The Closed Loop Fund is a social impact fund investing $100M to - - PowerPoint PPT Presentation

Investors include:

The Closed Loop Fund is a social impact fund investing $100M to increase the recycling of products and packaging.

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We spend billions of dollars to throw away even more billions of dollars

BRITISH COLUMBIA ARCTIC NEW BRUNSWICK QUEBEC ONTARIO VIRGIN ISLANDS MEXICO

Cities spend $5+ billion annually to truck, rail, and barge waste to landfills

STEEL: $285,000,000 PET: $2,917,345,309 PVC: $136,000,000 PP: $1,273,600,000 GLASS: $97,325,060 ALUMINUM: $1,446,228,571 HDPE: $2,854,896,000 LDPE/LLDPE: $726,000,000 PS: $371,000,000 PAPER: $1,294,625,417

This waste is $11b+ of material that could be used to make new packages and products.

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COLLECTION PROCESSING MATERIAL SCIENCE & PRODUCT DESIGN

The Closed Loop Fund unlocks recycling’s value by providing 0% and low interest loans to cities and companies to build recycling infrastructure.

WE INVEST IN:

We invest in replicable models that remove barriers to an effective and financially viable recycling system

SCALABILITY FINANCIALS REPORTING TONNAGE

CRITERIA:

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Nine System Bottlenecks Hindering Recycling

Bold = Areas for CLF leadership

Sort Recyclables into Marketable Commodities

7) Lack of innovation, unclear profitability of sorting technology for plastics, film, glass 8) No expansion of new materials accepted

Process into Product Inputs

9) Under- developed end markets for rigid plastics, film/flex, glass 1) Recycling not included/ prioritized in packaging design process 2) PCR demand unclear/ lacking 3) Low awareness of what’s recyclable / how to recycle

Collect More Recyclable Material

• 4. SS recycling, rigid

plastics collection not expanding

• 5. Low confidence in

low-income, underserved pop. ability to recycle

• 6. Lacking collection for
• rganics, ewaste, and

textiles (60% of stream)

Processing

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Plastic Recovery Facility (PRF)

Baltimore, MD Investment: Create profitable market for hard-to- recycle rigid plastics (#3-7) for the east coast. Reach: Communities within 500 miles including VA, PA, MD, DC, NY, MA, OH, NC Impact Over 10-years: 650,000 tons; 670,000 tons of GHG Total Project Cost: $11,000,000 Closed Loop Fund Portion: $2,000,000 Co-Investors: Canusa Hershman, QRS Co-investment unlocked: $9,000,000 Payback Schedule: 10-year maturity; first 2- years interest only, then 8-year amortization; $2.0m loan securitized by a first-lien on $2.5m of buildings and equipment

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Portage County, OH

(Kent to Akron) Investment: New Single Stream Recycling Carts and Trucks in Midwestern semi-rural community Reach: 25,000 households Impact over 10-years: 37,000 tons; 110,000 tons of GHG Total Project Cost: $3,100,000 Closed Loop Fund Portion: $3,100,000 Payback Schedule: 7-year fixed and guaranteed repayment from Portage County Solid Waste District.

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Quad Cities, IA

In: Upgrade local Material Recovery Facility (MRF), Trucks and Carts to single stream Location: Quad Cities, IA Reach: 150,000 households Impact over 10-years: 86,000 tons; 250,000 tons GHG Total Project Cost: $10,725,000 Closed Loop Fund Portion: $2,725,000 Co-Investors: Scott County, IA ; Iowa Department of Natural Resources Co-investment unlocked: $8,000,000 Payback Schedule: : 10-year fixed and guaranteed repayment from Scott County Solid Waste Commission

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Innovation of Closed Loop Fund Model

LARGE SCALE LOANS Zero interest loans in amount required to achieve measureable and systemic change drives proves the model and drives accountability. Revenue-backed loans are repaid via savings from increased landfill diversion and/or revenue from sale of commodities. SYSTEM CHANGE: Capital is pooled from consumer goods companies and retailers with a vested interests in increased recycling rates. Affect a system that no company can do alone. SCALABILITY Each project will be leveraged to inspire exponential increases in investment from other municipalities interested in self funding and replicating success of the a similar project in their location. UNLOCK 5x CO-INVESTMENT Fund will co-invest in select projects with private investors to enable projects to have an effective IRR for private investors, spurring and increasing in private investment.

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UNLOCK PUBLIC AND PRIVATE FUNDING NATIONALLY Create scalable models that prove financial value to funders across the country to help bring modern recycling programs to homes across the US. FINANCIAL TO MUNICIPALITIES $21.2B in avoided landfill tipping fees and revenue generated from selling diverted commodities. ENVIRONMENTAL 50 million metric tons of GHG reduction; SOCIAL 20,000 incremental local jobs vs. land- filling.

Anticipated impact of the fund

The Closed Loop Fund targets following impact could be achievable over the life of the Fund (10-years):

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REDUCE COST OF GOODS

• Increase supply of recycled commodities available to source
• Protect supply from resource scarcity and price volatility by

recovering material from waste stream.

The Closed Loop Fund is building local and national recycling infrastructure to create systemic value for the entire value chain

MEET CONSUMER DEMAND

• Meet consumer, societal demand for recyclable products
• Ensure customers have access to recycling where and when they

need it

• Improve city resiliency

IMPROVE REGULATORY ENVIRONMENT

• Partner with cities on the solution to a looming challenge

TRANSPARENCY AND ACCOUNTABILITY

• Revenue backed loans prove the business model and return

capital

• Provide data of GHG reductions and money saved by

municipalities