Definitions: Sustainability: Sustainable Packaging as defined by the Sustainable Packaging Coalition October 2005

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2 Enviropack is a packaging company that offers sustainable, compostable and biodegradable packaging solutions to the food industry. As one of the largest consumers of packaging, the food industry has an obligation to find more earthfriendly packaging options for their clients. The volatile price of plastic as well as the issues surrounding disposal of plastic packaging, and international pressure to reduce greenhouse gas emissions has created the need to seek alternative environmentally viable and cost effective packaging.

3 Definitions: Sustainability: Sustainable Packaging as defined by the Sustainable Packaging Coalition October 2005 Is beneficial, safe & healthy for individuals and communities throughout its life cycle; Meets market criteria for performance and cost; Is sourced, manufactured, transported, and recycled using renewable energy; Maximizes the use of renewable or recycled source materials; Is manufactured using clean production technologies and best practices; Is made from materials healthy in all probable end-of-life scenarios; Is physically designed to optimize materials and energy; Is effectively recovered and utilized in biological and/or industrial cradle to cradle cycles.

4 Biodegradable: Biodegradable means materials that will degrade (breakdown) to the product s most basic elements over a period of time. These can degrade through sunlight (photo- degrading), water or from naturally occurring micro-organisms such as bacteria, fungi, etc. Note: Internationally, there has, to date, been no requirement for leaving no toxic residue and there is no specific time requirement for biodegradation to occur. The phrase biodegradable, like recyclable, merely describes the composition of a product. Its potential, not its inherent value.

5 Compostable: Compostable materials are manufactured from organic, natural materials like corn, palm fibres and sugarcane bagasse. All these products are required to be manufactured from annually renewable resources and are manufactured according to sustainable requirements. They are required to be non-toxic while in use and decompose back to the soil. These materials are capable of undergoing biological decomposition in a compost site and will break down to carbon dioxide, water, inorganic compounds and biomass at a rate consistent with known compostable materials (e.g.. Cellulose). Compostable materials do not leave any toxic residue whatsoever.

6 Sugar Cane Bagasse Specifications: Our products meet global hygiene and food safety standards Benefits: Oil, water and acid resistance Temperature resistance: Oil 150 C Water 100 C Oven 220 C Fridge -25 C Safe application: Microwave, Oven, Steamer Biodegradable at ambient temperature Biologically Degradable in garbage, soil and water Decompose into CO2 and H2O No extra process and resources incurred Flexible shapes and sizes Unique colouring technologies Biodegradable PE and PET applications

7 Global Trends and Legislations: In recent years pressure on government to impose legislation regarding the use of non-degradable expandable polystyrene (EPS) products has been increased. Single-use disposable EPS food and beverage containers are discarded by consumers around the world at an overwhelming rate of 438 billion units per year or 140,000 units per second. Given the severity of white pollution brought about through the disposal of EPS food containers, drink sets & disposable food containers, the environment will benefit from the sustained utilisation of environmental-friendly substitutes.

8 Current Carbon Taxes in South Africa: Plastic bag levy (2004): This was introduced in an attempt to reduce consumption of plastic bags. It has been ineffective as only 4 cents of the entire price charged for plastic bags, by retailers is levied to tax. Electricity Generation Levy (2008): South Africa s first explicit Carbon Tax. This is set at 2 cents per KWh electricity generated. Vehicle Taxes (2010): Vehicle emissions tax for new cars has been imposed at R75 per gram of CO2 emitted per kilometre and is levied on new vehicles with CO2 emissions exceeding 120g/km

9 Future SA environmental taxes: As was indicated by Finance Minister Pravin Gordon, in his 2010 budget speech, environmental taxes are being investigated both to raise more revenue and to meet environmental objectives as laid down by the various COP summits and the Kyoto protocol. South Africans, as businesses and individuals, will see the introduction of environmental taxes and charges comprising: A waste water levy in terms of the National Water Act (36 of 1998) Pollution charges in terms of the new Air Quality Act (13 of 2004) Levies on waste streams of various products likely to include chemical waste and plastics. A landfill tax at municipal level.

10 Pending Legislation on Carbon Tax: South African Government is determined to achieve a low carbon and green-job based economy and are proposed to include: The prioritization of mitigation interventions contributing to SA s planned emissions trajectory, particularly in industrial, transport and energy sectors. Use of incentives and disincentives through regulation, and use of economic and fiscal measures to promote behaviour change. Three options for imposing are carbon tax are being explored: Emissions tax applied directly on CO2 emissions An upstream tax on fossil fuel inputs based on Carbon content of fuel A downstream tax imposed on outputs or products generated from fossil fuel e.g. plastic products, electricity, etc.

11 Summary: Carbon taxing, in South Africa on packaging as on most things, is imminent and non negotiable. The most obvious option is to seek greener, more Eco-friendly packaging options that are readily available, fully certified and preferably cost effective. A full product catalogue, certifications and assistance regarding environmental issues can be obtained from Enviropack. ***