Hello, and welcome to the TOMRA Talks press conference with Tove Andersen, who became President and CEO of TOMRA on August 16, 2021. Tove is the first woman in the history of TOMRA to hold this position. Prior to joining the company, she worked for a leading global fertilizer company, Yara International, which is also headquartered in TOMRA. Tove spent 24 years with Yara in a variety of senior roles, ultimately becoming Executive Vice President for Europe. Tove holds a Master of Science degree from the Norwegian Institute of Technology and a Master of Business Administration degree from the Norwegian School of Management. In the next 15 minutes or so, Tove will share her perspectives of a circular economy, including upcoming legislative efforts in Europe and taking a holistic approach in the transition towards a circular economy, the challenges and opportunities of getting there, and the outlook on how to transform in the most effective and efficient way possible. Just a quick housekeeping note before we start. We will have a question and answer session after Tove's presentation, where you can enter your questions into the chat section on the right side of your monitor. Welcome, Tove. Good morning, good afternoon, and good evening, everyone, depending upon where from you are joining us, and thank you very much for attending this press conference in connection with the TOMRA Talks event. This is the fourth conference of this type, and I'm truly excited that we have 288 guests joining from 23 countries. The theme of this year's conference is closing the loop on plastic, and in order to do so, we need to work together along the value chain. That's the true value of this conference, that we bring together players across the value stream to learn, discuss, and network in the true spirit of collaboration. Why does this matter? Because we need to reduce litter, we need to reduce plastic in the ocean, and we need to reduce the global CO2 emissions. We could actually decrease 2.8 billion tons of CO2 annually if we use best practices within waste management globally. That's a staggering figure, and that is why this topic matters. There is a significant increase in interest globally regarding reuse, recycling, and circular economy, and EU is in the forefront of this development. Let me quickly recap some of the most relevant instruments and initiatives that EU is implementing. The Single-Use Plastics Directive is a wide-reaching piece of legislation that seeks to reduce marine and land-based plastic pollution. It requires the EU member states to ensure manufacturers, producers, retailers, importers, and sellers are all in compliance with such measures. The directive has many elements, but I would like to highlight the collection target rates for plastic beverage containers, where all the member states need to collect minimum 77% by 2025 and 90% by 2029. Based on our experience, this can only be achieved through implementing a deposit return system. You have the Plastic Waste Amendments. Until 2020, unsorted and contaminated scrap plastic was traded without any specific controls. Starting in 2021, most types of plastic waste are subject to the Basel Convention processes for import, export, and transit. From 1st of January this year, only plastic waste that is sorted, clean, uncontaminated, and effectively designed for recycling can be traded freely. In addition, EU introduced a ban on export of unsorted plastic waste to non-OECD countries. As a result of this, we expect an increased need for sorting plants and recycling capabilities in Europe. The plastic tax is another important piece of legislation. The tax entered into force January this year for all 27 member states, which now need to pay a tax on non-recycled plastic packaging equal to EUR 800 per ton. It's been debated and questioned if the countries will pass on the tax to the relevant industries or not, but if they do so, this can be an important element to drive the preference of recycled plastic ahead of virgin, as it will become more financially beneficial to use recycled material. We see some countries are moving in that direction. For example, Italy and Spain have announced the intention to implement a plastic tax on virgin material of EUR 450 per ton from next year, and also U.K. will have a plastic tax of GBP 200 per ton as of beginning of 2022. We have the NextGenerationEU, a EUR 750 billion temporary recovery instrument. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient, and better prepared for the challenges and opportunities of the green and digital transitions. In the end, we have the revision of the Packaging and Packaging Waste Directive. We should reinforce essential requirements to promote reuse and recycling, increase the recycled content, in addition to reduce excessive packaging. The planned adaptation by the EU Commission is fourth quarter this year. Underpinning all of these legislations and initiative is, of course, the Green Deal, where one of the main blocks is the Circular Economy Action Plan, with 35 concrete actions to foster transition to a circular economy. The rest of the world is following. We do see strong global movements also, almost everywhere now. Let me give you a couple of example. For example, Australia will be the first continent with a deposit return system implemented throughout by 2023, and Extended Producer Responsibility is being discussed, proposed, or already legislated in many countries, including India, South Africa, Singapore, and several states in the U.S., to mention some. This is becoming a global movement. It creates the right foundation to drive the required transformation, and there is no need to wait for further legislation. The UN called code red for humanity this early autumn. We need to act now, and we can act now. There is such a significant potential by rolling out current best practices and technologies, as I mentioned in my introduction. It is really relatively straightforward what we need to do. We need to maximize the collection of recycled material, and we need to increase the recycling of that material in a closed loop. That means that the material is being used for the same purpose over and over again. In TOMRA, we are committed to play our role in making the necessary transformation in how we obtain, use, and reuse the planet's precious resources. We have set some high ambitions, not only for us as a company, but even more important for recycling globally. By 2030, our aim is that 40% of all post-consumer plastic packaging is collected for recycling. Today, it's only at 14%. We target by 2030 that 30% of all post-consumer plastic packaging should be recycled, because it doesn't help to only collect it. It needs to be recycled as well. We want 30% of it to be recycled in a closed loop. That compares to only 2%-3% today. We cannot do this alone. We will only achieve these ambitions by collaborating across the value chain. A good example of the required collaboration is the Lahnstein plant, which some of you, who are joining us physically, were able to visit today. It illustrates the value chain cooperation required, in this case, between us, Borealis, and Zimmermann, to create new closed loops, which in this case is creating high quality plastic from mixed waste sorting. Also, a lot can be done with existing competence and technology. One example is the potential in household waste. There should be a requirement to sort mixed waste before incineration or landfill. The benefits of this are threefold: more plastic is collected to be recycled, less plastic is burnt, and by that, less CO2 emissions, and finally, less new incinerators needs to be built. According to McKinsey data, there are globally around 67 million tons of plastic packaging going into incineration and landfill annually. In Europe, the volume is estimated to be around 10 million tons. Studies have shown that you can more than double the amount of plastic packaging for recycling if you implement mixed waste sorting. The impact on the reduction in greenhouse gases by doing that, by doing mixed waste sorting before, as part of the waste management before incineration, is a reduction annually of 680 million tons. As illustrated here, on this slide, to create a circular economy where resources are in closed loops, one have to address the whole life cycle of the product. Product needs to be designed with durability and longevity in mind. Products released and sold to consumers in all outlets needs to provide transparency so the consumer can make informed and green decisions. Once consumed, products should be reused or repurposed and be easily disassembled for recycling. Used product material needs to be collected via deposit return schemes, separate source collections, or as a mixed waste. After that, collected materials must be identified and sorted into clean fractions before the sorted materials are purified and upgraded into new products. We have circularity. In TOMRA, we have 50 years of experience in circular waste management. Based on that experience, we have, in partnership with Eunomia, created what we believe is the best system to maximize the collection and sorting of this material for closed loop recycling. We call this the Holistic Resource System, and it is based on a combination of established practices, which include deposit return system, separate collections, and mixed waste sorting. Again, this is something we can act on and implement today for immediate benefits for our planet. I want to end this short presentation with a call for action to all stakeholders. For brands and brand owners design processes, and be willing to pay a premium to get the market started. For recyclers and material producers, invest into high-quality recycling processes. Don't compromise on quality. For investors, invest into building out advanced mechanical recycling infrastructure and not only chemical recycling, and only fund waste-to-energy if it includes pre-sorting. For legislators, continue to push the boundaries and make recycling financially more attractive, but also remove administrative hurdles. For all us as consumers, embrace products which are designed for recycling and which have a high recycle content. We in TOMRA are ready to play our part, and in collaboration, we can transform how we obtain, use, and reuse the planet's resources to address the global challenges of litter and climate change. You are on mute. Thank you very much. I think this is the most common statement since the last two years, right? Yes. Thank you very much, Tove, for those words and for being so inspiring. We do have the first question that's come in. Can you describe the contribution TOMRA mechanical sorting and recycling make for climate change? I touched a bit upon it as part of my presentation. Of course, recycling plays different roles in reduction of climate change, but I guess the two big ones, especially when you talk about plastic, it is then to reduce energy because it is less energy-consuming to reuse existing plastic, and, of course, is to reduce the burning of plastic because it then reduces CO2 emissions. As I said, we have done estimates or there has been studies done on what is really the potential impact here, and as I said, it is significant. By only implementing existing best practices globally, the reduction could be almost 3 billion tons annually, globally. Of course, by innovations and creating new closed loops, that is even further. This is a significant contributor for the world to meet the climate emissions and to become net zero. Thank you. The question from me perhaps that hasn't been asked, you listed several initiatives, whether it's legislation, whether it's brand owners. Is there a ranking that you would say needs to come one after another? I think the most efficient is if we are able to make it financially preferential to recycle. Yeah. That is the strongest driver. If you make this that it is more profitable to recycle than not to recycle. If you can achieve that, I think that will be the main driver. As I mentioned, I mentioned plastic tax as one of those drivers that could do that. Also, I think consumer demand and pressure can also be a very significant contributor. I do think we as consumers as well should take responsibility on that we do a challenge and we look at what we are buying. I think now you see a mix of drivers here. There is a legislation part that is driving this, but it's also really a consumer-driven element into driving the increase of recycling and growing the whole market. Okay. I think many brand owners would agree with you. The second question that we've had come in, where are the profitable business areas for TOMRA? Are they in Europe, in America, in Asia, or perhaps elsewhere? I think first of all, I think we are a very fortunate company that we are profitable, in all the areas that we are operating, and we are operating globally. In TOMRA, we have three divisions, so we have one division linked to collection, one to recycling and mining, and one on food. All of those being very profitable. They have a different geographical footprint, but we are operating in more or less all areas of the world in a profitable way. If the question is more about where will the growth be coming and where will the profitable growth come short term, I think short term, as I talked about, EU is the frontrunner here, and we see more things happening in the EU short term. Longer term, or medium term, I would say, both North America and Asia is also going to be significant contributors in the growth to come. Okay. Thank you. You talked about the expertise of TOMRA in collection and sorting. Perhaps you can tell us what other innovation that TOMRA is involved in? Maybe something in the pipeline, new trends and technologies that you see for TOMRA? Yeah. TOMRA was founded on an innovation, and I think innovation has been core in everything we do ever since we were founded 50 years ago. We innovate in different areas. We innovate on the product side, really looking at how can we optimize and increase the performance of, for example, our sorting machines. That could be new types of sorting, but it could also be utilizing artificial intelligence and deep learning into our machines. We innovate on more the business model side and how we cooperate with the value chain, that I think the example I mentioned with the Lahnstein plant is a good example of that, where we are working together with the whole value chain to innovate a way that we create new closed loop, and then we combine the knowledge that we have in all our divisions to set up a system where we really can take and turn waste into really high-quality material. Lots of the innovations now is about and that's why we have called this conference Closing the Loop. How do you make sure that when you recycle, you don't downgrade the material, but you actually are able to get a high-quality material? You need to work with the whole value chain. You need to work on the actual sorting technology, but also with the whole value chain, from collection to design of products and so forth. There is a lot of different initiatives happening within Circular Economy, and we want to take a role in them building these bridges between the different players. That's one of the reasons also why we have this conference here today and tomorrow, that we believe that if you're going to solve these global challenges, you need to work across the value chain. We want to utilize the competence that we have, which goes way beyond just sorting, to support and creating then these collaborations to really create new closed loops. It's everything then from technical innovations, digital innovations, to really more business model innovations. It sounds like there's a lot to be done. It is. Which, of course, is very exciting. I think we're in a very fortunate situation to be in a business like this, which both is meaningful but also is growing significantly. Okay. We've had a question come in that's actually stepping away a bit from business. A personal question. What made you excited about TOMRA's journey and inspired you to join the TOMRA family? Thank you. Yeah. It's a good question. I said that I was not looking for a new opportunity, but when I was called, if I was interested to be part of a process to join TOMRA, I immediately said yes, because I'm Norwegian. TOMRA is originally a Norwegian company. It's a company I've known since I was a small kid. I'm also very technology interested. That's why I studied physics at university. I always was fascinated by the technology element. I find the machines extremely fascinating to see them in action. It was a combination about the technology. It's a combination of technology, that it is a global company, and that it's a purpose-driven company. It's really those three elements that speak to me. I like the global environment. I think that kind of brings a completely different dimension to your work experience. Also, it's very important for me to be part of something that I feel is very meaningful, where I can make a difference, and TOMRA can really make a difference. Okay. That sounds like a TOMRA passion, definitely. Going back to a bit more business. Europe has set the goal that 30% of PET, and this is bottles, has to be recycled by 2025. Do you think it is feasible, and which or what could be the challenge we face? I know it is feasible because if the will is there, the technology is there. It is feasible. Of course, it's important to get the alignment on how to get this implemented. I think it's important to drive this legislation, is to get transparency on reporting. That is something that still is not completely in place everywhere, because it's going to be important to do that. It's about implementing, as I say, existing best practices. Also, you now see, for example, one thing is the 30%, but if you look at now some of the beverage companies in Europe, they come now with target that 100% of all their bottles should be recycled. I think also will be a significant drive to get hold of more recycled material that hopefully will then drive the prices up even more on that and make it then profitable to invest in recycling, and that I think can speed up and accelerate the implementation of this. Okay. The next question is a regional question. Let's put it this way. What do you expect from the new government in Germany? Are they pushing forward? Probably a bit tricky question. Yeah. Such a different situation at the moment. Let's try. I think it's a bit too early to say. I think some of these elements, of course, Germany has been in the forefront. They introduced their deposit return system, I think, in 2005. I think they have some of the highest collection rates today. The same with sorting mixed waste. I do think it's important that Germany continue playing this role of kind of leading EU forward and being in the forefront there. That's what I hope and expect from the new government. Okay. Thank you. People look at Germany, so I think it's important what Germany does. Okay. I don't think we have any more questions. Perhaps we just want to wait another five, 10 seconds and see if anything comes in. Any closing words, Tove, while we're waiting? No, as I said, I think I'm very excited to be part of this TOMRA Talks conference today and tomorrow. I think it's very important that we work across the value chain and that we have these meeting places where we come together to really explore how to take this forward, because it is essential in order to meet the climate change ambitions. It is essential to reduce plastic in the ocean. I really look forward to engaging then with the whole value chain. We at TOMRA, as I said, we are very committed to play our role in facilitating and support the change that needs to take place. Okay. I spoke too soon. I guess I just have to thread. We do have another question that's come in in the meanwhile. Emmanuel Katrakis, Secretary General, EuRIC, opened TOMRA Talks today by highlighting the importance of EU-wide end-of-waste criteria to achieve a well-functioning market for RWA materials from recycling. What do you think of this? I think it's a bit too detailed for me to have a view on, and I need to see also what he has said specifically. I think it's a bit difficult for me to comment on. No, you've been quite busy, I know today with the conference as well. Yes, I have. Perhaps we will check into this and get back to the person who asked. Yeah. Okay. Let's do that. Okay. We have one that I think you probably would be able to handle and answer. In percentage, what is the contribution of DRS for plastics collection in Europe? Of course, on DRS, it's only implemented in certain countries in Europe. We don't have that in all countries. Of beverage containers. No other systems are able to do that. Typically, you would only get half in more voluntarily system, perhaps 50%, but 40%-50% is normally what you would get. When you have a deposit return system, you will get above 90%. These things, if you make it financially beneficial, you see that acceleration. Of course, that's what you have in the deposit return system. There is an incentive with the consumer to return the bottles, and that's why we are getting significantly higher return rates. Okay, thank you. I know we have some connection issues, but I'm hoping that most of the visitors got most of that information. We have another regional question. How do you consider the position influence of TOMRA in Latin and South America? Do you think we are in a good way in Brazil? I think there is a significant potential in Brazil. I think for all our divisions, actually. I think on food sorting, there is a significant potential. I think on recycling waste management, implementing best practices, there is a significant potential and of course, a reduced litter, and collection of plastic beverages through deposit return system. I hope that the Brazil will become ambitious in their targets to also tackle environmental issues and climate change to really drive that forward. We are very willing and open to contribute in supporting that development. We had one question again related to the poor connection. They're asking, and I think this is the last one that we can do, to repeat the answer to the last question. Thank you. I'll repeat the last question. In percentage, what is the contribution of DRS for plastics collection in Europe? Yes. What I said is that first of all, we don't have deposit return system in all countries in Europe today. There are certain countries that they implemented it. You have it in the Scandinavian countries, you have it in Germany, you have it in Holland, you have Slovenia, Slovakia, and there might be some that I missed, but I think that is more or less those. What we typically see when we introduce a deposit return system compared to a voluntarily system is that the recycling rates or the collection rates for beverage containers is going from typically with voluntarily schemes, 40%-50% is what you typically get collected. While when you have a well-functioning deposit return system, you get above 90%. This is really what happens when you create incentives for consumers. It's financially beneficial to do the collection, which then drives a much higher collection versus a voluntary scheme. You almost collect double by having a well-functioning DRS. Okay. Thank you. Hopefully, connection was good now and everybody got the answer. I think it was good this time. Tove, thank you very much. I know you're very busy, especially today. Thank you very much for sharing your insights. My biggest takeaway is there's a lot to do, but if we work together, we definitely can close the loop, not only on plastics, but in other material streams as well. Thank you all very much for joining. We hope we were able to give you the answers you were looking for. We look forward to seeing you the next time. Thank you. Thank you.