The National Packaging Covenant

1
The National Packaging Covenant

• Welcomes you to
• Action Plan and
• Annual Reporting
• Year 2
• July 2006 June 2007

2
Todays Program

• Introduction
• Brief Status Overview
• NPCC 2005-06 results
• MK II Action Plans
• Lunch 12.30pm
• Industry Data Aggregation System (IDAS)
• Written Reporting
• Questions Close

3
Brief Status Overview

• Currently 557 signatories, including
• 409 brand owners 116 are new
• 59 packaging mfrs/suppliers
• 42 other supply chain members
• Letters have been sent to 1000 companies
  identified in the retail brand surveys.
• Government action is also underway with hundreds
  of NEPM enforcement letters sent.
• Currently there are more than 20 jointly funded
  Covenant projects
• total project costs of gt 7 mill
• estimated recovery of gt 350,000 tonnes pa.
• Your annual contributions make this possible.

4
Participant Status
5
New Brand Owners

• Red Rooster
• Barilla
• Bing Lee
• Canon
• Corporate Express
• Dell
• Fone Zone
• Australian Sweets
• Gunns Ltd
• Cheviot Bridge Estate
• Maggie Beer
• Manassen Foods

Gloria Jeans Mattel Qantas Optus Spotlight Toshiba
Yates Pacific Brands Scotts Australia Sony Warrna
mbool Cheese Butter
6
Covenant Targets 2010

• 1. Increased recycling rate for packaging of 65
  
• Paper Cardboard 70 80 (64)
• Glass 50 60 (35)
• Steel Cans 60 65 (44)
• Aluminium Bev. 70 75 (64)
• Plastics 30 35 (21)
• 2. Increased recycling rate for non-recyclable
  packaging
• 25 (current est. 10)
• 3. Landfill no increase above 2003 baseline

7
That means by 2010

• 1. Additional materials recovery per annum
• Paper Cardboard 405,100 tonnes
• Glass 180,000 tonnes
• Steel Cans 17,200 tonnes
• Aluminium Bev. 9,800 tonnes
• Plastics 100,800 tonnes
• 2. Total additional recovery per annum 719,000
  tonnes.
• Landfill not more than 1.82 million tonnes
  (2003 baseline).

8
2005-06 Results

• 05-06 recycling rate for packaging 56, an
  improvement of 8 over the baseline
• Paper Cardboard 66 (64)
• Glass 44 (35)
• Steel Cans 38 (44)
• Aluminium Bev. 71 (63)
• Plastics 30 (21)
• 05-06 recycling rate for non-recyclable
  packaging (plastics 4 7) up from 10 to 23.

9
Thats Equivalent to

• 6.5 million m3 of landfill space
  saved
• or
• 352,000 cars removed from the roads
• or
• 19,792 Olympic pools of water saved
• or
• 1.4 million tonnes of CO2 equivalent saved

10
Case Studies
CCA- reduced weight of PET bottles by 3 (625
million bottles) since 2003 Telstra reviewed
prepaid mobile starter kit and reduced the
cardboard backing by 5mm in thickness resulting
as well as removing plastic sleeves. This
resulted in a 73 reduction in packaging 10
tonnes less packaging Amcor developed a new
film technology capable of producing lighter
bread bags achieving a weight saving of 23 to
date Confoil reduced paper usage, implemented
recycling facilities, using recycled paper and
most importantly reported back to staff on the
positive outcomes that they are achieving.
Goodman Fielder removed the cardboard box
used for Easter buns which is projected to save
11.3 tonnes of cardboard per annum Golden Circle
increased the amount of waste going to recycling
by 10,000 tonnes and also now sources all PET
containers with 25 recycled content
11
Your Action Plan

• 3 Years duration.
• Demonstrates how a signatory will contribute to
  the achievement of Covenant goals targets.
• Based on product stewardship and addresses
  relevant KPIs
• Must be endorsed by CEO or equivalent.
• The more effort that goes into the action plan,
  the simpler the reporting process will be.
• Make sure that what is set out in your plan
  enables you to easily report the KPIs in IDAS and
  prepare a written annual report.

12
Action Plan

• Action Plan requirements
• 1 page summary of initiatives / achievements to
  date
• Product Stewardship and Roles Undertakings
  commitments
• Actions processes to develop reliable data
• Establish indicative baseline data against
  relevant KPIs.
• Implementation of ECoPP
• Set individual targets timelines for Year 1.
• any other requirements as outlined in Schedule
  4.

13
Product Stewardship
What actions are you taking in each of the
following categories?

• Design
• Production
• Distribution
• Disposal
• Research

• Market Development
• Education
• Labelling
• Wholesaling Retailing
• Recycling Reprocessing

Page 5 in the action plan kit
14
Key Performance Indicators

• 29 in total 13 relate directly to industry.
• Establish baseline data and continuous
  improvement targets.
• Deliver quantifiable outcomes.
• Enable analysis reporting on the
  effectiveness of the Covenant.
• Provide a more rigorous framework for Action
  Plan Report assessment.

15
Key Performance Indicators

• Form a basis for reporting
• Ensure the information you set up in the action
  plan allows you to report into IDAS
• Use the Action Plan kit to help with
  interpretation of the KPIs (pages 17 21)

16
KPIs

• Individual brand owners
• 1. Total weight of consumer packaging by
  material type (domestic imported) sold per
  annum into the Australian market and the total
  weight of products packaged.
• 1A - tonnes of packaging by material type by
  source (local or imported).
• eg. Domestics Imported
• Paper/ cardboard 100 t
• Glass 50 t
• Steel 200 t
• Aluminium 70 t
• Plastic 1 50t 100t
• Plastic 2 etc.
• 1B - tonnes of packaged product sold (net
  weight). eg. 200 000 t
• 1C - ratio of packaging to product (by weight).
  eg. 2.51
• Total weight, by ype, of non-recyclable
  packaging sold per annum into the Australian
  market
• 6A - tonnes of non-recyclable packaging sold
  by material type and total
• 6B - non-recyclable packaging as a of total
  packaging sold.

17
KPIs

• Individual packaging manufacturers
• 2. Resources used to produce packaging, by
  material type
• - energy (megajoules)
• - water (kilolitres)
• 2A - energy consumption in Megajoules (MJ) per
  tonne of packaging produced, by material
  type.
• 2B - water consumption in Kilolitres (Kl) per
  tonne of packaging produced, by material type.
• 5. Average annual percentage of post-consumer
  recycled content incorporated into packaging
  manufactured (finished packaging), by material
  type.

18
KPIs

• Packaging supply chain KPIs nos. 3, 4 22
• 3. Improvements in design, manufacture,
  marketing and distribution to minimise the
  environmental impacts of packaging
• 3A - examples of improvements and effects on
  minimising environmental impacts
• 3B - quantitative details of improvements should
  be provided where available
• 4. Changes to protection, safety, hygiene,
  shelflife or supply chain considerations
  affecting amount type of packaging
• 4A - changes affecting amount type of
  packaging used with examples, and their
  associated impact on the amounts and types of
  packaging used.
• 4B - quantitative details should be provided
  where possible

19
KPIs

• Packaging supply chain
• 22. Formal adoption of ECoPP and development of
  systems for its implementation
• 22A report ECoPP has been formally adopted
• yes or no
• 22B report actions and commitments that
  demonstrate ECoPP implementation
• How are you adopting it?

20
KPIs

• All signatories
• 16. Provision of recycling collection facilities
  for post- consumer packaging generated
  on-site and details, if provided.
• yes or no. If yes what do you have eg.
  Paper, aluminium etc.
• 21. Estimated tonnage of consumer packaging (a)
  recycled and (b) sent to landfill, from
  on-site collection facilities (tonnes and
  of total waste).
• 26. Implementation of Buy Recycled purchasing
  policy or practices.
• 27. Establishment of baseline performance data.
• 28. Annual reporting against Action Plan.
• 29. Demonstrating continuous improvement and
  achievements against individual targets
  milestones.

21
Code of Practice

• Transparent guide for making packaging related
  decisions.
• Recognises the role of packaging promotes
  excellence in packaging.
• Contains specific overall strategies including
• Source Reduction
• Recovery Recycling
• Likelihood to become Litter
• It is a key commitment under the Covenant - sign
  the Covenant, you sign the Code!
• Page 6 in the action plan kit

22
Structure

• Integrate the plan with existing processes
  tasks
• Context
• Content
• Conclude

23
Context

• Title Page
• Contents
• Company Background
• Executive Summary
• CEO Endorsement
• Covenant Contact Person
• Information current environmental
• initiatives.

24
Content

• What You are doing, how you are doing it and what
  NPC requirement(s) does it relate to?
• Identify and address relevant KPIs.
• Establish baseline data and individual targets
  timelines.
• Details of records being kept to monitor
  performance.
• Action under product stewardship
• Implementation of ECoPP. How?
• Identify how actions will contribute to
  achievement of Covenant targets goals.

25
Conclude

• Action Summary Table with timelines
• Appendices eg.
• Enviromental Management System or Policy
• Data Tables
• Product picutres
• Anything else you think might be relevant

26
REPORTING
27
Industry Data Aggregation System (IDAS)

• Web based link on NPC website
• Flexible and easy to use
• New improved
• Predominantly quantitative information
• No individual company data reported only
  aggregated totals
• Externally hosted secure and confidential system
• Completing IDAS is a core requirement of Covenant
  reporting
• Reporting deadline is 31 October

28
Industry Data Aggregation System (IDAS)

• Industry (NPCIA) recognised that data was vital
  to show that the Covenant is working.
• Needed a way to collect all the data that was
  simple and effective.

29
IDAS REPORT CARD FOR 2006

• C - Satisfactory
• is capable of more. needs to apply himself to
  achieve better results
• Late and inaccurate input
• Familiarity and Functionality
• 65 of signatories (successfully) completed KPI 1
  
• All results included in NPC annual report

30
IDAS 2007

• Amendments to improve on last years operation
• More description
• More automated features
• Continuity of data
• Previous data to refer to
• New passwords mailed out by end of August
• To be completed by 31 October

31
IDAS TIPS

• Dont leave it until the last minute. Anticipate
  the possibility of busy times or computer
  glitches.
• Print out the offline version of IDAS and
  complete it before going online to minimise
  errors. It is really hard to make changes once
  you have pressed Submit.
• If you dont receive your password by the end of
  the month give Adele a call. Watch the Newsletter
  and website for updates.
• Make sure you Validate

32
IDAS Summary

• Need to do all we can to maintain co-regulatory
  approach. More communicating the good work !
• Data is critical to achieving this
• Easy and quick system to aggregate industry data
• Annual Reports cannot be assessed until IDAS has
  been completed submitted
• Any data you can report is important

33
Written Reporting

• Standardised on a reporting period July June.
• To be submitted by 31 October each year.
• Follow the Structure of your action plan
• Written report of progress against your action
  plan, including
• Product stewardship achievements
• Implementation of the ECoPP
• Performance against KPIs
• Data improvements
• Include REAL results quantify where possible.

34
Written Annual Report StructureContext, Content,
Conclude

• Context
• Title Page
• Contents
• Company Background
• Executive Summary
• CEO Endorsement
• Covenant Contact Person

35
Written Annual Report StructureContext, Content,
Conclude

• Content
• What have you done and what are the results.
• Summary of progress under product stewardship
• actions.
• Summary of ECoPP implementation.
• KPI data with comparisons against previous year.
• Performance against targets/goals.
• Summary of achievements and setbacks in 06-07.
• (highs and lows)

36
Reporting Against Product Stewardship
What actions did you take in each of the
following categories. Were they successful or not?

• Design
• Production
• Distribution
• Disposal
• Research

• Market Development
• Education
• Labelling
• Wholesaling Retailing
• Recycling Reprocessing

37
Reporting Against Key Performance Indicators

• For your written report we suggest
• An update of any actions against internal and
  NPC KPIs
• Summarise results in a table format. Highlight
  main
• achievements in the content
• Provide a comparison of data from year to year
• Attach a print out of your IDAS data entry as an
  appendix
• Use the KPI explanatory notes to ensure that you
  are reporting data correctly (eg. In tonnes not
  kgs)
• Must report publicly against all relevant KPIs
  except 1A, 1B and 6A

38
Reporting on Code of Practice Implementation

• KPI 22
• Has the code been implemented? Yes/ No.
• If yes, how did you implement it and what were
  the results.
• Include examples of packaging evaluations using
  the Code or individual case studies.

39
Written Annual Report StructureContext, Content,
Conclude

• Conclude
• Update of targets/goals in action plan for next
  year.
• New actions going forward.
• What could you do better next time round ?
• Appendices
• IDAS attachment
• Procedures/policies
• ECoPP packaging assessments, case studies

Check off against the standard assessment criteria
40
Submission

• If you have commercially sensitive information,
  submit separate confidential and public versions
  of your plan / report.
• Plans / reports must be submitted in one file.
• Submit reports via email to
• npc_at_packagingcovenant.org.au
• This goes straight to Adeles inbox.
• Confirmation of receipt of plan /report will be
  emailed within 10 days.
• All plan / reports are independently assessed
  against the agreed criteria.
• Formal feedback on your plan / report will be
  provided as soon as possible. Be patient as there
  may be a bit of a back log.

41
Summary

• Data collection reporting is Critical.
• Report real results
• Local Govt. report NEPM data annually to States.
  Industry report Data through IDAS
• Industry and Government data is aggregated and
  presented in the NPCC annual report. The NPCC
  reports aggregated data to EPHC, on Covenant
  performance against the targets.
• Mid-Term review in 2008 of progress against
  targets. Findings will determine the future of
  the Covenant. Governments already seeking to
  identify other possible mechanisms.
• Packaging has a high environmental consumer
  profile this will not change or go away.
• Once again we will be seeking to highlight the
  actions of signatories in our annual report. If
  you have a story to tell give us a call.

42
Further Information
www.packagingcovenant.org.au Slides from today
available under Meetings - Workshops and
Seminars - Presentations National Packaging
Covenant Secretariat Level 6, 457 St Kilda Road,
Melbourne, 3004 Ph [phone] Fax (03)
9861 2330 npc_at_packagingcovenant.org.au