The National Packaging Covenant

1
The National Packaging Covenant

• Welcomes you to
• Preparing Action Plans
• July 2008- June 2010

2
Todays Program

• Introduction
• Brief Status Overview
• Covenant Targets
• NPCC 2005-06 results
• MK II Action Plans
• Industry Data Aggregation System (IDAS)
• Questions Close

3
Brief Overview

• A Packaging industry initiative.
• Commenced July 1999. Further 5 year term agreed
  by Ministers in July 2005.
• Covers consumer product packaging, household
  paper and in-store packaging.
• Currently 630 signatories, including
• 479 brand owners 188 are new
• 56 packaging mfrs/suppliers
• 95 other supply chain members
• 90 of the packaging produced in Australia
• estimated 80 of packaged retail brands sold
• There are more than 50 jointly funded Covenant
  projects underway
• total project costs of gt 47 mill
• estimated recovery of gt 700,000 tonnes pa.
• Your annual contributions make this possible.

4
Participant Status
5
Signatories
6
Some New Signatories

• Corporate Express
• Domaine Chandon
• Sigma
• Swisse Vitamins
• Gunns Ltd
• Retail Food Group (Brumbys, Donut King,
• B.B's Café)
• Gloria Jeans
• Hugo Boss
• 7 Eleven
• Pelaco

JB Hi-fi GM Holden Qantas Yates San
Remo Myer Puma Australia Nandos Transpacific
Industries Veolia Environmental Services Wine
Industry Association WA SITA
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National Packaging Covenant
Environmental Protection Heritage Council (EPHC)
National Packaging Covenant Industry
Association (NPCIA)
The National Packaging Covenant Council (NPCC)
State Local Governments
National Packaging Covenant Signatories
The National Packaging Covenant Secretariat
8
Covenant Goals

• Packaging design optimised to integrate
  considerations about resource efficiency, maximum
  resource re-utilisation, product protection,
  safety and hygiene.
• Efficient resource recovery systems for consumer
  packaging and paper.
• Consumers able to make informed decisions about
  consumption, use and disposal of packaging
  products.
• Supply Chain members and other signatories able
  to demonstrate how their actions contribute to
  these goals.
• All signatories demonstrate continuous
  improvement in their management of packaging
  through their individual Action Plans and Annual
  Reports.

9
Covenant Target 1

• Recycling rate for post-consumer packaging
  

10
That means by 2010

• 1. Additional materials recovery per annum
• Paper Cardboard 405,100 tonnes
• Glass 180,000 tonnes
• Steel Cans 17,200 tonnes
• Aluminium Bev. 9,800 tonnes
• Plastics 100,800 tonnes
• 2. Total additional recovery per annum 719,000
  tonnes.
• Landfill not more than 1.82 million tonnes
  (2003 baseline).

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Thats Equivalent to

• 6.5 million m3 of landfill space
  saved
• or
• 352,000 cars removed from the roads
• or
• 19,792 Olympic pools of water saved
• or
• 1.4 million tonnes of CO2 equivalent saved

12
Covenant Target 2

• Recycling rate for non-recyclable packaging

13
Covenant Target 3

• Packaging to Landfill

14
Signatory Actions

• Reduced weight of PET Liquid Dressing bottle by
  13 saving 52 tonnes pa.
• New design increased pallet utilisation by 21
  with a similar reduction in transport emissions

Reduced cardboard plastic packaging in pre-paid
starter kits by 73 saving 10 tonnes pa

• Reduced the gauge of steel food cans by 16
  saving 125 tonnes pa
• Reduced total weight of non-recyclable
  materials from 1,350 tonnes to just 3.6 tonnes pa
• Replaced 1L Tetra pack with a 25 recycled
  content PET bottle

15
Signatory Actions

• Light weighting of
• PET bottles - saving more than 625 million
  bottles since 2003
• Aluminium cans - saving more than 91 million
  cans annually

Developed a new film technology capable of
producing lighter bread bags achieving a weight
saving of 23 to date

• World-first yoghurt packaging using ONE plastic
  type (PP) 1kg tubs
• Light weighting of PET bottles saving more than
  150 tonnes per annum in materials

16
Signatory Actions
Introduction of RPCs for fresh produce has
reduced the use of cardboard boxes by approx.
25,000 tonnes to date

Savings of more than 55 tpa through packaging
design (largely plastics) and efficiency savings

• 95 of all cardboard used is now 100 recycled
  fibre content
• Lightweighting and packaging changes saving
  6,000 tpa

17
Your Action Plan

• 2 Years duration.
• Demonstrates how a signatory will contribute to
  the achievement of Covenant goals targets.
• Based on product stewardship, addresses the
  ECoPP and relevant KPIs
• Must be endorsed by CEO or equivalent.
• The more effort that goes into the action plan,
  the simpler the reporting process will be.
• Make sure that what is set out in your plan
  enables you to easily report the KPIs in IDAS and
  prepare a written annual report.

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Steps for Creating the Plan

• Read the material
• Form a team with members from across the
  organisation
• Access what you are already doing
• Use the suggested framework in the action plan
  kit as a starting point.
• Access what data you have
• Draft a plan

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Product Stewardship
What actions are you taking in each of the
following categories?

• Design
• Production
• Distribution
• Disposal
• Research

• Market Development
• Education
• Labelling
• Wholesaling Retailing
• Recycling Reprocessing

See Page 5 in the action plan kit
20
Code of Practice - ECoPP

• Transparent guide for making packaging related
  decisions.
• Recognises the role of packaging promotes
  excellence in packaging.
• Contains specific overall strategies, including
  
• Source Reduction
• Potential for Re-Use
• Recovery Recycling
• Ability to incorporate Recycled Content
• It is a key commitment under the Covenant - sign
  the Covenant, you sign the Code!
• See Page 6 in the action plan kit.

21
Key Performance Indicators

• 29 in total 13 relate directly to industry.
• Establish baseline data and continuous
  improvement targets.
• Deliver quantifiable outcomes.
• Enable analysis reporting on the
  effectiveness of the Covenant.
• Provide a more rigorous framework for Action
  Plan Report assessment.

22
Key Performance Indicators

• Form a basis for reporting
• Enable you to measure your own performance
• Ensure the information you set up in the action
  plan allows you to report into IDAS
• See Pages 17 21 of the Action Plan Kit

23
KPIs

• Individual brand owners
• 1. Total weight of consumer packaging by
  material type (domestic imported) sold per
  annum into the Australian market and the total
  weight of products packaged.
• 1A - tonnes of packaging by material type by
  source (local or imported).
• eg. Domestic Imported
• Paper/ cardboard 100 t
• Glass 50 t
• Steel 200 t
• Aluminium 70 t
• Plastic 1 50t 100t
• Plastic 2 etc.
• 1B - tonnes of packaged product sold (net
  weight). eg. 200 000 t
• 1C - ratio of packaging to product (by weight).
  eg. 2.51
• Total weight, by type, of non-recyclable
  packaging sold per annum into the Australian
  market
• 6A - tonnes of non-recyclable packaging sold
  by material type and total
• 6B - non-recyclable packaging as a of total
  packaging sold.

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KPIs

• Packaging supply chain KPIs nos. 3, 4 22
• 3. Improvements in design, manufacture,
  marketing and distribution to minimise the
  environmental impacts of packaging
• 3A - examples of improvements and effects on
  minimising environmental impacts
• 3B - quantitative details of improvements should
  be provided where available
• 4. Changes to protection, safety, hygiene,
  shelflife or supply chain considerations
  affecting amount type of packaging
• 4A - changes affecting amount type of
  packaging used with examples, and their
  associated impact on the amounts and types of
  packaging used.
• 4B - quantitative details should be provided
  where possible

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KPIs

• Packaging supply chain
• 22. Formal adoption of ECoPP and development of
  systems for its implementation
• 22A report ECoPP has been formally adopted
• Yes / No
• 22B report actions and commitments that
  demonstrate ECoPP implementation
• How have you used it?

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KPIs
All signatories 16. Provision of recycling
collection facilities for post- consumer
packaging generated on-site and details, if
provided. Yes / No. If yes, what kind eg.
Paper, glass, plastic etc. 21. Estimated tonnage
of consumer packaging (a) recycled and (b)
sent to landfill, from on-site collection
facilities (tonnes and of total waste). 26.
Implementation of Buy Recycled purchasing policy
or practices. 27. Establishment of
baseline performance data. 28. Annual reporting
against Action Plan. 29. Demonstrating continuous
improvement and achievements against
individual targets milestones.
27
IDAS
Industry Data Aggregation System (IDAS)

• Web based link on NPC website
• Flexible and easy to use
• New improved
• Predominantly quantitative information
• No individual company data reported only
  aggregated totals
• Externally hosted secure and confidential system
• Completing IDAS is a core requirement of Covenant
  reporting
• Reporting deadline is 31 October
• We can supply you with an offline version

28
Plan Structure

• Integrate the plan with existing processes
  tasks
• Context
• Content
• Conclude

Use the suggested framework on page 22 of the
Action Plan kit to ensure you address all the key
points.
29
Context

• Title Page
• Contents
• Company Background
• Executive Summary
• Information on current environmental
• initiatives/activities
• Covenant Contact Person
• CEO Endorsement

30
Context

• Describe your company set the scene
• Who you are
• What do you do
• Where how do you operate
• How big/small are you
• Where do your products come from
• What have you been doing relating to
  environmental initiatives
• Do you have an EMS/Policy
• Summary of what you hope to achieve with this
  action plan

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Content

• What You are doing, how you are doing it and what
  NPC requirement(s) does it relate to?
• Identify and address relevant KPIs.
• Establish baseline data and individual targets
  timelines.
• Details of records being kept to monitor
  performance.
• Action under product stewardship
• Implementation of ECoPP. How?
• Identify how actions will contribute to
  achievement of Covenant targets goals.

32
Conclude

• Action Summary Table with timelines
• Appendices eg.
• Environmental Management System or Policy
• Data Tables
• Product pictures
• Anything else you think might be relevant

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Assessment
Assessment

• Use the criteria to check you have addressed
  each point
• Mandatory
• General
• Graded

34
Submission

• If you have commercially sensitive information,
  submit separate confidential and public versions
  of your plan.
• Plans must be submitted in one file.
• Submit plans via email to
• npc_at_packagingcovenant.org.au
• This goes straight to Adeles inbox.
• Confirmation of receipt of plan will be emailed
  within 10 days.
• All plans are independently assessed against the
  agreed criteria.
• Formal feedback on your plan will be provided as
  soon as possible. Be patient as there may be a
  bit of a back log.

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In Summary

• Implement your own innovative strategies to
  better manage packaging issues.
• Retain control and drive your own actions to
  increase the benefits of more efficient
  effective management of packaging.
• Raise the profile urgency of environmental
  issues within your company to create
  opportunities and improve decision making
• Provides the opportunity to work with industry
  colleagues to address common issues.
• Packaging supply chains opportunity to
  demonstrate a voluntary model can deliver
  results.

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Summary

• Data collection reporting is critical.
• Avoid potentially costly and onerous
  regulation.
• Key dates
• You should already have a due date for your
  action plan.
• Signatory Reports due 31 October each year.
• Mid-Term review in 2008 of progress against
  targets.
• Findings will determine the future of the
  Covenant.
• Governments already seeking to identify possible
  complementary mechanisms.
• Packaging has a high environmental consumer
  profile
• this will not change or go away.

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Further Information
www.packagingcovenant.org.au National
Packaging Covenant Secretariat Level 6, 457 St
Kilda Road, Melbourne, 3004 Ph (03) 9861
2322 Fax [phone] npc_at_packagingcovenant.o
rg.au