Environmental Status Report 2012

Transcription

1 Environmental Status Report 2012

2 Contents About Elopak...03 CO2 and beyond...04 Business highlights...06 Pillar #1: Renewable raw materials...08 Pillar #2: Sustainable energy...09 Pillar #3: Sustainable logistics...10 Pillar #4: Customer operations efficiency...11 Pillar #5: Total recycling...12 Pillar #6: Culture and governance...13 Auditor's report...14 Environmental parameters...15 Published by Elopak AS Group Headquarters P.O.Box 418 Skøyen, 0213 Oslo Norway Editorial Board: Marianne Groven, Dagfinn Hansen, Ingrid Lille Thorsen Layout: Signus, Elopak Print: Grøset Photo: Elopak, Shutterstock, Grønt punkt, WWF Illustrations: Elopak Text: Elopak

3 Our sustainability vision We want Elopak to achieve absolute sustainability. A company with zero net impact on the environment. And we are aiming for nothing less. 100 % About Elopak Elopak is one of the world s leading liquid food packaging suppliers. We produce the Pure-Pak cartons which are used by and associated with many premium beverage and retail brands. With employees and revenue of 940 million, we produce and sell more than 12 billion cartons globally, through 15 manufacturing plants and a global network of sales and service personnel. Based in Norway, and owned by the Ferd Group (one of Norway s largest privately owned industrial and investment groups), we continually develop our packaging solutions to match the changing global demands for packaged foods. Our position in the market is as a premium provider. We only produce high quality cartons which enable our customers to effectively differentiate their respective brands, through visual attractiveness, environmental advantages, superior quality and convenience. Environmental Status Report

4 CO 2 and beyond why sustainable business means following a multi-dimensional strategy In 2012, after a five-year focus on climate change and CO 2 emissions, Elopak established a strategy with a broader scope to bring the group closer to a more complete sustainable business. We launched our strategic roadmap Future Proofed Packaging - which is the direction that Elopak's business will head in the years to come. The roadmap is a good starting point in detailing action plans as well as changing attitude and behavior in the company. We aim to make our sustainability actions and behavior an integral part of the company s DNA. Elopak defines a sustainable company as an organization which: Bases its behavior on a detailed understanding of the environmental and social context in which it operates; Works within understood limitations of that system to reflect demands and requirements of society; Ensures that its impact on environment and society is either neutral or positive. We have identified five strategic pillars to bring us closer to a sustainable business. In addition, we have a sixth pillar related to company culture and governance. We see this as a prerequisite for the implementation of the five strategic pillars. #1 #2 #3 #4 #5 #6 Renewable raw materials Sustainable energy Sustainable logistics Customer operations Total recycling Culture and governance * TCO 2 see page 11 for explanation 4 Environmental Status Report 2012

5 Pillar #3: SUSTAINAbLE LOGISTICS Pillar #4: CUSTOMER OPERATIONS Pillar #2: SUSTAINAbLE ENERGY frenewability grecyclability Pillar #1: RENEwAbLE RAw MATERIALS Pillar #5: TOTAL RECYCLING Elopak focuses on the five strategic pillars which reflect how we do business and which require that all our employees participate in the journey towards Our pillars have been established along multiple industrial dimensions: Renewability - regarding raw materials and energy consumption Recyclability - for our products and for the process to collect and re-use Responsibility - reducing our CO2 emissions, not only in our internal production but through the entire value chain. CEO Pillar #1: Renewable raw materials Production Marketing Sales R&D Purchasing HR Finance Pillar #2: Sustainable energy Pillar #3: Sustainable logistics Pillar #4: Customer operations efficiency Pillar #5: Total recycling Pillar #6: Culture and governance As outlined in the strategic roadmap, 2012 and 2013 are used to establish a solid base line for all five pillars. Most of the strategic pillars are covering cross-functional activities. All the pillars are well anchored in the top management and we have defined specific key performance indicators to be able to monitor the effects of our efforts and progress. Environmental Status Report

6 Business highlights 2012 turned out to be quite an eventful year in the history of Elopak. The market developed dynamically, opening up both threats and opportunities. We undertook a number of investments and restructuring processes to adapt to these challenges. It was a good year for Elopak in financial terms. Realizing operating improvements and the implementation of strategic investments and action programs have the potential for improving the results further, in the years to come. Elopak has a multi-dimensional approach, focusing not only on profit, but also on the planet and the people. This is what we call P 3 or triple bottom line. People Elopak is represented in more than 40 countries and has employees. Through a process that involved all Elopak s employees, we renewed and implemented our Code of Conduct in Profit Net sales revenues reached 940 million, with an operation profit of 65 million, stemming from sales of over 12 billion cartons globally. Planet Absolute CO2 emissions on Group level are down by 7 % since 2008, and CO2 emissions relative to produced units are reduced by 12 %. 6 Environmental Status Report 2012

7 Total energy consumption: mwh Total energy consumption: per produced carton: 7 % Hazardous waste: 260 tons Recycling of paper waste in production: tons Total recycling of cartons in Europe: 31 % to 39 % Decrease compared to 2008 P 3 + Increase compared to 2008 Total CO 2 emissions: tons Absolute CO 2 emissions per produced blank: 12 % Produced cartons: 6 % Absolute carton production: 670 million Cartons produced per employee: The figure above shows some of the changes Elopak accomplished for certain environmental parameters from 2008 to Elopak successfully decreased energy consumption, hazardous waste and CO2 emissions. In addition, a high focus on safety has reduced the number of injuries in our production facilities. We also increased our total production, in addition to increasing recycling of both our internal waste and our sold cartons. Environmental Status Report

8 Pillar #1: Renewable raw materials Elopak s main raw material is paperboard, a naturally renewable raw material. Elopak is committed to sourcing all paperboard from responsibly managed forests as our contribution to fight illegal logging and the depletion of the world s forests. During 2012, Elopak further increased the sales of cartons certified according to the Forest Stewardship Council (FSC ). Elopak continues to FSC certify production units and all our fully owned production plants are now certified. The challenge is access to FSC certified material. Elopak continue to work together with our suppliers to increase the supply. In 2012, we have almost eliminated the purchase of paperboard from sources that cannot be documented (either FSC certified or according to the principles of FSC Controlled Wood). Elopak is participating in several international R&D projects that involve polymer specialist companies and other relevant members to develop and test potential new polymers. Several tests have been performed during 2012 and we continue in 2013 to research alternatives to fossil-based polymers for both carton barriers and closures. There are at least two very important criteria for choosing new materials: Firstly, we are making packages for valuable and nutritious dairy and juice products. This means that we cannot compromise on food safety and quality as this may jeopardize the product filled in our cartons. Hence a rigorous industrial testing is necessary before new cartons are offered to our customers. Elopak has invested in testing potential new materials for both carton barriers and closure materials. Not specified 2 % FSC Certified 17 % FSC Controlled Wood 81 % Secondly, we will not use renewable material from sources which are in competition with human food production. Elopak is focusing on renewable materials from third generation feedstock. These are products derived from materials that cannot be used for human food or that today represents a waste problem. Such materials are, for example, waste from the forest industries or food waste. In addition to these criteria we will make sure all bio-based materials are certified according to international standards. This will guarantee the consumer that the products come from sustainable and verifiable sources, as is the case with FSC certified paper. Elopak s global purchase of board in All board purchased as FSC certified material is converted into cartons with the well-known FSC label. Our goal is to launch a renewable carton and cap during Further, by 2016 we aim to launch alternative barriers in addition to expanding our offer of renewable products. 8 Environmental Status Report 2012

9 Pillar #2: Sustainable energy Energy consumption is the major source of our CO 2 emissions. Reducing the energy consumption and working to replace fossil energy sources with energy from renewable sources will reduce our CO 2 footprint considerably. At the same time this follows our principle of renewability for input factors to our industrial activity. To challenge our energy consumption we have a three tier approach: Absolute reduction of energy consumption per produced finished product; Exchange fossil based energy sources to renewable sources; Evaluate the purchase of CO 2 quotas through investments in renewable energy projects and 2013 are used to measure and understand where the energy is consumed and to find a standard of energy consumption for producing our cartons. This project is a detailed investigation to determine which of our manufacturing units is most efficient in using its energy input. To obtain this information Elopak will need to invest in advanced measurement equipment in many of our production sites around the world. We are exploring why there are differences between products, technologies, geographic locations, differences between seasons and maybe also differences between operators. We have determined and selected a pilot installation that will be closely monitored throughout This will give us valuable experience to implement improvements on all sites. A preliminary investigation of the sources in Europe for Elopak s consumption of electricity shows that only 19 % of electricity consumption is coming from renewable sources, such as hydro, wind and solar. By 2014 we will implement actions to reduce energy consumption and use 20 % renewable energy. By 2016 we aim to use 35 % renewable energy in addition to reducing our energy consumption by 10 %. Energy 93 % Non-renewable 54 % Nuclear 27 % VOC * 1 % Travel 6 % Renewable 19 % Sources of CO2 emissions in the Elopak group (2012). Electricity sources in Europe (2012). *Volatile Organic Compounds Environmental Status Report

10 Pillar #3: Sustainable logistics Projects to optimize Elopak s logistics are running continuously. Logistics affect both costs and environmental factors and are hence of high priority. This pillar shows that Elopak is looking beyond its own industrial borders to influence the environmental physical impact of the entire value chain, from forest to recycling. The pillar activity in 2012 and 2013 is to establish a more genuine insight into how much CO2 emissions are caused by transporting raw materials, semi-finished and finished products. The scope of this investigation is the transportation of goods from forest to our customers gates. Looking at the total value chain from the forest to recycling after use, the CO2 emissions for Elopak s 12 billion cartons is approximately 1,1 million tons (excluding the filled product). Elopak s internal operations represent only 6 % of these. This means that even if Elopak s production is carbon neutral, our value chain s CO2 emissions are still over one million tons. With this in mind, Elopak choose to look at our entire value chain, both up-and downstream, to reduce CO2 emissions. In connection with establishing new Environmental Product Declarations (EPD) for most of our products, we have made an effort to track all distances that raw materials and finished goods travel. Further, we have also started to investigate what sort of transportation vehicles are employed in these activities. It is a goal for Elopak to influence the suppliers of logistic services to minimize their impact on climate through their CO 2 emissions. A preliminary evaluation with the current distances and vehicle types shows that for a typical Elopak product for fresh milk, transportation, -inbound, -internal and -outbound, counts for 8 % of the carton's total footprint. Transport 8 % Raw material 77 % Elopak 15 % The CO2 footprint of an Elopak carton split into raw materials, Elopak s internal operations and logistics. When a more detailed baseline is established, the environmental dimension will be integrated with negotiations between Elopak and the transport supplier. Elopak will also initiate discussions with both raw material suppliers and customers to identify optimizing potentials and cooperate more closely with respect to transportation services. By 2014 we will perform an environmental rating of all our logistics suppliers in addition to reducing CO2 emissions per carton per km by 3 %. By 2016 we aim to further reduce the emissions per carton per km by 8 %. 10 Environmental Status Report 2012

11 Pillar #4: Customer operations efficiency Elopak uses the term Total Cost of Ownership (TCO) and presents this in discussion with customers. The term includes information for the customer that identifies the cost of buying and owning systems, filling machines, cartons, caps and other relevant products from Elopak throughout a specified lifespan of the system. An additional dimension to this is the TCO 2, combining the TCO with the Environmental Impact of Ownership (EIO). The establishment of a baseline for this environmental performance has started and will continue throughout 2013 and onward. We will map the TCO 2 for all relevant equipment that customers can buy from Elopak. Once the baseline is established, enhancements and new developments will also be measured against the filling machine's environmental impact over a normal product lifespan. Like pillar #3, pillar #4 takes the initiative outside of Elopak s borders. At the same time it will be an important competitive parameter for Elopak as our customers are putting additional emphasis on the environmental performance of their suppliers products and how these products are impacting their own carbon emissions and costs. As a consequence of this pillar, the environmental aspect of designing and producing new filling machines and new carton systems will have a much more prominent position in the development process. Optimization of relevant environmental parameters will be an integral part of the development process of a filling machine. Environmental Status Report

12 Pillar #5: Total recycling To Elopak, recycling of our internal waste and of beverage cartons after use is of high importance. Our cartons are primarily made from renewable materials which can easily be reused for other paper-based products. Recycling is beneficial since it reduces the need for virgin material in addition to reducing the amount of waste. During 2012, Elopak continued working to increase local recycling systems in the areas in which we operate in addition to working internally to reduce the amount of waste and increase internal waste recycling. There are large variations between different countries when it comes to recycling of beverage cartons. Annually this data is collected and compiled by the Alliance for Beverage Cartons and the Environment (ACE). We are mapping three different end-of-life situations for the carton recycling to new products, energy recovery and landfill deposition. Elopak is focusing on increasing the recycling dimension of the cartons. This is done together with industry peers, ACE in Europe and Carton Council in Americas. The work is mainly carried out locally in cooperation with the local government and according to local regulations. Elopak will continue to work in our main markets to increase carton recycling rates Beverage Cartons Recycling rates (EU-27+NO+CH) 000 tons tons Rate Recycling rate 40% % % % 20% % % 50 5% 0 0% Source: Alliance for beverage Cartons and the Environment (ACE) 12 Environmental Status Report 2012

13 Pillar #6: Culture and governance Elopak s Code of Conduct was renewed and introduced in 2012 to ensure that we as a global organization always act in accordance with acceptable ethical standards. This is one of the important dimensions in our journey towards a more sustainable company the People dimension along with Planet & Profit. A sustainable and responsible business starts with a safe and healthy work environment for our employees. A Corporate procedure for Health, Safety and Working environment has been established. It acknowledges our commitment to ensure the highest possible standards for health, safety and welfare at work. Elopak joined the SEDEX (Supplier Ethical Data Exchange) database in Sedex gives the possibility to store, share and report on information regarding labor standards, health & safety, environment and business ethics. By being part of this data exchange, we are supporting a culture of openness and transparency throughout supply chains. We also contribute to increase focus on human rights, labor standards, equality and sustainable and responsible business operations. All of our European units in Elopak are now reporting to SEDEX annually. The code of conduct represents a commitment on how to behave towards each other, towards our business partners, and towards the environment. Environmental Status Report

14 Deloitte AS Karenslyst allé 20 P.O.Box 347 Skøyen 0213 Oslo Tel: Fax: INDEPENDENT AUDITOR S REPORT To the management of Elopak AS We have reviewed the information presented in the section Environmental parameters on page 15 and the CO 2 Accounting data presented on pages (in total referred to as the Report ) in the Elopak Environmental Status Report The Report is the responsibility of the management of Elopak AS. Our responsibility is to draw a conclusion based on our review. We have based our work on the international standard ISAE 3000 Assurance Engagements other than Audits and Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standard Board. The objective and scope of the engagement were agreed with the management of Elopak AS and included those subject matters on which we have concluded below. Based on an assessment of materiality and risks, our work included analytical procedures and interviews as well as a review on a sample basis of evidence supporting the subject matters. We believe that our work provides an appropriate basis for us to conclude with a limited level of assurance on the subject matters. In such an engagement, less assurance is obtained than would be the case had an auditlevel engagement been performed. Conclusion In our opinion, in all material respect, nothing has come to our attention that causes us not to believe that: 1. Elopak has applied detailed procedures for the purpose of collecting, compiling and validating the information about CO 2 emissions included in the Report and based on the principles of the WRI/WBCSD GHG Protocol adopted as described on page 15 in the Report. 2. Data for presented in the Report is consistent with data accumulated as a result of the procedures noted above and appropriately reflected in the Report. Oslo, October 1, 2013 Deloitte AS Eivind Skaug State Authorized Public Accountant Frank Dahl Deloitte Sustainability Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK Limited company, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Medlemmer av Den Norske Revisorforening org.nr: Environmental Status Report 2012

15 Environmental parameters All reported data shown in the tables on the next two pages stems from Elopak s internal reporting system which was constructed in We have kept this system up-to-date and structured it according to the Greenhouse Gas Protocol. This takes full account of the following scopes: Scope 1 includes direct greenhouse gas emissions from sources operated by the Elopak itself. This includes direct emissions from our own industrial activity (for example, fossil fuel combustion for energy production). Emissions from the transportation of raw materials and finished goods to and from our operations are not included yet. Scope 2 accounts for indirect greenhouse gas emissions from the generation of purchased electricity. We have included indirect emissions from purchased electricity and heat (district heating). controlled by the company. We have included business travel by air, taxi, company cars and also indirect GHG emissions from Volatile Organic Compound (VOC) emissions that occur in production of our cartons. The conversion factors for calculating indirect CO 2 emissions from purchased electricity were developed by external consultants. These are based on information from the International Energy Agency (IEA) on energy production per country, taking account of recognized emission factors and efficiency factors for energy production. So-called green energy is not a part of the measurement system unless the origin of the energy is known and documented. We have chosen to keep these conversion factors constant since they were first formulated (in 2008), to allow us to measure the true impact of our initiatives. Scope 3 covers all other indirect emissions that are a consequence of the company s activities, but are from sources not owned or Environmental Status Report

16 CO 2 ACCOUNTING Elopak 100 % owned (production, sales & administration units) % 2008 Total CO 2 emissions CO 2 e % Produced units tunits % Carbon Emission Intensity CO 2 e/unit 5,12 4,87 4,99 5,19 5,92 87 % Electricity mwh % Electricity guarantied renewable mwh District heating (MWh) Burning Waste mwh % Natural gas m % Propane liters % Heating oil liters % Paraffin liters % Coal kg % Wood kg % Pellets kg % VOC emissions converted to CO 2 e tons % Airtravel converted to CO 2 e tons % Car & Taxi travel converted to CO 2 tons % RESOURCE AND WASTE DATA TOTAL CO 2 EMISSIONS SCOPE 1 tons % TOTAL CO 2 EMISSIONS SCOPE 2 tons % TOTAL CO 2 EMISSIONS SCOPE 3 tons % TOTAL CO 2 EMISSIONS tons % WATER Water consumption m % WASTE Board Waste (LPB) to recycling tons % Board waste (LPB) to incineration tons % Board waste (LPB) to landfill tons % Other Waste Paper/Blanks to recycl tons % Other Waste Paper/Blanks to inciner tons % Other Waste Paper/Blanks to landfill tons % TOTAL PAPER WASTE tons % Recycling of Paper Waste tons % Incineration of Board Waste tons % Landfill of Board Waste tons HAZARDOUS WASTE Solvents/ inks tons % Photochemicals tons % Cleaning towels (kg) tons % Waste oil (kg) tons % Other hazardous waste (kg) tons % TOTAL HAZAROUS WASTE tons % Energy consumption converted to mwh Electricity mwh % Electricity guaranteed renewable mwh % District heating (MWh) Burning Waste mwh % Natural gas mwh % Propane mwh % Heating oil mwh % Paraffin mwh % Coal mwh % Wood mwh % Pellets mwh % TOTAL ENERGY CONSUMPTION mwh % Total energy consumption per 1000 blanks kwh/ ,02 13,36 14,04 14,52 14,46 97 % Airtravel Absolute number of travel Airtravel Short haul # % Airtravel Medium haul # % Airtravel Long haul # % Airtravel Total # %

17 CO 2 ACCOUNTING Elopak Consolidated Group % 2008 Total CO 2 emissions CO 2 e % Produced units tunits % Carbon Emission Intensity CO 2 e/unit 5,51 5,72 5,74 5,86 6,28 88 % Electricity mwh % Electricity guarantied renewable mwh District heating (MWh) Burning Waste mwh % Natural gas m % Propane liters % Heating oil liters % Paraffin liters % Coal kg % Wood kg % Pellets kg % VOC emissions converted to CO 2 e tons % Airtravel converted to CO 2 e tons % Car & Taxi travel converted to CO 2 tons % RESOURCE AND WASTE DATA TOTAL CO 2 EMISSIONS SCOPE 1 tons % TOTAL CO 2 EMISSIONS SCOPE 2 tons % TOTAL CO 2 EMISSIONS SCOPE 3 tons % TOTAL CO 2 EMISSIONS tons % WATER Water consumption m % WASTE Board Waste (LPB) to recycling tons % Board waste (LPB) to incineration tons % Board waste (LPB) to landfill tons % Other Waste Paper/Blanks to recycl tons % Other Waste Paper/Blanks to inciner tons % Other Waste Paper/Blanks to landfill tons % TOTAL PAPER WASTE tons % Recycling of Paper Waste tons % Incineration of Board Waste tons % Landfill of Board Waste tons % HAZARDOUS WASTE Solvents/ inks tons % Photochemicals tons % Cleaning towels (kg) tons % Waste oil (kg) tons % Other hazardous waste (kg) tons % TOTAL HAZAROUS WASTE tons % Energy consumption converted to mwh Electricity mwh % Electricity guaranteed renewable mwh % District heating (MWh) Burning Waste mwh % Natural gas mwh % Propane mwh % Heating oil mwh % Paraffin mwh Coal mwh Wood mwh Pellets mwh TOTAL ENERGY CONSUMPTION mwh % Total energy consumption per 1000 blanks kwh/ ,40 13,51 14,02 14,25 14,39 93 % Airtravel Absolute number of travel Airtravel Short haul # % Airtravel Medium haul # % Airtravel Long haul # % Airtravel Total # %

18 18 Environmental Status Report 2012 Foto: Grønt Punkt, Margrethe Myhrer

19 Nina Jensen, CEO WWF-Norway The cooperation between WWF and Elopak is based on the company s strong commitment to reduce the environmental footprint of their production. Elopak s ambition to reduce the environmental footprint to virtually zero by 2020 is admirable and stands as guidepost for how we want to see business develop. WWF and Elopak have cooperated on specific reduction targets for Green House Gas emissions and also on sustainable sourcing of timber. The combination of unilateral commitments and a strong public voice in support of environmental regulations sets the example for how industry actors can challenge both themselves and the regulatory framework for their operations in a constructive race towards sustainability. Environmental Status Report

20 twitter.com/#!/pure_pak