The Closed Loop Fund is a social impact fund investing $100M to increase the recycling of products and packaging. Investors include :
We spend billions of dollars to throw away even more billions of dollars BRITISH COLUMBIA NEW BRUNSWICK PAPER: GLASS: $1,294,625,417 $97,325,060 QUEBEC ARCTIC ONTARIO HDPE: PVC: $2,854,896,000 $136,000,000 STEEL: $285,000,000 ALUMINUM: $1,446,228,571 PET: LDPE/LLDPE: $2,917,345,309 $726,000,000 MEXICO VIRGIN ISLANDS PS: PP: $371,000,000 $1,273,600,000 Cities spend $5+ billion This waste is $11b+ of annually to truck, rail, and material that could be used barge waste to landfills to make new packages and products. CLOSED LOOP FUND | PAGE 3
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 replicable models that remove barriers to an effective and financially viable recycling system WE INVEST IN: CRITERIA: FINANCIALS REPORTING COLLECTION PROCESSING TONNAGE SCALABILITY MATERIAL SCIENCE & PRODUCT DESIGN CLOSED LOOP FUND | PAGE 4
1) Recycling not included/ prioritized Nine System 3) Low awareness of in packaging design Bottlenecks what’s recyclable / process how to recycle Hindering 2) PCR demand unclear/ lacking Recycling Bold = Areas for CLF leadership Process into Product Inputs Collect More 9) Under- Recyclable Material developed end 4. SS recycling, rigid markets for plastics collection rigid plastics, Processing not expanding film/flex, glass 5. Low confidence in low-income, underserved pop. Sort Recyclables into ability to recycle Marketable Commodities 6. Lacking collection for 7) Lack of innovation, unclear profitability of organics, ewaste, and sorting technology for plastics, film, glass textiles (60% of 8) No expansion of new materials accepted stream) CLOSED LOOP FUND | PAGE 5
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 CLOSED LOOP FUND | PAGE 6
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. CLOSED LOOP FUND | PAGE 7
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 CLOSED LOOP FUND | PAGE 8
Innovation of Closed Loop Fund Model LARGE SCALE LOANS SYSTEM CHANGE: SCALABILITY UNLOCK 5x CO-INVESTMENT Zero interest loans in Capital is pooled from Each project will be Fund will co-invest in select amount required to achieve consumer goods leveraged to inspire projects with private investors measureable and systemic companies and retailers exponential increases in to enable projects to have an change drives proves the with a vested interests in investment from other effective IRR for private model and drives increased recycling rates. municipalities interested investors, spurring and accountability. Affect a system that no in self funding and increasing in private investment . company can do alone. replicating success of the Revenue-backed loans are a similar project in their repaid via savings from location. increased landfill diversion and/or revenue from sale of commodities. CLOSED LOOP FUND | PAGE 9
Anticipated impact of the fund The Closed Loop Fund targets following impact could be achievable over the life of the Fund (10-years): SOCIAL ENVIRONMENTAL 20,000 incremental 50 million metric tons of local jobs vs. land- GHG reduction; filling. FINANCIAL TO UNLOCK PUBLIC AND PRIVATE MUNICIPALITIES FUNDING NATIONALLY $21.2B in avoided landfill tipping Create scalable models that prove fees and revenue generated financial value to funders across the from selling diverted country to help bring modern recycling commodities. programs to homes across the US. CLOSED LOOP FUND | PAGE 10
The Closed Loop Fund is building local and national recycling infrastructure to create systemic value for the entire value chain • Increase supply of recycled commodities available to source REDUCE COST OF • Protect supply from resource scarcity and price volatility by GOODS recovering material from waste stream. •Meet consumer, societal demand for recyclable products MEET CONSUMER •Ensure customers have access to recycling where and when they DEMAND need it •Improve city resiliency IMPROVE REGULATORY •Partner with cities on the solution to a looming challenge ENVIRONMENT •Revenue backed loans prove the business model and return TRANSPARENCY capital AND •Provide data of GHG reductions and money saved by ACCOUNTABILITY municipalities CLOSED LOOP FUND | PAGE 11
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