Telstra - National Packaging Covenant - Action Plan - 2009-2012

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					TELSTRA CORPORATION
       LIMITED




NATIONAL PACKAGING
     COVENANT
          ACTION PLAN
            2009 – 2012



                    Prepared by
        Telstra Corporate Environment Group
Centre for Expertise for Health, Safety & Environment

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Table of Contents

     1.       Foreword .............................................................................................................................................. 4
     2.       Introduction ....................................................................................................................................... 5
     2.1.     Purpose .................................................................................................................................................5
     2.2.     Period of this Action Plan..........................................................................................................5
     2.3.     Scope ......................................................................................................................................................5
     2.4.     Company profile..............................................................................................................................5
     2.5.     Place in the packaging chain ..................................................................................................6
     2.6.     Covenant Officer .............................................................................................................................6
     3.       Telstra and the Environment ................................................................................................... 7
     3.1.     Key environmental achievements in 2008-09..............................................................7
     3.2.     Planned environmental actions for 2009-10 ................................................................7
     4.       Telstra Packaging............................................................................................................................ 9
     4.1.     Telstra branded products ..........................................................................................................9
     4.2.     Responsibility for Telstra branded packaging .............................................................9
     4.2.1.   Product strategy and decision to range products .................................................... 9
     4.2.2.   Sourcing of products from manufacturers and suppliers .................................... 9
     4.2.3.   Packaging & dispatch of Telstra branded products to consumers ............ 10
     4.2.4.   Marketing of consumer products ..................................................................................... 10
     5.       Product Stewardship Commitments ............................................................................... 11
     5.1.     Strategic Marketing ................................................................................................................... 11
     5.2.     Finance & Administration – Billing .................................................................................. 13
     5.3.     Telstra Product Management .............................................................................................. 13
     5.4.     Finance & Administration - Procurement ................................................................... 16
     5.5.     Corporate Environment Group ........................................................................................... 16
     5.6.     Telstra Consumer & Channels ............................................................................................ 17




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1.     Foreword

At Telstra, we are always looking at new and innovative ways to minimise our
environmental impact.
Our commitment to packaging stewardship commenced in 2001 when Telstra became a
signatory to the National Packaging Covenant (NPC) and we reaffirmed this commitment
again as a signatory to the second covenant in 2006.
Our NPC Action Plan sets out some aggressive targets: we plan to significantly increase the
number of consumer customers on paperless bills by June 2010, reduce paper bills sent to
large corporate customers by 20% and decrease our waste to landfill by 5% through the
expansion of existing systems for recycling used at our retail fulfilment operations centre.
Telstra recognises the vital role packaging plays by ensuring that products are protected,
waste is minimised and quality, health and safety are assured.
Telstra will build on past achievements with the target of reaching new levels of
environmental excellence and leadership in the area of packaging.
We will achieve our objectives under the NPC and retain the momentum set in recent years.
I have much pleasure in endorsing Telstra's NPC Action Plan for 2009-2012.


David Thodey
Chief Executive Office
Telstra Corporation Ltd




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2.       Introduction
2.1. Purpose
This document is Telstra‟s National Packaging Covenant Action Plan 2009-12.
It sets out how Telstra, as a signatory to the revised NPC, proposes to implement and
measure its actions and commitments under the covenant for evaluating and improving the
packaging of its retail consumer products.
This action plan sets out the actions that Telstra will undertake and complete to
demonstrate continuous improvements in the management of its Telstra-branded
packaging.

2.2. Period of this Action Plan
This Action Plan is for the period 1 July 2009 to 30 June 2012 and will be reported against
annually, following the end of the fiscal year by the 31st of October.

2.3. Scope
The Telstra NPC Action Plan addresses all of Telstra branded retail consumer products and
freight packaging of these products to the various retail channels.
The plan does not cover Telstra subsidiaries including Sensis, who are already a signatory to
the NPC and report separately against the Sensis Action Plan.

2.4. Company profile
Telstra is Australia‟s leading telecommunications and information services company, with
one of the best known brands in the country. We offer a full range of services and compete
in all telecommunications markets throughout Australia, providing more than 9.0 million
Australian fixed line and more than 10.1 million mobile services.
Our main activities include the provision of:
        basic access services to most homes and businesses in Australia;
        local and long distance telephone calls in Australia and international calls to and from
         Australia;
        mobile telecommunications services;
        broadband access and content;
        a comprehensive range of data and Internet services (including through Telstra
         BigPond®, Australia's leading Internet service provider)
        retails a variety of telecommunications products and accessories;
        management of business customers' IT and/or telecommunications services;
        wholesale services to other carriers, carriage service providers and ISPs;
        advertising, search and information services (through Sensis, Australia's leading
         directory and search company); and
        cable distribution services for FOXTEL's® cable subscription television services.




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One of our major strengths in providing integrated telecommunications services is our vast
geographical coverage through both our fixed and mobile network infrastructure. This
network and systems infrastructure underpins the carriage and termination of the majority
of Australia's domestic and international voice and data telephony traffic.
Telstra owns 50% of FOXTEL®, and its international business include CSL New World
Mobility Group, one of Hong Kong's leading mobile operators, Telstra Clear Limited, the
second largest full service carrier in New Zealand and Reach Ltd, a provider of global
connectivity and international voice and satellite services, as well as Sou Fun Holdings
Limited, a leading real estate and furnishings website in China.

2.5. Place in the packaging chain
In relation to the Covenant, Telstra is known as a “retailer” or “brand owner” in the
packaging supply chain.
As a provider of telecommunication services, Telstra‟s business is built around the provision
of network services as outlined above.

2.6. Covenant Officer
For further information contact:


       Diana Vidovic
       Telstra Corporation Limited
       Corporate Environment Group
       Locked Bag 5661
       Melbourne VIC 3001
       E-mail: diana.vidovic@team.telstra.com




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3.       Telstra and the Environment
Telstra is committed to providing good stewardship of the environment. Telstra operates in
a variety of natural and urban environments, with our network infrastructure spanning
Australia. To manage the impact of our activities we aim to integrate environmental
considerations into every day business activities. At the heart of Telstra‟s approach to
environmental stewardship is a simple notion – efficient use and conservation of resources
is the most effective way for business to contribute to environmental protection and at the
same time reduce operating costs. The efficient use of natural resources is both
commercially and environmentally prudent.

3.1. Key environmental achievements in 2008-09
During 2008-09, Telstra:
        Saved 24,186 tonnes CO2 equivalent, including 11,360 tonnes CO 2 in electricity
         savings and 12,826 tonnes CO2 in waste diverted from landfill. This saving is
         equivalent to the greenhouse gas emissions generated by 1,728 average Australian
         households1 in a year. In addition, energy efficiency measures implemented in
         previous years continue to deliver greenhouse gas emission savings.
        Reduced fuel consumption by 12 per cent from 2007/08. This decrease in transport
         greenhouse gas emissions is due to the 4.3 per cent reduction in total vehicle
         numbers and 3.9 per cent reduction in average kilometres travelled per vehicle, and
         consequent fuel consumption.
        Reduced office paper consumption by approximately 30,160 reams, which is a 14 per
         cent reduction from 2007/08. Over the last seven years, the number of reams used
         per employee has decreased from 10.3 in 2002/03 to six in 2008/09.
        Water saving actions saved an estimated total of 12 megalitres of water across our
         office buildings and network sites.
        Diverted organic waste from landfill through recycling, saving 12,826 tonnes of
         greenhouse gas emissions (CO2 equivalent), down from 15,727 tonnes in 2007/08.

3.2. Planned environmental actions for 2009-10
        Improve fuel efficiency by five per cent by implementing the Telstra Fleet Driving
         Smarter, Safer and Greener program.
        Support Telstra‟s adoption of ICT solutions including video conferencing,
         telepresence and remote working, to reduce overall carbon emissions within the
         business.
        Conduct an internal and customer trial to quantify carbon emissions savings through
         use of video conferencing.
        Enhance employee engagement by recruiting 2,000 Telstra women to the 1 million
         women campaign to inspire climate change action.
        Increase the       2009    employee       engagement       survey     score    for   „environment
         responsibility'.



1
 To provide a meaningful comparison of greenhouse gas emissions throughout this section, we use information
published by the Australian Government Department of Environment, Water Heritage and the Arts in Global
Warming Cool It (www.environment.gov.au/settlements/gwci/households.html). This states that: „Each year, the
average Australian household generates about 14 tonnes of greenhouse gas'.


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      Reduce office paper consumption by five per cent on a full-time equivalent basis.
For more details on Telstra‟s environmental initiatives please see Telstra‟s 2008-09 CR
report available after December 1st 2009 at:
http://www.telstra.com.au/abouttelstra/csr/reporting_performance/index.cfm
For more details of Telstra‟s packaging targets, please refer to Section 6, Product
Stewardship Commitments.




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4.       Telstra Packaging
4.1. Telstra branded products
Telstra retails and is responsible for the packaging of a variety of telecommunications
products and accessories. The range of Telstra-branded products includes:
        Fixed line phones and accessories;
        Mobile phones and accessories;
        BigPond Internet access kits, data cards, net book, notebooks and modems;
        Card products such - SIM and recharge cards; and
        Printed marketing material – brochures, letters, catalogues.
Firstly, Telstra retails consumer products that are produced and branded by the
manufacturer or the supplier. These products are „non Telstra- branded‟ and are retailed by
Telstra through various retail channels.
Secondly, Telstra sells consumer products that are produced by manufacturers and are
branded and packaged as Telstra products and are known as „Telstra-branded‟ products.
Thirdly, Telstra also „re-packages‟ or „bundles‟ a number of products that are branded by the
supplier or manufacturer. These products, such as pre-paid mobile phones, are „bundled‟ to
meet specific Telstra requirements to become a „Telstra-branded‟ product, for example, an
outer Telstra-branded sleeve over a Nokia mobile phone kit. The responsibility for the
„bundling‟ of these products lies with the area of Telstra that owns the product.

4.2. Responsibility for Telstra branded packaging
There are a number of areas across Telstra that have the responsibility for consumer
products from the initial decision to the range of products sold through Telstra‟s shops,
dealers and channels, to sourcing (i.e. establishing contracts for the purchasing and delivery
of products from the supplier or manufacturer) and packaging and distribution, through to
ultimate sale to the consumer.
The following sections briefly describe how consumer products are sourced, packaged,
distributed and retailed and the different areas in Telstra involved in this process.

4.2.1. Product strategy and decision to range products
Before final contracts are put in place with suppliers or changes finalised within existing
supplier contracts for new products, a product strategy is determined by Telstra Product
Management in discussions with business units and marketing teams, and as per Telstra
Product Management and Marketing Processes. At this stage, a decision will be made
regarding product requirements and specifications.

4.2.2. Sourcing of products from manufacturers and suppliers
The sourcing of products for retail and the consumer is largely undertaken by two groups
within Telstra. Sourcing of mobile handsets and wireless data products are largely
supported by Telstra's third party logistics/sourcing provider.
Firstly, Telstra‟s Procurement team (within the Finance and Administration Business Unit)
has the responsibility for establishing sourcing commercial arrangements and contracts for



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most consumer products, such as mobile handsets and Telstra Big Pond products (i.e.
Internet connection kits) from a range of suppliers. The Procurement Group establishes the
contracts with the suppliers and is involved in the ongoing supplier management of these
contracts.
Secondly, specific groups within the Consumer Marketing and Channels group also establish
and manage contracts for a variety of consumer products sold through the Telstra Shop and
licensed Telstra shop network.

4.2.3. Packaging & dispatch of Telstra branded products to consumers
Telstra's third party logistics/sourcing provider currently manages the operation of Telstra‟s
retail product supply chain.
The vast majority of Telstra retail products are shipped to the retail fulfilment warehouse
from the suppliers. From here, the products are either dispatched directly to the customers‟
premises, and to a variety of retail outlets including Telstra shops, Telstra licensed shops or
independent dealers.
Telstra „bundles‟ a number of products to meet specific Telstra requirements, also known as
the “value-add process”. For example, a Telstra SIM card, CD, sticker, collateral and other
items may be added to a mobile handset box containing the product and then shrink
wrapped.
These bundled products are assembled and packaged on-site at the retail fulfilment
warehouse
In these cases, Telstra marketing and design teams have input into the packaging and
associated marketing material that accompanies these products. For example, Telstra has
control over the design of product „sleeves‟, user guides and shrink wrap for pre-paid
mobiles. The responsibility for the packaging of these products lies with the business unit
that owns the product.

4.2.4. Marketing of consumer products
Telstra Consumer Marketing and Channels and Telstra‟s Strategic Marketing group produce
a variety of printed material such as product catalogues, offer brochures, letters and user
guides. This material is distributed either directly to the end consumer through the mail or
made available indirectly via retailers.




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5.     Product Stewardship Commitments
Telstra has developed this Action Plan for the period 1 July 2009 to 30 June 2012. The following product stewardship commitments are in
line with Section 4 of the National Packaging Covenant and demonstrate Telstra‟s ongoing support of the NPC and the principles of
product stewardship.
It sets out how Telstra, as a signatory to the revised NPC, proposes to implement and measure its actions and commitments under the
covenant for evaluating and improving the packaging of its retail consumer products.
Each Action has a performance measure for assessing the degree of completion or ongoing progress as well as the timeframe of expected
completion.
The following tables list the actions to be undertaken, based on the responsibilities of the different areas across Telstra.


5.1. Strategic Marketing

               Action                              Relevant NPC KPI      Performance Measure                               Target/
                                                                                                                           Timeframe

        1.0    Design

        1.1    Incorporate National Packaging      1, 3                  Document implementation of the Packaging          Report annually
               Covenant considerations into                              Design Checklist and report annually.
               new product packaging
                                                                         Document examples.
               development.
               Incorporate the National
               Packaging Covenant checklist
               as part of the official packaging
               briefing template.

        1.2    Investigate options for placing     1, 3                  Report on outcome of review.                      Report annually
               product and troubleshooting
               information on Telstra‟s
               website (or built into the
               device where possible) to
               replace paper collateral.



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      Action                            Relevant NPC KPI   Performance Measure                            Target/
                                                                                                          Timeframe

1.3   Update Telstra‟s Packaging        3                  Updated Packaging Strategy.                    July 2010
      Strategy when Telstra‟s
      Packaging Checklist is updated.

1.4   Develop a template to ensure      3                  A database of pack specifications and          Report annually
      the specifications of every new                      packaging savings.
      product packaging developed
      are captured to report
      packaging savings.

2.0   Education

2.1   Educate relevant staff and                           Provide training on use of the packaging       July 2010
      suppliers on Telstra Packaging                       checklist to all relevant staff.
      Checklist.

3.0   Labelling

3.1   Include environmental logos       3                  Include messaging encouraging customers to     2009-12
      and/or statements on                                 make appropriate decisions about disposal of
      marketing materials and                              packaging.
      packaging to inform consumers
                                                           Report annually.
      about the packaging and
      appropriate disposal methods.

3.2   Work with other collateral        3                  Updated environmental guideline for            July 2010
      specialists within Brand &                           marketing material.
      Marketing Communications
                                                           Report weight (in tonnes) of marketing
      Group to encourage reduction
                                                           collateral produced annually.
      in marketing collateral.




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5.2. Finance & Administration – Billing

            Action                            Relevant NPC KPI   Performance Measure                             Target/
                                                                                                                 Timeframe

      1.0   Design

      1.1   Continue expansion of Telstra‟s   1, 3               Track and report number of consumer customers   The
            online billing program for our                       registering to receive bills online.            Consumer
            consumer and business                                                                                target for
            customers.                                                                                           Paperless
                                                                                                                 billing is 500k
                                                                                                                 customers by
                                                                                                                 June 2010.
                                                                                                                 20%
                                                                                                                 reduction in
                                                                                                                 paper bills
                                                                                                                 sent to large
                                                                                                                 corporate
                                                                                                                 customers.


5.3. Telstra Product Management

            Action                            Relevant NPC KPI   Performance Measure                             Target/
                                                                                                                 Timeframe

      1.0   Design

      1.1   Review packaging for Bigpond      3, 4, 22           Measure and report the following:               August 2009
            self-install kit. Identify
                                                                      weight of packaging saved (kgs);
            opportunities to reduce the
            packaging or increase the use                             number of pallets saved; and
            of more environmentally-
                                                                      airfreight weight savings (kg).
            friendly packaging.



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      Action                             Relevant NPC KPI   Performance Measure                               Target/
                                                                                                              Timeframe

1.2   Investigate options for removal    22                 Report on outcome of the review.                  December
      of supplier information CD.                                                                             2009

1.3   Review customer returns            22                 Track and report volumes versus satchel and       October 2009
      process to identify                                   sticker purchases.
      opportunities for customer to
      re-use original packaging.

1.4   Design and source custom           6, 22              Report on outcome of review.                      October 2009
      packaging for collateral,
      antennas and sim cards to
      reduce construction of
      makeshift outer packaging
      which is high in consumption of
      cardboard and tape.

1.5   Identify opportunities for         3                  Report on opportunities identified.               October 2009
      packaging reduction within the
      returns department at Telstra‟s
      retail fulfilment warehouse.

2.0   Production

2.1   Reduce printed materials sent      3                  Report weight in tonnes for printed collateral.   February
      to consumer customers                                                                                   2010
      through replacement with
      electronic processes.

3.0   Distribution

3.1   Identify opportunities to reduce   3, 4               Report weight in tonnes of inbound freight        December
      inbound freight packaging at                          packaging.                                        2009
      Telstra‟s retail fulfilment
      centre.


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      Action                            Relevant NPC KPI   Performance Measure                                  Target/
                                                                                                                Timeframe

3.2   Work with our suppliers to        3, 4               Report quantity of cartons per inbound pallet.       November
      identify opportunities to house                                                                           2009
      more cartons per pallet
      received. Review cardboard
      options to increase quantity
      per pallet.

3.3   Re-use existing cartons           3                  Report number of existing cartons that are re-       October 2009
      housing returns for outbound                         used.
      returns rejections.

3.4   Investigate opportunities to      3, 4               Report on outcome                                    November
      reduce amount of packaging                                                                                2009
      tape used to seal outbound
      cartons.

4.0   Disposal/ Recycling & Re-
      use

4.1   Continue to improve and           16, 21             Report the weight (in tonnes) of waste to landfill   5% decrease
      expand existing systems in                           and waste that is collected for recycling. Key       in waste to
      place for recycling of used                          material streams to be recycled include:             landfill by
      packaging on-site at Telstra‟s                       cardboard, plastic (pallet wrap), timber and         July 2010.
      retail fulfilment operations                         paper
      centre to identify reduction of
      waste to landfill.

4.2   Investigate options to use        16, 21             Report on outcome of review.                         July 2009
      biodegradable bags for store
      return.




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5.4. Finance & Administration - Procurement

           Action                           Relevant NPC KPI   Performance Measure                         Target/
                                                                                                           Timeframe

     1.0   Market Development

     1.1   Review the current Packaging     26                 Updated Packaging Guidelines.               July 2010
           Guidelines with support from
           the Corporate Environment
           Group.

     1.2   Review Telstra‟s Purchasing      26                 Reviewed Purchasing Environment Policy.     July 2011
           Environment Policy together
           with Corporate Environment
           Group to determine if Section
           3:- Ability to incorporate
           Recycled Content can be
           incorporated.


5.5. Corporate Environment Group
           Action                           Relevant NPC KPI   Performance Measure                         Target/
                                                                                                           Timeframe
     1.1   Work with Telstra NPC            1, 3               Quarterly meeting with key stakeholders     Improve
           stakeholders to continue to                         documenting progress against action plan.   Telstra‟s
           support the Covenant‟s central                                                                  product to
           objectives is to reduce the                                                                     packaging
           amount of packaging waste                                                                       ratio from
           going to landfill.                                                                              2.3:1 to a
                                                                                                           minimum of
                                                                                                           2.5:1.




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           Action                           Relevant NPC KPI   Performance Measure                             Target/
                                                                                                               Timeframe
     1.2   Create internal awareness of                        Two articles about the NPC in the Telstra Eco   July 2010
           the NPC through newsletters,                        Champs newsletter.
           emails and reports.
                                                               Two emails briefings to seniors executives on
                                                               progress of Telstra‟s NPC Action Plan.
                                                               Update Telstra‟s intranet site.
     1.3   Review Telstra‟s Packaging                          Updated packaging checklist.                    July 2010
           Checklist
                                                               Communicate to all relevant stakeholders




5.6. Telstra Consumer & Channels

           Action                           Relevant NPC KPI   Performance Measure                             Target/
                                                                                                               Timeframe

     1.0 Design

     1.1   Incorporate National packaging   1, 3               Document implementation of the Packaging        Report
           Covenant Considerations into                        Design Checklist and report annually.           annually
           new product packaging
                                                               Document examples.
           development.
           Work with marketing/design
           teams and packaging suppliers
           to reduce unnecessary
           packaging and increase
           recycled content in packaging.




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      Action                          Relevant NPC KPI   Performance Measure                             Target/
                                                                                                         Timeframe

1.0 Design

1.2   Include environmental logos                        Report percentage of marketing materials that   July 2010
      and/or statements on                               include environmental logos.
      marketing collateral and
      packaging to inform consumers
      about the packaging and
      appropriate disposal methods.




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