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National Packaging Covenant - PDF

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					GM Holden Limited
ABN 84 006893232

National Packaging Covenant
Action Plan 2008 -2011

June 2008
1.0 Executive Summary……………………….………………………………………….....3

2.0 Company Overview…………………………………………………...…………………4
     2.1 GM Holden Ltd
     2.2 Our Brands
     2.3 Locations
     2.4 Holden Service Parts Operations

3.0 Product Stewardship and Packaging Materials Used………………………….....6
     3.1 Expendable but Recyclable Packaging Materials
     3.2 Returnable Materials

4.0   GM Holden’s Environment Commitment………………………………………...10
      4.1 GM Holden’s Environmental Policy and Management System
      4.2 Supply Chain Influence
      4.3 Greenhouse Challenge Plus

5.0   Holden’s NPC Approach……………………………………………………………13

6.0    Key Performance Indicators………………………………………………………14
      6.1 KPI Action Plan Table
      6.2 KPI Action Plan Table – Continued
      6.3 KPI Action Plan Table – Continued

7.0   Contact Details and Endorsements………………………………....……………17


GM Holden Ltd (GM Holden) is Australia’s largest vehicle and automotive engine
manufacturer. Through leading product design and engineering, GM Holden is
committed to providing its domestic and export customers with a wide range of exciting
and high-quality vehicles.

In February, 2008 GM Holden became the first Australian vehicle manufacturer to sign
the National Packaging Covenant (Covenant). As a Covenant signatory, GM Holden’s
scope covers its extensive service parts operations (HSPO).

HSPO aims to ensure that packaging is consistent with GM Holden’s Environmental
Management System. This process directs HSPO towards effective and efficient
packaging solutions while giving due consideration to manufacturer-to-end-user
environmental impact.

This Action Plan addresses a range of consumer packaging materials. Wherever
possible, GM Holden aims to minimise packaging on HSPO products and optimise the
use of returnable/reusable packaging outer materials.

In developing initiatives associated with the Covenant, GM Holden will continue its drive
to improve the environmental impact of our service parts packaging.


2.1   GM Holden

GM Holden is a wholly owned subsidiary of General Motors Corporation (GM), and
occupies a special place in Australian automotive history. GM Holden is a trusted
Australian brand, with iconic automobiles such as the Commodore and Holden Ute
being part of the Australian culture.

Over the last 5 years, GM Holden has invested more than $3 billion in its Australian
operations including significant investment in the new HFV6 engine plant, upgrades to
the vehicle assembly plant to support new models (such as the VE Commodore and
derivative vehicles), and in product development.

GM Holden design and engineering expertise has been recognised as GM’s homeroom
for global rear wheel drive vehicle design and development.

GM Holden has successfully evolved from a local car manufacturer to become a truly
global business with exports a key part of current and future business strategy. In 2007,
GM Holden announced new vehicle export programs to the US and Korea, and two
versions of the Global V6 engine to China to power the new Buick Park Avenue. The
Pontiac G8 Sedan commenced production in November 2007 for export to the US,
adding to existing programs for markets including the Middle East, New Zealand, Brazil
and South Africa. This year, GM Holden announced the Pontiac G8 GXP sedan and
sport truck (Holden Ute) export programs to the United States. For the first time in
Holden’s history, over 50 percent of its locally manufactured vehicles will be designated
for export markets.

Under the Covenant, GM Holden is classified as “Brand Owner” and is therefore directly
responsible to evaluate and improve environmental outcomes in the usage, sale,
reprocessing and recovery of packaging materials. Does this sentence go here?

2.2   Our Brands

In Australia, GM Holden markets a range of vehicles under the Holden brand including
the locally manufactured VE Commodore, WM Statesman and Caprice, and vehicles
imported from GM affiliates including the Captiva, Barina, Viva, Astra and Rodeo. In
addition, GM Holden markets GM brands Saab and Hummer, and will introduce Cadillac
into the Australian market later this year.

2.3    Locations

GM Holden’s Australian headquarters is located at Port Melbourne, which importantly
houses significant design and engineering activity. GM Holden’s manufacturing activity
occurs at major facilities located in South Australia and Victoria. The vehicle assembly
plant in Elizabeth, South Australia, was established in 1958; this year marks the facility’s
50th anniversary. This plant, referred to as Holden’s Vehicle Operations (HVO), is noted
as one of the world’s most versatile vehicle assembly facilities, producing a number of
body styles in both right and left-hand drive configurations. The annual capacity of the
plant is 145,000 vehicles over two shifts, thereby producing 620 vehicles per day at its
full capacity.

GM Holden’s manufacturing facilities also include Holden Engine Operations (HEO) in
Victoria. HEO currently manufactures the Family II 4 cylinder and Global V6/HFV6
engines, along with iron castings and brake and suspension parts. HEO is Australia’s
largest exporter of automotive components, producing 269,421 engines in 2007 (132,
721 HFV6 engines and 136,700 Family II engines), of which 184,795 were exported to
China, Europe, Korea, Thailand and South Africa. Other facilities based in Victoria
include the Holden Service Parts Operations (HSPO) in Dandenong, and the Holden
Proving Ground based at Lang Lang, which has been the testing ground for every
Holden developed in Australia.

2.4    Holden Service Parts Operations

HSPO is the business unit associated with the packaging waste stream.

HSPO is an integral part of the GM global warehousing and distribution system.
HSPO’s National Distribution Centre (NDC) is located at Dandenong Victoria, with
departments such as Logistics, Quality Assurance, Industrial Engineering, Systems and
Customer Assistance based on site. Other service parts functional departments, such
as Sales, Materials Control and Finance are based at GM Holden’s headquarters in Port

The NDC is a purpose-built 53,000m2 facility based on GM Lean Warehousing
Template. Over 95,000 different individual components and products are stored at the

NDC controls its inbound and outbound activities through a leading edge Warehouse
Management System (Catalyst) using (paperless) radio frequency technology. HSPO
also manages a third party logistics provider who is responsible for inbound and
outbound transportation and provides packaging support. An Adelaide based third party
logistics provider stores and distributes locally sourced (mainly large sheet metal and
plastics) parts.

HSPO utilises an extensive network of Holden Dealers and parts Distributors to
distribute parts to domestic end customers. HSPO also distributes parts to overseas
customers through a GM distribution footprint of national parts centres.

While there are multiple GM worldwide vehicle brands (e.g. Chevrolet, Vauxhall,
Pontiac), HSPO utilises common “GM” designated packaging to eliminate the need for
overseas customers to re-package into their domestic brand. There is, however, also a
limited number of aftermarket channel “AC Delco” branded lines in addition to the GM
branded packaging.

It is important to note that HSPO itself does not perform parts packaging. Instead, parts
are either supplied pre-packaged or are packaged through a third party logistics


Within HSPO, the Quality Assurance and Industrial Engineering (QAIE) and the
Logistics Departments work together, with a third party logistics provider, to ensure
packaging is consistent with GM Holden’s Environmental Management System Policy
and Targets.

The packaging design and specifications (in terms of dimensions and type of
packaging), for new service and accessory parts, must be approved by HSPO’s
Packaging Specialists (QAIE Department), before supply of the parts to the NDC.

This process enables HSPO to ensure that products are packaged in the most effective
and efficient way with due consideration to minimising the impact on the environment
from manufacturer to end user.

This Action Plan addresses a range of consumer packaging materials. Where possible,
GM Holden aims to minimise the packaging used to package GM Holden products and
incorporate returnable/reusable packaging.

Examples of typical recyclable packaging materials used to package GM Holden
products are describe in Section 3.1. Examples of returnable packaging are provided in
Section 3.2.

3.1   Expendable but Recyclable Packaging materials

Low Density Polyethylene (LDPE) – for bags and tubing. With
LDPE the resin is created through the polymerization of ethylene
(a simple alkaline, and is also the most produced organic
compound in the world) at very high temperatures and pressures.
LDPE maintains its durability, flexibility, water resistance, and
clarity under low temperatures and its low melting point makes it
ideal for heat sealing. LDPE is recyclable, though plastics must
first be sorted into polymer types prior to processing.

Corrugated Fiberboard – for cardboard cartons. A paper-based
construction material consisting of a fluted corrugated sheet and
one or two flat linerboards. The corrugated medium and linerboard
are made of paperboard, a paper-like material usually over ten
mils thick. Common flute sizes are "A", "B", "C", "E" and "F" or
microflute. The letter designation relates to the order that the flutes
were invented, not their relative sizes. Typically a standard board       Low Density Polyethylene

grade consists of between 85-95% recycled fibres and is recycled
at the end of its life/use.

Solid Fiberboard – for small cartons. The basis of solid fibreboard
is waste paper. This is graded and the correct mix is pulped into a
stock which is around 95% water and 5% fibre. This is cleaned
and screened before it’s transferred onto the board machine. The
board is typically made up of around 10 plies. After the grey waste
paper middles have been formed, paper liners are then laminated            Corrugated Fibreboard

according to customers order specifications. Solid Fiberboard is

Heat Treated Timber - All timber packaging has to comply with
ISPM15 (International Phytosanitary Standard for Wood
Packaging) developed to address the global spread of timber
pests by regulating the movement of timber packing and dunnage
in international trade. ISPM 15 describes phytosanitary measures
to reduce the risk of introduction and/or spread of quarantine pests
associated with solid timber packing material (includes dunnage).
All timber used is plantation grown pine and is recyclable.                   Solid Fibreboard

Paper Labels – Paper labels are printed using thermal print
technology directly onto pre-printed adhesive backed labels.
These contain information such as logo, item number, bar code
and country of origin and are recyclable.

                                                                          Heat Treatment of timber
3.1 Expendable but Recyclable Packaging Materials
      - Continued

Polyester (PET) Strapping – a high strength, low elongation
plastic material suitable for a wide range of applications. Polyester
Strapping can replace steel strapping in most applications, while
being less expensive than steel and easier and safer to use. It has
no sharp edges which is better for handling and creates a safer
work place. Polyester strap does not rust or stain packs or pallets
when exposed to the elements and is UV resistant. Polyester                 Polyester (PET) Strapping

straps come in various thicknesses and are available in embossed
and smooth. PET is recyclable.

Stretch Wrapping – is a highly stretchable plastic film that is
wrapped around items. The elastic recovery keeps the items
tightly bound for small cartons. The most common stretch wrap
material is linear low density polyethylene or LLDPE but other
types of polyethylene and PVC can also be used. Many films have
about 500% stretch at break but are only stretched to about 100 –
                                                                                Stretch Wrapping
300% in use. Once stretched, the elastic recovery is used to keep
the load tight. LLDPE is recyclable.

Volatile Corrosion Inhibitor (VCI) bags and film – These help to
prevent corrosion in both ferrous and non-ferrous metals.
Corrosion inhibitors are extruded right into the polyethylene film
which is then converted into flat, zipper, or gusseted VCI bags as
well as tubing and custom styles and sizes. This material is
recyclable.                                                             Volatile Corrosion Inhibitor (VCI)

Paper filler Cushioning System – PadPak converters create
cushioning pads from single or multi-ply Kraft paper. Inside the
converter, the paper layers are crimped together, trapping air
inside the layers to form a cushioning pad. This packaging is

Polypropylene (PP) Bubble Plastic - Polypropylene bubble bags
                                                                        Paper filler cushioning (Padpak)
use two film components, the first film component being
thermoformed with cylindrical or conical impressions, the second
film component being flat and closure welded to the first, each of
the film components being a multilayer structure, produced by co-
extrusion, with at least two layers of polypropylene. Bubble bags
are recyclable.

                                                                        Polypropylene (PP) Bubble Plastic

3.2 Returnable Containers

GM Holden and its logistics providers are at the forefront in the
development of returnable containers. Returnable containers have
been used since 1990. The objective in promoting returnable
containers within the total supply chain is to:
    • Save on natural resources;
    • Minimise transport; and
    • Reduce fuel costs.
Returnable containers are made from recyclable material, and
replace the one way “shipper”. The units are collapsible and

        Wire Palletainer                         PD Assembly

          57002 Stillage                         NT Tub

                                                                          Assembly of
                                                                      Collapsible PD Unit

Engine Stillage                   Loscam G1 Stillage                Stage 1: Open lid.

4.1   GM Holden’s Environmental Policy and Management System

GM Holden implemented an Environmental Management System (EMS) across all
operations and maintains third party certification of its system to the international
standard ISO 14001.

The National Packaging Covenant Action Plan has been incorporated as a commitment
in GM Holden’s EMS and action plans identified in this document will be integrated into
management systems necessary to support the commitments of GM Holden’s
Environmental Policy

               Environmental Policy
 As a responsible corporate citizen, Holden is dedicated to protecting human health, natural
 resources and the local and global environment, in accordance with the Environmental
 Principles of General Motors Corporation. This dedication reaches further than compliance
 with the law to encompass the integration of sound environmental practices into Holden’s
 business decisions. This Policy is based on the integration of risk-based cost-effective
 management practices into company activities with the aim of continually improving
 environmental performance.

 Holden is committed to assess the environmental impacts of its activities and products to base
 its environmental management programs, and to reduce these impacts through the
 establishment of appropriate objectives and targets.

 In particular, Holden will strive to achieve the following objectives through continued execution
 of its Environmental Management System:

    1. Comply with all applicable environmental laws and regulations, and other requirements.

    2. Assign management responsibility for the environment in all areas of the company and
       ensure that all employees are aware of their individual responsibilities for acting in
       accordance with this policy, while providing effective information and training to
       encourage individuals to contribute effectively.

    3. Practice effective prevention of pollution in accordance with a hierarchy giving top
       priority to waste prevention at the source, elimination or reduction of wasteful practices,
       and recycling.

    4. Maintain communications with our local community and cooperate with legislators,
       regulators and other organizations with an interest in our environmental performance.

 In accordance with its Environmental Management System requirements, Holden’s objectives
 and targets will be reviewed periodically to assess progress toward continual improvement.
 This policy statement will be made available to all Holden employees and the public.

Endorsed and Approved by the
HOLDEN Board of Directors
Holden Ltd
ABN 84 006 893 232
Issue Date: June 15th 2004

4.2       Supply Chain Influence

GM has a number of initiatives globally to support environmental sustainability in its
supply base. The concept for this activity is based on a similar initiative undertaken in
China, which was supported by resources from the World Environment Centre – an
independent, not-for-profit, non-advocacy organisation promoting sustainable
development and the efficient use of natural resources in multinational corporations. GM
is a member of the World Environment Center (WEC).

The WEC and GM recently completed the demonstration phase of this project in China,
which involved Shanghai General Motors and eight of their Shanghai-based suppliers.
The collective results from the suppliers in that phase included reduced CO2 emissions
and water consumption, as well as significant cost savings.

GM Holden’s project was launched on the 2 April 2008, with a number of its local
suppliers. The project will focus on building capability and developing opportunities to
improve environmental performance. For example, an activity could include initiatives to
improve energy efficiency and water usage at our suppliers’ facilities.

The project goals are to:
      •   Improve supplier competitiveness, environmental performance and achieve more
          efficient use of energy and water resources;
      •   Implement cleaner production practices in supplier operations;
      •   Train suppliers in the effective application of management system processes and
          practices as they relate to air and water quality, waste management, natural
          resources and raw material usage in order to achieve measurable cost savings
          and increased productivity;
      •   Strengthen the business relationship between GM Holden and its suppliers
          through the project;
      •   Cultivate a culture of continuous improvement and environmental responsibility
          among GM Holden suppliers.

4.3       Greenhouse Challenge Plus

As a manufacturer, GM Holden is committed to reducing the environmental impact from
its operations. GM Holden is a member of the Greenhouse Challenge Plus, a program
which encourages Australian enterprises to voluntarily reduce greenhouse gas
emissions from plants and processes.

GM Holden joined the Greenhouse Challenge in November 2000 and set a target of
cutting emissions across its manufacturing operations by around 22,000 tonnes of CO2,
within three years. GM Holden exceeded its target by almost a further 50 per cent and
since that time has continued to identify and implement energy saving initiatives that

otherwise would have contributed an additional 10 per cent to the greenhouse
emissions inventory of GM Holden's manufacturing operation.


This document is GM Holden’s first NPC Action Plan since becoming a Covenant
signatory on 13 February 2008. This Action Plan documents GM Holden’s commitment
towards to NPC Objectives and Key Performance Indicators for the three years from
February 2008 to February 2011.

The Action Plan will be reviewed and status reported annually. The Action Plan will also
be periodically updated as progress is made.


The Action Plan table outlined in the following Sections 6.1, 6.2 and 6.3, outlines the
National Packaging Covenant Key Performance Indicators, applicable to “Brand Owner”
signatories. In the table, the initiatives to be undertaken by GM Holden are outlined.

Employees at HSPO, in particular the Packaging Specialists and Logistics Department,
are responsible for championing the initiatives.

6.1   KPI Action Plan Table

 no        Key Performance Indicator                     Action                     Target                     Timeframe
1     Total weight of consumer packaging     Develop a system or            1) Establishment of the    1) March 2009
      (domestic and imported) sold p.a.      process to enable the             new                     2) On-going. Dependant
      into the Australian market and the     collation of packaging            system/process.         on the process
      total weight of products packaged.     information and weights for    2) Estimates of            established, the weights
                                             reporting to the NPC.             product weight and      may be determined in
                                                                               packaging sold on       stages, in order of
                                                                               to the Australian       product type, product
                                                                               market, from HSPO.      size, warehouse location,
                                                                                                       vehicle model or
                                                                                                       packaging type.
3     Improvements in design,                Conduct reviews of current     Report on implemented      Annually from October
      manufacture, marketing and             individual product             packaging changes and      2009.
      distribution to minimize the           packaging and rationalize/     improvements.
      environmental impacts of packaging.    improve, where possible, in
                                             order to reduce the weight
                                             of packaging material that
                                             will contribute to the waste
4     Changes to protection, safety,         Document changes required      Report on changes and      Annually from October
      hygiene, shelf-life or supply chain    to packaging due to            new initiatives required   2009.
      considerations affecting amount and    required improvements in       for improved protection,
      type of packaging.                     material handling, storage     safety, hygiene and
                                             capacity, product protection   shelf life.
                                             and safety.
6     Total weight by type of “non-          From KPI 1, and sales          Provide data on non-       Annually from October
      recyclable” packaging sold p.a. into   volume, report on the          recyclable packaging       2009
      the Australian market.                 weight of non-recyclable       material sold.
                                             packaging that is sold into
                                             the Australian market, from

6.2   KPI Action Plan Table - Continued

           Key Performance Indicator                         Action                          Target                 Timeframe
16    Percentage of signatories providing        Provide details of the            Report on the on-site     Annually from October
      recycling collection facilities for post   collection and consolidation      recycling activity and    2009
      consumer packaging generated on-           of packaging material             list the materials
      site.                                      generated on-site and the         recycled.
                                                 recycling of packaging
21    Estimated tonnage of consumer              Report on the amount of           Provide data on the       Annually from October
      packaging recycled/sent to landfill        consumer packaging material       amount of on-site,        2009
      from on-site collection facilities.        from on-site collection that is   post-consumer,
                                                 recycled and send to land-fill.   packaging material
                                                                                   that is recycled and
                                                                                   sent to landfill.
22    Number of signatories who have             Provide details of the            Report on the adoption    Annually from October
      formally adopted the Environmental         adoption of the                   of the Environmental      2009
      Code of Practice for Packaging             Environmental Code of             Code of Practice for
      (Code) and developed systems for           Practice for Packaging.           Packaging.
      its implementation.
26    Implementation of Buy recycled             Explore options to encourage      Report on the amount      Annually from October
      purchasing policy or practices.            suppliers to incorporate a Buy    of reclaimed material     2009
                                                 Recycled policy for packaging     incorporated in
                                                 materials used to package         packaging materials
                                                 GM Holden product.                used in third party
                                                                                   logistics provider pre-
                                                                                   packer operation, for
                                                                                   GM Holden parts
27    Establishment of baseline                  Collection and preparation of     Report baseline data in   The data collection shall
      performance data.                          baseline data for reporting       the annual report.        commence from June
                                                 following completion of the                                 2008.
                                                 HSPO audit

6.3   KPI Action Plan Table - Continued

28    Annual Reporting against Action Plan.     Prepare an NPC         Annual report to be       The first annual report will
                                                annual report          prepared by October       cover the twelve month
                                                                       2009                      period from June 2008 to
                                                                                                 May 2009, and will be
                                                                                                 submitted by the 31 October
29    Demonstrating improvement and             Prepare an NPC         Annual report to          The annual report is to be
      achievements against individual targets   annual report          demonstrate continuous    submitted to the NPC by the
      and milestones.                                                  improvement and           31 October of each
                                                                       performance.              Calendar year from 2009 to

The Action Plan detailed above, will be reviewed and updated on an annual basis consistent with NPC annual reporting

7.0   Contact Details and Endorsement

All National Packaging Covenant enquires and comments should be directed to the GM
Holden Limited appointed National Packaging Covenant Officer:

John Scotton
Director Commercial & Strategic Projects

Telephone:   (03) 9647 2925

GM Holden Ltd
191 Salmon Street
Port Melbourne
Victoria 3127

This Action Plan has been endorsed by: