Packaging, Sustaining the Asian Environment

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1 Packaging, Sustaining the Asian Environment B. Büsing Nestlé R&D Center Singapore PackAge 2009 International Conference on Packaging for Changing Markets

2 Outline Food packaging & environmental sustainability Environmental & demographic issues The functions of packaging The role of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

3 Why are you here today? Are you here to learn what is new? Are you here to see what competition is doing? Are you here to hear the buzz? Are you here to get away for a few days? Are you here to think?

4 Why am I here today? I am concerned about life on our planet for my children and their future

5 Decline in life support systems Ecosystems Climate Resources Water Urbanisation Consumption Increase in population & consumption Population

6 Climate change happens right now, what are we doing about it? Source: Potsdam institute

7 Why am I here today? I Want to be part of the solution, and working for Nestlé or your companies we have a chance to do that We need big ideas and people with passion to push for the right solutions, tradeoffs, timing, financials for the future

8 Why am I here today? I would like to influence YOU, at this conference, to make a difference in what you bring back to your teams at home and how you push them to consider the right choices You won t win all the battles but you need to keep up the pressure!

9 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The functions of packaging within the food & Beverage industry Packaging & Environmental Sustainability at Nestlé Weight reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

10 Food Industry is the main contributors to environmental degradation 1 st Food 2 nd Transport 3 rd Furnishings Source : Environmental Impact of Products (EIPRO) based on 7 existing studies & own analysis

11 Product impacts can be many times higher than those of packaging Chocolate vs packaging relative energy demand

12 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The function of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

13 Packaging communicates with the consumer

14 Packaging has to be convenient and relevant to the consumers life style

15 Preserve & Protect the Product, inappropriate packaging is a total loss In developing countries, 30-50% of the food which is being produced is being lost on the way from the farm to the consumers. Lack of Food processing Lack of packaging Inappropriate packaging Inappropriate distribution

typically represents 5% - 25% of Carbon Footprint

16 Under-optimised packaging that leads to damage has a far worse environmental impact Packaging typically represents 5% - 25% of Carbon Footprint Impact Packaging Materials 15% Sorce: Walkers Homepage

17 From cradle to gate, creating & preserving shared value Milk collection agencies in the area: Daily collection: 1.2 mio. kg Farmers benefiting directly Farm coolers & chillers installed: 730 Processing, Filling & Packaging Transport 12 month shelf life

18 In the western world, 30% of food is wasted 30% Wasted in Home! Packaging can help: Optimized pack size Appropriate pack performances together with appropriate shelf life WRAP study UK

19 Less packaging does not always translate into lower environmental performance Balancing Pack and Product Loss Impacts MJ/kg MJ/kg Product product and Pack ml 750ml 500ml Proportion 1l to 500ml (%) Energy in lost product Pack energy Mean pack weight / litre Source: L. Erlöv et al., Packaging a Tool for the Prevention of Environmental Impact, Packforsk report No. 194, June 2000.

20 Effective use of Packaging is essential to meet the needs of a modern society Packaging inherently contributes to sustainability: Environment Helps make best use of resources by preventing waste of Product Economics Makes business possible by allowing easy distribution of products Social Provides the consumer with fresh, nutritious and stable food products

21 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The functions of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

22 Nestlé s commitment; to reduce the environmental impact of it s packaging Nestlé is committed to reducing the environmental impacts of packaging, without jeopardizing the safety, quality or consumer acceptance of its products.

23 We employ several tools to reduce the environmental impact of our packages Source reduction Selection of packaging materials with low inherent environmental impacts (e.g. renewable materials bioplastics) Recycling / Recyclability, Incineration with Heat Recovery Systematic use of Eco-Design during packaging development

24 Since 1991 we have saved tonnes of packaging materials Total: tonnes ( ) tonnes saved in 2008!

5 grams Environmental Impact of Eco Bottle: Reduced PET usage by 579

25 Examples from Nestlé Waters Carbonated Soft Drink Bottled Water NWNA Bottle New NWNA Eco-Shape 28.8 grams grams 14.5 grams 12.5 grams Environmental Impact of Eco Bottle: Reduced PET usage by 579 tons in 2007 and by tons in 2008 Requires 25% less energy to produce

Same Performance with Less Weight, Source Reduction Initiatives by Nestlé India Corrugated shippers: Change specification from 5-ply (825gsm) to 3-ply (670gsm) Laminates

26 Same Performance with Less Weight, Source Reduction Initiatives by Nestlé India Corrugated shippers: Change specification from 5-ply (825gsm) to 3-ply (670gsm) Laminates Reduction of foil thickness from 9 to 7 microns. Reduction of LDPE layer from 50 to 28 microns. Glass Ketchup and Sauces: Up to 12% weight reduction Nescafe Glass Jar: 13% weight reduction

27 Source Reduction can only be achieved with the involvement of the whole value chain Material Suppliers/Converters Machine suppliers Brand Owners Consumer

28 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The functions of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

29 Bioplastics: There are misleading environmental claims Environmentally friendly Naturally derived Renewable Sustainable 100% Sustainable Compostable Eco-friendly EcoSafe Planet Friendly Degradable EarthSmart Totally degradable Green Nature s Friend

Cradle to gate LCA Green house gas emissions Petrochemical

30 Bioplastics environmental performance is generally better on weight basis Non-renewable energy demand Eco-profiles / Cradle to gate LCA Green house gas emissions Petrochemical polymers Starch-based PLA Polyesters Cellulose derivatives

Improved barrier to water is key to enter food packaging Equal WVTR to PET requires 1.

31 Improved barrier to water is key to enter food packaging Equal WVTR to PET requires times more bioplastics PP requires times more bioplastics Still better for environment?

32 Bioplastics are becoming cost competitive on weight basis Price range per material High & low range Polymer pricing [Eur/kg] Starch based PLA Other polyesters Cellulose based PET PP Sources: Bioplastics - Communication with suppliers; Plastics: High & low pricing Jan 2005 Aug 2006, HIPS PE

33 Bioplastics are only partially meeting processed food packaging requirements Packaging physical properties Quality & Shelf life Barrier to moisture, O 2, CO 2, flavors Light protection Mechanical protection Off-odors Appearance Density Processability Safety Migration, sealability - tightness Line efficiency Machinability Material environmental profile Cost competitiveness Sufficient supply Weakness Strength

Global production capacity for bioplastics is still insufficient Substitution potential is reduced by Cost Environmental performance Needs of competing sectors Mono-supply Technical performance

34 Global production capacity for bioplastics is still insufficient Substitution potential is reduced by Cost Environmental performance Needs of competing sectors Mono-supply Technical performance Source for RRM production: Bioplastics & Biodegradable Polymers, EU Market Introduction, H. Kaeb, Pira Biodegradable Plastics in Packaging Applications, Pira, Source for Plastics consupmtion: Biodegradability a panacea for packaging?, Pira International; The compelling facts about plastics 2007, Plastics Europe, 2008

35 New Generation of Bioplastics are needed Generation 1: Properties not adapted for widespread use for processed food packaging. Source: mainly corn (food crops) (current) Generation 2: Property improvements of generation 1 Bioplastics Conventional packaging materials like polyethylene. Source: sugar cane ( ) Generation 3: Optimised packaging materials from non-food sources agricultural waste products, other plants.. ( )

36 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The functions of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

37 Recycling & Recovery is key for Nestlé Nestlé support initiatives to recycle or recover energy from used packaging and the use of recycled materials.

38 Used Packaging is not waste Used Packaging is not waste, it is a resource for either recovering energy or recycling of materials. Emerging markets: 30 to 50% of solid waste remains uncollected!

39 Example of Valvert A holistic approach to reduce the environmental impact Cap without colorant for easier recycling 25% rpet Cardboard interleaves & trays made from 100% recycled fibre Smaller paper label 2g lightweighting Vegetable oil based ink All together, these efforts represent an environmental benefit over one year corresponding to: 1400 tons eq C0 2 avoided; 4500 trees saved i.e. 2.6 hectares 4200 crude oil barrels saved; 600 cars removed from the traffic over one year.

40 Outline Food packaging & environmental sustainability Environmental & demographic issues The role of the food & beverages industry The functions of packaging Packaging & Environmental Sustainability at Nestlé Source reduction Bioplastics Recycling & Recovery Eco-Design Tools Summary

41 Packaging Eco-design: Addressing issues when influence is high and costs low Cost for change Clean-slate LCA Eco-design Design freedom Idea funneling Idea 1b 1c Project 3a 3b 3c 4 6 Exploration Development Production

LCA decision support From internal decision making to communication of

streamlined LCA-based decision support Life Cycle Assessment screening

claims (regardless of media) Full LCA studies according to ISO 14040 &14044

42 LCA decision support From internal decision making to communication of claims Packaging innovation & renovation process Systematic use of streamlined LCA-based decision support Life Cycle Assessment screening studies Not a base for claims or public communication Communication of claims (regardless of media) Full LCA studies according to ISO &14044 Company specific data Sensitivity studies Uncertainty analysis Peer review Scientific publication

43 In summary, a holistic approach to packaging is needed Packaging must be in context of consumer and product needs Consider all packaging components, primary, secondary, transport packaging Covering entire packaging life cycle With a comprehensive set of impact categories

44 What I Would Like You To Do

45 What I Would Like You To Do Have courage! Leverage other companies you see here in Delhi doing what you think your company should do Use your creativity for new ideas! Send this message to your people; try a new material, a new process, a new piece of equipment or a radical new design that uses less of the planet s resources Have a heart for what life needs to be for your children and mine on this planet in the future.

46 Inspiration from the humble banana. Integrated, organic form that is in perfect symbiosis with it s content Waterproof Individual serving Comes as a multi pack Built-in-sell by date indicator Renewable resource Even a monkey can open it!

47 Questions?

Sustainability- Life Cycle Approach

Sustainability- Life Cycle Approach Packplus International Packaging Conclave Delhi(NCR), 8 th December 2012 Vijay V. Bhujle Intertek Expert Services(C&P) Intertek India Private Limited vijay.bhujle@intertek.com