2020 NextWave Plastics Annual Report by Lonely Whale

MAKING WAVES NextWave Plastics 2020 Annual Report & 2021 Strategy March 2021

Member-Driven, Convened by Lonely Whale

CONTENTS Executive Summary

Letter from the CEO of Lonely Whale

2020 In Review

Lead the Movement

Accelerate Supplier Development

Break Down Key Barriers

Nurture and Develop Our Membership

Looking to 2021: Vision for the Future

Strategy For 2021

Summary & Next Steps

Appendices

EXECUTIVE SUMMARY In the face of the global uncertainty that defined 2020, NextWave Plastics member companies deepened their commitment to keeping plastic in the economy and out of the ocean through continued support of communities for which the plastic pollution crisis is the most acute. NextWave member companies reported a 70.5% increase in utilization of oceanbound plastic over 2019 levels during a year when the global waste collection and recycling system faced tremendous hurdles due to increased waste generation and the pandemic created great uncertainty for both member company revenue and supply chain stability. Fueling this increase in diversion of plastic from the ocean was the launch of over a dozen new product use cases, including Trek’s Bontrager XR Trail Mountain Bike Grips, Solgaard’s Homebase Ecosystem, and CPI Card Group’s Second Wave® payment cards. HP Inc announced the world’s most sustainable PC portfolio, featuring numerous technology products with ocean-bound plastic components, including all new HP Elite and HP Pro desktop and laptop products launched in 2020.

Among other key milestones, we welcomed CPI Card Group® to the consortium as the newest member company, convened the Social Responsibility Working Group to craft a framework for building equitable oceanbound plastic supply chains, and hosted

the first ever Design & Engineering Member Meeting, which we anticipate to be the first of many meetings that engage crossindustry peers in ocean-bound plastic product development. The member companies have demonstrated that ocean-bound plastic not only works in products, but that this material can scale across a diversity of applications and functionalities. Now, it is time we take concerted action to accelerate the trajectory toward our shared goal. Our sights are firmly set on 2025, the year with Sustainable Development Goal (SDG) 14.1 matures. By building upon the strategic focus areas identified in our 2020 annual report - lead the movement, accelerate supplier development, break down key barriers, and nurture our membership - we recommit to our vision of turning off the tap on plastic pollution.

Haiti Recycling Photo by HP

“

Don’t be just a buyer of the material and watch it happen. This is an amazing opportunity to get really engaged... to build something together. You can’t do that if you are not caring about the entire supply chain from beginning to end.

Dune Ives, Ph.D., CEO, Lonely Whale 4

”

LETTER FROM THE CEO OF LONELY WHALE When we published our inaugural annual impact report in March 2020, we could not have known what the remainder of 2020 would hold. Our usual activity, including international supplier site visits, in-person cross-company workshops, working sessions and conference presentations were no longer feasible. Amidst the many challenges of a global pandemic, the past year gave us time and space to reflect on how far we have come and to acknowledge truly how far we have to go. NextWave Plastics member companies continue to demonstrate that change is possible at scale and remain committed and optimistic about a future with clean seas, but more action must be taken today. In the face of such a tumultuous year, we welcomed CPI Card Group as a new member, built relationships with six new suppliers across five countries, and celebrated oceanbound plastic product launches from HP Inc, CPI Card Group, Solgaard and Trek. Our work as a network builder was featured by WRI Insights and the Ocean Plastics Leadership Network. In December 2020, the UN recognized NextWave Plastics as a UN SDG Action Award finalist, shining a light on the continued importance of our shared commitment to collaborative action for the ocean, which connects us all.

Since NextWave Plastics was founded in 2017, much has changed. On one hand, ocean-bound plastic has become a well-

known resource with a growing number of suppliers and manufacturers offering increasingly high-quality material and certification standards furthering traceability and transparency. On the other, the plastic pollution crisis has only accelerated and continues to intensify across the globe. This past year, Pew Charitable Trusts and Systemiq released their seminal research, Breaking the Plastic Wave, which projected that the annual flow of plastic into the ocean is on track to triple by 2040 from 11 million to 29 million metric tons per year, and that existing commitments would only reduce annual plastic pollution by 7%. These numbers were found before the Covid-19 pandemic caused, necessarily, a global boom in single-use plastic PPE and packaging, and led to the projected use of 129 billion face masks and 65 billion plastic gloves each and every month of the pandemic. New research from Dr. Jenna Jambeck also brought the issue home for those in the United States. Building upon previous research that framed our knowledge on ocean-bound plastic flows, the new report revealed that the United States generated 46.3 million tons of waste in 2016, more than any other country in the world. Since the U.S. is a top plastic waste exporter, one to two million tons of that total—the equivalent of 1,300 plastic grocery bags per person, per year—was mismanaged waste, making the United States the third largest contributor to ocean plastic pollution.

There is hope. But the onus is on businesses, communities and policymakers to create a different reality. The Breaking the Plastic Wave Report found that we can cut annual flows of plastic into the ocean by about 80% in the next 20 years by applying existing solutions and technologies, but only if we take a systems approach. In order to meet the ambition laid out in this report, NextWave members continue to implement scalable solutions that consider the multifaceted challenges of waste management and demonstrate that plastic waste has value. While the COVID-19 pandemic has disrupted supply chains, restricted supplier evaluation, resulted in increased plastic waste, threatened waste worker livelihoods, and depressed recycling markets, NextWave Plastics members are not backing down. In fact, their resolve has only grown with many going above and beyond their commitment to ocean-bound plastic supply chains by continuing to honor supply contracts despite changes in market conditions. NextWave companies continue to turn off the tap on plastic pollution. We hope you will join them because, with you, we can ensure the Breaking the Plastic Wave report’s business-as-usual scenario is not our fate.

Dune Ives CEO Lonely Whale

2020 IN REVIEW 6

LEAD THE MOVEMENT Replicable models for ocean-bound plastic recycling

To achieve our shared goal of diverting 25,000 metric tons of plastic from entering the ocean by the end of 2025 and developing a global network of commercially viable ocean-bound plastic suppliers, we recognized in 2020 the need to accelerate progress across four strategic areas of focus: • Lead the Movement: Share replicable models for ocean-bound plastic recycling

Bureo

• Accelerate Supplier Development: Help key partners meet demand • Break Down Key Barriers: Standardize our frameworks and improve accountability • Nurture and Develop Our Membership: Scale the movement Under the umbrella of this strategy, NextWave Plastics member companies continued their work sourcing ocean-bound plastics, even as the Covid-19 pandemic affected supply chains, travel and logistics. Adapting to these limitations, we celebrated the addition of a new member company, CPI Card Group® (CPI), the launch of over a dozen new use cases and the diversion of 485 metric tons, reaching a total of 1,356 metric tons diverted over the first three years of NextWave Plastics.

2020 marked the year that NextWave Plastics hit our collective stride scaling ocean-bound plastic supply chains. We began realizing economies of scale with the addition of CPI Card Group, which uses the same supplier as HP Inc. to source a different, complementary material. At the same time,

HP Inc. has impressively scaled ocean-bound plastic integration across multiple product lines and devices. Trek Bicycles has made similar advances, moving from accessories made with ocean-bound plastic to full product integration. In its first full year of membership, Solgaard took a leadership role and proved out a new material source by rapidly prototyping and bringing a product from idea to market within 12 months. The path to 2025 is steep, but the progress NextWave members made during 2020 demonstrates the ongoing commitment and the opportunity for our collective impact to reach impressive heights. “NextWave Plastics unites private-sector competitors, many of which are direct competitors, to work together openly and transparently. Most companies keep supplier relationships and product development confidential, but by building trust, NextWave fosters transformative collaboration to facilitate innovation at scale.” Kendall Starkman, Director of NextWave Plastics, Lonely Whale

Rosette, Recycling in Haiti Photo by HP

“

t HP, we envision a low carbon A and circular economy that creates a healthier planet, provides income opportunities for people and communities, and respects human rights.

”

Ellen Jackowski, Chief Sustainability and Social Impact Officer, HP Inc 8

USE CASES These are the products and stories that helped to turn off the tap on plastic pollution this year.

HP’s Sustainable PC Portfolio

HP announced the world’s most sustainable PC portfolio, powered by their investments in a fully functioning ocean-bound plastics supply chain using recycled bottles collected in Haiti, where there is limited waste collection. New products include the HP Elite c1030 Chromebook Enterprise laptop, the world’s first Chromebook made with ocean-bound plastic. The laptop also contains 75% recycled aluminum in its lid as well as a keyboard made from 50% recycled plastics. This Chromebook joins a series of HP personal systems products made with ocean-bound plastic, including:

Trek Bontrager Mountain Bike Grip Sets • • •

the HP ZBook Studio, the world’s first mobile workstation with ocean-bound plastics; the HP Elite Dragonfly, the world’s first notebook made with ocean-bound plastic, the HP Elite Desk 800 Series.

HP included ocean-bound plastic material in all new HP Elite and HP Pro desktop and laptop products which launched in 2020. To date, HP has sourced over 1.7 million pounds—more than 60 million plastic bottles—of ocean-bound plastics from Haiti for its products.

In July, Trek brand Bontrager released a line-up of three new XR Trail Grip models, each of which features a core made from recycled ocean-bound plastic. The mountain bike grips were developed in collaboration with clean tech recycling company Plastix, which sources used fibers and rigid plastics primarily from the maritime industry, including end-of-life fishing nets and ropes that would have ended up in the sea or landfills. Trek’s move to integrate ocean-bound plastic into a new product category sets the stage for using sustainable manufacturing methods across more and more bike parts.

“A grip core is a small thing, but small things can add up to something meaningful. We believe in Plastix’s vision for a circular economy for plastic, where this material is never considered waste.” Michael Fitch, Director of Product for Essentials, Trek

USE CASES These are the products and stories that helped to turn off the tap on plastic pollution this year.

Second Wave Card Photo by Getty Images and CPI Card Group

1. CPI Card Group’s measurements refer to U.S. tons.

CPI Card Group Second Wave® Recovered Ocean-Bound Plastic Cards

Solgaard HomeBase Ecosystem In Spring 2021, Solgaard will start shipping a new ecosystem of products: the HomeBase, Solar Boombox, and Solar Juicepack— originally launched on Kickstarter in 2020, raising $601,389 to bring the products to life. Constructed in Solgaard’s award-winning Shore-Tex™ and new Shore-Plast upcycled ocean-bound plastic materials, the HomeBase wireless charging smart shelf and built-in sound amplifier is designed to fully integrate with both the new Solar Boombox Bluetooth speaker and solar power bank unit. 10

“ I view new products with mindfulness and aim to create innovations that allow people to set healthy boundaries around work/life balance and enhance their everyday lives all designed sustainably, with the planet’s welfare in mind.” Adrian Solgaard, Founder and CEO, Solgaard

In September 2019, CPI introduced the first-tomarket payment card featuring a core made with recovered ocean-bound plastic. Named Second Wave, the high-quality card from CPI is EMV® compliant and dual interface capable. Second Wave offers businesses an opportunity to engage a growing market of environmentally conscious consumers while helping reduce first-use plastic and divert plastic waste from entering the ocean. CPI estimates that, for every one million Second Wave payment cards produced, over one ton of plastic will be diverted from entering the world’s oceans, waterways, and shorelines. Since

launching the card in 2019, CPI has produced and delivered over 25 million Second Wave cards, diverting at least an estimated 25 tons of plastic from entering the ocean.1

“We take pride in offering financial institutions and companies across various card industry segments an innovative way to incorporate sustainable solutions into their portfolios.” Guy DiMaggio, SVP & General Manager of Secure Card Solutions, CPI Card Group

PROGRESS TOWARD GOAL

According to the original estimates that informed the 25,000 metric ton commitment, the members had a collective estimated goal of diverting 2,000 metric tons by the end of 2020. Therefore, total diversion in 2020 was 656 metric tons below our initial projections - compared with a shortfall of 116 metric tons from our 2019 goal. However, our progress in 2020 represented a 70.5% increase over 2019 diversion levels—almost doubling our efforts in a year where supply chains and markets slowed across the globe and affected many of our members.

NextWave Plastics Collective Impact Estimates & Actuals for OceanBound Plastic Diversion of 25,000 Metric Tons by the End of 2025

24,000

100%

22,000

90%

Actual Diversion Estimated Diversion

20,000

80% 18,000 70% 16,000 60%

14,000 12,000

50%

10,000

40%

8,000 30% 6,000 20% 4,000 2,000

1,356.57 588.15

10%

872.19

0% 2018

2019

2020

2021

2022

Year 11

2023

2024

2025

Progress Toward Goal

As of the end of 2019, NextWave members reported diverting 872 metric tons of oceanbound plastic through use cases from Dell Technologies, HP, Interface, Humanscale, IKEA, Trek and Solgaard. With the continued production of the original use cases and the addition of over a dozen new use cases, the consortium members reported diverting a total of 1,356 metric tons as of the end of 2020.

NextWave members have laid the groundwork to accelerate their impact year over year to propel us toward our 2025 goal. At the same time, our progress to date reveals how long supply chain and product development cycles can take. Many NextWave members have been working on plans for up to four years, and continue to do so. In fact, many projects that faced delays in 2020 are lined up to launch in the coming year, bringing considerable scale to complement ongoing diversion through existing product use cases. In the meantime, we look to revisit our collective path to 2025 as part of our core focus in 2021 in order to ensure a clear understanding of the steps necessary to overcome in order to reach our goal. We also strive to empower continued acceleration in diversion rates by nurturing supplier development and breaking down barriers as stated in our annual strategy and highlighted in this report.

Ocean-Bound Plastic Diversion (Metric Tons)

In Fall 2018, NextWave member companies made a collective commitment to divert a minimum of 25,000 metric tons of plastic from entering the ocean by the end of 2025 by permanently locking it up into their products.

MEDIA COVERAGE & AWARD RECOGNITION Dune Ives, CEO, Lonely Whale UNEA-4 Official Side Event Photo by Thandiwe Muriu

The consortium continues to drive thought leadership and member insights are sought after on the world stage. In 2020, NextWave Plastics leadership and member company representatives spoke at the World Economic Forum, the Bloomberg Green Festival, Circularity 20, NeoCon, GoGreen Seattle, Sustainability in Packaging Asia, and to the Ocean Plastics Leadership Network. NextWave members were also featured in The Washington Post, Forbes, Sustainable Brands, Plastics Today, Digital Trends, Triple Pundit, ArchiExpo Magazine, Ecomedes and more. This includes a featured case study on NextWave Plastics in a WRI Insights report on systems mapping and its role in the success of impactful programs that aim to address UN SDGs. In addition, season one of the Lonely Whale podcast, Against the Current, featured interviews with Jane Abernethy, Chief Sustainability Officer at Humanscale; Gabe Wing, Director of Sustainability at Herman Miller; Stefan Berggren, Senior Product Compliance and Jesse Garrison, Chief Engineer at Trek; and Kelsey Halling, Head of Partnerships at First Mile, a partner of HP Inc. These conversations illuminated the benefits of collaboration and how corporate intrapreneurs can drive powerful change by instigating sustainable solutions that scale.

To top off a great year, NextWave Plastics was recognized as an SDG Action Awards Finalist in the “Connect” category in December, placing NextWave among

the most transformative and impactful initiatives of 2020 accelerating action toward the Sustainable Development Goals. Our members’ focus on the importance of these goals shines through every element of our work in 2020.

Award Recognition for NextWave Plastics in 2020:

“This year more than ever, we need hope, we need creativity and we need collaboration for people and for the planet.” UN SDG Action Campaign

ACCELERATE SUPPLIER DEVELOPMENT This has been a year of growth for the ocean-bound plastic field. Suppliers are advancing material offerings to meet highperformance and durability engineering requirements. Food grade processing is opening the door to food and cosmetic packaging applications. At the same time, more comprehensive traceability and certification schemes are increasingly available - including UL’s ocean-bound plastic certification standard, developed in partnership with HP Inc., and our partner OceanCycle’s fully traceable ocean-bound plastic supply chain offerings.

market, NextWave has fostered increased collaboration and shared vision between member companies, supply chain partners, scientific experts, and more. This will become increasingly vital for the success of many joint projects currently in incubation to divert more volume between now and 2025.

NextWave has also focused on growing our network of ocean-bound plastic supply chains remotely, establishing relationships and additional material supply options with six new suppliers and adding collection from Thailand, Indonesia, India, Malaysia, Honduras, Taiwan, and more. Access to these reliable, high quality materials through partners and ocean-bound plastic supply chain leaders will accelerate each member’s ability to scale product development. NextWave promotes diligent information sharing with tools such as our member-facing supplier database and fresh assessments of the evolving ocean-bound plastic landscape. In this way, the consortium works to facilitate access to information and increased connectivity to drive the market forward. By building on our unique role as an agnostic convener of all players in the 13

Ocean-Bound Plastics Source Existing Supply

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

New Supply

Post Consumer Material: Haiti, Honduras, India, Indonesia, Malaysia, Taiwan, Thailand

Evaluating

Upcycled Marine Plastic: Spain, Thailand Evaluating: Guatemala, Mexico, Nigeria, Vietnam

Photo by Lidya Nada

“

As manufacturers, we are in this situation where everything we manufacture, all those decisions get repeated. If you design a product using a certain type of plastic, well, that decision gets repeated hundreds of thousands of times a year in mass production.

Jane Abernethy, Chief Sustainability Officer, Humanscale The Lonely Whale Podcast 14

”

ACCELERATE SUPPLIER DEVELOPMENT HP Haiti Supply Chain Launch Plastics Wash Line in Haiti Photo by HP

In 2020, after 4 years of diligence and in the face of a pandemic that caused a pivot in their execution plans, HP and LaVergne cut the ribbon on their $2 million investment in a washing line in Haiti. A washing line is a high-speed washing system that uses friction to wash soiled plastic flake, resulting in clean flake suitable for use in the circular economy. In an awe-inspiring feat of international coordination, they were able to install the equipment despite the global pandemic by working virtually in cooperation with a team of local installers on the ground. These efforts during a time of great challenges reinforced HP’s commitment to creating a lower-carbon circular economy while also tackling social and economic issues in Haiti. By investing in a new plastic bottle washing line for its ocean-bound plastic supply chain in Haiti, the project is diverting plastics from reaching waterways and oceans while providing income and education opportunities locally. In partnership with the First Mile Coalition and NGO WORK, the investment creates additional jobs in the country and eliminates the need to ship plastic bottles elsewhere, saving time, energy and resources.

So far, the initiative in Haiti has kept more than 1.7 million pounds of plastic materials, or more than 60 million bottles, out of the environment. By processing millions more pounds of plastic than before, the new facility will direct even more of it away from the ocean and into HP products so it can be used

again. It is also providing the foundation for other companies, like CPI Card Group, to add to the scale of impact above and beyond HP’s own needs because of the industry now flourishing in Haiti.

BREAK DOWN KEY BARRIERS One of the key aims of NextWave is to coalesce the collective knowledge and capacity of our members to break down barriers to effective ocean-bound plastic supply chain development. Effective supply chains are equitable supply chains. Waste collectors across the world play an indispensable role in preventing plastic from reaching the ocean. In 2016, 11 million waste pickers were responsible for 60 percent of global recycling.2 Despite their essential role, waste pickers often receive minimal wages and work and/or live in dangerous conditions. Addressing the financial, social, health, and safety needs of waste collectors is absolutely paramount to making equitable ocean-bound plastic supply chains a reality. NextWave Plastics members have committed to supporting socially responsible oceanbound plastic supply chains that help ensure material value reaches the collector level.

Social Responsibility Working Group

Social responsibility across the oceanbound plastic supplier ecosystem is critically important to our NextWave member companies. After a comprehensive market scan our members saw the opportunity to create a tool that would guide fellow members and other corporations through the nuances of working with ocean-bound plastic supply chains, specifically with regard to the most essential workers in the supply chain: the informal waste pickers who collect the plastic. At the beginning of 2020 we

established the NextWave Plastics Social Responsibility Working Group to create such a tool. The Working Group includes representatives from each of the member companies, as well as advisory members from experts in the field: First Mile, WIEGO, and Nest. Pulling together the shared learnings of the members based on their experience and commitment to socially responsible supply chains, along with the input of experts and partners, the Working Group created a draft Ocean-Bound Plastic Social Responsibility Framework. The Framework will serve as a roadmap for brands working with suppliers to progress to higher levels of maturity in social responsibility. Social responsibility evaluations of ocean-bound plastic supply chains look different than conventional factory supply chains because of the reliance on informal, independent workers operating in an unregulated and distributed fashion. The nature of this work calls for a customized approach to social responsibility verification and oftentimes intervention is needed to ensure an equitable, traceable supply chain where material value reaches the most essential workers - those at the point of collection. Our work in 2020 resulted in a shared vision defining socially responsible ocean-bound plastic supply chains, a maturity map of the conditions our members have encountered in the field, and a continuous improvement roadmap for the growth and

development of social responsibility in this specific industry. These three components together make up a complete first draft of the Framework. In 2021 the Working Group will focus on collecting and incorporating external feedback on the Framework from other leaders in the field and stakeholders from across the supply chain. The Framework will be published as an open-sourced, living document that will be updated with external feedback as we all continue to learn more about how best to serve all those who are part of this critically important global network of ocean-bound plastic suppliers.

2. “Breaking the Plastic Wave”

“One of the phrases that we say often is there will be no environmental justice without social justice. Really understanding how those two go so well hand-in-hand, I think, is key.” Kelsey Halling, Head of Partnerships, First Mile The Lonely Whale Podcast

NURTURE AND DEVELOP OUR MEMBERSHIP “As an engineer I take it as a responsibility. I am going to use recycled material; I am going to find a way to make it work. It is our responsibility to do that from the beginning.” Nick Abbatiello, Distinguished Engineer, Experience Design Group, Dell Technologies NextWave Plastics Design & Engineering Member Meeting: “Ocean-Bound Plastic Trade-Offs” Panel

Photo by Chase Baker

The NextWave Plastics members are the heart and soul of this initiative. To bring us together while we all worked remotely in 2020, we launched our newsletter to share member updates and ocean-bound plastic news each month. We also established the NextWave Member Forum, a members-only group on LinkedIn that offers a platform for member company representatives to share news, seek input, and stay connected. While core representatives from each company participate in member meetings and regularly engage across the consortium, the teams that make ocean-bound plastic product development possible reach far and wide across the organization. This year, we took the initiative to actively engage those who bring products to life - designers and engineers.

Design and Engineering Member Meeting Eighty percent of a product’s environmental impact is locked in during the concept and design phase. Designers and engineers are critical players in our work to keep plastic out of the ocean and in the economy. That’s why we held our first-ever Design and Engineering Member Meeting for NextWave Plastics companies this year.

Member company designers and engineers gathered for three days of keynotes, panels, a supplier showcase and sixteen interactive breakout sessions. We welcomed experts, including Jo Royle, Managing Director of

Common Seas; Yoni Shiran, Program Director of Breaking the Plastic Wave at Systemiq; Dave Ford, Founder & Partner at SoulBuffalo; and David Stover, Founder & CEO of Bureo, to share keynote presentations on the best available global interventions, research, modeling and design innovations from across the globe. Panels on “Building Buy-in for Ocean-Bound Plastic’’ and “Ocean-Bound Plastic Tradeoffs’’ highlighted that designers and engineers have a responsibility to pursue sustainable materials, and consider a product’s impact from the beginning stage of development. This unique meeting brought together over 100 cross-industry peers to share, explore and build buy-in for the use of ocean-bound plastic. We engaged dozens of staff members in the consortium for the first time, with 60 percent of attendees surveyed reporting it was their first NextWave Member Meeting. Since many of our companies face similar challenges and make the same tradeoffs when identifying the right opportunities to use ocean-bound plastic, the extended reach of this meeting means that more individuals are connected to peers and will never have to feel like they are starting from scratch on ocean-bound plastic. Based on the success of the virtual event, NextWave plans to continue to convene issue-specific member meetings that bring together people at member companies who specialize in related fields such as Communications, Supply Chain and beyond.

Net-Works Photo by Interface

“

At Interface, we’ve seen great success in collaborating with our suppliers to identify new sources of recycled materials, like ocean-bound plastics. These efforts can provide local waste management benefits and help us lower the carbon footprint of our products as we work to deliver on our Climate Take Back mission to reverse global warming.

Mikhail Davis, Director of Technical Sustainability, Interface 18

”

NURTURE AND DEVELOP OUR MEMBERSHIP New Member: CPI Card Group

At NextWave, we know sourcing recovered ocean-bound plastic for incorporation into premium products is no simple task. CPI Card Group is already making incredible strides redefining what it means to pay with plastic, and we were proud to welcome them to NextWave in 2020.

Photo by Guille Pozzie

A payment technology company and leading provider of credit, debit, and prepaid solutions, CPI is leading the industry with their use of recovered ocean-bound plastic. In September 2019, CPI introduced the firstto-market payment card, Second Wave®, featuring a core made with recovered oceanbound plastic. “Joining NextWave supports our commitment to addressing the problem of plastic entering the Earth’s oceans. We look forward to collaborating with and learning directly from the leading technology companies and consumer brands that are NextWave members – as we explore new ways to incorporate ocean-bound plastics into our products and better protect our planet.” Guy DiMaggio, SVP & General Manager of Secure Card Solutions, CPI Card Group

CPI’s ocean-bound plastics supply chain in Haiti is a part of the same supply chain utilized by HP for its products. With two member companies sourcing different types of material from the same location, NextWave is able to have a more widespread impact in Haiti. This furthers NextWave’s core mission of scaling ocean-bound plastic supply chains worldwide. “Now with CPI joining NextWave and sourcing from the same supply chain that we use, the expanded collaboration will allow us to quickly scale the supply chain and solve critical issues to stop plastic from reaching our oceans and to create lasting, positive impact on our planet.” Ellen Jackowski, Chief Sustainability and Social Impact Officer, HP Inc

CPI’s commitment doesn’t end there. This year, we saw their enthusiasm for NextWave’s open source and transparent approach to collaboration through their active involvement across our efforts to address social responsibility, engage technical staff, and diversify ocean-bound plastic supply chains.

LOOKING TO 2021 20

VISION FOR THE FUTURE Athens Georgia Photo by Jay Neilson

As the gears of our global economic system start to pick up speed, member company progress will continue. Many products that were in progress but delayed are waiting in the wings to launch this year. Much has changed. For example, our member meetings will be virtual for the foreseeable future, allowing for larger, more frequent convenings. This will make us more agile and lessen our environmental impact. The commitment of our members has not waned; we are looking to the next chapter in our progress—for the ocean, and for the future. In 2021 our main focus will be to capture the successes, lessons learned and leadership of the member companies to showcase and share their journeys. We hope this will empower and responsibly guide continued development of the growing ocean-bound plastics industry. We will also revisit our collective goals and chart a course to 2025 for our collective progress turning off the tap on ocean plastic pollution. Building on the strategy laid out for 2020 and beyond in the inaugural Annual Report “Rethinking Plastics”, we carry forward the following as key areas of focus for 2021:

Lead the Movement

Accelerate Supplier Development

Break Down Key Barriers

Nurture and Develop Our Membership

STRATEGY FOR 2021 & BEYOND Lead the Movement NextWave has a tremendous body of knowledge on the sourcing and use of oceanbound plastics and the innovation required to maximize integration of material into existing products. By sharing this we will inspire other companies to consider how they can join the movement. We will do this by: • Formally joining the Global Plastic Action Partnership as a member to align with and advance international plastic pollution reduction efforts • P roducing open-source case studies and supply chain development playbooks that showcase the leadership and lessons learned of NextWave members and provide roadmaps for other companies to follow • C atalyzing community uplift programs that address social needs related to ocean-bound plastic pollution and/or collection networks • Publishing the NextWave Plastics Social Responsibility Framework as an open-sourced tool to guide supply chain development and engagement with future suppliers • Continuing to contribute to the traceability and standards development being led by UL, OceanCycle, Zero Plastic Oceans and others

• Amplifying storytelling of member companies’ continued commitment to ocean-bound plastic diversion

and celebrating member insights through global thought leadership and earned media coverage Accelerate Supplier Development NextWave brings together a cross-industry and cross-sector network of members 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: • Growing our network of suppliers, especially manufacturers, processors and compounders that can build efficiency and effectiveness in oceanbound plastic supply chains • Engaging suppliers proactively in the consortium through events and more as key leaders and collaborators in the continued development of ocean-bound plastic markets • Advancing the member-facing supplier database and undertaking regular assessments of the evolving oceanbound plastic supplier landscape 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 defining a clear path

to reaching our collective diversion goal. We will do this by: • Defining an internal Roadmap to 2025 that charts a clear course to our shared goal of diverting 25,000 metric tons of plastic from entering the ocean by the end of 2025 • Finalizing the NextWave Plastics Social Responsibility Framework to guide equitable ocean-bound plastic sourcing • Identifying opportunities for shared supply chain services including social responsibility verification, material traceability, shipping, processing, etc. Nurture and Develop Our Membership NextWave brings together a cross-industry and cross-sector network of members 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: • Launching a Member Portal to act as a singular hub for all member resources • Increasing points of interaction for members through a “member connect” meeting series to convene smaller groups to discuss common interests, increased inter-member engagement on social media and other virtual platforms, and curated member meetings for specific teams (in the same vein as the Design & Engineering Member Meeting) - from Communications to Supply Chain Management

• Continuing to grow our network of members to scale demand for oceanbound plastic by providing membership benefits such as shared learnings and best practices, increased supply chain traceability and assurance, streamlined supply chain growth, and more • Continuing to grow our existing network of NGO and academic partners to holistically support equitable, traceable, and just ocean-bound plastic collection and science-based decisionmaking across all of our work • Accounting for reductions in nonessential plastic use in member company operations and supply chains

SUMMARY 23

NEXT STEPS Photo by Jay Neilson

Three 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. The member companies have proven that ocean-bound plastic products work. Not only that, they scale across a diversity of applications and functionalities. Now, it is time we take concerted action to accelerate the trajectory toward our shared goal. At the same time, we must bring others along this path as well; driving sustainable material use and innovation across industries. As we continue to pave the path toward more conscientious material sourcing, we look to more companies to diversify and grow this mission. Let’s turn off the tap on plastic pollution.

Join the next wave of leadership: Learn more about the consortium at nextwaveplastics.org. Continue the conversation, connect with us on Twitter and LinkedIn.

APPENDICES 25

GLOSSARY OF TERMS Circular Economy Looking beyond the current take-makewaste extractive industrial model, a circular economy aims to redefine growth, focusing on positive society- wide 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) Initiative Charter The document which establishes the founding principles of NextWave Plastics. Each member has committed to these ten principles. Member Company One of the eleven formal members of NextWave Plastics that have signed onto the Initiative Charter. NextWave Plastics

A collaborative and open-source initiative convening leading technology and consumerfocused 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, CPI Card Group, Trek Bicycle, Interface, HP Inc., IKEA, Herman Miller, Humanscale, Solgaard, and Bureo. 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. 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.

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 oceanbound 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.

TEN FOUNDING PRINCIPLES To decrease the volume of plastic 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. 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

Competitive

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.

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 anticompetitive behavior involving the Working Group and its members.

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 oceanbound 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.

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 like-minded start-up companies having a positive impact on the environment. To find out more visit: www.bureo.co. Dell Technologies Dell Technologies helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the data era. For more information visit www.delltechnologies.com. CPI Card Group

CPI Card Group® is a payment technology company and leading provider of credit, debit and prepaid solutions delivered physically, digitally and on-demand. CPI® helps our customers foster connections and build their brands through innovative

and reliable solutions, including financial payment cards, personalization, and Software-as-a-Service (SaaS) instant issuance. CPI has more than 20 years of experience in the payments market and is a trusted partner to financial institutions and payments services providers. Serving customers from locations throughout the United States, CPI has a large network of high security facilities, each of which is registered as PCI compliant by one or more of the payment brands: Visa, Mastercard®, American Express® and Discover®. Learn more at www.cpicardgroup.com. Herman Miller Herman Miller is a globally recognized leader in design. Since its inception in 1905, the company’s innovative, problem-solving designs and furnishings have inspired the best in people wherever they live, work, learn, heal, and play. In 2018, Herman Miller created Herman Miller Group, a purposefully selected, complementary family of brands that includes Colebrook Bosson Saunders, Design Within Reach, Geiger, HAY, Maars Living Walls, Maharam, naughtone, and Nemschoff. Guided by a shared purpose— design for the good of humankind—Herman Miller Group shapes places that matter for customers while contributing to a more equitable and sustainable future for all. For more information visit www.hermanmiller.com/about-us.

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. 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. IKEA IKEA offers well-designed, functional and affordable, high-quality home furnishing, produced with care for people and the environment. There are several companies with different owners, working under the IKEA Brand, all sharing the same vision: to create a better everyday life for the many people. IKEA was founded in Sweden in 1943. For more information see about.ikea.com.

ABOUT THE MEMBER COMPANIES Interface Interface Inc. is a global commercial flooring company specializing in carbon neutral carpet tile and resilient flooring as well as cradle-to-gate carbon negative carpet tile. We help our customers create highperformance interior spaces that support well-being, productivity, and creativity, as well as the sustainability of the planet. Our mission, Climate Take Back™, invites others 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. To learn more about our carbon negative products, visit www.interface.com/carbonnegative. Solgaard

A design-driven sustainable premium lifestyle brand exploring for good, Solgaard optimizes life on-the-go for remote workers and world travelers - all while making a positive impact on the planet. The Solgaard sustainable product portfolio includes luggage, backpacks, bags, luxury timepieces, and solar tech accessories. Founded in 2016 by Canadian-Norwegian entrepreneur Adrian Solgaard, the company has prevented the equivalent of 5.5 million plastic bottles from entering the ocean since its inception. In 2019 Solgaard unveiled its award-winning proprietary fabric made from ocean-bound plastic, Shore-Tex™, now used in all Solgaard bags and suitcases. In 2020,

Shore-Plast, a durable material made from ocean-bound plastic, debuted in Solgaard’s HomeBase electronics collection. For every product sold, Solgaard removes 229 plastic bottles from the ocean. Learn more at www.solgaard.co. 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 nextgeneration thinking and cutting-edge technology. Learn more at www.trekbikes.com. Lonely Whale Lonely Whale is an award-winning incubator for courageous ideas that drive impactful market- based 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.

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