B P A U S T R A L I A G R O U P P T Y L T D
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1 B P A U S T R A L I A G R O U P P T Y L T D AUSTRALIAN PACKAGING COVENANT Action Plan (Revised November 2013) BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan
2 FOREWORD Since first signing the National Packaging Covenant BP has progressively worked towards improving waste management across our operations. As a brand owner and retailer of packaging in Australia, we are proud of achievements delivered under previous action plans, including phasing out single-use plastic bags and expanding cardboard recycling facilities across our convenience stores to divert more than 25% of our waste from landfill. Under the joint AIP (Australia Institute of Petroleum) Action Plan we were involved in establishing a national program for the collection and recycling of plastic oil bottles. This new action plan articulates our continued support of the Covenant and its performance goals and targets. We are undoubtedly moving towards further integration of sustainable packaging considerations into our business practices, and look forward to working with our supply chain partners to contribute meaningful improvements to the lifecycle impacts of packaging in Australia. I am pleased to present our plan for packaging improvements for , and look forward to sharing future results of our endeavours. Andy Holmes President, BP Australasia BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan 2
3 1. EXECUTIVE SUMMARY 4 2. INTRODUCTION 4 3. COMPANY DESCRIPTION 4 4. BP S PLACE IN THE SUPPLY CHAIN Lubricants business BP-branded packaging Packaging materials and formats Retail business BP-branded packaging Packaging materials and formats Supplier-branded packaging Sources of Waste Waste Process 7 5. ACTION PLAN ( ) 8 6. MONITORING AND REPORTING CONTACT DETAILS 12 APPENDIX 1 SUMMARY OF COMPLIANCE WITH COVENANT REQUIREMENTS FOR ACTION PLANS 13 APPENDIX 2 SCHEDULE FOR BP LUBRICANTS SUSTAINABLE PACKAGING REVIEWS 14 BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan
4 1. EXECUTIVE SUMMARY As a signatory to the Australian Packaging Covenant (formerly the National Packaging Covenant), BP Australia Group Pty Ltd (BP) supports efforts to reduce the environmental impacts of consumer packaging across the supply chain. BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging. This action plan presents commitments against the Covenant s goals and key performance indicators, focusing on design, recycling and product stewardship. First and foremost, BP commits to reviewing all current and future BP branded packaging against the requirements of the Sustainable Packaging Guidelines. BP will develop a formal process for conducting these reviews involving the relevant internal and external stakeholders. Through this process opportunities to improve the sustainability of BP packaging may be identified and included in subsequent amendments to this action plan. 2. INTRODUCTION This plan details the actions that BP Australia Group Pty Ltd (BP) plans to undertake in order to meet its commitments as a signatory to the Australian Packaging Covenant and to support the achievement of the Covenant s goals and targets. BP signed on to the National Packaging Covenant in Australia in 2002 and resigned to the second round in In line with these commitments and our dedication to sustainability we are pleased to be a signatory to the Australian Packaging Covenant and to present this action plan. 3. COMPANY DESCRIPTION BP in Australia is engaged in the exploration for and production of oil, natural gas and liquefied natural gas and the refining, transportation and marketing of petroleum and lubricant products. As one of the world s largest energy companies, BP has operated in Australia since 1920 and currently employs more than 5,000 people, a large proportion of which work in our retail business. 4
5 4. BP s PLACE IN THE SUPPLY CHAIN BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging. This action plan applies to two main areas of our business: (1) our lubricants business and (2) our network of convenience stores (referred to in this report as our retail business). 4.1 Lubricants business BP manufactures and distributes an extensive range of lubricants and cleaning products, covering everything from engine oils to brake fluids for passenger cars, motorcycle, marine and lawn mowers to heavy duty lubricants for trucks, earthmovers, diggers and other industrial applications. For BP s lubricant s business, this action plan addresses our efforts in improving the sustainability of packaging design and other product stewardship actions. BP is also taking action as a joint signatory under the Australian Institute of Petroleum (AIP) action plan. The AIP action plan addresses the management of plastic oil bottles up to 10 litres in capacity, used to package lubricating oil products for the retail and light commercial markets. The plastic used for oil bottles packaging is almost exclusively High Density Polyethylene (HDPE). The focus of joint efforts under the AIP action plan is the collection and recycling of the used plastic oil bottles, and the development of sustainable markets and end uses for the recyclate BP-branded packaging The brands owned by BP that are covered under this section of our Action Plan include Castrol, BP, and Tribol Packaging materials and formats BP s branded product packaging types and materials in the lubricants business are summarised in the Table 1 below: Table 1. Summary of Lubricants BP-branded packaging materials and formats Formats Packaging material Cartons Cardboard Drums Steel and HDPE 20 L containers Tin plate Plastic (HDPE) Bottles Plastic (HDPE) Cartridges Plastic ( HDPE) Imports Plastic ( HDPE) IBC Plastic (HDPE) and Steel Labels Paper plus laminate or varnish coating Closures Plastic ( HDPE), tin 5
6 4.2 Retail business BP owns and operates more than 200 service stations around Australia, offering different convenience store experiences including BP Connect and BP 2Go. All BP Connect stores also have a Wild Bean Café where you can purchase quality coffee and food. The coffee is made by trained baristas using Italian coffee machines and 100% Fairtrade Certified coffee beans. There is also a selection of food including hot toasted wraps, Turkish breads, and a range of pastries baked fresh on site BP-branded packaging The brands owned by BP that are covered under this section of our Action Plan include Wild Bean Café, BP 2go, and Deluge bottled water Packaging materials and formats BP s branded product packaging types and materials in the retail business are summarised in the Table 2 below: Table 2. Summary of Retail BP-branded packaging materials and formats Category Formats Packaging material HOT DRINKS Coffee cups and lids Cup: Paper (96%), PET (4%) Lid: Polystyrene (100%) COLD DRINKS Freezie, juice, frappe, smoothie PET (100%) Polypropylene (100%) Deluge bottled water Bottle: PET Lid: HDPE SANDWICHES Sandwich wedge Paper (98%), Polyethylene (2%) Croissant LDPE (flow wrap) Wrap LDPE (flow wrap) Toastie Paper (50%), Grease-proof inner lining (50%) PIES/SAUSAGE ROLLS Pies or sausage roll bags Glassine paper (100%) YOGHURTS/SALADS Yoghurt container and lid PET (100%) Salad container and lid Container and lid: PET (100%) Sticker: paper (99.5%), Polyethylene (0.5%) Sushi packs PET (100%) CAKES Cookies (4pack) Paper (60%) PET film (36%) PET coating (4%) Muffin, cake, donut, Glassine paper pastry (Wild Bean) Muffin Polypropylene OTHER PACKAGING Paper carry bags Paper SECONDARY / TERTIARY PACKAGING Cardboard boxes Cardboard 6
7 4.2.3 Supplier-branded packaging BP s convenience offer includes a range of different product types with non- BP branded packaging including: - Cold drinks and milk - Confectionery and snacks - Tobacco products - Groceries - Magazines and newspapers - Communications products - CD's and DVD's - General merchandise - Car care We are encouraged that many of our suppliers are also signatories to the packaging covenant. This provides opportunity for BP to work along side these suppliers to achieve our mutual goals Sources of Waste We have identified four sources of packaging waste in our retail operations: Forecourt bins located at all refuelling points on the forecourt and accepts waste from the consumer that may be generated inside the store or brought to site. In-store bins general bins for in-store waste that accepts waste that is derived almost exclusively from sales within our retail facility. Back-of-house Bins behind the counter that contain waste generated from in store and delivery of products as well as larger style skips that contain all waste generated on site. Carried off-site this relates to packaging that is not disposed of on site. BP has responsibility for waste contracts at its company-owned and operated sites however waste generated at dealer sites is the responsibility of the independent operator. Company-owned and operated sites now have cardboard recycling onsite as a result of actions taken under BP s first NPC action plan Waste Process The waste process identified in the diagram below outlines the packaging flow and also the opportunities for intervention in the waste cycle that will be explored in this action plan. Some of these actions can be addressed at the corporate level within the organisation and many will be reliant on the store keeping and operational activities within the stores. 7
8 Packaging Flow at BP Retail Sites The diagram above summarises the movement of packaging at a BP Retail Site. It has helped us identify key opportunities at each stage for minimising, managing and correctly disposing of packaging and therefore, the framework for detailed actions. 5. ACTION PLAN ( ) This plan covers the period from July 2010 until June
9 Goal 1: Packaging optimised to achieve resource efficiency and reduced environmental impact without compromising product quality and safety. If the organisation is in the supply chain, there must be specific actions about how it intends to use the Sustainable Packaging Guidelines for design and procurement. Outcomes: Packaging designed to: (a) avoid or minimise the use of materials and other resources; (b) optimise recyclability and recycled content and (c) reduce litter impacts. Retail business Lubricants business Corporate or HSSE Covenant KPI BP Action Responsibility Timeframe Baseline data Target Evidence 1. Proportion of signatories in 1.1 Review existing BP-branded packaging Food Quality & Jun 2014 No review system. 100% of existing packaging reviews Documented reviews. the supply chain implementing the Sustainable Packaging Guidelines for design or procurement of packaging. against the Sustainable Packaging Guidelines. Safety Manager and Regional Food Service Manager Packaging Manager Refer to timetable in Appendix 2 No review system. completed by Jun % of existing packaging reviews completed by Dec Documented reviews. 1.2 Investigate innovative program to generate sales of water in reusable containers to reduce plastic water bottle waste 1.3 Review Wildbean café secondary and tertiary packaging (cardboard) to identify opportunities to increase the percentage of post-consumer recycled material. 1.4 Implement process to review all new or modified BP-branded packaging against the Sustainable Packaging Guidelines. 1.5 Review marketing promotional materials packaging against the sustainable packaging guidelines. Identify opportunities for improvement and implement these where feasible. Cold Drinks Merchandise Business Manager National Operations Manager (Interfresh) Food Quality & Safety Manager Purchasing Manager, Asia & Pacific - Packaging Senior Marketing Specialist - Retail Dec 2014 Water sold in plastic bottles Documented investigation of the feasibility of a program to generate sales of water in reusable containers to reduce plastic water bottle waste Jun 2014 Mar 2014 Dec 2014 Secondary packaging - limited recycled content in cardboard Tertiary packaging - Virgin stretch wrap plastic used Existing product development process does not formally include a documented sustainable packaging review. Existing global gated product development process. Documented review of secondary and tertiary packaging opportunities Sustainable Packaging Review procedure in place for all new / major modified packaging 100% of new packaging being reviewed by Mar Existing global gated product development process updated to ensure 100% of new packaging is reviewed against the sustainable packaging guidelines Dec Dec 2014 No reviews have been completed to date Optimised promotional materials distribution packaging. Documented review. Documented review. Sustainable Packaging Review procedure. Documented reviews of new / major modified packaging. Updated product development process Completed review checklists. Documented review. BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan
10 Goal 2: The efficient collection and recycling of packaging Outcomes: A contribution to improved recovery of packaging from households and away-from-home sources. Increased secondary markets for recovered packaging materials Covenant KPI BP Action Responsibility Timeframe Baseline data Target Evidence 2. National recycling rate for packaging 1 3. Proportion of signatories with on-site recovery systems for recycling used packaging 3.1 Implement back of house commingled recycling (where feasible) at all BP owned and operated retail sites in QLD/VIC where there is a Wildbean café. Review the opportunity to roll this program out nationally and to also Environmental Team June 2015 Back of house commingled recycling at approximately 10 company owned retail sites targeting primarily milk bottle waste. Increase recycling rates by on average 10% at each BP owned and operated retail site where there is a Wildbean café over 2012 baseline. Waste tracking reports. On-site recycling infrastructure. 4. Proportion of signatories with a policy to buy products made from recycled packaging. 5. Additional tonnes of material reprocessed in primary and secondary markets as a result of Covenant-funded projects 2. incorporate front of house recycling. 3.2 Trial the recycling of soft plastics within BP s company owned and operated retail network. Two options shall be trialled / investigated (1) using the existing waste contractor to collect segregated soft plastic waste (2) send segregated soft plastic waste back to BP logistics provider 3.3 Establish a waste tracking report at BP s distribution supplier for Retail Merchandise. Establish a % waste recycling metric which will be tracked as a supplier key performance metric. 3.4 BP s distribution supplier for retail merchandise to put in place facilities to recycle commonly recyclable wastes, including: Soft plastic (including shrink wrap and strapping) Hard plastics (all codes) Steel Aluminium Wood 3.5 For lubricants business, refer to Australian Institute of Petroleum (AIP) joint action plan. 4.1 Track purchases of stationery products with recycled content Environmental Team Supply Chain Manager, Retail Trading Supply Chain Manager, Retail Trading Refer to AIP Action Plan Environmental Team Dec 2014 Jun 2014 Dec 2014 Refer to AIP Action Plan Aug 2012 There is currently no system in place for recycling soft plastics at BP s owned and operated retail sites. There is currently no waste tracking report in place Some facilities exist for recycling however these do not cover all commonly recyclable wastes Establish the feasibility of recycling soft waste at retail sites including an assessment of cost, labour impact and operating safety issues. Waste tracking report in place with report regularly reviewed. % waste recycled established as a supplier key performance metric and reviewed on a regular basis. All commonly recyclable wastes diverted from landfill Report detailing outcome of trial. Distribution supplier waste tracking report. Waste tracking report Minutes of regular reviews Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Recycled paper and a range of green stationery items supplied to Melbourne head-office. There is currently no report which tracks recycled content by mass. Report in place which tracks recycled content by mass. Quarterly reviews of the report. Target increasing the uptake of stationery with recycled content. Report which tracks the % recycled content by mass of all stationery purchase across BP Australia 1 As noted in the Australian Packaging Covenant, individual signatories are not required to report against this KPI. 2 As noted in the Australian Packaging Covenant, individual signatories are not required to report against this KPI. 10
11 Goal 3: Demonstrated commitment to product stewardship. Outcomes: Signatories in the supply chain working with others to improve design and recycling of packaging. Reduction in litter. Covenant KPI BP Action Responsibility Timeframe Baseline data Target Evidence 6. Proportion of 6.1 Develop a formal process for the review of Food Business See Action 1.1 See Action 1.1 See Action 1.1 See Action 1.1 signatories that have formal BP-branded packaging against SPG requirements including working with other Manager Packaging Manager See Action 1.1 See Action 1.1 See Action 1.1 See Action 1.1 processes for working with others to improve design and recycling of packaging. stakeholders both internally and in the supply chain 6.2 Incorporate into procurement tender documentation BP s APC supplier expectations. Strategic Sourcing Manager, Procurement Jun 2014 BP s APC supplier expectations not released in tender documentation. BP s APC supplier expectations clearly and concisely communicated in tender documentation. BP procurement tender documentation containing APC expectations. 7. Proportion of signatories demonstrating other product stewardship outcomes. 8. Reduction in the number of packaging items in litter. 7.1 Promotional materials print minimum standards shall be annually reviewed for opportunities for further improvements 7.2 Review labelling of BP-branded products to encourage recycling and prevent littering. 7.3 Establish an APC standard which establishes a minimum standard across BP Australia. It may include: - Packaging material specification - Recycling - Single use plastic bags - Use disposable cutlery/cups - Stationery - Print purchases 7.4 Apply marketing print minimum standards to corporate print materials e.g. business cards, letter heads 7.5 Review packaging of catering supplied to corporate offices against sustainable packaging guidelines for opportunities to create more sustainable packaging outcomes. 7.6 Review use of disposable cups, cutlery, plates etc. in corporate offices and at corporate functions for opportunities to minimise the use of these items by implementing reusable alternatives. 8.2 Review labelling of BP-branded products to encourage recycling and prevent littering. Senior Marketing Specialist - Retail Annually Print minimum standards incorporated into supplier contract. Review minimum standards on an annual basis for opportunities for further improvements Senior Product Annually Print minimum standards Review minimum standards on an annual basis for Manager - Lubricants incorporated into supplier contract. opportunities for further improvements Food Quality & Safety Jun 2014 Limited labelling on current Increased awareness and education of consumers Manager and Regional products. about recyclability and proper disposal of BP-branded Food Service Manager products. Environmental Advisor Jun 2015 No APC standard in place. APC standard in place which establishes a minimum standard across BP Australia. It may include: - Packaging material specification - Recycling - Single use plastic bags - Use disposable cutlery/cups - Stationery Print purchases National Office Facilities Manager National Office Facilities Manager National Office Facilities Manager Jun 2014 Jun 2014 Mar 2014 No minimum standard for corporate print materials No sustainable packaging reviews of catering completed to date. No complete baseline data across all BP Australia corporate offices. - Marketing print minimum standards applied to corporate print materials. Sustainable packaging reviews completed into catering supplied to corporate offices against sustainable packaging guidelines. Note the Retail Sustainable packaging procedure may be used to facilitate these reviews. Use of disposable cups, cutlery, plates etc. in corporate offices and at corporate functions minimised by implementing reusable alternatives. Documented review of minimum print standards Documented review of minimum print standards Documented review of labelling, including any recommendations. BP Australia APC Standard. Documented corporate print minimum standards Documented reviews using the retail sustainable packaging template. Documented review detailing opportunities and outcomes. See Action 7.2 See Action 7.2 See Action 7.2 See Action 7.2 See Action For lubricants business, refer to Australian Institute of Petroleum (AIP) joint action plan Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan 11
12 6. MONITORING AND REPORTING Responsibility for monitoring and reporting on the Australian Packaging Covenant action plan will be undertaken by BP s Environment and Sustainability Advisor. This will be undertaken in conjunction with relevant parts of the business that have responsibility for implementation. The KPI s BP will report on in its annual report are shown in the Action Table above and include those required under the APC. Records of data collection and actions taken will be collated and kept by BP s Environmental Compliance and Sustainability Team. 7. CONTACT DETAILS For further information on BP Australia s Packaging Covenant action plan please contact: Amy Ahmet Environmental Reporting Analyst BP Australia Pty Ltd Level Bourke Street Docklands VIC 3008 Ph: (03) amy.ahmet@bp.com 12
13 APPENDIX 1 SUMMARY OF COMPLIANCE WITH COVENANT REQUIREMENTS FOR ACTION PLANS The following table summarises how BP Australia is satisfying Australian Packaging Covenant s Action Plan requirements: Requirement The name of the organisation and its subsidiaries Nature of Organisation (What it does, its size or turnover) Information provided YES 2 YES 3 Brands owned by the organisation YES 4 The place of the organisation in the supply chain Packaging materials and formats used by the organisation YES 4 YES 4 The period covered by the plan YES 5 Contact details for the person responsible for implementing the plan The specific actions for implementing the commitments under the Covenant and supporting the achievement of the Covenant s objectives and goals. Baseline data for all performance indicators Formal commitment by the CEO or equivalent to implement the action plan. YES 7 YES 5 YES 5 YES Action Plan section reference Foreword 13
14 APPENDIX 2 SCHEDULE FOR BP LUBRICANTS SUSTAINABLE PACKAGING REVIEWS The following table timetables how BP will progressively review existing BP lubricants packaging against the Sustainable Packaging Guidelines. Packaging Type Sub-category Complete by Plastic - HDPE 20L 10L 5L 4L 2.5L 1L 500ml 200ml 500gram tubs 450 gram cartridges 2.5kg pails 20kg pails Part 1 - assessments against sustainable packaging guidelines Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities Steel drums 205L Part 1 - assessments against sustainable packaging guidelines Poly ethylene drums 200L Jun 2015 Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities tinplate 20L Part 1 - assessments against sustainable packaging guidelines Jun PART2 - review of opportunities and decisions regarding implementation of opportunities IBC 1000L standard IBC - other Closures Trisure Reike Visy closures Design Moldings TC Hoffmann Jun 2015 Dec 2015 Dec 2015 Dec 2015 Dec 2015 Dec
15 Cartons local Visyboard 2014 Part 1 - assessments against sustainable packaging guidelines Labels - Imported products Drums Cartons Bottles Caps Labels AC Labels Quality label services Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities Dec 2015 June 2014 June
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