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National Packaging Covenant Action Plan July 2008 - June 2010 Contents Introduction 3 Company Overview 4 Our Packages 6 Organisation Details 7 Executive Summary 9 Action Plan Report 10 KPI’S 12 Resources Used 15 Contact Details 15 Organisations Referred to in Action Plan 15 Appendix A - Environmental Policy 16 Appendix B - Design for Environment (DfE) 20 Appendix C – Recycled Content and the Beverage Carton 21 Page 2 of 21 Introduction Every day throughout the world, more than 13.7 billion litres of water, milk, juice and other liquid foods are consumed. At Tetra Pak we have developed packages, which protect both the nutritional value and the taste of the packaged product. Thanks to this, the packaging and distribution of liquid products to the consumer have been greatly facilitated. “A package should save more than it costs.” This was the tenet of the founder of Tetra Pak, Dr. Ruben Rausing, who initiated the development of the tetrahedron- shaped package. The fundamental idea was to form a tube from a roll of plastic-coated paper, fill it with the beverage and seal it below the level of the liquid. At Tetra Pak we can offer much more than just packaging of liquid food products. Ice cream, cheese, dry foods, fruits, vegetables and pet food are examples of products that can be processed or packaged in Tetra Pak processing and packaging lines. We have a large range of package alternatives in our product portfolio with eleven different packaging systems. We supply complete systems for processing, packaging and distribution. Our processing and packaging systems make economical use of resources. The processing systems are developed to treat the products gently, and consumption of raw materials and energy is minimal during the manufacture and distribution of packages. Our packages fulfill the main purposes of packaging, namely to: – maintain product quality – minimise waste – reduce distribution costs. We can therefore say that our Tetra Pak processing and packaging systems save more resources than they cost. Page 3 of 21 Company Overview Tetra Pak’s motto, ‘PROTECTS WHAT’S GOOD’, is an extension of our vision: in making food safe and available everywhere we need to ensure that the high quality of the food itself is preserved, in a way that is safe for the families and individuals who will consume it. Naturally - that is our role. But within this concept we also include our raw materials, supplier operations, our packaging design and development, our manufacturing operations, our communities and the environment. Our customers sell products as diverse as milk, juice, soy, ice cream, cheese, dry foods, fruits, vegetables, pet food and others in our paper- based cartons. And they do so in environments as different as the North of Sweden and the South of India. The cartons are designed to maintain the quality of the food they protect in snowstorms and monsoons; in modern container shipping and on the backs of bicycles; in high- tech vending machines and in tiny outdoor kiosks. And to do so economically, we design them to minimise waste and distribution costs. Out of respect for the environment, we seek out renewable materials from sustainably managed forests as set out in our Forestry Program and report on our progress in this area annually. We are constantly innovating in order to support our customers with packaging solutions that meet the many demands our society puts on them: that they protect naturally, that they be sustainable for the long term, that they be as functional as less natural containers, and that they keep costs low for consumers. To meet all these requests, we manufacture and install processing equipment and complete filling and packaging lines which are developed to make economical use of resources, with minimal consumption of raw materials and energy during the manufacture, filling and distribution of packages. And we do so as close to the final consumer as possible: we have plants worldwide for manufacturing packaging material. Most of this material is delivered in rolls to ensure the most efficient and economical handling in the warehouse and during transport. Goals are set for continuous improvement in our development, sourcing, manufacturing, and transportation activities. As part of that commitment, we take a long term and life cycle view, continually improve environmental performance, communicate openly with our stakeholders and report regularly on our performance. These principles are enshrined in our Environmental Policy (Appendix A). Page 4 of 21 We report our environmental progress based on our global goals and performance indicators biannually. Highlights of our Environmental Performance are below and further information is reported in our Environmental and Social Report 2007 available on www.tetrapak.com Climate Change We have a goal to reduce CO2 emissions by 10% in 2010 as compared to 2005, in absolute terms. The attendant climate programme has qualified us for the WWF Climate Savers programme. In 2007 our CO2 emissions were 7% lower than in 2005, nine sites used Green Power/Renewable Energy Certificates, and we used the same amount of energy in packaging material production as in 2002 – even though our production has increased by 29% over the same period. Forestry Our ultimate goal is to have all the paper in our packaging certified to the highest standard – currently Forestry Stewardship Council (FSC). 100% of our sources have been audited and found to be acceptable. The certified chain of custody (from tree stand to paperboard raw material) covers 80% of our paperboard and 41% of our forest sources are FSC or Programme for the Endorsement of Forest Certification (PEFC) certified for Sustainable Forest Management. Recycling Over 22 billion Tetra Pak beverage cartons were recycled in 2007 – a 5% increase compared to 2006. The number of facilities that recycle beverage carton has increased, and we have partnered with local community organisations and businesses to increase collection and recycling of our packages globally. Page 5 of 21 Our Packages Tetra Brik Tetra Fino Tetra Rex The Tetra Brik package was introduced in Tetra Fino Aseptic is a carton-based The Tetra Rex package is rectangular with 1963. It is rectangular or square in shape pillowshaped a gable-shaped top. The first Tetra Rex and available with a large number of package, which was introduced in packaging machine was installed at a different openings. The Tetra Brik 1997. This roll-fed packaging system offers customer's site in Sweden in 1966. The Aseptic carton, which was introduced in good economy for producers as well as for package is used throughout the world for 1969, is the most frequently used package for consumers. pasteurised products. long-life products. Tetra Gemina Tetra Top Tetra Gemina Aseptic is the world’s first The Tetra Top package was launched in Tetra Recart roll-fed gable-top shaped package with 1986. It is a reclosable, square package Tetra Recart is a carton packaging full aseptic performance for juice and with rounded corners and has a polyethylene system with revolutionary possibilities. liquid dairy products. This packaging lid, which is injection moulded This is an alternative packaging solution system, which was introduced in 2007, is and sealed to the package in a single for a variety of food products that have based on the reliable Tetra Brik Aseptic process. The opening device makes it traditionally been packed in cans or concept. easy to open, pour from and reclose. glass jars. These are products such as fruits, vegetables and pet food. Tetra Prisma Tetra Wedge Tetra Prisma Aseptic is an octagonal The Tetra Wedge Aseptic package was Tetra Classic package made in accordance with the introduced in 1997. Its innovative shape Tetra Classic is the name of our tetrahedral principle of the Tetra Brik Aseptic system. enables products to be easily distinguished package. It was the first package The package was launched in 1997. on shop shelves and keeps launched by Tetra Pak in 1952. An aseptic The package has excellent grip and pouring packaging material consumption to a variant was released in 1961. performance and is available minimum. with resealable StreamCap for added convenience. Page 6 of 21 Organisation Details Tetra Pak in the World Market companies Sales offices Plants for packaging material and closures Facts & Figures as of January 2008 Packaging machines in operation 2008: 9,143 Packaging machines delivered in 2007: 592 Processing units in operation 2008: 28,643 Processing units delivered in 2007: 2,107 Distribution equipment in operation 2008: 15,486 Distribution equipment delivered in 2007: 1,607 Factories for machine assembly: 11 Production plants for packaging material and closures: 43 Number of countries covered: more than 150 Market companies: 43 Sales offices: 72 Number of employees: 20,859 Technical service centres: 43 Technical training centres: 17 R&D units: 12 Number of litres of products delivered in Tetra Pak packages in 2007 (million): 69,505 Number of Tetra Pak packages delivered in 2007 (million): 137,302 Net sales in 2007 in MEUR: 8,610 Page 7 of 21 Tetra Pak in Oceania Within Oceania we operate as a market company, Tetra Pak Marketing Pty Ltd. With almost 200 employees located in our offices in Sydney, Melbourne, Brisbane , Auckland & Hamilton we provide sales, technical and processing expertise to our customer base across Australia, New Zealand, Fiji, & French Polynesia. Packaging Brands, sourced from our global network of production plants, sold in the Australian market include: • Tetra Classic Aseptic • Tetra Brik Aseptic • Tetra Rex • Tetra Top • Tetra Prisma Aseptic Page 8 of 21 Action Plan July 2008 – June 2010 Covenant Stewardship Category KPI # Action Target 2008-2010 Promotion of the National Packaging Provide Covenant information to customers & suppliers Tetra Pak will continue to promote the National Covenant Packaging Covenant to customers and suppliers as appropriate. Continuous Improvement in Design 2, 22 Tetra Pak will continue to use Design for Environment (DfE), Ongoing – Cartons (Appendix B) during the design stage of product development Continuous Improvement in 2 Work with customers to reduce their utility consumption & Reduction in consumption of utilities and waste on Production – Customer operations waste customer filling and processing lines. Continuous Improvement in 2 Promote recycling of primary packaging waste. Assist customers, as requested, with recycling of Production – Customer operations primary packaging waste to ensure all is recycled. Distribution 3, 4 Investigate alterations to logistics systems in order to Implement Supply Chain improvements resulting in reduce environmental impact. lower environmental impact. Distribution Through collaboration with our customers further reduce the Increase use of slipsheets from 55% to 100% by 2010. 3, 4 use of single use timber pallets from our Tetra Rex supply. Distribution Investigate use of plastic pallets for Tetra Brik Aseptic Field trial during 2010. 3, 4 supply Research – Cartons 3,4, 22 Investigate market opportunities wherein cartons will We will continue to promote the environmental benefits replace higher environmental impact packaging. of carton for wine and other new product categories. Page 10 of 21 Covenant Stewardship Category KPI # Action Target 2008-2010 Research – Cartons 3,4, 22 Conduct local Life Cycle Analysis on Tetra Brik Aseptic LCA Report available end 2009 carton Research – Cartons 3,4, 22 Provide information to customers on our packaging PIQET Subscription 2008 materials and products relative to PIQET defaults. Information provided as requested. Market Development 3, 4, 6, Promote and develop end-use applications to support the Tetra Pak will continue to investigate alternative end- recycling system uses for recycled post-consumer packages. Kerbside Recycling Support 12 Contribute to Industry Fund Confirm payment of contribution. Community Education Support/engage community education activities Continue support of Planet Ark’s National Tree Day. Engage in Primary School education programs. Continue employee’s Eco-Drive program, including Tetra Pak Environment Day event. Labeling 22 Promote the inclusion of recycling information on recyclable Continue to encourage that all new designs and design packaging changes are updated with the Mobius loop, and that products sold in South Australia include the CDL labeling as appropriate. Labeling 22 Promote the addition of environmental information to Report on environmental labeling advice/activity. product labels Disposal Design for Environment (DfE) Refer Appendix B Page 11 of 21 KPI’s KPI Actions Responsibility Date Measure 3. Improvements in design, Tetra Pak will continue to review its packaging portfolio and search All packaging Ongoing Any improvements made manufacture, marketing and for improvements from both a functionality and environmental supply chain will be included in NPC distribution to minimise the viewpoint. signatories. report. environmental impacts of packaging. 3A. Qualitative Improvements 3B. Quantitative Improvements 4. Changes to protection, safety, Single use timber pallets have been replaced by slip sheets for All packaging Ongoing Increase in % of Tetra Rex hygiene, shelf-life or supply chain shipping 55% of our Tetra Rex cartons. We will actively work supply chain Cartons delivered on considerations affecting amount and towards increasing this in collaboration with our customers. signatories. shipsheet. type of packaging used. 5. Average % per annum of post- Tetra Pak does not currently used recycled content in any of its Packaging Ongoing % Recycled Content in consumer recycled content in packages. manufacturers Tetra Rex, Tetra Brik packaging manufactured. It is technically feasible to recycle cartons to produce new cartons. Aseptic, Tetra Classic Tests have been carried out with recycled contents up to 30%, but Aseptic & Tetra Top today this board is not approved for commercial orders. One of the packages. problems identified is that recycled fibres are shorter than virgin fibres and therefore result in less stiffness in the board. To achieve the same stiffness using recycled rather than virgin fibres would require a thicker, heavier board which runs counter to the objectives of source reduction, energy and cost reduction and customer satisfaction. When evaluated via Life Cycle Analysis (LCA) the use of recycled fibre in our cartons carries a greater environmental burden than using virgin fibres from sustainably managed forests. Refer Appendix C Evaluation of the suitability of recycled fibres for our products is ongoing. Page 12 of 21 KPI Actions Responsibility Date Measure 16. Percentage of signatories providing Tetra Pak currently provides office staff with recycling collection All signatories Ongoing Tonnages reported under recycling collection facilities for post- facilities for KPI 21 consumer packaging generated on- • LPB Cartons site. • Office paper • Aluminium cans • PET bottles • Toner cartridges for Planet Ark • Cardboard waste Further employee engagement on the facilities available will ensure that all recyclable materials are placed in the correct locations. 21. Estimated tonnage of consumer Refer 16. All signatories Ongoing Tonnage sent for recycling packaging sent (a) for recycling and (b) per annum. to landfill from on-site collection Tonnage sent to landfill per facilities. annum. 22. Number of signatories who have All Tetra Pak packages are compliant with the European Committee All packaging Ongoing Qualitative evidence formally adopted the ECoPP and for Standardisation (CEN). supply chain of adoption of ECoPP developed systems for its signatories. for any new packaging Any new packaging introduced in Australia will be evaluated implementation. format launched. according to ECoPP. Records of new packaging evaluations will be maintained by Environment Manager. 26. Implementation of “Buy Recycled” Buy Recycled practices are in place. When purchasing cardboard All signatories Ongoing Increase in recycled purchasing policy or practices. and office paper, recycled products and/or FSC certified products are products purchased. preferred. Printed stationery stocks are on recycled & FSC paperboard. 27. Establishment of baseline Where baseline data is known it has been included in this action All signatories Annually Report established baseline performance data. plan. data in NPC Annual Report. Page 13 of 21 KPI Actions Responsibility Date Measure 28. Annual Reporting against action Progress against baseline data, individual Action Plan commitments, All signatories Annually Data reported annually by Plan targets and timelines will be reported to NPCC on an annual basis. 31st October. 29. Demonstrated improvement and All signatories Annually Annual Report to clearly achievements against individual demonstrate continuous targets and milestones. improvement and performance against individual targets and timelines in Action Plan. Page 14 of 21 Resources Used The human resources dedicated to our environmental activities, inclusive of the National Packaging Covenant, are estimated at 1,580 hours per annum. Contact Details Tetra has nominated Ms. Cheryl Speechley, Environment Manager Oceania, as Contact Officer. Contact details are: Contact Officer: Ms. Cheryl Speechley Organisation Name: Tetra Pak Marketing Pty Limited Address Details: 6 Foray Street, Yennora N.S.W. 2161 Telephone: 02 9632 1200 Facsimile: 02 9632 9376 E-Mail: firstname.lastname@example.org Organisations Referred to in this Action Plan Covenant Status Packaging Council of Australia Signatory Tetra Pak/Tetra Pak Marketing Signatory Companies in the dairy, juice, soy & liquid food processing and marketing sectors Signatories Page 15 of 21 Appendix A Environmental Policy Effective: January 1, 2005 TETRA PAK IS COMMITTED TO RUNNING ITS BUSINESS IN AN ENVIRONMENTALLY SOUND AND SUSTAINABLE MANNER. We set goals for continuous improvement in our development, sourcing, manufacturing, and transportation activities. Commitment to environmental sustainability We consider environmental management an important priority and thus establish procedures, programs and practices for conducting operations in an environmentally sound manner. As part of that commitment we strive to: • take a long term and life cycle view • continually improve environmental performance • achieve pollution prevention • meet or exceed internal guidelines, standards and requirements, relevant environmental legislation, and all other external requirements to which we have subscribed • understand and manage responsibly areas of environmental risk and uncertainty as well as the known environmental aspects of our products and processes • fully integrate environmental considerations into strategic management decisions, policies, programs and practices across our business • communicate openly and credibly with our stakeholders and report regularly on our performance • be environmentally pro-active in every market where we conduct business. We acknowledge that our operations have an impact on the environment that must be balanced with the benefits our products and services bring to society. We provide products that meet both customer and consumer needs, that protect the quality and nutritional value of food, and prevent food waste. Page 16 of 21 Appendix A Environmental Policy Cont’d Society As good corporate citizens, we maintain open lines of communication on key environmental matters with the communities in which we operate. We support selected community-based initiatives and activities that promote greater environmental responsibility and awareness. We will develop information on the environmental profile of our products and will share this with others. We contribute to the transfer of environmentally sound recycling technology and best practices to industry and public sectors. We are committed to facilitate and promote local collection and recycling activities for post-consumer carton packages. We shall publish bi-annual corporate environmental reports to communicate our environmental performance, challenges and progress to stakeholders. Customers We inform our customers of the environmental profile of our products and services. We encourage our customers to share with us their concerns regarding environmental issues related to our products, equipment and services, and will facilitate discussion on options to address those issues. We endeavour to support our customers on finding environmentally acceptable solutions for their packaging material waste. Transportation We aim at managing and reducing the environmental impact of transportation related to our activities and products including transportation into, within and from Tetra Pak. Our environmental management systems include transportation. We shall take the impact on the environment into consideration when deciding on or changing of transportation modes and logistics. We shall also take account of environment when planning and arranging travel, and make use of video and telephone conferencing whenever possible. Page 17 of 21 Appendix A Environmental Policy Cont’d Manufacturing / operations We strive for environmental excellence in our operations. We therefore commit to developing, designing and conducting our operations in a manner that: • minimises environmental impacts • addresses past contamination • promotes the efficient use of resources • reduces our contribution to climate change • manages waste properly, including maximising recycling of factory waste. All of our factories shall have environmental management systems certified to ISO 14001. Employee environmental engagement/participation Meeting our environmental goals requires everyone in the company to assume responsibility. Every individual in every location is expected to contribute to achieving our plans and goals by proactively taking initiative in line with our environmental policy. Managers at all levels are responsible for ensuring that employees are supported and empowered to implement and meet the policy requirements in their work. We openly share environmental knowledge, best practices and information on our environmental performance. We provide environmental training to ensure our employees execute their duties with the least possible environmental impact. Supplier management Since we attach importance to environmental management, we insist on the same from our suppliers. Environmental requirements are taken into consideration in the development of our supply base. We work together with our suppliers to ensure that they maintain an acceptable environmental performance and drive continuous improvements in this area. It is our ultimate goal that all wood fibre in our liquid packaging board shall come from forests independently certified as managed in accordance with principles of sustainable forest management. We also require our board suppliers to have full knowledge of the origin of fibre sources used for the paperboard they provide to us, and to avoid any sourcing from illegally harvested wood or intact and high conservation value forestlands. Page 18 of 21 Appendix A Environmental Policy Cont’d Product development We are committed to products and services that meet customer needs in a competitive way and at the same time have a sound environmental profile, that are safe in their intended use, that are efficient in their consumption of energy and natural resources, and that can be recycled, recovered or disposed of safely. Products and services are assessed from an entire life cycle point of view; from product design, material sourcing, operations and manufacturing to transportation, customers and society. To understand the full environmental impact of all new package developments, we use life cycle analysis (LCA) as a standard approach in our product development process. Renewability is a key environmental asset of our packaging portfolio. For a given functionality level, we strive to maintain or increase the use of material from renewable sources in our carton package portfolio. We shall use the minimum of materials required to ensure the protection of the product, and the integrity and functionality of the package. All our packages shall be suitable for recycling. New developments will include, when needed, the development and identification of appropriate recycling technologies. Page 19 of 21 Appendix B Design for Environment (DfE) is the systematic integration of environmental considerations into the development process. DfE practices are intended to develop environmentally compatible products and processes while maintaining or improving cost, performance, and quality standards. In practice, DfE means applying life cycle thinking so that the environmental aspects throughout the life cycle can be identified, evaluated and optimised. Exploring these issues early in the design process allows greater scope for achieving improvements and reduces the risk of having to make costly changes at a later stage of the process. The DfE concept is part of the Tetra Pak Innovation Network (TPIN). Our aims-what we want to achieve-in applying DfE are to: • Ensure an environmental performance (real and perceived) that is acceptable to customers, consumers and other stakeholders • Ensure compliance with environmental legislation is addressed • Ensure an environmental performance that is in compliance with Tetra Pak environmental policies, strategy, standards and other requirements • Minimise negative environmental aspects without compromising other requirements e.g. safety, functionality and cost • Ensure 'environmental costs' are taken account of as appropriate in cost and system cost calculations • Meet market environmental information requirements Doing these things successfully will help us to realise the following business benefits: • Meet customer and consumer demands • Keep a downward pressure on costs through, for example, a continual drive for material and energy efficiency - and through getting it right first time • Achieve regulatory compliance and reduce both commercial risks and risks to the environment. Page 20 of 21 Appendix C Page 21 of 21
"NATIONAL PACKAGING COVENANT (PDF)"