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NATIONAL PACKAGING COVENANT (PDF)

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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:                               cheryl.speechley@tetrapak.com




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