Sustainable Packaging: Keys to Source Reduction and Successful Recovery

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Amelia Berenice Melton
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1 Sustainable Packaging: Keys to Source Reduction and Successful Recovery Ron Sasine Vice President, Retail Channel Management Consumer Solutions Group, MeadWestvaco Corporation March 6, 2008

2 MeadWestvaco A global leader in consumer packaging solutions Operations in 29 countries Customers in 100 countries Packaging is Our Major Business Packaging $5.3 BN $6.9 billion in annual sales Packaging (~75%) 50% paperboard from 6 mills in USA and Brazil 50% converting, design, and systems, with plants in 17 countries Total Shipments (2007) 3.5 million tons 74% 9% Specialty Chemicals & Specialty Papers $0.5 BN 1 Consumer & Office Products $1.1 BN 2

3 Global Packaging Company Growing Presence in China and Russia 6 Paperboard Mills in the U.S. and Brazil Customers in 100 Countries Major Markets Beverages, Cosmetics, Media, Healthcare and Tobacco Converting Plants in 17 Countries 3

4 Growing Global Markets Food & Beverage Media & Entertainment Healthcare Fragrances Tobacco Home & Garden Cosmetics & Personal Care 4

5 Trends in Packaging Sustainability s new drivers... Increased demand for renewable resources Lower packaging to product ratios Must be recoverable... Create trade offs... Less weight vs. recycled content New performance features, new substrates vs. recoverability Renewability vs. material recycling... And emerging efforts to measure sustainability Scorecards vs. individual company efforts 5

6 Sustainable Packaging Optimizes the balance of social, economic, and environmental benefits Protects the product Communicates the brand and other information at each step of the packaging lifecycle 6

7 Sustainability Through the Packaging Lifecycle 1 Sourcing and Use of Raw Material Forestlands independently certified to internationally recognized standards Third-party audits and certification of forest management and fiber procurement systems Development and use of new bio-based and recycled packaging materials 7

Sustainable Forestry Certification Programme for the Endorsement of Forest Certification (PEFC) The world s largest system An umbrella for national and regional schemes Sustainable Forestry

8 Sustainable Forestry Certification Programme for the Endorsement of Forest Certification (PEFC) The world s largest system An umbrella for national and regional schemes Sustainable Forestry Initiative (SFI) The largest system in North America Originally developed by industry, now totally independent Forest Stewardship Council (FSC) Favored by many environmental groups Strong social component 8

9 Sustainability Through the Packaging Lifecycle 2 Design and Manufacturing Package design must optimize sustainability benefits Packaging materials increasingly engineered to achieve greater strength with fewer resources (fiber, resin, starch) Industry-led CO 2 emissions reductions Chicago Climate Exchange Carbon Disclosure Project Increases in the use of carbon-neutral biomass for energy generation Regularly scheduled facility audits to ISO-based environmental standards 9

Fiber-based, easily recyclable frame eliminates up to 70% of required plastic resin Engineered Packaging

10 Sustainability Through the Packaging Lifecycle 2 Design and Manufacturing Examples Natralock Paperboard replacement for PVC and PETE clamshells. Fiber-based, easily recyclable frame eliminates up to 70% of required plastic resin Engineered Packaging Eliminates outer corrugated packaging for products with significant internal strength. Allows for simpler logistics, easier in-store shelf loading, and better in-transit branding 10

Sustainability Through the Packaging Lifecycle 2 Design and Manufacturing Examples NatureSource Visual Cartons PLA plastic cartons are created from corn, an annually renewable resource.

11 Sustainability Through the Packaging Lifecycle 2 Design and Manufacturing Examples NatureSource Visual Cartons PLA plastic cartons are created from corn, an annually renewable resource. The significant strength premium of PLA allows for resin reductions of up to 20%, and use in non-bottle applications doesn t threaten American Chemistry Council s All Bottle Recycling Program. 11

12 Sustainability Through the Packaging Lifecycle 3 Transportation and Delivery Packaging weight and density impact truck traffic and fuel efficiency Cost-effective and environmentally sensitive packaging may often require transportation and delivery system improvements. 4 Recovery Utilize recycled content, including post-consumer fiber Improve package recycling characteristics through design alternatives Enhance consumer ease of recycling by optimizing use of widely acceptable materials 12

Same print characteristics as virgin-fiber materials, with up to 30% PCF.

13 Sustainability Through the Packaging Lifecycle 4 Recovery Examples Printkote Eagle Recycled-content solid bleached paperboard for high-value graphic applications. Same print characteristics as virgin-fiber materials, with up to 30% PCF. Recycled Cup stock First reycled-content, FDA-approved cup stock for hot beverages. All the caffeine, none of the enviro-guilt. 13

14 Sustainability Through the Packaging Lifecycle 5 Return to Raw Material Significant investments in product development for products containing a high percentage of post-consumer recycled fibers Development of pulp and resin recovery systems Commercialization of recycled products that are functionally equivalent to virginmaterial options 14

15 Summary Consumers and retailers are looking for improvements in packaging that help them reduce their personal environmental footprint Packaging companies and consumer products manufacturers are collaborating to improve packaging performance, decrease raw material needs, and enhance markets for recycled materials Sustainability is larger than recycling alone, and the right decision on recycled versus virgin materials requires a holistic evaluation (energy demand, package performance requirements, market expectations) Successful companies will build brands sustainably 15

ECONOMICAL RENEWABLE VERSATILE RECYCLABLE SUSTAINABLE. Paperboard Packaging. Good for your bottom line... and OUR PLANET

ECONOMICAL RENEWABLE VERSATILE RECYCLABLE SUSTAINABLE Packaging Good for your bottom line... and OUR PLANET A good package protects and enhances the product inside. This has always been true. But in today