Packaging product stewardship:

just compliance or is it critical to market access?

Paul Curtis

Executive Director

Packaging Council of New Zealand Inc.

10th July 2012

What is Product Stewardship?

New Zealand Packaging Product Stewardship Scheme– KPIs (waste reduction, education, re-use, recycled

content, community investment)

– Code of Practice for Packaging Design, Education

and Procurement

Australian Packaging Covenant– Action plans

– Sustainable Packaging Guidelines

Can the reporting protocols behind product stewardship

schemes be used as a basis

for gaining competitive advantage?

Packaging and Sustainability

from the consumer’s perspective

Shift in consumption

structure and

consumption behaviour

Ease of opening and closing

Resealability

Portioning aids

Shelf life

Multifunctional packaging

On-the go packaging

Packaging Inventions Being

Protected

Convenience vs Conscience – Food Packaging in the 21st Century, Thomson Reuters, 2011

Analysis of 14,000 patents between 2004 and 2009

Analysis of 14,000 patents between 2004 and 2009

Packaging Inventions Being

Protected

Convenience vs Conscience – Food Packaging in the 21st Century, Thomson Reuters, 2011

Analysis of 14,000 patents between 2004 and 2009

Analysis of 14,000 patents between 2004 and 2009

In conclusion, there is limited ability to use product stewardship reporting protocols for competitive advantage at the consumer marketing level.

Packaging and Sustainability

from a global supply chain perspective

Five Core Issues

Five Core Issues

While there are dozens of sustainability-related issues that any given company might be concerned with, there are five core issues that are serving as vehicles for companies’ broader sustainability strategies.

These issues are being used as ‘hooks’ to hang broader discussions off.

Five Core Issues

Packaging will receive more and more attention in the future.

While energy and water use will become more constrained and governments put more efforts into reducing waste, the packaging market will continue to grow.

ISO Standards, Packaging and

the Environment

ISO/DIS 18601 - Packaging and the environment - General

requirements for the use of ISO standards in the field of packaging and

the environment

ISO/DIS 18602 - Packaging and the environment - Optimization of the

packaging system

ISO/DIS 18603 - Packaging and the environment - Reuse

ISO/DIS 18604 - Packaging and the environment - Material recycling

ISO/DIS 18605 - Packaging and the environment - Energy recovery

ISO/DIS 18606 - Packaging and the environment - Organic recycling

Why have they done it?

Sustainability is an essential element of business strategy

Packaging is critical to this strategy

Using consistent measures of sustainability reduces complexity, costs and enables better results

Government agencies are coming down hard on unsubstantiated environmental claims

Packaging Optimisationfrom a supply chain perspective

Supply Chain Efficiency

Retail Pressures

Shelf ready packaging and displays

Closed loop packaging

Bulk transportation

Selling & transport unit cube utilisation

Supply Chain Efficiency

Retail Pressures

Shelf ready packaging and displays

Closed loop packaging

Bulk transportation

Selling & transport unit cube utilisation

Supply Chain Efficiency

Retail Pressures

Shelf ready packaging and displays

Closed loop packaging

Bulk transportation

Selling & transport unit cube utilisation

Supply Chain Efficiency

Retail Pressures

Shelf ready packaging and displays

Closed loop packaging

Bulk transportation

Selling & transport unit cube utilisation

Supply Chain Efficiency

Retail Pressures

Horticulture Automotive parts

Liquid liners

Shelf ready packaging and displays

Closed loop packaging

Bulk transportation

Selling & transport unit cube utilisation

Supply Chain Efficiency

Retail Pressures

Source: The Consumer Goods Forum

Smaller package footprint. For a bottle this means more rectangular

but does not mean it needs to look like a rectangle.

Less headspace, especially for products sold in cartons or other

rectangular packages.

Change the package height to fully utilize the available pallet height.

Taller/thinner packages or shorter/deeper packages with an

additional layer per pallet.

Change round containers to square or rectangular.

Case sizing and pallet pattern that fully utilizes the pallet.

Divider design that reduces the case size.

Eliminate the case or other secondary packaging.

Novel shipping platform that takes less volume than a wood pallet.

Design packages so they nest.

For flexible products, tighter packaging to compress the product

Options to Consider Increasing Cube Utilization

External Sustainability Reporting

Source: Packaging Council of NZ, Code of Practice for Packaging Design, Education & Procurement

In a nutshell, all the issues I’ve described are creating a demand

right across the supply chain for greater transparency.

Where do you start?

2010 - INTERNATIONAL STANDARDS

ORGANISATION (ISO)

Development of ISO 18600 Series

Packaging & Environmental Standards

2011 - INTERNATIONAL STANDARDS

ORGANISATION (ISO)

Draft Standards in global circulation

for review & comment

2012 - INTERNATIONAL STANDARDS

ORGANISATION (ISO)

ISO 18600 series finalised & in use

2011 - GRI G3.1 Guidelines Released

2012 - CONSUMER GOODS FORUM/ISO/GRI/PAC.NZ

Global Protocols on Packaging Sustainability

Indicators & metrics framework all aligned

2008 - GLOBAL CEO FORUM

Global Packaging Project

initiated by Consumer Goods Forum

on Packaging Sustainbility 2.0

2011 - CONSUMER GOODS FORUM

Release of The Global Protocol

2010 - CONSUMER GOODS FORUM

A global Language for Packaging & Sustainability

2010 - 11 Pilot Phase/Testing

2010 - PAC.NZ

2006 GRI G3 Guidelines Released

2012 - PAC.NZ

Release of Code of Practice

Version 2.0

2009 - AUSTRALIAN PACKAGING

COVENANT - Draft

Sustainable Packaging Guidelines

2010 - AUSTRALIAN PACKAGING

COVENANT - Release new

2009 - PAC.NZ

Develop new Code of Practice

Release new Code of Practice

GLOBAL DEVELOPMENT OF PERFORMANCE INDICATORS AND METRICS 1997-2012 USED IN THE CODE OF PRACTICE

Sustainable Packaging Guidelines

2011-12 - PAC.NZ

Review Code of Practice

2008-9 SUSTAINABLE

PACKAGING

COALITION (SPC)

Develops Sustainable

Packaging Indicators

& Metrics Framework

2007 - WALMART

Packaging Scorecard

2008-10 - GLOBAL BRAND OWNERS & RETAILERS

Release of variety of Supplier Scorecards

1997 GRI Founded

2002 - GRI G2 Guidelines Released

Reporting Protocols

There is a great deal of synergy and interconnectivity between the various reporting protocols, measurement systems and metrics so it is often not an onerous as it would first appear to calculate a range of metrics.

It is good practice to establish measure and monitor systems within your own business, which are relevant to your own industry, operations and those of your clients/customers. With further demands for operational transparency, particularly around environmental and social issues, it is important to build a flexible approach within your business to meet these demands through establishing good reporting structures and meaningful metrics which will withstand the closest of scrutiny from both internal and external stakeholders.

Global Protocol on Packaging Sustainability 2.0 GRI Protocol – G3.1 Reporting Guidelines ISO Standards Pac.NZ Packaging Product Stewardship Scheme KPI

Summary

Product stewardship is essentially a compliance

exercise.

It’s difficult to translate product stewardship reporting

protocols into a marketing opportunity at the consumer level.

There is considerable scope for using the product

stewardship reporting protocols with trade marketing to gain competitive advantage through the global

supply chain.

Questions?