AUSTRALIAN PACKAGING COVENANT · BP Australia Apc-Action-Plan-2018-2019 Page 4 2. INTRODUCTION This...

BP Australia Apc-Action-Plan-2018-2019 Page 1

B P A U S T R A L I A G R O U P P T Y L T D

AUSTRALIAN PACKAGING COVENANT

ACTION PLAN


APC - Action Plan

2018 - 2019

1. EXECUTIVE SUMMARY ................................................................................................................................................................................................. 3

2. INTRODUCTION ............................................................................................................................................................................................................. 4

3. COMPANY DESCRIPTION .............................................................................................................................................................................................. 4

4. BP’S PLACE IN THE SUPPLY CHAIN ............................................................................................................................................................................. 4

4.1. LUBRICANTS BUSINESS ................................................................................................................................................................................................ 4 4.1.1. BP-Branded Packaging ........................................................................................................................................................................................................... 5 4.1.2. Packaging Materials and Formats ......................................................................................................................................................................................... 5

4.2. RETAIL BUSINESS ........................................................................................................................................................................................................ 6 4.2.1. BP-Branded Packaging ........................................................................................................................................................................................................... 6 4.2.2. Packaging Materials and Formats ......................................................................................................................................................................................... 6 4.2.3. Supplier-Branded Packaging ................................................................................................................................................................................................. 8 4.2.4. Sources of Waste ................................................................................................................................................................................................................... 8 4.2.5. Waste Process ........................................................................................................................................................................................................................ 9

5. ACTION PLAN 2018-2019 ............................................................................................................................................................................................. 10


1. EXECUTIVE SUMMARY

As a signatory to the Australian Packaging Covenant (formerly the National Packaging Covenant), BP Australia Group Pty Ltd (BP) supports efforts to reduce the environmental impacts of consumer packaging across the supply chain.

BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging.

This action plan presents commitments against the Covenant’s goals and key performance indicators, focusing on design, recycling and product stewardship. The plan has been reviewed and endorsed by Brooke Miller, Head of Sales and Marketing.

Signature

Date


2. INTRODUCTION

This plan details the actions that BP Australia Group Pty Ltd (BP) plans to undertake in order to meet its commitments as a signatory to the Australian Packaging Covenant and to support the achievement of the Covenant’s goals and targets.

BP signed on to the National Packaging Covenant in Australia in 2002 and resigned to the second round in 2005. In line with these commitments and our dedication to sustainability we are pleased to be a signatory to the Australian Packaging Covenant and to present this action plan.

3. COMPANY DESCRIPTION

BP in Australia is engaged in the exploration for and production of oil, natural gas and liquefied natural gas and the refining and marketing of petroleum and lubricant products. As one of the largest energy companies, BP has operated in Australia since 1920 and currently employs more than 5500 people, a large proportion of which work in our retail business.

4. BP’S PLACE IN THE SUPPLY CHAIN

BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging. This action plan applies to two main areas of our business: (1) our lubricants business and (2) our network of convenience stores (referred to in this report as our retail business).

4.1. LUBRICANTS BUSINESS

BP manufactures and distributes an extensive range of lubricants and cleaning products, covering everything from engine oils to brake fluids for passenger cars, motorcycle, marine and lawn mowers to heavy duty lubricants for trucks, earthmovers, diggers and other industrial applications.

For BP’s lubricant’s business, this action plan addresses our efforts in improving the sustainability of packaging design and other product stewardship actions. BP, as Castrol, was also taking action as a joint signatory under the Australian Institute of Petroleum (AIP) action plan, which has since finished. BP is actively looking at other programs and options to reduce our packaging and improve reuse or recycling of oil containers where possible.


4.1.1. BP-BRANDED PACKAGING

The brands owned by BP that are covered under this section of our Action Plan include Castrol and some BP products.

4.1.2. PACKAGING MATERIALS AND FORMATS

BP’s branded product packaging types and materials in the lubricants business are summarised in the Table 1 below:

Table 1 Summary of Lubricants BP-Branded Packaging Materials and Formats

Formats Packaging material

Cartons Cardboard

Drums Steel and HDPE

20 L containers Tin plate

Plastic (HDPE)

Bottles Plastic (HDPE)

Cartridges Plastic ( HDPE)

Imports Plastic ( HDPE)

Steel

Cardboard

IBC Plastic (HDPE) and Steel

Labels Paper plus laminate or varnish

coating

Closures Plastic ( HDPE), tin


4.2. RETAIL BUSINESS

BP owns and operates more than 300 service stations around Australia, offering a range of convenience offers across the network. The Wild Bean Café brand offers quality coffee and food to our customers at various sites. The coffee is made by trained baristas using Italian coffee machines and 100% Fairtrade Certified coffee beans. There is also a selection of food including hot toasted wraps, Turkish breads, and a range of pastries baked fresh on site.

4.2.1. BP-BRANDED PACKAGING

The brands owned by BP that are covered under this section of our Action Plan include Wild Bean Café & BP 2go.

4.2.2. PACKAGING MATERIALS AND FORMATS

BP’s branded product packaging types and materials in the retail business are summarised in the Table 2 below:

Table 2 Summary of Retail BP-Branded Packaging Materials and Formats

Category Formats Packaging material

HOT DRINKS

Coffee cups and lids Cup: Paper (96%), PET (4%) Lid: PP (100%)

Keep cups PP (90%) Rubber (10%)

Travel mugs PP (20%) Rubber (10%) Aluminium (70%)

SANDWICHES

Sandwich wedge Paper (98%), Polyethylene (2%)

Croissant PP (100%)

Wrap PP (100%)

Toasties Paper (46%), PET (4%), 50% PP (Flow Wrap)

PIES/SAUSAGE ROLLS Pies or sausage roll bags PE (100%) Flow Wrap


Category Formats Packaging material

SALADS Salad container and lid Container and lid: PET (100%)

CAKES

Cookies Paper (60%) PET film (36%) PET coating (4%)

Muffin, cake, donut, pastry Glassine paper

Muffin Polypropylene

OTHER PACKAGING

Paper carry bags Paper (100%)

Plastic carry bags PET (100%)

Plastic product pouch PP (100%)

Sticker paper (99.5%), Polyethylene (0.5%)

Clam shells PET (100%)

Cardboard shell Cardboard (99.5%)

Meal tray Polystyreme (100%)

Meal pot Paper (96%), PET (4%)

SECONDARY/TERTIARY PACKAGING Cardboard boxes Cardboard (100%)


4.2.3. SUPPLIER-BRANDED PACKAGING

BP’s convenience offer includes a range of different product types with non- BP branded packaging including:

• Cold drinks and milk • Confectionery and snacks • Tobacco products • Groceries • Magazines and newspapers • Communications products • CD's and DVD's • General merchandise • Car care

We are encouraged that many of our suppliers are also signatories to the packaging covenant. This provides opportunity for BP to work alongside these suppliers to achieve our mutual goals.

4.2.4. SOURCES OF WASTE

We have identified four sources of packaging waste in our retail operations:

• Forecourt bins – located at all refuelling points on the forecourt and accepts waste from the consumer that may be generated inside the store or brought to site.

• In-store bins – general bins for in-store waste that accepts waste that is derived almost exclusively from sales within our retail facility.

• Back-of-house – Bins behind the counter that contain waste generated from in store and delivery of products as well as larger style skips that contain all waste generated on site.

• Carried off-site – this relates to packaging that is not disposed of on site.

BP has responsibility for waste contracts at its company-owned and operated sites however waste generated at dealer sites is the responsibility of the independent operator. Company-owned and operated sites now have cardboard recycling onsite as a result of actions taken under BP’s first NPC action plan.


4.2.5. WASTE PROCESS

The waste process identified in the diagram below outlines the packaging flow and also the opportunities for intervention in the waste cycle.

Figure 1 Packaging Flow at BP Retail Sites

The diagram above summarises the movement of packaging at a BP Retail Site. It has helped us identify key opportunities at each stage for minimising, managing and correctly disposing of packaging.

Inputs

BP Packaging

Supplier Packaging

Legislation

Processes

Store keeping

Operation

Outputs

Forecourt bins

Store bins

Back of House

Carried offsite

Opportunities

ReduceReturn packagingBuy RecycledInfluence suppliers

Opportunities

ReduceReuseEducate staff

Opportunities

RecycleCompostPrevent LitterCommunicate


5. ACTION PLAN 2018-2019

Criteria 1.1 – Packaging Sustainability Strategy Specific - Measurable - Attainable - Relevant - Time phased

Objective: Integrate packaging sustainability goals and targets in corporate strategy, including use of the Sustainable Packaging Guidelines (SPGs) or equivalent.

Commitment to: Level 4 – Leading

We are committed to: (1) Having a strategy to improve packaging sustainability. (2) Integrating your packaging sustainability strategy into business policies and processes.

Target .

Provide visibility of sustainability strategy, plan and progress across the business

Action Responsibility Milestone Data Management

Develop and publish KPIs on internal websites and to senior leadership

Entire business Env Risk & Compliance

End 3Q 2018 Document drive and sharepoint data

Saved SPG and action plan updated in the controlled document library Performance report and action plan published on BP.com.au

Env Risk & Compliance CAEA

3Q 2018 July 2018

Document drive Web


Criteria 1.2 – Closed Loop Collaboration

Objective: Encourage supply chain initiatives to recover packaging and create sustainable closed loop economies.

Commitment to: Level 2 - Good Progress

Investigating options to join or start a collaborative initiative to address barriers to the recovery of waste packaging.

Target

Investigate / develop at least 2 closed loop possibilities


Investigate our own waste materials and determine the biggest impact on waste by supplier

Env Risk & Compliance, Operations Excellence

End 2018 Waste packaging per site based on volumes purchased per site

Determine viability of SimplyCups partnership for metro sites

Operations Excellence End 3Q 2018 if viable then 50 by end 4Q

Data for volume recycled stored on Operations Excellence drive

Investigate including APC membership and SPG in tender process

Procurement End 1Q 2019 Procurement procedure

Lubricants Trial used oil drum collection back to Guildford for Sydney Metro from July 2018.

Castrol Packaging Review program End 2018 Castrol to provide # used drums returned


Criteria 1.3 – Consumer Engagement

Objective: To inform and educate consumers about sustainability through packaging.

Commitment to: Level 2 - Getting Started

Provide consumers with information on the sustainability of packaging via the BP website, and disposal/recycling information

Target

To have 30% of categories with labels that encourages active consumer engagement.


Seek supplier input to redesign packaging with labels for WBC categories

Marketing Coffee cups, paper bags and hot food packaging re-design agreed by end 2018

KPI dashboard

Website updated with information for sustainability for disposal / recycling Food / drinks / bags Castrol categories

Communications 1Q 2019 Website


Criteria 1.4 – Industry Leadership

Objective: To promote other initiatives within Australia that improve packaging sustainability through collaborations and industry leadership

Commitment to: Level 1 Getting Started

BP is investigating at least one program or initiative.

Target

Be involved in at least one collaborative initiative for changes to packaging


Investigate programs to collaborate with suppliers for improvements to packaging using other materials Eg Plastic bags, Soft plastics recycling in store

Operations Excellence Retail Marketing

Collaborate on one possibility by end 2019

Operations Excellence

Lubricants Continue IBC recycling

Castrol Packaging # IBC washed and reused documented by 4Q 2018

Castrol Australia data


Criteria 2.1 – Packaging Design and Procurement

Objective: Ensure that the Sustainable Packaging Guidelines (SPGs) or equivalent are being used to evaluate packaging.

Commitment to: Level 4 - Leading

Utilise suppliers who comply with SPG and aim to achieve 80-100% of products reviewed with reference to the SPGs.

Target

Review all new packaging to ensure it meets SPG


Track the percentage (%) of relevant suppliers who comply with the Sustainable Packaging guidelines

Ops Excellence, Procurement and Retail Merchandising Team

Continuing tracking with new suppliers

Operations Excellence Drive

Utilise the packaging guideline process to continue to review all new or modified BP-branded packaging against the Sustainable Packaging Guidelines.

Ops Excellence, Procurement and Retail Merchandising Teams

100% compliance of new packaging

Share drive

KPI - % reviewed


Criteria 2.2 – Packaging Materials Efficiency

Objective: To reduce material consumption and associated environmental impacts in the packaging life cycle by optimising the volume and weight of packaging.


Committed to developing a documented plan to optimize material efficiency

Target

Develop a plan to examine the distribution packaging of BP branded products


Collect data for volumes and materials involved in distribution packaging

Env Risk & Compliance Data trackable by End 3Q 2018

SAP data

Develop plan for any possible reduction in distribution packaging. Include a plan for use \ provision of shopping bags

Operation Excellence Retail Marketing Env Risk & Compliance

2Q 2019 Update SPG plan - Controlled Docs

Lubricants Work with global packaging on designing a new bottle packaging range,

Castrol global Packaging Reduce HDPE use on multiuse containers by up to 15% by 2021

Lubricants Develop plan to redesign the PE 20L to be open-head (easier to drain & to nest empty containers, for waste recovery collection)

Castrol Packaging Australia Plan developed by end of 2H 2019

Castrol packaging plans


Criteria 2.3 – Recycled and Renewable Materials

Objective: To support a circular economy for packaging by optimising the quantity of materials that are renewable and/or contain at least some recycled content.

Commitment to: Level 4 - Leading

Committed to incorporating or optimising recycled and/renewable content in more than 50% of products

Target

Incorporating or optimising recycled and/or renewable content in more than 50% of products.


Investigate the possibility to provide a take home bag made from fully recycled materials (eg HDPE, PET)


End 2018 Information from suppliers in share drive

Document materials in each branded product and determine the renewable content


3Q 2018 Share drive KPI


Criteria 2.4 – Post-consumer Recovery

Objective: To increase the proportion of packaging that can be collected in Australia for reuse, recycling, composting or energy recovery.


Committed to investigating opportunities to improve recoverability in packaging

Target

10% of primary packaging to be recoverable through existing systems


Track the percentage of packaging for products sold that can be recycled / recovered through existing processes

Env Risk & Compliance Operations Excellence / Marketing

30% packaging can be recovered

SAP for sales of each category

KPI - # sales that can be recovered


Criteria 2.5 – Consumer Labelling

Objective: Encourage the use of on-pack labels that enable consumers to easily determine the correct disposal method for post-consumption packaging.


Committed to investigating opportunities to improve on pack labelling for disposal or recovery

Target

Complete review of existing packaging labels and have 30% of categories looking to improve labelling


Document current packaging with mobious or tidyman logo on printing

Env Risk & Compliance/ Marketing

100% 3Q 2018 Sharedrive

With suppliers, look for opportunities to add disposal/recycling labels or to make them more specific or easier to follow.

Retail Marketing Procurement Env Risk & Compliance

30% End 2018 Share drive KPI - # relabeled vs # categories

Criteria 2.6 – Product-packaging Innovation

Objective: To reduce the environmental impact of your packaging throughout its lifecycle, through innovation in the design of the product-packaging system.

Commitment to: NOT RELEVANT AT THIS TIME


Criteria 3.1 – Business-to-Business (B2B) Packaging

Objective: Reduce the amount of single-use business-to-business packaging.

Commitment to: Level 2 - Good progress

Reduce consumption of single use B2B packaging

Target

Reduce materials supplied to site by 20% by end of 2019 and reduce use of materials at each site by 10% by end of 1Q 2019


Assess marketing promotional materials packaging against the sustainable packaging guidelines.

Retail Marketing / Operational Excellence

Document materials used in promotions and SPG by 3Q 2018

Review capability of electronic promotional boards to replace printed promotional material

Retail Marketing / Operational Excellence

End 2018

As part of re-zoning program, implement metal recycling or shelving at all sites

Env Risk & Compliance Retail Marketing / Operational Excellence

2Q metal recycling at 3 stores to gather volume/weight data

Reduce paper documentation in stores by implementing further improvements in StorIQ

Operational Excellence Reduce paperwork needed to print by incorporating travel path and SLCIC uploads into StoriQ

StorIQ and SharePoint site

Lubricants Rationalising packaging on pallets from 4 steel drums > 1 x box in the supply chain

Castrol Operation Castrol Packaging

Increasing product on pallets by 52% Starting 2H 2018

Castrol


Criteria 3.2 – On-site Waste Diversion

Objective: Increase the recovery of packaging waste generated on-site. A proxy measure is used, i.e. total waste diversion from landfill, as most organisations do not measure packaging waste separately from other waste.

Commitment to: Level 2 - Good progress

Diverting at least 20% of waste generated by the entire business from landfill

Target

Divert at least 30% of waste from landfill


Record, document and share the total waste diversion from landfill. Requires landfill waste and recycle waste volumes /weights

Env Risk & Compliance 30% waste diverted from landfill by end 2021 15% / 2018 : 20% /2019

ANZED

Determine quantity of soft plastics sent to landfill

Env Risk & Compliance Retail Operations

Data collected KPI developed by End 2018 for tracking

SAP supply data per store Share point

Investigate efficient recycling of milk bottles from high throughput stores.

Use of bottle crusher to save space Use of council programs where possible

Env Risk & Compliance / Ops Excellence / Procurement

Data collected end 2018 Plan by 2Q 2019

Milk usage data WBC data

Following the implementation of the print on demand initiative in 2015, stop printing merchant copy receipts automatically by 2Q 2019

Retail Operations and Ops Excellence teams with new EOS system

EOS System implementation by 2Q 2019

EOS

Track quantity of paper used in offices OFM printing paper usage 10% reduction by end 2018 15% reduction by 2H 2019

# reams across Australia per month


Criteria 3.3 – Supply Chain Influence

Objective: Engage with suppliers to build support for, and capacity to achieve, packaging sustainability goals.

Commitment to: Level 1 - Getting started

Providing support and challenge to supplier to improve their understanding of goal and strategies

Target

Work with our suppliers to reduce their distribution packaging, which becomes our waste.


Work with suppliers of high volume soft plastic waste to develop a recovery program within BP stores.

*Soft drink suppliers

Procurement

Retail Marketing

Tender developed by End 2019

Contracts

Continue to work with suppliers to use reusable packaging for more options.

Communicate and work with suppliers for pallets left at sites and excessive plastic wrap.

Procurement

Retail Marketing

Meet with suppliers 1Q 2019

Retail Marketing

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