocean-bound plastic.

As the global plastic pollution crisis continues to escalate, so does the resolve of our member companies. The plastics industry produces more than 300 million metric tons of new plastic every year, reaching almost 360 million metric tons in 2018,1 in part due to the shortcomings of our existing recycling system. The role of NextWave Plastics is more critical than ever.

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We are at a pivotal point in our collective effort to convey that ocean-bound plastics carry a commercial value to the global manufacturing community. To address the core challenges of

establishing robust supply chains, we have identified four strategic priorities for 2020: Lead the Movement: Share replicable models for ocean-bound plastic recycling Accelerate Supplier Development: Help key partners meet demand Break Down Key Barriers: Standardize our framework and improve accountability Nurture and Develop Our Membership: Scale the movement The following report shares our 2018-2019 progress and the learnings that have informed our 2020 strategy, which will empower the consortium to reach, and perhaps exceed, our goal of diverting 25,000 metric tons of plastic from the ocean by the end of 2025.

1.

PlasticsEurope Market Research Group (PEMRG) and Conversio Market & Strategy GmbH, (2019).

Statistics do not include PET-fibers, PA-fibers or Polyacryl-fibers.

Athens, Georgia MRF Tour Photo by Jay Nielson

“

There are currently more than 86 million metric tons of plastic in our ocean, and each year, over eight million metric tons of additional plastic enters the ocean. We are proud that our member companies continue to scale commercially viable and operational ocean-bound plastic supply chains—keeping plastic in the economy and out of the ocean.

”

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Dune Ives Managing Director Lonely Whale

Letter from the Managing Director Recycling Tour Bali, Indonesia Photo by Jon Khoo, Interface

1.

J. R. Jambeck, R. Geyer, C. Wilcox, T. R. Siegler, M. Perryman, A. Andrady, R. Narayan, K. L. Law, (2015) Plastic waste inputs from land into the ocean.

Science 347, 768–771.

2.

Taylor, Matthew, (2017) $180bn investment in plastic factories feeds global packaging binge.

The Guardian. 26 Dec 2017.

There are currently more than 86 million metric tons of plastic in our ocean, and each year, over eight million more enter the ocean.1 This avoidable pollutant has dire consequences for our marine ecosystems and inhabitants as well as for our own health.

Our member companies have responded to the plastic pollution crisis by taking immediate action—not waiting for systemic change, but instead aiming to create it. The rapid rate of new plastic entering the ocean every year—plastic which, if recovered, could be upcycled into new premium products—offers an opportunity to shift the trend. Today, NextWave member companies are preventing plastic from reaching the ocean by demonstrating that ocean-bound plastics carry a commercial value, and in doing so, are raising awareness across the global manufacturing community.

In 2019, NextWave members launched an impressive suite of new ocean-bound plastic use cases, including: Trek Bicycles’ Bontrager Bat Cage made from recycled nylon fishing net waste from Bureo; HP’s Elite Dragonfly notebook and the EliteDisplay E273d, each groundbreaking applications of ocean-bound plastic polymer blends in technology products; and IKEA’s MUSSELBLOMMA collection of summer accessories. We also welcomed Solgaard to the consortium and expanded our global network of ocean-bound plastic supply chains.

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Since the launch of NextWave Plastics two years ago, plastic pollution has become a hot topic in the media and many new initiatives endeavor

to reduce, innovate away from, or more effectively recycle plastics. In this environment of evergrowing momentum for plastic pollution prevention and innovation, NextWave Plastics is one of the leading member-driven consortiums actively working with suppliers to remove plastic from the environment and permanently lock it up into market-ready products.

At the same time, the plastics industry plans to increase polymer production substantially, and we expect an estimated 40% increase in plastic production over 2017 levels in the next eight years.2 Yet the global recycling system cannot keep pace with these production levels. That’s why consortiums such as NextWave are so critical.

Investments made by NextWave member companies are actively diverting ocean-bound plastic and challenging how companies and consumers perceive materials in the products they create and/or use. Ocean-bound plastic supply chain innovation and use case development

by NextWave member companies is more critical today than it has ever been.

We are proud that our member companies continue to scale commercially viable and operational ocean-bound plastics supply chains— keeping plastic in the economy and out of the ocean. I am proud to share our accomplishments through the end of 2019 and look forward to the strides this group of companies will make in 2020.

Dune Ives Managing Director Lonely Whale

Net-Works Interface

“

It’s time for more companies to get in this game and really change the world, not just do enough in sustainability to protect your brand.

Mikhail Davis Director of Technical Sustainability Interface

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”

Initiative Background 2017–2019 in Review Ocean-Bound Plastics We define ocean-bound plastics as plastic that has not yet found its way into the ocean but is classified as “mismanaged waste.”

That is, plastic that is not being collected, is not likely to be collected, and is found on the ground within 50km, or 31 miles, of a major waterway or coastal area.

Due to the high rate of fishing gear abandonment, NextWave Plastics includes reclaimed fishing gear in our definition of ocean-bound plastic eligible for use in member companies’ products.

The NextWave Plastics member companies were early leaders in working to solve the plastic pollution crisis by sourcing ocean-bound plastic for their products. For example: • In 2012, Interface launched Net-Works, a partnership with the Zoological Society of London and Aquafil, which turns reclaimed nylon fishing nets from communities in the Philippines, Cameroon, and Indonesia into carpet fiber.

• In 2013, Bureo established Chile’s first fishnet collection and recycling program, working with fishermen to provide an end of life solution for their discarded fishing nets.

• In 2016, HP Inc. began to work with Thread to establish a robust supply chain for recycled bottles in Haiti, where there is limited waste management infrastructure, to reuse in original HP ink cartridges.

• In 2017, Dell Technologies worked to develop an ocean-bound plastic supply chain in Indonesia and pioneered the use of recycled ocean-bound HDPE in their packaging.

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In light of this early work, and recognizing that individual companies could not address the marine litter crisis alone, Dell Technologies and Lonely Whale launched NextWave Plastics in 2017 to bring together a cross-industry consortium of founding companies—Bureo, Herman Miller, Humanscale, Interface, General Motors and Trek Bicycles—to scale the use of ocean-bound plastics.

The initiative launched with the support of the UN Environment Programme and the University of Georgia’s New Materials Institute.

Today, NextWave Plastics is a collaborative and open-source initiative, convened by Lonely Whale, that brings together leading companies to develop the first global network of oceanbound plastic supply chains. Together, NextWave member companies prove that ocean-bound materials can go from linear to circular and by doing so, are creating value for what is currently considered a waste product. By demonstrating what’s possible, these companies are inspiring others to become involved and are helping to heighten consumer, stakeholder, and policymaker awareness of the environmental impacts of plastic pollution. “ As we’ve become more engaged in the challenges facing our oceans, it’s become increasingly clear that the solution to marine plastic pollution requires bold innovation and open collaboration.

No company can solve this issue alone.”

Kevin Brown, Chief Supply Chain Officer, Dell Technologies The NextWave Plastics theory of change states that by working collaboratively across and within industries, we can demonstrate the possible and articulate measurable impact that will inspire others to become engaged in ‘turning off the tap’ of oceanbound plastics. Together, we will create persistent change until our efforts are no longer needed.

In pursuit of this vision, our member companies have gathered each quarter to further their work establishing a global and commercially operational network of viable and scalable ocean-bound plastic supply chains. They have worked to permanently remove ocean-bound plastics by integrating them into products that can be recovered or— where possible—reused, repurposed, or recycled.

From the beginning, we recognized that NextWave is part of a growing global group of initiatives dedicated to drastically reducing marine debris through market leadership and innovation.

We sought support from global thought leaders in scientific research and environmental advocacy, such as the New Materials Institute at the University of Georgia, 5Gyres Co-Founders Anna Cummins and Marcus Ericksen, and Nick Hill from the Zoological Society of London. NextWave also works to complement new and existing initiatives and directly supports the work of the UN Environment Programme and the Clean Seas campaign. “ Corporations alone are not the saviors, but we have a critical role, to tackle these issues. To accelerate solutions, it’s critical that we work hand in hand with experts in government, nonprofits, universities, innovation hubs—and even with our competitors...It’s going to take all of us working together with some common goals and a commitment to bold action—not in the distant future, but today. The stakes are too high for incremental change.”

Nate Hurst, Chief Sustainability and Social Impact Officer, HP

In 2018, IKEA and HP joined NextWave Plastics.

We were pleased to welcome our first Europeanheadquartered company and expand the network of suppliers to the Caribbean with HP’s work sourcing ocean-bound plastic in Haiti.

In the same year, Humanscale and Bureo released the Humanscale Smart Ocean Chair, helping to expand the volume of recycled NetPlus™ material repurposed through Bureo’s fishnet recycling program.

At the Our Ocean Conference in Bali, Indonesia in October 2018, NextWave Plastics member companies formally announced a collective goal to divert 25,000 tons of plastic from entering the ocean by the end of 2025. This goal is in alignment with UN Sustainable Development Goal 14.1, to “prevent and significantly reduce marine pollution of all kinds, particularly from land-based activities, including marine debris and nutrient pollution.”

In 2019, we set out to develop and learn from different types of suppliers and grow our global network of scalable ocean-bound plastic suppliers.

Throughout 2019, member companies were diligently developing ocean-bound plastic use cases working closely with their cross-organizational teams and external vendors to test, evaluate and reimagine ways to utilize ocean-bound plastic.

Trek released the Bontrager Bat Cage to market, made with 70% Bureo’s NetPlus™ recycled fishnet material. HP announced the EliteDisplay E273d, a groundbreaking application of an ocean-bound plastic polymer blend into a technology product.

Ocean-bound plastic from HP’s supply chain in

Haiti is integrated into sixteen components of the monitor. Continuing to build on this momentum, HP also launched the Elite Dragonfly, the first laptop made with ocean-bound plastic. IKEA announced their first use case, utilizing recycled plastic SEAQUAL fiber made from plastic marine waste collected in the Mediterranean. The MUSSELBLOMMA collection, a set of summer accessories that will be available in select European markets in Spring 2020.

In late 2019, we also welcomed Solgaard to the consortium, expanding our industry representation to include the travel and luggage category.

Solgaard’s Shore-TexTM fabric, made entirely from ocean-bound plastic from the Philippines, demonstrates their existing commitment to the NextWave mission and marks our first in-market fabric use case.

“ All of us are from quite different industries but we are talking to each other and sharing what has been working, what’s not working, where there are potential sources of new material that seem to be reliable and are worth potentially exploring, and starting to [do] the R&D work around trying to use these materials.”

Jane Abernethy Chief Sustainability Officer Humanscale 8

Photo by Jay Nielson

Initiative Background 2017–2019 in Review Network of Ocean-Bound Plastic Suppliers

The NextWave network of ocean-bound plastic supply chains spans the globe, with companies sourcing from Chile, Haiti, and Indonesia, and adding suppliers in Denmark and Spain. Bureo, a NextWave member company and supplier, has scaled its operations by expanding its sourcing across South America, from Chile into Peru and Argentina—growing both geographic reach and processing capabilities. In addition, Interface and the Zoological Society of London have grown the Net-Works program, adding a site in Indonesia to their community-driven net collection programs in the Philippines and Cameroon.

In order to have the most immediate impact on the hardest hit regions, it is important for NextWave to focus our efforts on building supply chains in countries with limited waste management infrastructure and high rates of plastic waste leakage. According to a 2015 study by Dr. Jenna Jambeck, the top six contributors to ocean plastic pollution are China, Indonesia, the Philippines, Vietnam, Sri Lanka, and Thailand.1 Our efforts to grow the NextWave network in Southeast Asia reflect the importance of our work in this geography due to the scale of the plastic pollution originating from the region. At the same time, NextWave Plastics member companies strive to minimize the carbon emissions associated with transporting ocean-bound plastic around the globe.

Therefore, we aim to connect member companies with suppliers that are located in the same region or country as their essential manufacturing functions.2

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This global network of ocean-bound plastic suppliers will provide member companies access to a diverse and redundant supply of material. Since

ocean-bound plastic often comes from informal or seasonal economies which may be affected by weather, natural hazards, political upheaval, policy change, or other factors, it is important to offer multiple sources of each material from different geographies. We continue to build our network of supply chains with this in mind.

1.

Jambeck, Jenna R., et al. Plastic waste inputs from land into the ocean. Science 13 Feb 2015: Vol. 347, Issue 6223, pp. 768-771.

DOI: 10.1126/science.1260352 2.

Of course, some of the potential efficiency in ocean-bound plastic supply chains is limited by policy implications or the available ocean-bound plastic market. For example, China is considered the top contributor to ocean plastic pollution as well as home to much of the world’s manufacturing. However, the tariffs imposed on Chinese imports by the U.S. government in 2018 and 2019, combined with the Chinese National Sword policy, affected the economics of ocean-bound plastic sourcing and our ability to identify suppliers in the country for the time being.

Ocean-Bound Plastics Source Locations Existing Supply Supply developed in close partnership with NextWave members

Fishing Net Waste: Argentina, Cameroon, Chile, Denmark and Scandinavia, Indonesia, Peru, Philippines

Existing Supply Supply from an established ocean-bound plastic supplier partner

Post Consumer Material: Haiti, Indonesia

Evaluating Underway Bureo NetPlus™ Source Locations

Upcycled Marine Plastic: Spain Evaluating: India, Taiwan, Thailand, Vietnam

“

I am excited to see the private sector step up and take an active role in addressing the challenges of marine debris. By changing the way we think about waste, valuing the management of it, and establishing groups such as [NextWave] that create an economically viable and scalable model, we can catalyze the development of infrastructure, including new jobs and opportunities for economic innovation, while improving the living conditions and health for millions of people around the world.

Dr. Jenna Jambeck Professor, College of Engineering University of Georgia

Dr. Jenna Jambeck Photo 10

by Jay Neilson

”

Initiative Background 2017–2019 in Review Use Cases

HP Inc. Original HP Ink Cartridges, since 2016 HP EliteDisplay E273D, since 2019 HP Elite Dragonfly, since 2019

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HP and its partners have successfully built a fully functioning ocean-bound plastics supply chain using bottles collected in Haiti where there is limited waste collection. As of September 2019, HP had sourced over 450 metric tons, or over 35 million plastic bottles, created 1,100 income opportunities for adults in Haiti, and provided 150 children with quality education, food, and medical assistance.

Since 2016, HP has used recycled ocean-bound plastic from these bottles in the original HP ink cartridges. In June 2019, HP announced the first technology application to incorporate ocean-bound plastic with the release of the HP EliteDisplay E273D monitor, which includes sixteen components with ocean-bound plastic.

HP also released the Elite Dragonfly in September 2019, the world’s first laptop with ocean-

bound plastic. To ensure their ocean-bound plastics efforts continue to scale, HP commits to including ocean-bound plastic material in all new HP Elite and HP Pro desktop and notebook computers launching in 2020.

“ Plastic bottles are jobs. By investing in local communities in Haiti and guaranteeing a continuous demand for the PET bottles that are collected from the beaches, we also create structural employment and income for the people living there.”

Ellen Jackowski, Global Head of Sustainability Strategy and Innovation, HP

Initiative Background 2017–2019 in Review Use Cases

Dell Technologies XPS 2-in-1 Packaging Tray, since 2017 In 2018, Dell Technologies developed the technology industry’s first packaging trays made with recycled ocean plastic. Dell currently sources ocean-bound plastics collected from waterways, beaches, shorelines and other areas near the sea. After processing and refinement to ensure a clean supply, the ocean-bound plastics resin (25 percent) is mixed with other recycled HDPE plastics (75 percent) from sources like bottles, food storage 12

Interface Interface Carpet Tiles, since 2012 containers, electrical boxes and furniture. The blend is necessary to ensure impurities within the ocean plastics do not affect the quality or chemical composition of the end material. The resulting packaging trays are made entirely from recycledcontent materials and are curbside recyclable.

Interface’s carpet tiles are made using Nylon 6 from more than 250 metric tons of fishing gear collected across Cameroon, Indonesia, and the Philippines. Interface has been working with the Zoological Society of London since 2012 to develop the NetWorks project to collect these nets. Their efforts have resulted in 2,200 families having access to finance and 64,000 people enjoying a healthier environment.

“ At Interface, we are working toward becoming a carbon negative enterprise, and a big part of our strategy is using recycled content in our products in a way that challenges the status quo of supply chains. That means sourcing recycled materials that improve the health of our communities, oceans, and coastal waterways.”

Erin Meezan, Vice President and Chief Sustainability Officer, Interface

Initiative Background 2017–2019 in Review Use Cases

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Humanscale Smart Ocean Chair, since 2018

Solgaard Shore-Tex™ Fabric, since 2019

IKEA MUSSELBLOMMA Collection, since 2019

Humanscale’s Smart Ocean is the first chair made with recycled fishing nets. Each chair uses almost 2 pounds of NetPlus™ recycled fishing net material once bound for the environment in South America. This ergonomic task chair is made in partnership with Bureo.

Solgaard introduced a collection of unisex bags and backpacks crafted in the brand’s proprietary Shore-Tex™ fabric, made from plastic waste collected from beaches and riverways in the Philippines. Solgaard’s pioneering innovations align with the company’s pledge to remove five pounds of plastic waste from the ocean for every product purchased.

IKEA announced the new MUSSELBLOMMA collection, with a planned release in their Spanish and Italian markets in Spring 2020. The collection includes a polyester bag, two cushion covers, and a tablecloth made with SEAQUAL upcycled marine plastic.

Initiative Background 2017–2019 in Review Use Cases

Trek Bontrager Bat Cage, since 2019 Trek Bicycle E-Bike Bash Guard, since 2019 Trek Bicycle launched the Bontrager Bat Cage, a mountable water bottle holder made from Nylon 6 from recovered fishing nets in South America.

In one year alone, the production of Bat Cage will prevent 3,850 pounds of fishing nets from ending up in the environment.

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Trek has also developed a protective bash guard made from ocean-bound plastic for their electric mountain bikes. The bash guard moved

Supplier Highlight: Bureo NetPlus™ Material, since 2013 into production in late 2019 and has the potential to scale across additional bike models. “ Bat Cage may be a small product, but it’s the little hinge that swings a big door.”

Justin Henkel, Director of Product for Saddles and Essentials, Trek

Discarded fishing nets make up an estimated 10% of plastic in the ocean and have been found to be four times more harmful than all other forms of plastic pollution. Bureo’s programs provide a tangible solution to prevent this harmful material from entering our oceans and the environment at large. Since 2013, over 700,000 kg of fishing nets have been collected from 50 participating fisheries in South America and recycled into NetPlus™ material. Bureo is working with industry leading companies, including Humanscale and Trek Bicycle,

to incorporate this material into their supply chains.

Aligned with end of life incentives, these collections have financed community projects supporting sustainable development in coastal communities. “ We strongly believe in the force of collaboration to align initiatives to expand impacts, with measurable tangible outcomes to prevent waste in our waterways and oceans.”

David Stover, Founder and CEO, Bureo

Initiative Background 2017–2019 in Review

According to the original estimates that informed the 25,000 metric ton commitment, the Member Companies had a collective estimated goal of diverting 988 metric tons by the end of 2019. Therefore, total diversion in 2019 was 116 metric tons below our initial projections.

While we are on track to reach our projected diversion rate by the end of 2025, it will be important to continue to build momentum, scale our existing efforts, and onboard new members to boost diversion over the next five years and achieve our goal.

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1.

All companies projected estimates through the end of 2019 based on actual sourcing and manufacturing rates as of November 2019. This excludes HP Inc. who reported actual diversion rates through August 2019.

Projections and totals do not include all of Bureo’s NetPlus™ material, only the quantities used in partnership with other NextWave member companies.

Progress to Date

24,000

100%

22,000

90%

20,000

Metric Tons

80%

18,000 70%

16,000

60%

14,000 12,000

50%

10,000

40%

8,000

30%

6,000

20%

4,000 10%

2,000 0

0% 2018

2019

2020

2021

2022

Year

2023

2024

2025

0

Progress Toward Goal

In 2019, with the continued production of the member companies’ original use cases and the addition of seven new use cases, members reported diverting a total of 872 metric tons as of the end of 2019.1

NextWave Plastics Collective Impact Estimates for Ocean-Bound Plastic Diversion by the End of 2025

Ocean-Bound Plastic Diversion (Metric Tons)

Progress Toward Goal

In Fall 2018, NextWave member companies established a collective commitment to divert a minimum of 25,000 metric tons of plastic from entering the ocean by the end of 2025. Based upon original estimates, the consortium would scale up their own diversion rates over time with more use cases and a greater volume of oceanbound plastics sourced.

300

2017

600

2018

900

2019

Actual: 872 metric tons Goal: 988 metric tons

Initiative Background 2017–2019 in Review Media Coverage & Award Recognition Lena Pripp-Kovac, Inter IKEA UNEA-4 Official Side Event Photo by Thandiwe Muriu

1.

Lonely Whale was identified as one of Fast Company’s Most Innovative Companies in 2019 largely due to their work convening NextWave Plastics.

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One of the key principles of NextWave is to be opensource, meaning member companies are committed to sharing their lessons learned with each other and those outside the NextWave consortium so that others may become inspired to ask how they can also work to solve the ocean plastic crisis and benefit from the members’ experiences.

The NextWave member companies’ dedication to cross-industry collaboration and problem-solving for the plastic pollution crisis has been profiled in leading publications including The New York Times, Wall Street Journal, Forbes, Fast Company, AdWeek, Ethical Corporation, Sustainable Brands, National Geographic, Huffington Post, BuzzFeed, Green Matters, and more.

Member companies have shared their lessons learned and aspirations at leading conferences, including Sustainable Brands, Responsible Business Summit Europe, Sustainable Purchasing Leadership Council Summit, Sustainable Packaging Coalition Impact, Living Product Expo, and Engage for Good.

Notably, NextWave was selected to host one of ten official side events at the United Nations Environment Assembly (UNEA-4) held at UN Environment headquarters in Nairobi, Kenya. The event featured a compelling panel with Inter IKEA’s Chief Sustainability Officer, the Danish Minister of Environment and Food, the Special Advisor to the Indonesian Minister of Marine Affairs and Fisheries, the Japanese Parliamentary Vice-Minister of Environment, and a representative of Brazil’s National Movement of Catadores de Materiales Reciclables. The conversation brought together business, government, and those on the front-lines

of material recovery whose communities are most impacted by plastic waste.

Award recognition for NextWave Plastics:

Circular Economy Award

Finalist, Partnership of the Year

Silver, Environment Category 1

“ It is inspiring to see organizations from various industries and market competitors joining forces to innovate and improve the supply chain. The companies behind NextWave are bold leaders standing up for our ocean and battling against the millions of tonnes of plastic that end up in it each year.”

Barbara Hendrie, Director, UN Environment Programme North America

Looking to 2020 Vision for the Future

Two years into our initiative, NextWave is still true to the core principle that brought us together: keep plastic in the economy and out of the ocean by demonstrating success integrating ocean-bound plastic into products.

It is clear that by continuing to experiment and establish use cases, NextWave Plastics is prototyping the supply chain of the future, one that creates environmental and social benefit in priority areas and demonstrates to other manufacturers the benefits of this new resource.

Athens, Georgia Landfill Tour Photo by Jay Neilson 17

Adrian Solgaard, Solgaard Q3 2019 NextWave Member Meeting Photo by Kendall Starkman, Lonely Whale

“

Collaborating with other companies who are as dedicated to this effort as we are means we can prove what’s possible and demonstrate that businesses can choose sustainability without sacrificing premium quality.

Adrian Solgaard Founder & CEO Solgaard

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”

Looking to 2020 Strategy for 2020 & Beyond

As NextWave Plastics enters its third year, we have our sights set on achieving the goal to permanently remove 25,000 tons of ocean-bound plastic by the year 2025 and demonstrating the viability of creating circularity in what is now being lost to the environment: plastics.

NextWave Plastics member companies have made substantial progress expanding existing and developing new suppliers across multiple geographies, demonstrating the viability of integrating ocean-bound plastic into existing products and creating blended polymers to increase potential use cases. Many have also made progress decreasing the use of non-essential plastics in corporate operations and supply chains.

To meet our 2025 goal, NextWave member companies are more committed than ever to work together to change the system - diverting even more plastic from the ocean and furthering the circular economy - and we have a responsibility to continue to ensure all communities from which the plastics are derived are supported and can thrive.

Our success as a consortium will depend on the continued pursuit of our goals, addressing the challenges identified in this report, and demonstrating leadership that inspires other companies, employees, customers, and stakeholders to keep plastic in the economy and out of the ocean.

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Bali Recycling Tour Photo by Emy Kane, Lonely Whale

To do this, we will need to focus on four core opportunities: Lead the Movement Accelerate Supplier Development Break Down Key Barriers Nurture and Develop Our Membership

Looking to 2020 Strategy for 2020 & Beyond

Lead the Movement NextWave has a tremendous body of knowledge on the sourcing and utilization of ocean-bound plastics and the innovation required to maximize integration of material into existing product. By sharing this we will inspire other companies to consider how they can join the movement. We will do this by: • P ursuing thought leadership by conducting research, implementing pilots, and developing novel content to further consortium-wide and public knowledge of ocean-bound plastic supply chains • Developing “playbooks” to create models for supply chain development and ocean-bound plastic use case implementation

• Actively engaging in external communications through conference panels, social media, and media coverage, in addition to investing in PR for new use cases and new member announcements

• Considering improved end-of-life solutions for plastic products produced or consumed by member companies

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Accelerate Supplier Development NextWave continues to identify high-potential suppliers and promote ocean-bound plastic collection and processing in key geographies of interest. By implementing shared supply chain development and evaluation, we can increase efficiency and effectiveness. We will do this by:

Break Down Key Barriers NextWave is actively confronting obstacles to ocean-bound plastic supply chain development. We can build our own capacity, as well as that of others, by identifying key industry principles on social responsibility for ocean-bound plastic and providing clear guidelines for ocean-bound plastic labeling and supply chain traceability. We will do this by:

• C ontinuing to grow our network of manufacturers/compounders, material suppliers, and academic/NGO partners

• B uilding a Social and Environmental Responsibility Framework for ocean-bound plastic sourcing

• Focusing on PET, PP and Nylon material supply development with a focus on SE Asia, India, China, and the Americas

• E stablishing clearer guidelines for oceanbound plastic use cases, including how to measure and refer to ocean-bound plastic content

• Establishing supply chain efficiencies through the development of shared use cases and collaboration on material shipping and compounding where possible • Establishing a plan for implementing shared SER development and/or verification • E nsuring sufficient access to a lab, such as the New Materials Institute, for materials testing

Nurture and Develop Our Membership NextWave brings together a cross-industry and cross-sector network of member companies and partners. By engaging more collaborators, we will build widespread capacity for turning off the tap on marine plastic pollution. We will do this by:

• C ontinuing to grow our network of member companies and academic/NGO partners • I nvolving existing member companies in new member recruitment • A ccounting for reductions in non-essential plastic use across member company operations and supply chains

Summary & Next Steps Bureo

NextWave Plastics has convened an inspiring set of companies that are actively learning, growing and evolving together so that we can navigate the complexities of developing a network of oceanbound plastic supply chains.

To date, these companies have demonstrated that it is desirable to upcycle what is now considered a waste product and have produced 10 unique use cases, leading to the permanent diversion of over 850 metric tons of plastic from the ocean. These use cases demonstrate that it is not only possible, but beneficial, to work with this material, and that ocean-bound plastics carry a commercial value.

However, as virgin plastic production continues to be a growth economy, and collection infrastructure and end of life uses for plastic continue to lag behind, our efforts to reframe the discussion are essential.

NextWave Plastics member companies remain focused on disrupting the linear economy by ensuring the growth and sustainability of our network of ocean-bound plastic supply chains. We are making significant progress to scale the oceanbound plastic economy by producing more inspiring use cases that prove the commercial utility of recycled ocean-bound plastics.

As a result of our collective efforts, the global network of ocean-bound plastic suppliers is well on its way to becoming operationalized, but we have more work to do and are more committed than ever to the cause.

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We are breaking down barriers in the market and within our individual companies to demonstrate success with unconventional materials. We are paving the way for the future of business.

Appendices Glossary of Terms

Circular Economy Looking beyond the current take-make-waste extractive industrial model, a circular economy aims to redefine growth, focusing on positive societywide benefits. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system.

Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles: 1) Design out waste and pollution, 2) Keep products and materials in use, and 3) Regenerate natural systems.

(Source: Ellen MacArthur Foundation)

Trek Bicycles, Interface, HP Inc., IKEA, Herman Miller, Humanscale, General Motors, Solgaard, and Bureo.

Initiative Charter The document which establishes the founding principles of NextWave Plastics. Each member has committed to these ten principles.

Ocean Plastic Plastic that has reached the ocean and remains in or has been reclaimed from the marine environment.

This material is often degraded by exposure to salt and sunlight.

Member Company One of the ten formal members of NextWave Plastics that have signed onto the Initiative Charter.

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NextWave Plastics A collaborative and open-source initiative convening leading technology and consumer-focused companies to develop the first global network of ocean-bound plastics supply chains. Since its launch, NextWave member companies have been developing their product use cases to demonstrate the viability of integrating ocean-bound plastics found in areas such as Indonesia, Chile, Philippines, Cameroon, and Denmark, into their supply chains. Founded by Dell Technologies and convened by Lonely Whale. Current member companies include: Dell Technologies,

Ocean-Bound Plastic Plastic that has not yet found its way into the ocean but is classified as “mismanaged waste.” That is, plastic that is not being collected, is not likely to be collected, and is found on the ground within 50km of a major waterway or coastal area. Due to the high rate of fishing gear abandonment, NextWave Plastics includes reclaimed used fishing gear in our definition of ocean bound plastic eligible for use in member companies’ products.

Open-Source A NextWave Plastics founding principle, which states that the consortium will utilize and consistently employ the principles of a creative common approach both internally and externally by taking all actions jointly and by donating to the public domain and to the public at large all of its publications, processes, copyrights and other joint intellectual property and results.

Supplier A company that supplies recycled ocean-bound plastic as a raw material – typically in a flake, pellet, or fiber form – to a member company or their compounding/manufacturing partner.

Transparency A NextWave Plastics founding principle which states that in all of its actions the consortium will be open, completely transparent, and accessible both internally with respect to Members and externally with respect to the public at large, with the exception of company-specific matters or information that may compromise competitive advantage or intellectual property rights.

Appendices Ten Founding Principles

To decrease the volume of plastic and nylon litter waste before it enters the ocean, NextWave Plastics member companies mutually commit to develop an economically feasible and sustainable network of supply chains for the use of ocean-bound plastic in commercial products and packaging. In doing so each of us commits and all of us commit ourselves to these Ten Principles: Transparent In all of its actions the Working Group will be open, completely transparent, and accessible both internally with respect to members and externally with respect to the public at large.

Open-Source The Working Group will utilize and consistently employ the principles of a creative common approach both internally and externally by taking all actions jointly and by donating to the public domain and to the public at large all of its publications, processes, copyrights and other joint intellectual property, and results.

Science-Based The Working Group will utilize and consistently employ the best available peer-reviewed science and will develop an external, objective scientific and NGO advisory group to review the Working Group’s efforts and results, and to counsel and advise the Working Group through public recommendations also based on the best available, peer-reviewed science.

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Cooperative Recognizing the critical nature of its invaluable work, the Working Group will cooperate with the

Ellen MacArthur Foundation to complement and build upon its New Plastics Economy Initiative.

Complementary The Working Group will complement the Clean Seas Campaign, a global UN Environment Initiative that encourages government, corporate, and individual commitments to reduce the extent and impact of marine litter, and the Working Group commits to the Campaign’s Sustainable Development Goal 14 to conserve and sustainably use the oceans, seas, and other marine resources for sustainable development.

Beneficial The Working Group will minimize its social, environmental, and financial costs while maximizing its benefits to the environment, to the public at large, and to its Members.

Enduring The Working Group will evolve together with its long-term Initiative to create a lasting reduction, ultimately to zero, in the amount of plastic flowing into waterways and the oceans.

Accountable To demonstrate and document the Working Group’s impact to industry, government, and global audiences, the Working Group will utilize and consistently employ objective performance measures of volume and weight of reduced and recovered ocean-bound plastics and marine litter, of the amounts of original plastics replaced by members with materials derived from oceanbound plastics, of the anticipated community and environmental benefits and of those actually

achieved, and of stakeholders’ heightened awareness of ocean-bound plastics and marine litter.

Collaborative The Working Group is committed to working jointly and collaboratively rather than under a single leadership or member’s direction, is committed to achieving equity in the burdens it places on its members, and for sensitivity to members’ needs and concerns to achieve lasting, win-win outcomes that benefit the members while benefiting the environment and the public at large.

Competitive Because members are also competitors in the marketplace, the Working Group will respect the rights of its members to their own intellectual property and other proprietary, non-public, confidential, and market-competitive information pertaining to such things as manufacturing processes, supplier contact information, supplier pricing, product composition, and the like while remaining vigilant to avoid even the appearance of potentially collusive or anti-competitive behavior involving the Working Group and its members.

Appendices About the Member Companies

Bureo Bureo, based in the US and Chile, is focused on finding solutions for the growing issue of plastic pollution in our oceans and initiating social change.

Bureo’s Net+Positiva program provides fishermen with an end of life solution for their discarded fishing nets, while Bureo receives highly recyclable and durable raw materials. Headquartered in California, Bureo is a certified B-Corporation, a member of 1% for the Planet, and is a participating company in Patagonia’s Tin Shed Ventures Fund, an internal fund supporting likeminded start-up companies having a positive impact on the environment. To find out more visit: www.bureo.co.

Dell Technologies Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. The company services customers of all sizes across 180 countries—ranging from 99 percent of the Fortune 500 to individual consumers—with the industry’s most comprehensive and innovative portfolio from the edge to the core to the cloud. For more information visit www.delltechnologies.com.

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General Motors General Motors is committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Cadillac, Chevrolet, Baojun, Buick, GMC, Holden, Jiefang and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, Maven, its personal mobility brand,

IKEA Since its 1943 founding in Sweden, IKEA has offered home furnishings of good design and function at low prices so the majority of people can afford them.

There are currently 433 IKEA stores in over 49 countries. IKEA has been included in rankings of “Best Companies to Work For” and strives to be an employer of choice. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information see about.ikea.com.

sold. Learn more at www.solgaard.co.

HP Inc. HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze.

More information about HP Inc. is available at www.hp.com.

Interface Interface Inc. is a world-leading modular flooring company with a fully integrated collection of carpet tiles and resilient flooring. Our modular system helps customers create interior spaces while positively impacting the people who use them and our planet.

Our mission, Climate Take Back™, invites industry to join us as we commit to running our business in a way that is restorative to the planet and creates a climate fit for life. For additional information, visit: www.interface.com and www.blog.interface.com.

Humanscale Humanscale leverages new technology and functional design to transform traditional offices into active, intelligent workspaces. As the leading designer and manufacturer of high-performance ergonomic products, Humanscale improves the health and comfort of work life. Committed to making a net-positive impact on the earth as well as our customers, Humanscale offers awardwinning products designed with a focus on function, simplicity and longevity. For more information, visit www.humanscale.com.

Solgaard A design-driven sustainable luxury brand always ready for adventure, Solgaard enhances life on-thego with premium gear for global citizens. Solgaard’s sustainable product portfolio consists of luggage, backpacks, bags, solar accessories, and luxury timepieces. In 2019, Solgaard launched its ShoreTex™ proprietary fabric and accessories collection made entirely of recycled ocean plastics. Founded in 2016 by Canadian-Norwegian entrepreneur, Adrian Solgaard, the company pledges to pull five pounds of plastic waste from the ocean for every product

Lonely Whale Lonely Whale is an award-winning incubator for courageous ideas that drive impactful marketbased change on behalf of our ocean. Founded in December 2015 by Adrian Grenier and Lucy Sumner, Lonely Whale is inspired by the power of community to create the change needed to ensure a healthy planet. Lonely Whale is working towards a new era of radical collaboration, together facilitating the creation of innovative ideas that push the boundary on current trends in technology, media, and advocacy that positively impact the health of our ocean. Lonely Whale’s work has been recognized

by Fast Company’s World Changing Ideas, the Shorty Awards, and the ADDY Awards. Lonely Whale is a proud supporter of the UN Environment’s #CleanSeas campaign. To learn more and support, visit www.lonelywhale.org or follow @LonelyWhale.

and Cruise, its autonomous vehicle ride-sharing company, can be found at www.gm.com.

Herman Miller Herman Miller is a globally recognized provider of furnishings and related technologies and services.

Since its inception in 1905, the company has relied on innovative design to help people do great things.

The global design leader has evolved into Herman Miller Group, a family of brands that collectively offers a variety of products for environments where people live, learn, work, and heal. The family of brands includes Colebrook Bosson Saunders, Design Within Reach, Geiger, HAY, Maars Living Walls, Maharam, naughtone, Nemschoff, and Herman Miller. www.hermanmiller.com/about-us.

Trek Bicycle Headquartered in Waterloo, Wisconsin, Trek Bicycle Corporation is a global leader in bicycle design and manufacturing. From the original hand-built steel touring frames introduced in 1976 to the revolutionary OCLV Carbon first introduced in 1992, Trek’s passion for innovation, quality, and performance leads the industry with next-generation thinking and cutting-edge technology. Learn more at www.trekbikes.com.

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Photo by Cristina Mittermeier, SeaLegacy