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Implementing Sustainability @ Alcan Packaging - OECD

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Microsoft PowerPoint - Mod5-Presentation-Rebitzer Alcan.ppt [Compatibility Mode]Implementing Sustainability @ Alcan Packaging
© 2 0 0 8 A L C A N I N C.
OECD-UNEP Conference on Resource Efficiency, Paris
Gerald Rebitzer, April 24, 2008
Product Stewardship
in 128 sites in 31 countries
30,000 employees
in 128 sites in 31 countries
US$ 313 million capital expenditures 2007
US$ 6.2 billion 2007 revenues
Pharma PackagingPharma Packaging Food Flexible PackagingFood Flexible Packaging
US $ 3.9 Bn revenues & US $ 3.9 Bn revenues &
63% of AP revenues in 200763% of AP revenues in 2007
US $ 0.95 Bn revenues & US $ 0.95 Bn revenues &
15% of AP revenues in 200715% of AP revenues in 2007
Leadership position in our four main markets
© 20 0 8 AL CAN I NC. Slide 3
Tobacco PackagingTobacco Packaging Cosmetics PackagingCosmetics Packaging
US $ 0.5 Bn revenues & US $ 0.5 Bn revenues &
8% of AP revenues in 20078% of AP revenues in 2007
US $ 0.85 Bn revenues &US $ 0.85 Bn revenues &
14% of AP revenues in 200714% of AP revenues in 2007
Product Sustainability: The Development has been Strongly Accelerating
Product Sustainability increasingly becoming a REAL Business Issue, driven by businesses (e.g. Wal-Mart, General Electric, etc.)
It is becoming a core competitive issue
© 20 0 8 AL CAN I NC. Slide 4
It is becoming a core competitive issue differentiation of products and suppliers (brand value)
Demand globally accelerating with regional differences
Europe & Japan: steady development
North America: interest “exploding”
Other Regions: strongly emerging
Environment
Social
Multi criteria sustainability assessment
End of Life (disposal)
Raw materials/ suppliers
customer
Availability
Price
Product Stewardship ⇒ Top-line growth
The Business Case: Product Stewardship as Emerging Issue just as Quality 40 years ago
© 20 0 8 AL CAN I NC. Slide 6
Based on: U. Golüke, WBCSD
Product Stewardship: New opportunities for differentiation
QualityMass Customization
Key Challenges in Implementing Product Stewardship
Has to fit to the organizational structure(s): no “one size fits all”
Complexity vs. easy-to-use approaches
Too simplistic: “perceived sustainability“ often misleading
© 20 0 8 AL CAN I NC. Slide 7
Too simplistic: “perceived sustainability“ often misleading
Differentiation between management/improvement approaches (e.g. internal application) and reporting (e.g. Wal-Mart scorecard)
Product system vs. (traditional) material view
Product System AND Business Model needs to be taken into account
Don‘t reinvent the wheel
Reinventing the Wheel?
Example Alcan Packaging: Product Stewardship is a Key Business Strategy Management/process approach (vs. project approach)
managing sustainability as quality is managed integration into EXISTING business processes, no add-on
Getting ownership throughout the business functions, e.g. Management R&D
© 20 0 8 AL CAN I NC. Slide 9
R&D Procurement Sales and Marketing
”Mainstreaming“: Capacity building, aligning organization and tools
Overall improvements of product portfolio in the focus (incremental changes, no silver bullet)
(More) sustainable products are a strategic market focus innovation, growth opportunities
Evolution of society
© 20 0 8 AL CAN I NC. Slide 10
From local food supply for own demand to global mass consumption
Stone Age Middle Age Modern Society
Evolution of society = Evolution of packaging
© 20 0 8 AL CAN I NC. Slide 11
Requirements for modern packaging
Alcan Packaging Environmental Sust. Criteria
• Emissions to air (global warming gases / others)
• Impact on biosphere / Use of non-energy resources
• Use (depletion) of energy resources
• Emissions to water / Emissions to ground
© 20 0 8 AL CAN I NC. Slide 13
• Emissions to water / Emissions to ground
• Impacts from waste treatment
• Good international practices regarding Safety & Health
• Quality of Safety & Health management systems
• Safety & Health impacts
© 20 0 8 AL CAN I NC. Slide 14
• Risk of severe safety or health accident
• Adherence to Labor Rights
• Social Differentiation
• Assets needed
• Market differentiation
• Market differentiation
• Human capital factors
• Technical quality factors
Think broadly about issues, opportunities, and impacts
ASSET™*: Making Product Stewardship Operational
n k in
Engage and partner w/ customers, suppliers, end consumers, …
Make connections, integrate sustainability into our businesses
L if
e C
y cl
e T
h in
Stewardship
*ASSET (Alcan Sustainability Stewardship Evaluation Tool) is a trademark of Alcan Inc. and/or its affiliates, patent pending
Defining the product and its use (life cycle): input/outputs, plant, markets
Calculation of LCA results according to ISO 14040
Environmental life cycle assessment (LCA) in ASSETTM
© 20 0 8 AL CAN I NC. Slide 17
opportunities
© 20 0 8 AL CAN I NC. Slide 18
Identification of hot spots (--), weaknesses (-), strengths (+), opportunities (++)
hot-spots
2
1.2
0.25
1
0
0.5
1
1.5
2
Environment
Social
Economic
© 20 0 8 AL CAN I NC. Slide 19
-0.25 -0.4
Management Integrate sustainability aspects into strategic decision making for products and investments ( continuous improvement)
Product Development Anticipate risks and opportunities as well as improvement
© 20 0 8 AL CAN I NC. Slide 20
Anticipate risks and opportunities as well as improvement options for new products Identify options for resource reductions, smarter solutions Uses ASSET™ as standard screening for product portfolio (routine part of product development process)
Procurement General standards for suppliers (code of conduct, social responsibility and EHS audits) Specific cooperation on improvement projects
Sales & Marketing
Support our customers to prepare for existing and upcoming sustainability frameworks and other regulations
Communicate responsible on sustainability issues
Roles of key departments/functions 2/2
© 20 0 8 AL CAN I NC. Slide 21
Communicate responsible on sustainability issues
Sustainability Functions
Provide objective elements on sustainable aspects of packaging (internally/externally)
Resist to misleading “green” statements and to popular short term trends fact-based
How to consider sustainability of packaging ?
Consideration of
life cycle of packaged good
role of the consumer
Evaluation of sustainability performance needs more than just looking into packaging
environment social
© 20 0 8 AL CAN I NC. Slide 23
Coffee supply system – CO2 equivalents
Coffee Supply System (MJ/cup of coffee)
0,12
0,16
Milk
kg CO2-equ. per cup of coffee
© 20 0 8 AL CAN I NC. Slide 24
Espresso Black White Instant Black
Instant White
View Product Stewardship as a process (similar) to quality management
Focus on business value and core business functions
Sales & Marketing as well as R&D/innovation can be powerful drivers
© 20 0 8 AL CAN I NC. Slide 25
powerful drivers
Develop tools and organization TOGETHER with other business functions
Better be roughly correct than exactly wrong
Sustainability is not only about environment, don‘t forget other pillars
© 2 0 0 8 A L C A N I N C.
Contact: Dr. Gerald Rebitzer Director Product Stewardship Alcan Packaging c/o Alcan Technology & Management Badische Bahnhofstr. 16 8212 Neuhausen Switzerland
[email protected]

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