Goldman Sachs GS SUSTAIN Other important considerations for a Circular Economy A note on plastics: At least 42 plastics facilities have opened in the US since 2019 and the US plastics industry is responsible for over 230mn tonnes of CO2e emissions per year. Plastics make up over 12% of municipal waste generation in the US but 18% of waste sent to landfill. The UK has a much higher recovery rate for plastics, at 44% recovered/recycled, but globally 11 million metric tonnes of plastic were still leaked into the ocean in 2016, according to the Pew Charitable Trusts. Decarbonisation and plastic waste is not simply solved by substituting away from plastics, as alternative materials typically carry a higher emission profile per use case (Exhibit 17); rather improved recycling and technological advancements in pyrolysis (chemical recycling) are needed, in our view. We explore plastics recycling more below. Food waste is still a massive problem. Up to 40% of global food produced ends up as waste, and the average family throws away approximately £720 worth of f ood per year, according to the Dept. for Environment Food & Rural Affairs, where homes make up 43% of total food waste by weight. Composting still makes up a very small portion of waste disposal methods, as food waste makes up 24% of landfilled material and 22% of combusted municipal solid waste in the US and results in $160 billion in food wasted every year (EPA & USDA). Uneaten and wasted food contains enough calories to support 150 million people each year, significantly more than the 35 million Americans facing food insecurity (EPA). US grocery chain Grocery Outlet (GO) helps to eliminate food waste throughout the food retail / distribution channels in the US by purchasing surplus inventory and repackaged products, much of which otherwise might have been wasted, while also providing cheaper food for lower-income populations. Exhibit 11: Food makes up a huge portion of global waste, and each source requires Exhibit 12: Households made up only 12% of total waste generation in the UK in 2018 „ different solutions to minimise disposal in landfills Food made up 18% of household waste Global waste production by type, with additional breakdown of sources of food waste Total waste generated in the UK by material and source, 2018, million tonnes Food Waste Sources Other Other 25 2% 2% 14% 200 Households Other Dredging spoils 16% Farms Soils Household 2% Manufacturers 20 Food 4% 150 Minerals 5% 40% Consumer- Discarded facing Household & 15 Equipment 44% businesses similar Construction, Textile 100 Vegetal waste demolition & Wood 12% 43% Homes Wood excavation 10 Plastic Plastic Paper & 50 Paper & 5 Cardboard 17% cardboard Glass Glass 0 Metal Metals Commercial & Households, by Paper and cardboard Plastic Glass 0 Industrial Metal Wood Rubber and leather By material By source material Other Manufacturers Food Source: World Bank, ReFed, Goldman Sachs Global Investment Research Source: Department for Environment Food & Rural Affairs, Data compiled by Goldman Sachs Global Investment Research 3 May 2022 9