Covenant Introduction

1
The National Packaging Covenant
Covenant Introduction Preparing Action
Plans May 2007 Edward Cordner CEO, National
Packaging Covenant
2
Todays Program

• Introductions
• NPC Overview
• Break
• Action Plans
• Plan Requirements
• Action Plan Development Kit
• Assessment Criteria
• Annual Reports
• Industry Data Aggregation System (IDAS)
• Assessment Criteria
• Questions Close

3
The Covenant

• A Packaging industry initiative.
• Voluntary component of a co-regulatory agreement
  between industry and governments.
• Commenced July 1999. Further 5 year term agreed
  by Ministers in July 2005.
• Covers consumer product packaging, household
  paper and in-store packaging.
• Based on principles of Shared Responsibility
  through Product Stewardship
• Entire packaging supply chain is involved
  including retailers.
• currently gt 480 signatories.

4
NEPM

• Regulatory component applied at a State level.
• Focuses on
• non-signatory Brand-Owners.
• non-complying Signatories.
• Requires mandatory take-back of packaging EPR
  principles.
• Brand Owner definition broadened.
• Exemption threshold of 5m pa.

5
NPC
Environmental Protection Heritage Council (EPHC)
National Packaging Covenant Industry
Association (NPCIA)
The National Packaging Covenant Council (NPCC)
State Local Governments
National Packaging Covenant Signatories
The National Packaging Covenant Secretariat
6
Major Signatories
Visy Heinz Goodman Fielder Amcor Blackmores Yalumb
a Unilever Golden Circle Colgate-Palmolive ALDI K
raft BP National Foods Smiths SnackfoodsDairy
Farmers Woolworths Shell Cadbury
Schweppes Panasonic
George Weston Foods Telstra Nintendo Dulux Fosters
Lion Nathan Australia Post Kelloggs Metcash
IGA Masterfoods Coles Sanitarium McDonalds Nestle
Coca-Cola Amatil Campbells Arnotts Orlando
Wyndham Fisher Paykel
7
Participant Status
8
Environmental Goals

• Packaging design optimised to integrate
  considerations about resource efficiency, maximum
  resource re-utilisation, product protection,
  safety and hygiene.
• Efficient resource recovery systems for consumer
  packaging and paper.
• Consumers able to make informed decisions about
  consumption, use and disposal of packaging
  products.
• Supply Chain members and other signatories able
  to demonstrate how their actions contribute to
  these goals.
• All signatories demonstrate continuous
  improvement in their management of packaging
  through their individual Action Plans and Annual
  Reports.

9
Covenant Baseline (2003)

• Consumption 3.47 million tonnes.
• Recovery 1.65 million tonnes. 48
• Paper Cardboard 64
• Glass 35
• Steel Cans 44
• Aluminium Bev. 63
• Plastics 21
• Landfill 1.82 million tonnes.

10
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. Landfill no increase above 2003 baseline.
• 3. Increased recycling rate for non-recyclable
  packaging
• 25 (current est. 10)

11
Covenant Targets 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 no more than 1.82 million tonnes.

12
Roles Undertakings (S5)

• All signatories will
• Produce action plans and report annually.
• Work together to achieve the Covenant targets.
• Apply the principles of the Covenant in their
  own operation.
• Facilitate the implementation of purchasing
  policies for recycled content goods
• Promote the adoption of the principles
  undertakings of the Covenant and the benefits of
  becoming a signatory.
• Divert resources from landfill.

13
Roles Undertakings (S5)

• The Packaging Supply Chain will
• Implement the Environmental Code of Practice for
  Packaging.
• Implement product stewardship policies
  practices.
• Contribute to the Covenant funding arrangements.
• Design packaging so that the use of materials is
  minimised.
• Develop use packaging consistent with HSE
  concerns.
• Encourage greater recognition that used
  packaging is a resource.

14
Product Stewardship (S4)

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

• Design
• Production
• Distribution
• Disposal
• Research

15
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.

16
KPIs

• Individual brand owners KPIs nos. 1 6
• 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).
• 1B - tonnes of packaged product sold (net
  weight).
• 1C - ratio of packaging to product (by weight).
• Total weight, by type, 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 KPIs nos. 2
  5
• 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 continued
• 22. Formal adoption of ECoPP and development of
  systems for its implementation
• 22A report ECoPP has been formally adopted
• 22B report actions and commitments that
  demonstrate ECoPP implementation

20
KPIs

• All signatories KPIs nos. 16, 21 26-29
• 16. Provision of recycling collection facilities
  for post-consumer packaging generated on-site
  and details, if provided.
• 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
• Signatories must demonstrate how the Code is
  being used and report on progress.
• It is a key commitment under the Covenant - sign
  the Covenant, you sign the Code!

22
Action Plan

• 3 Years duration.
• Sets out how a signatory proposes to implement
  measure actions and commitments.
• Must address ECoPP, Product Stewardship and link
  directly with relevant KPIs.
• Must be endorsed by CEO or equivalent.
• New signatories have 4 months from signing to
  submit their plan.
• Remains flexible and may be revised at any time.
  

23
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.
• Address distribution pkg and post-consumer
  packaging issues eg. litter, recycled content
  products.

24
Annual Plan Structure

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

25
Context

• Introduction set the scene
• Organisation details background, structure,
  activities, brands
• Executive Summary highlighting intended
  actions, commitments and outcomes.
• Information on previous / continuing
  environmental initiatives.
• Resources processes implemented to address
  relevant Covenant requirements.
• Endorsement by CEO or equivalent.

26
Content

• Specific actions and commitments.
• Identify and address relevant KPIs.
• Establish baseline data and individual targets
  timelines.
• Details of records being kept to monitor
  performance.
• Product Stewardship and Roles Undertakings
  commitments.
• Implementation of ECoPP.
• Identify how actions will contribute to
  achievement of Covenant targets goals.

27
Conclude

• Action Summary Table with timelines
• Appendices eg.
• Envtal. Mgt System or Policy
• Data Tables
• Organisations referred to in Plan
• Confidential information

28
Annual Report

• Standardised on a reporting period July June.
• To be submitted by 31 Oct.each year.
• Provides data information to demonstrate
  measured performance against KPIs and
  commitments.
• Reports and explains significant changes to
  packaging.
• Sets individual targets timelines for
  following year.
• Contributes to an aggregated baseline to measure
  broader system sector performance.
• Must be endorsed by CEO or equivalent.

29
IDAS

• Web based link on NPC and industry association
  websites.
• Quick and easy system to aggregate industry
  data.
• Quantitative information only.
• Confidential no individual data reported
  only aggregated.
• Externally hosted - secure and confidential
  system.
• Annual Reports cannot be assessed until data is
  provided into IDAS.

30
Annual Report Structure

• A stand alone document
• Follow the format of your action plan
• Context
• Content
• Conclude

31
Context

• Introduction set the scene
• Organisation details background, structure,
  activities, brands
• Executive Summary highlighting outcomes,
  barriers, challenges, opportunities etc.
• Information on previous / continuing
  environmental initiatives.
• Are any changes to your action plan likely ?
• Endorsement by CEO or equivalent.

32
Content

• Report progress against specific actions and
  commitments made in your Plan, including Product
  Stewardship and Roles Undertakings.
• Provide details of records kept to monitor
  performance.
• Report on implementation of ECoPP.
• Resources processes implemented to address
  relevant Covenant requirements.
• Identify how your actions contributed to
  achievement of Covenant targets goals.

33
Content

• Complete submit IDAS.
• Report baseline data and progress against
  relevant KPIs, individual targets timelines.
• Brand owners - 1C, 6B
• Packaging Mfrs - 2A, 2B, 5
• Pkg Supply Chain - 3A, 4A, 22A, 22B
• All Signatories - 16A, 16B, 21, 26, 27
  - 29

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Conclude

• Action Summary Table including
• results from Year 1
• new performance goals/timelines for Year 2
• Appendices eg.
• Data Tables
• Confidential information

35
Data Reporting

• All Signatories report data annually to NPCC.
• NPCIA has developed web-based system to assist
  industry data reporting and aggregation (IDAS).
• Local Govt. report NEPM data annually to States.
• NPC Council report aggregated data to EPHC,
  based on above
• Materials recovery rates recyclable
  non-recyclable
• Estimate of packaging waste to landfill

36
Summary

• Packaging supply chains chance to demonstrate
  the voluntary model can deliver results.
• Implement your own innovative strategies to
  better manage packaging issues.
• Raise the profile urgency of environmental
  issues within your company to create
  opportunities and improve decision making
• Provides the opportunity to work with industry
  colleagues to address common issues.
• Data collection reporting may appear costly
  and time consuming but it is Critical.
• Plan for improvements in data quality over time.

37
Summary

• Avoid potentially costly and onerous regulation
  by governments.
• Key dates
• Signatory Reports due 31 October each year.
• NPCC Report due February each year.
• 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.

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Further Information

• National Packaging Covenant www.packagingco
  venant.org.au
• National Packaging Covenant Secretariat
• Level 6, 457 St Kilda Road, Melbourne, 3004
• npc_at_packagingcovenant.org.au
• Ph [phone] Fax [phone]