Sustainable Packaging

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1 Sustainable Packaging Jeff Wooster The Dow Chemical Company January 2007 JJW 2007 Page 1

2 Definitions Sustain: to keep in existence (dictionary.com) to cause or allow something to continue for a period of time (Cambridge International) Sustainable: of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged (Merriam-Webster) JJW 2007 Page 2

3 Definitions Sustainability: a concept relating to the continuity of various aspects of human society (Wikipedia) institutional economical / financial ecological / environmental JJW 2007 Page 3

4 Other Possible Definitions Sustainable = made from a material that is grown? Sustainable = something that is recyclable? Sustainable = something that can be compostable? Sustainable = something with the potential to be reused? Sustainable = something that is degradable? JJW 2007 Page 4

5 Limited (Narrow) Definitions Some define sustainable packaging narrowly: The use of bio-based or renewable raw materials Packaging that is compostable/biodegradable Products that contain a high level of recycled content or are recycled at high levels The problem with these definitions: While such materials may have some sustainable attributes, this does not make them sustainable per se Traditional, petroleum-based packaging solutions offer different sustainable attributes Full life cycle thinking is a vital tool in understanding what solutions are more sustainable JJW 2007 Page 5

6 Limitations of the Renewable-Only Definition Economics Currently, renewable products are generally more expensive» Limited production capacity» Higher supply chain costs Need to consider much more than the price per pound of resin» Assuming physical properties that meet the needs of the packaging application, it s important to consider the amount of each resin needed to make each packaging unit.» Yogurt tub example: If the thickness of its walls is the same for any resin used, PE and PP have an advantage because their densities are only compared to 1.25 for PLA, for example JJW 2007 Page 6

7 Limitations of the Renewable-Only Definition Resource Use Tremendous amount of non-renewable energy are needed to grow crops and run the manufacturing process used to make renewable polymers Resources used to manufacture traditional polymer-based packaging make up only 1 percent of the total hydrocarbon material used in the world today.» People are using more oil in the form of gasoline to drive their cars to go shopping at Wal-Mart than is used in the packaging for the products they buy JJW 2007 Page 7

8 Sustainability Sustainable = made from a material that is grown Sustainable = something that is recyclable Sustainable = something that can be compostable Sustainable = something with the potential to be reused Sustainable = something that is degradable Sustainable = maximizing performance while minimizing the total combined use of scarce resources JJW 2007 Page 8

9 Dow s Definition of Sustainable Packaging Packaging over its life cycle that: Meets society s needs for performance and quality of life (social) Minimizes life cycle environmental impacts (environmental) Is efficient in how it uses resources (environmental) Is cost effective (economic) Is safe, meets all regulatory requirements and is easy to use (environmental and social) Does not compromise the ability of future generations to meet their needs (economic, environmental and social) JJW 2007 Page 9

10 Example Scale of Sustainability Combination A: Polymer performance is high, energy usage is low, environmental impact is low, made from renewable resources Combination B Combination C Combination D Combination E Combination F: Polymer performance is low, energy usage is high, environmental impact is high, made from non-renewable resources JJW 2007 Page 10

11 Desirability Resource Optimization Minimizing Energy Usage Minimizing Environmental Impact Using Renewable Raw Materials 1 What is the Most Sustainable??? 2 3 Resin Performance Properties and Processability JJW 2007 Page 11

12 Desirability Resource Optimization Minimizing Energy Usage Minimizing Environmental Impact Using Renewable Raw Materials Maximum Sustainability Resin Performance JJW 2007 Page 12

13 Desirability Resource Optimization Minimizing Energy Usage Minimizing Environmental Impact Using Renewable Raw Materials Options For Improving Sustainability 1 Good 2 3 Resin Performance JJW 2007 Page 13

14 Desirability Resource Optimization Minimizing Energy Usage Minimizing Environmental Impact Using Renewable Raw Materials Options For Improving Sustainability 1 Good Better 2 3 Resin Performance JJW 2007 Page 14

15 Desirability Resource Optimization Minimizing Energy Usage Minimizing Environmental Impact Using Renewable Raw Materials 1 Options For Improving Sustainability Best 2 3 Resin Performance JJW 2007 Page 15

16 On-Going Commitment to Sustainability In the past, many flexible packaging companies and their suppliers did not use the term sustainability to describe their corporate actions, packaging solutions or products Instead we used terms like: Energy savings Source reduction (downgauging) Recycling Waste reduction Community Service = Sustainability JJW 2007 Page 16

17 Example of Commitment to Sustainability Dow set 10-year environmental health and safety goals in 1995, and by 2005 achieved the following during the ten year period: Reduced enough solid waste to fill 425 athletic fields one meter deep (1.3 billion pounds) Reduced waste water equal to water usage for 170,000 U.S. homes for one year (183 billion pounds) Saved enough energy to power 8 million U.S. homes for one year (900 million BTUs) Reduced consumption of fossil fuels per pound of product by more than 20 percent A number of other achievements related to the safety of our employees and neighbors See for a full history JJW 2007 Page 17

18 Potential Activities Opportunities for FPA Members Change a rigid package to a flexible package Redesign a package to minimize eco-system impact Downgauge a flexible packaging for source reduction Redesign a resin to provide improved processability and increased manufacturing efficiency faster speeds & less waste Share best practices for reduction of energy consumption and minimization of waste generation JJW 2007 Page 18

19 Sustainability in Practice A Case Study Featuring Downgauging Less raw material is consumed Less energy used to manufacture & process Less waste generated Less emissions released JJW 2007 Page 19

20 Industrial Stretch Film made from LLDPE Improvements in resin design and polymer processing have allowed downgauging of industrial stretch film. (typical gauge listed) Year Reduction Standard Stretch Film % High Performance Stretch Film % JJW 2007 Page 20

21 Industrial Stretch Film With a global market size of about 3 billion pounds, this downgauging saves over 1 billion pounds per year of PE from being used to make stretch film 1 billion pounds = 36.6 trillion BTUs Equivalent to 293 million gallons of gasoline Enough to heat and cool 643,000 homes for a year While this reduction and savings have taken place, recycling has grown. * US EPA publication: Waste Management & Energy Savings: Benefits by the Numbers; 9/05 JJW 2007 Page 21

22 Thoughts on Life Cycle Thinking Life cycle thinking is an objective, scientific approach and provides a comprehensive view of a product from cradle to grave It is critical to look at a packaging application and its function Not appropriate to compare a pound of one material vs. a pound of another material It is important to look at how much of a given material is needed to provide the functionality required in that packaging application A balanced look at end-of-life options is also necessary For example, Recycling is great to a certain extent, however studies have shown that trying to capture to high a percentage of any material leads to wasted resources mostly in the form of energy. Composting is only desirable if composting is readily available to the consuming public. If these materials end up in landfills they are actually worse for the environment, since they evolve green house gases. JJW 2007 Page 22

23 Different Approaches to Sustainability But One Goal Major retailers, consumer product companies and packaging companies are also focusing on sustainability More than half of our surveyed organizations include stated sustainability or environmental positions on their web sites A majority of the positions involve reducing consumption of materials, increased recycling, increased re-use and renewable resources Virtually no interest in biodegradable packaging solutions JJW 2007 Page 23

24 Different Approaches to Sustainability But One Goal Packaging Companies Number of Companies Surveyed by Dow This is a collection of the largest packaging companies (of all types) in North America. Their major emphasis is increased recycle use, reduced EH&S issues, use of resources, and raw material consumption, increased reuse, and non-petroleum based renewable resources Total Packaging Companies and Subsidiaries Total Packaging Companies Those with Sustainable Packaging Positions on Internet Reduced Consumption Increased Recycle Increased Reuse Non- Petroleum Based Renewable Materials Reduced Use of Resources Reduced EH&S Issues Increased Compostability Increased Degradability Source: company web sites and public reports JJW 2007 Page 24

25 Different Approaches to Sustainability But One Goal Consumer Product Companies Number of Companies Surveyed by Dow The vast majority of the initiatives of CPGs involve reducing consumption, increased recycling, increased reuse, and nonpetroleum based raw materials (paper, aluminum, glass, etc.) Consumer Product Companies Studied Those with Sustainable Packaging Positions on Internet Reduced Consumption Increased Recycle Increased Reuse Non- Petroleum Based Raw Materials Reduced Use of Resources Reduced EH&S Issues Increased Compostability Increased Degradability Source: company web sites and public reports JJW 2007 Page 25

26 Different Approaches to Sustainability But One Goal Sales in $MM/year 1,000, , , , , ,000 20* 12 Top 20 Major Retailers 6 10 On the basis of annual sales, 75% of all sales involve companies with sustainable packaging initiatives. The vast majority of the initiatives involve reducing consumption, increased recycling, increased reuse, and renewable resources. 400, , , ,000 0 Sales Top 20 Retailers Those with Sustainable Packaging Positions on Internet *Number of companies surveyed by Dow Reduced Consumption Increased Recycle Increased Reuse Non- Petroleum Based Renewable Materials 1 1 Reduced Use of Resources Reduced EH&S Issues Increased Compostability Increased Degradability Source: company web sites and public reports JJW 2007 Page 26

27 How Products Fit the Wal-Mart Definition Wal-Mart talks about Sustainable Packaging in three key ways: 7 R s Scorecard Healthy Products Source: company web site, published information, and non- confidential materials provided to members of the Wal-Mart sustainable packaging value network JJW 2007 Page 27

28 Wal-Mart Definition - 7 R s 1. Remove (getting rid of unneeded packaging altogether) 2. Reduce (reducing the amount of packaging source reduction 3. Reuse (utilizing reusable packaging where possible) 4. Renew(able) (using renewable-resource-based packaging and renewable energy when possible) 5. Recycle(able) (using packaging materials that are made from recycled materials or can be recycled easily) 6. Revenue (not increasing the system cost of packaging) 7. Read (using packaging to educate the public about the benefits being delivered) These attributes are then incorporated into Wal-Mart s Sustainable Packaging Scorecard JJW 2007 Page 28

29 Wal-Mart Definition - Healthy Products To provide products that are safe for mother, child and the environment Wal-mart 2006 Wal-mart has established its Preferred Chemical Principles Wal-Mart will favor those products that do not contain the following:» Chemicals Harmful to Human Health» Carcinogens can cause cancer» Mutagens can damage genetic material» Reproductive Toxicants may affect reproduction or the unborn Chemicals Harmful to the Environment» Persistent do not break down in the environment» Bioaccumulative builds up in the food chain» Toxic causes death or damage to organisms in the environment When we (Wal-Mart) suspects that an ingredient in a product or the product itself is capable of causing harm to human health and the environment, we will act to find better alternatives. JJW 2007 Page 29

30 Wal-Mart Definition - Sustainable Packaging Scorecard To drive improvement in their packaging supply chain Wal-Mart has established a Sustainable Packaging Scorecard The Scorecard is an on-line, computer based software tool whereby each package sold at a Wal-Mart or Sam s Club store would be scored according to the following attributes:» Greenhouse gas emissions (life cycle) (15% weighting)» Renewable energy used (5% weighting)» Package to product ratio (15% weighting)» Cube Utilization (15% weighting)» Transportation Ave. distance package travels from mfg site to filling point. (10% weighting)» Recycle content (10% weighting)» Recovery Value / Recyclability of materials used (10% weighting)» Material Value (15% weighting)» Innovations to use less energy (5% weighting) JJW 2007 Page 30

31 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details - Greenhouse gas emissions (life cycle) from package production (15% weighting) Each packaging material will be assigned a greenhouse gas (primarily CO 2 ) emissions figure based on the emission generated in the manufacture and end-of-life of that material. This figure is multiplied by the weight of the material in the application. Thus thin light-weight plastics should fair well on the scorecard attribute even though they may have higher per pound emissions. JJW 2007 Page 31

32 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Renewable energy used (5% weighting) This Scorecard attribute based on the use of renewable (solar, wind, water and waves) verses non-renewable (oil, gas, coal) Wal-Mart values renewable energy use as one of it s corporate goals and this is an attempt to push this into it s supply-chain.» renewable energy credits can be purchased to reduce or completely offset non-renewable energy with renewable energy. JJW 2007 Page 32

33 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Package to product ratio (15% weighting) This figure is based on a comparison of the weight of the package as compared to the weight or quantity of material being delivered by the package. This attribute is a real strength of flexible packaging JJW 2007 Page 33

34 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Cube Utilization (15% weighting) This scorecard attribute is based on the design of the package to maximize the amount of product that can be stacked on a standard pallet, the cube. Cube utilization is important to efficient and inexpensive shipping.» The design flexibility of plastics help maximize this attribute if applied correctly. JJW 2007 Page 34

35 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Transportation Ave. distance package travels from mfg site to filling point. (10% weighting) This figure is based on the average distance traveled of the package (once made) to where it is filled. It does not include transportation of the raw material (resin) to the packaging manufacturing site. Instead it includes transport from where the film, bag, box, container, etc. is made to the point where it is filled. JJW 2007 Page 35

36 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Recycle content (10% weighting) This scorecard attribute is related to the quantity of postconsumer recycle content in the packaging material. JJW 2007 Page 36

37 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Recovery Value / Recyclability of materials used (10% weighting) This is an attribute pre-populated by Wal-Mart based on the availability of recycling for that given material. This includes both recycling and composting, but not incineration with energy recovery.» 3 - HDPE, PET, Alum, Steel, Glass» 2 LDPE,PVC, PP, LLDPE» 1 PLA» 0 PS, multi-layer/ multi-material structures. (the higher the score the better) JJW 2007 Page 37

38 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Material Value (15% weighting) This attribute is still being debated by members of the packaging value network and Wal-Mart. As it stands now (12/06) this is a non-criteria based attribute (Wal- Mart admits it is arbitrary) based on their judgment of the potential for this material to affect the health of the public or the environment. Packaging Material Values as of 12/06 (3 is highest value)» 3 LDPE, LLDPE, HDPE, PET, PLA, Glass, Aluminum» 2 PS, PP, Wood, Nylon, multi-layer structures» 1 - PVC JJW 2007 Page 38

39 Wal-Mart Definition - Sustainable Packaging Scorecard SCORECARD details Innovations to use less energy (5% weighting) This figure gives credit for using less energy than the industry average value used in the Scorecard. This is linked to the greenhouse gas emissions since they are also tied to energy used to make the packaging material. JJW 2007 Page 39

40 Call to Action Your feedback to the FPA is important as the organization and its member companies continue to develop their strategies on Sustainable Packaging JJW 2007 Page 40

41 Wrap-Up Sustainability = Long Term Viability Profitability Environmental Responsibility Social Accountability Sustainability is Here to Stay JJW 2007 Page 41

42 Contact Information: Jeff Wooster JJW 2007 Page 42

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