National Packaging Covenant - Industry Perspectives

1. National Packaging Covenant - Industry Perspectives NPCIA Presenter National Packaging Covenant Workshops – Adelaide 5 September, 2005 National Packaging Covenant Industry Association

2. Overview • NPCIA • Implications of the Covenant • Targets and Key Performance Indicators (KPIs) • Data Requirements • Funding • Environmental Code of Practice for Packaging (ECoPP) National Packaging Covenant Industry Association

3. NPCIA • All company signatories (over 600) are automatically members • Responsible for coordinating and managing industry contributions • Executive: • Australian Food and Grocery Council (AFGC) • Australian Industry Group (AiG) • Australian Retailers Association (ARA) • Beverage Industry Environment Council (BIEC) • Packaging Council of Australia (PCA) • Plastics and Chemicals Industries Association (PACIA) • Working closely with Australian Council of Recyclers (ACOR) National Packaging Covenant Industry Association

4. Implications of the Covenant • Need to sign or re-sign by 30 September 2005 • Funding contributions generally same as previously structured • Same process as before – contact NPCIA • 5-year framework for demonstrating product stewardship • Greater certainty for industry investment and action • Could mean EPR (extended producer responsibility), European-style packaging levies, etc. mandated if Covenant fails to achieve objectives • Mid-term review end 2008 – Short time to show results • Overarching targets – all sectors must work together • Data collection and reporting costly, but critical National Packaging Covenant Industry Association

5. System-wide targets – all sectors must work together • Industry • contribute funding • Action Plans • data • Government • enforce NEPM • match industry funding • communication, public education • lead by example – procurement, etc • Local government • increase participation, commitment National Packaging Covenant Industry Association

6. Key Performance Indicators (KPIs) – Schedule 2 • Significantly more robust data is required: • to ensure more accurate baseline measurement • to help show demonstrable progress against targets and KPIs. • 29 main KPIs, Industry directly responsible for 13 • Annual Reports due to NPCC by 31 October each year • NPCIA will be compiling overall industry data and reporting to NPCC • NPCIA is seeking to develop an electronic reporting process to facilitate reporting for next year’s reporting timeframes • Use the Explanatory Notes for KPIs! National Packaging Covenant Industry Association

7. KPIs by Industry Sector • Individual brand owners – KPIs nos. 1, 6 (both are crucial!) • Total weight of consumer packaging (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 • 1C ratio of product to packaging (by weight) • Total weight, by type, of “non-recyclable” packaging sold per annum into the Australian market • 6A tonnage of “non-recyclable” packaging sold by material type and total • 6B total “non-recyclable” packaging as a % of total packaging sold National Packaging Covenant Industry Association

8. KPIs by Industry Sector (continued) • 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 recycled content incorporated into packaging manufactured (finished packaging) by material type National Packaging Covenant Industry Association

9. KPIs by Industry Sector (continued) • Packaging supply chain – KPIs nos. 3, 4, 22 (all three are crucial!) • 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 National Packaging Covenant Industry Association

10. KPIs by Industry Sector (continued) • Packaging supply chain – continued • 22. formal adoption of ECoPP and developing systems for its implementation • 22A ECoPP has been formally adopted • 22B actions and commitments that demonstrate ECoPP implementation National Packaging Covenant Industry Association

11. KPIs by Industry Sector (continued) • Individual recyclers & reprocessors – KPIs nos. 10, 18 • 10. Total weight of recycled consumer packaging sold to end-users. • 18. Contamination rates in consumer packaging recovery systems (eg. kerbside, events, venues, public places, workplaces). • Note the KPI Explanatory Notes have transferred reporting responsibilities for these KPIs to other entities National Packaging Covenant Industry Association

12. KPIs by Industry Sector (continued) • All signatories – KPIs nos. 16, 21, 26-29 • 16. Providing recycling collection facilities for post-consumer packaging generated on-site, and details if facilities are provided • 21. Estimated tonnage of consumer packaging recycled and sent to landfill respectively, 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 improvement and achievements against individual targets & milestones National Packaging Covenant Industry Association

13. Funding Arrangements – Schedule 6 • Industry commitment to at least $15 million • $3M p.a. for each of 5 yrs • to recover and recycle used packaging • Still matched by Government • Contribution is a significant component of signatories’ Action Plans • funding contributions schedule the same as previous schedule for virtually all categories and levels of turnover National Packaging Covenant Industry Association

14. Industry Funding Contribution Schedule National Packaging Covenant Industry Association

15. Turnover Definitions – same as before • Raw Material Supplier - Total sales of raw materials used in the manufacture of consumer packaging in Australia including industrial packaging. • Packaging Manufacturer/Household Paper Supplier - Total sales of packaging/household paper into consumer applications in Australia including Industrial packaging and sales for public events, e.g. for sporting events. • Packaging User - Total sales of packaged finished goods sold into the consumer marketplace in Australia, including industrial applications and sales for public events e.g. for sporting events. • Wholesaler/Retailer - Total sales of packaged finished goods. • Household Paper Supplier - Total sales of paper products for household use by manufacturer or distributor of such products. National Packaging Covenant Industry Association

16. Uses of Covenant Funding • Used differently than under the first Covenant • focus on Away from Home recycling, not just kerbside • primary focus on glass & paper, based on expected contribution to targets • Limitations: • cannot be used to subsidise prices or collection costs • must be economically viable • must represent good practice • Non-signatories can now apply for co-funded projects • Covenant Council and National Projects Group developing guidelines and Implementation Plan National Packaging Covenant Industry Association

17. Preliminary NPG Priority Areas for Funding • Increased recovery from ‘Away From Home’ sources • Continued support for local government to adopt good practice kerbside and drop-off systems • Expansion of materials collected and/or market development for materials which are currently poorly recycled (eg PP, PS) as well as use of glass fines • Targeted public awareness initiatives to increase packaging recovery and reduce contamination • Improved data on system performance • Strategic litter reduction or prevention programs National Packaging Covenant Industry Association

18. ECoPP and Guidelines – Schedule 5 • Little uptake to date • Revised & strengthened by NPCIA • involved active stakeholder engagement • Guidelines developed to assist implementation & assist decision making process • enforcement through Management Committee and referrals to NPCC • greater transparency • Recognises the role of packaging & promotes excellence in packaging: • minimum net impact on the environment, while • fully preserving the integrity of the product the packaging contains • Every industry signatory commits to adopt and implement ECoPP National Packaging Covenant Industry Association

19. ECoPP and Guidelines (continued) • Comprehensive Approach: • evaluate environmental impacts of new & existing packaging • statement of general environmentally responsible design principles • Guidelines assist companies to implement Code principles • Remains an industry Code of Practice • Strongly linked with the Covenant, especially the Action Plan process • finding of non-conformance leads to NPCC referral • KPI under the Covenant • Secretariat support by Australian Food & Grocery Council (AFGC) National Packaging Covenant Industry Association

20. Summary • Sign or re-sign by 30 September 2005 – same process as before • Funding contribution schedule same for most signatories • Uses of Covenant funding different now: • Focus on away from home recovery • Must focus on achieving Covenant targets • Must work together to demonstrate meaningful outcomes • Data requirements are more detailed, yet more critical than before • All companies agree to adopt and implement ECoPP • Help is available through NPCIA and industry associations National Packaging Covenant Industry Association

21. Contact the NPCIA Public Officer: Christie Judge christiejudge@easfy.com.au Phone: 02 9417 4822 Fax: 02 9417 4855 National Packaging Covenant Industry Association