A New Blue Book from ECR Europe Packaging in

A New Blue Book from ECR Europe: Packaging in the Sustainability Agenda Julian Carroll, EUROPEN Managing Director EUROPEN is… The Voice of Industry for Packaging and the Environment An industry and trade organization Open to any company with an economic interest in packaging and packaged products EUROPEN represents the opinion of its members on issues related to packaging and the environment. EU Packaging and Packaging Waste Directive* A five point summary: 1. Twin objective: environment & trade barrier prevention 2. Systems to collect and manage used packaging 3. Sets recovery and recycling targets 4. Establishes Packaging “Essential Requirements” 5. Guarantees free movement of packaged goods * Directive 94/62/EC, amended by Directive 2004/12/EC Adopted 1994 in force 1996 Latvia Poland Romania Cyprus Slovakia Lithuania Slovenia Estonia Hungary Czech Republic Greece Portugal Ireland 2006 recycling rates Finland Spain France Italy Denmark Sweden UK Netherlands Luxembourg Germany Austria Belgium 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Target deadline 2008 2011 2012 2013 Malta 2014 Bulgaria 2015 Trends in GDP, packaging consumption and packaging disposal in EU-15, 1998-2006 160 140 120 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP (EUR m, current market prices) Non-w ood packaging consumption ('000 tonnes) Packaging disposal ('000 tonnes) Why This Project? Address “sustainable” packaging demands. Tackle confusion, misinformation and (sometimes) conflicting objectives Reduce risk of unilateral initiatives not meeting widely agreed targets Lessen the possibility of harmful legislation based on false assumptions. Reduce the risk of market disharmonisation and supply chain disruption arising. The Project Objective To produce a non-technical guidance document to achieve a common understanding of sustainability principles among packaging supply chain stakeholders covering the entire life cycle. Packaging in the Sustainability Agenda: A Guide for Corporate Decision Makers Guidance document on how to address pressure on packaging arising from the sustainability debate Taking into account: all packaging functions three pillars of sustainability High-level strategy guide, not a packaging design guide Consultation within the ECR community carried out Target Audience Corporate policy makers throughout the packaging chain (senior) Implementers of corporate policy in packaging chain companies at operational level (e.g. buyers, product developers, marketing managers, etc.) Possible ‘secondary’ audiences: public authorities/policy-makers, environmental NGOs, consumer organisations, business and mainstream media Contents of the Guide Preface: the rationale behind the Guide Executive Summary: central arguments, key conclusions, recommended action Functions and roles of packaging in society Definitions, assessment tools, environment legislation How to reach sound packaging decisions Developing plans to support sustainability goals and positive interaction with supply chain partners Appendices on references, glossary of terms, further reading 1. 2. 3. 4. Project Participants Co-chairs Tesco Nestlé Retailers Alliance Boots, Asda, Carrefour, Inex Partners, Marks & Spencer, Rewe Group, Rimi Baltic Group, Tesco Packaging manufacturers Ball Packaging, ExxonMobil Chemicals, NatureWorks, SCA Packaging, STI Group, Stora Enso, Tetra Pak Packaged Goods Manufacturers Bacardi, Coca-Cola, Colgate, Danone, Diageo, Energizer, Henkel, Johnson & Johnson, L’Oréal, Nestlé, P&G, Unilever Others AIM, ECR France, ECR UK/IGD, EHI, EuroCommerce, EUROPEN, FEVE, FPE, GS1Belgilux Packaging in the Sustainability Agenda Eric Johnson, EUROPEN Chairman The Role of Packaging The fundamental role of packaging is to deliver the product to the consumer in perfect condition There should be as much packaging as necessary, rather than as little as possible It prevents losses and waste by meeting all the functions needed by the product during its life cycle. The Functions of Packaging (1/2) Function Protection Features • Prevent breakage (mechanical protection) • Prevent spoilage (barrier to moisture, gases, light, flavours, aromas) • Prevent contamination, tampering and theft • Increase shelf life • • • • • • • • • • • Description of product List of ingredients Product features and benefits Promotional messages and branding Product identification Product preparation and usage Nutritional and storage data Safety warnings Contact information Opening instructions End-of-life management Promotion Information The Functions of Packaging (2/2) Function Convenience Features • Product preparation and serving • Product storage • Portioning • Provision of consumer units • Provision of retail and transport units • Transport from producer to retailer • Point of sale display • Enables centralised processing and reuse of byproducts • Facilitates portioning and storage • Increases shelf life • Reduces transport energy Unitisation Handling Waste reduction, recycling and reuse of by-products The Packaged Product Life Cycle The Three Levels of Packaging Optimal performance is achieved when the product and its packaging are designed together from conception. Sales packaging (or primary packaging) Grouped packaging (or secondary packaging) Transport packaging (or tertiary packaging) Why is there pressure on packaging today? Highly visible residue after the product has been consumed or installed Majority of functions are often unclear to the consumer Requires effort for disposal Symbol of guilt about Western lifestyles A convenient scapegoat A popular focus for politicians and media What is Sustainability? In 1987 the Brundtland Commission developed the most commonly applied definition of Sustainable Development: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This involves addressing economic, social and environmental factors and their interdependence in an organization’s decision-making and activities.” The Three Pillars of Sustainability Environment Economy Society Planet – Protection of the Environment “Safeguard the earth’s capacity to support life in all its diversity, respect the limits of the planet’s natural resources and ensure a high level of protection and improvement of the quality of the environment. Prevent and reduce environmental pollution and promote sustainable consumption and production to break the link between economic growth and environmental degradation.” Renewed Strategy for Sustainable Development European Council, June 2006 People - Social Equity & Cohesion “Promote a democratic, socially inclusive, cohesive, healthy, safe and just society with respect for fundamental rights and cultural diversity that creates equal opportunities and combats discrimination in all its forms”. Renewed Strategy for Sustainable Development European Council, June 2006 Profit – Economic Prosperity “Promote a prosperous, innovative, knowledge-rich, competitive and eco-efficient economy which provides high living standards and full and high-quality employment throughout the European Union”. Renewed Strategy for Sustainable Development European Council, June 2006 Making Claims of Sustainability An underlying principle for sustainability is that it is a continuous process and self-declared claims that a particular product is ‘sustainable’ should not in general be made. To summarise: “Sustainability is a journey not a destination” Packaging—A Contributor to Sustainability Sustainable development addresses economic, environmental and social objectives. EUROPEN members are encouraged to develop and use packaging which contributes to achievement of the European Union’s Sustainable Development Strategy. Such packaging should: be designed holistically with the product in order to optimise overall environmental performance, be made from responsibly sourced materials, be designed to be effective and safe throughout its life cycle, meet market criteria for performance and cost, meet consumer choice and expectations, and be recovered efficiently after use Sustainability along the Packaging Chain Raw Material Sourcing Conversion and Packaging Material Manufacturing Packaged Goods Manufacturing Distributing Retailing Consumption Collection of Post-Use Packaging Reuse, Recovery and Disposal Next steps Once you have understood packaging’s place in sustainable development, you can start building packaging into your sustainability plan Building packaging into a sustainability plan Sonia Raja, Tesco Corporate Policies and Strategies A well-designed corporate sustainability strategy should: Be part of your mission statement Be part of your overall corporate strategy Instill values through the company’s culture to deliver the strategy Have the leadership commitment Be focused on areas where the company can have a real impact This means…. Avoiding jumping on to fashionable bandwagons Not allowing unfounded perceptions of consumers and others such as the media to dictate how companies respond. Developing measures and agreeing measures relevant to your operations Consistent with your industry Continuous review of current systems, programmes, strategies. How to build a sustainability strategy Plan Act Do Check How to build a sustainability strategy Plan • Recognise an opportunity and plan ahead for change. • Design or revise business process components to improve results. Act Do Check Plan 1. Check legal requirements and ensure compliance Directive 94/62/EC on packaging and packaging waste CEN Standards on packaging and environment 2. Measure the impact of packaging in your business Take measures on metrics where business has biggest impact and can make a difference Avoid single metrics Talk up and down the supply chain, work with industry associations, find ways to remove barriers to best overall solution Environmental, Economic and Social impacts Plan Environment Economy Society Climate change potential Energy use Competing land use Water use/ pollution Material usage Local Water extraction Waste Waste Social conditions Recyclability Transport Litter/ waste management Plan 3. Set targets SMART targets Packaging sustainability targets should not be set in isolation—packaging Senior management commitment 4. Choose Key Performance Indicators (KPIs) How to build a sustainability strategy Plan • Execute the plan, taking small steps in controlled circumstances and measure its performance. Act Do Check Do Ensure that appropriate resources, processes and systems are in place to deliver the strategy and to meet the targets which have been set. Support your resources through training and development of systems to facilitate this change. How to build a sustainability strategy Plan • Study the results. Act • Assess the measurements and report the results to decision makers. Do Check Check Regular reviews of validity of your targets are conducted Monitor and measure performance Share this information internally or externally How to build a sustainability strategy Plan • Take action to standardise and continually improve process performance. • Repeat the cycle. Act Do Check How to build a sustainability strategy Plan Act Do Check Measuring packaging’s contribution to environmental sustainability Dr. Lars Lundquist, Nestlé Examples of tools for improving packaging environmental performance Source reduction Recovery Recyclability / recycled content Energy recovery Material selection Inherent environmental properties Technical performance & physical properties Materials permitting savings in other parts of life cycle (e.g. filling) A holistic approach to packaging is needed to avoid burden shifting 1. 2. Packaging in context of the packed product Consider all packaging components Primary, secondary, transport packaging Covering entire packaging life cycle With a comprehensive set of impact categories 3. To avoid burden shifting between Packaging and product (product loss) Packaging components Life cycle stages Environmental media Burden Shifting Packaging & product Source: L. Erlöv et al., Packaging – a Tool for the Prevention of Environmental Impact, Packforsk report No. 194, June 2000. Burden Shifting Environmental media 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Petrol D ies el Sugar c ane (Bras il) Maiz e (Sw itz erland) Whey (Sw itz erland) Sugar beet (Sw itz erland) Source: SWISS FOEN, 2006 Petrol substitute, ethanol LCA decision support From internal decision making to communication of claims Packaging design process Use of streamlined LCA-based decision support Life Cycle Assessment screening studies Not a base for claims or public communication Communication of claims (regardless of media) Full LCA studies according to ISO 14040 &14044 Data quality and representativity Uncertainty &sensitivity analysis Peer review Photochem oxid. LCA of baby food Packaging systems & scenarios Glass Jar components Steel PT Cap PT = Press and Twist (Electrolytical tin plate, ETP) Plastic Pot components Cardboard Cluster Plastic (PP) Cap (Inside) Lidding film (PET-SiOx-OPA-PP Lid) (to group 2 pots) Cardboard Cluster (to group 2 jars, optional) Paper Label 2 pieces of PP label Cardboard Tray (to group X clusters* ) White glass Jar Cardboard Tray (to group 3 clusters or 6 non-clustered jars) Plastic (PP) Pot Cardboard Hood (covering the Tray) * The number "X" of clusters per tray varies according to size and market Retorting Markets: Germany, France & Spain Pack-sizes: 130g, 200g, 250g Aseptic form-fill-seal LCA of baby food Functional unit and system boundary Resources, also including Energy and other resources such as land use, water, etc Functional unit: delivery of one child meal to retailer Food containers production • Materials • Infrastructure • Forming Container Assembly • Filling and Sealing Processes • Sterilisation • Packaging Processes In grey: processes out of boundary because identical in both packaging types Distribution • Transports Usage End of life • Transports • Recycling processes (including Heat Recovery) • Disposal LCA of baby food Distribution scenarios Germany German scenarios Baseline (green): 678 km Expected (blue + green): 1246 km Optimised plastic (red): 630 km Nomexy Epinal Weiding LCA of baby food Life Cycle Impact Assessment – ISO 14040 - 44 Overall impact on 15 indicators (IMPACT 2002+) Consistency check with alternative impact assessment method (CML 2) Identification of main indicators Primary Energy, Global Warming, Respiratory Inorganics, Terrestrial Acidification/Nutrification Detailed analysis for each main indicator Main impact contributors Sensitivity & uncertainty analysis LCA of baby food Small but significant difference favoring plastic pot system Climate change Ecosystem quality Human health Key mid-points Resources Photochem oxid. LCA of baby food Contribution analysis done for key mid-points Dominating contributions Packaging materials & end of life Distribution Primary energy Respiratory inorganics Filling process LCA of baby food Uncertainty & sensitivity study confirm robustness Uncertainty (Monte carlo simulation) Sensitivity study CO2 emissions Test Steam consumption Packaging collection rate Distribution distances Efficiency of incinerators EVOH layer: x3 Recyclability of plastic cup Glass jars +/-4% +3% Plastic pots +/-3% +1% ("optimised" scenarios) +0.1% +2% +0.3% -1% to -5% LCA of baby food Summary Reviewers confirm results & conclusions (4 External experts) Results are robust (uncertainty & sensitivity) Conclusions are valid 10 to 50% advantage for plastic for optimised distribution scenario Up to 25% advantage for plastic for initial distribution scenario Study is suitable for public disclosure LCA of baby food Communication of environmental claim On-pack Brand website CSR website links to scientific publication “Life cycle assessment of two baby food packaging alternatives: glass jars vs. plastic pots”, International Journal of Life Cycle Assessment Volume 14, Number 2 / March, 2009 LCA of baby food Conclusions Environmental improvements achieved Considering packed product Considering all packaging components Covering packaging life cycle Analysing a comprehensive set of indicators Without burden shifting between Packaging and product Packaging components Life cycle stages Environmental media Analysis & communication of claim respecting methodology & requirements of ISO 14040 & 14044 ¿Questions?