Procurement Services Packaging Policy.

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1 Procurement Services Packaging Policy. Introduction Procurement Services is committed to improving the way it manages the environmental and sustainable development issues arising from the services it provides related to the procurement and supply of goods and services. We have ensured that sustainable development issues are increasingly being addressed as part of our integrated management system. Our Integrated management system includes an Environmental Management System (EMS) certified to the International Standard ISO Our EMS has helped us to identify the most significant environmental impacts arising from our operations and requires us to put in place improvement programmes for these significant impacts. Our most significant environmental impacts relate to: Transport Energy use Waste management Pollution prevention Paper use. Prime packaging from suppliers. 1 We recognise that these issues are interconnected and can not be effectively managed in isolation and that we need to do more in the way we procure goods and services to ensure environmental issues are effectively addressed. Procurement Services procures supplies for all Health Boards/Health Boards/Trusts in Wales. As a supply organisation it is critical we focus attention on reducing the environmental impacts of waste packaging. Stock supplies are received, unpacked, repacked and distributed with the Procurement Services contracted fleet of delivery The process of unpacking and repackaging generates substantial waste and on-costs in terms of disposal. The management of packaging waste is therefore an important financial and environmental issue for us. We appreciate that we can not tackle these issues on our own but need to work in partnership with our supply chain and customers if we are to achieve more worthwhile improvements. Our environmental policy states that Procurement Services will seek to improve waste management by: Ensuring its business practices produce the minimum of waste and reduce environmental impacts by utilising , e-tendering, video-conferencing, recycling and the use of energy efficient measures in its offices wherever practicable. Work together to eliminate excess packaging materials and reduce the amount of packaging used.

2 The Issues Why we need a Packaging Policy. 1. To help reduce environmental impact of Waste Packaging Every year we deliver 35,000 loads to our Trust clients resulting in 430,000 freight miles. In order to deliver this service we need to receive supplies from a wide range of suppliers from across the UK. Goods are generally received by Procurement Services in bulk and re-packaged in smaller quantities for distribution to the Health Boards/Health Boards/Trusts. This distribution process obviously creates a lot of waste packaging. Fit for purpose packaging is essential for protecting goods from damage but a balance needs to be found if we are to reduce the environmental impacts of packaging waste. It is vital that we ensure this waste packaging is reduced, re-used or re-cycled in order to help reduce a number of associated environmental impacts including: reducing the amount of biodegradable packaging that is taken to landfill each year. This contributes to methane emissions a contributor to climate change. 1 reducing energy use related to processing waste reducing resource use related to transport and handling waste. 2 It is estimated (in 2001) that 4% of the packaging waste in the UK arises in Wales. This includes approximately 176,000 tonnes of commercial packaging. 2 The biggest proportion of commercial packaging waste comes from paper which can be recycled or re-used. Corrugated cases are one of the most common forms of paper and board packaging, accounting for approx 60% of the market. As high quality branding of packaged goods is not always critical there is an obvious potential for re-using this common form of packaging. To support this potential the National Waste Strategy for Wales 2002 suggests a target for re-use of approximately 25% of the total tonnage of corrugated cases flowing through Wales. Procurement Services needs to play its part in achieving this target. However the level of packaging re-use in most sectors have declined significantly over the last 15 years, and it is currently around 5% of the market. Wales now has a national overarching goal to become a zero waste society by To play our part in contributing towards wider waste and environmental strategies There are a number of key strategies relevant to packaging waste that Procurement Services should support and packaging specific regulations and directives that we need to comply with. Wise about Waste: The National Waste Strategy for Wales Most information in this section from Welsh Assembly Government Wise about Waste The National Waste Strategy for Wales As 1. 3 Towards Zero Waste one Wales: One Planet

3 Provides an overall waste reduction target for Wales. By 2005, achieve a reduction in waste produced equivalent to at least 5% of the 1998 arisings figure; By 2010, achieve a reduction in waste produced equivalent to at least 10% of the 1998 arisings figure. And packaging specific actions for Wales: For companies obligated under the Packaging Regulations to contribute towards UK requirements under the Packaging including: - recovery of 59% of packaging waste; - recycling at least 19% of each material. 3 For corrugated packaging cases. Aim for re-use of approximately 25% of the total tonnage of corrugated cases flowing through Wales. The Environment Strategy for Wales i - May is the Welsh Assembly Government s long term strategy for the environment of Wales, setting the strategic direction for the next 20 years including the need for more efficient materials consumption and waste management. Procurement Services has a role to play in contributing to the desired outcomes of the strategy, such as through encouraging our supply chain to design products (and packaging) that require less resources in their production, use and end of life, that create minimal waste and are easily reused or recycled Businesses produce well EU Packaging and Packaging Waste Directive (94/62/EC) The EU Directive on Packaging and Packaging Waste 94/62/EC seeks to reduce the impact of packaging and packaging waste on the environment, by introducing recovery and recycling targets for packaging waste and requiring packaging to comply with the "essential requirements" which include the minimisation of packaging volume and weight and the design of packaging to permit its reuse or recovery The Producer Responsibility Obligations (Packaging Waste) Regulations 1997 (as amended) Under the packaging regulations, any company handling more than 50 tonnes of packaging a year with an annual turnover of more than 2 million must recover and recycle a percentage of their packaging waste, or pay for it to be carried out. This does not apply directly to Procurement Services but will affect companies in our supply chain.

4 One Wales: One Planet The Sustainable Development Scheme for Wales The Scheme s vision requires all organisations in Wales to actively commit to sustainable development. It sets out 18 Actions. key outcomes relevant to Welsh Health supplies includes: An NHS that leads on low carbon and sustainable development best practice and health services that focus on successful outcomes. Making the most of packaging - A strategy for a low-carbon economy Defra's review of packaging policy which outlines their packaging strategy for a low carbon economy. One Wales: One Planet Zero Waste Strategy The overarching goal is for Wales to become a zero waste society by Towards Zero Waste sets out, at a high level, how the Welsh Assembly Government will build on the successes achieved through Wise About Waste - The National Waste Strategy for Wales (2002). It describes a long term framework for resource efficiency and waste management between now and Towards Zero Waste is our overarching waste strategy document; it is not a detailed action plan. Delivery actions will be developed in sector plans that will follow. Towards Zero Waste is ambitious and challenging, but achievable. Changing the way we deal with waste in Wales will have huge benefits, for the environment, economy and our well-being. Everyone in Wales has a role to play. The strategy outlines the actions we must all take if we are to reach our ambition of becoming a high recycling nation by 2025 and a zero waste nation by To help Implement our existing management system more effectively Our management system contains a number of procedures for how we must manage packaging waste. Procedure PROCUREMENT SERVICES-CTR-04 In preparing specifications, due regard will be given to the environmental impacts of the product or service arising during use and disposal in order to support our environmental policy, objectives and targets Wherever possible, specifications will require any waste generated in performing the contract to be removed off site in accordance with applicable legislative requirements. Procedure PROCUREMENT SERVICES-WEI-02 Unpacking and repacking: o Material is received, generally in bulk for redistribution in smaller quantities. If the product is over packed or under packed, the Warehouse Manager is informed and an Environmental Non-Conformance report is raised. Procurement Services Contracting is informed and is responsible for liaising with the supplier

5 o The packaging received in designated areas for potential re-use as packaging for the customer / end user. Store men are trained in accordance with the work instruction Packaging, which identifies the means for minimising the need for purchasing prime packaging o Where packaging is deemed damaged or unsuitable, this is compressed and placed in a suitable marked skip for removal by an approved packaging waste recycling agency. A copy of the waste carriers waste management licence is required as described in the procedure for Waste Management. o The Warehouse manager is responsible for quantifying and reporting on the type and quantity and wastes on a weekly basis. o Only when no suitable packaging can be found from the used source will prime purchased packaging material be used. The Shift Manager is responsible for monitoring the use of prime purchased packaging on an ongoing basis. He / She will raise an Environmental Non Conformance if alternative used packaging is available. o The quantity of purchased prime packaging is reviewed periodically with a view to significant reduction and details reported to the Environmental Management Review Team. o Drivers will collect previously delivered packaging from customers / end users during routine deliveries. 5 Procedure PROCUREMENT SERVICES-MM-05 gives further detail re packing goods The shift manager / supervisor selects roll or wooden pallet as required by each customer Goods secured on roll pallets and wooden pallets are secured by means of clingfilm. 4. Helping our Customers We know that that packaging issues relate to the whole supply chain, from source to customer and beyond and we need to work in partnership with our suppliers if we are to realise effective solutions to reducing the environmental impact of packaging waste for both Procurement Services and our customers.

6 Overall Policy Aims This policy is not intended to provide specific performance requirements for individual contracts but to clearly state our aspirations and intent with regard to reducing the amount of packaging that goes in to the waste stream whilst at the same time ensuring the safe and effective packaging and movement of goods. 6 Aim 1: Reduce - To reduce the amount of packaging waste received by Procurement Services and passed on to our customers Reuse - Waste packaging wherever practical Recycle - Rather then dispose of waste packaging Aim 2: To ensure that any packaging waste is disposed of in accordance with legislative requirements Packaging Waste Improvement Objectives We would like meet these aims through achieving the following improvement objectives. Improvement Objectives for Policy Aim 1. Reduce, Reuse and Recycle Packaging Waste Improvement Objective A: Design out waste that can not be re-used or recycled. A range of actions can help towards achieving the objective. These include: 1. We will audit the packaging waste stream to identify the volume and type of packaging materials being used by our suppliers 2. We will encourage key suppliers to identify mechanisms for improving the recycled content and re-use/recycling of primary packaging

7 3. We will develop generic specifications for packaging materials relevant to each category of supply. This may include: Specification /contract clause: Ready assembled and packaged for onward distribution; Returnable crates or similar containers encouraged. This could be an addition to the standard NHS clauses; Where this is not possible manufacturer to take back used packaging via hauliers (and deal with all duty of care implications); Permissible packaging: Needs to match what the local infrastructure can recycle, if not, requirement to take back. Only such virgin packaging material chosen that can either be reused or for which there is a local re-cycling infrastructure 7 4. We will seek to introduce, suitably amended, NHS clauses for packaging waste such as the following: The Contractor shall comply in all material respects with applicable environmental laws and regulations in force from time to time in relation to the products/services the subject of the Contract. Where the provisions of any such legislation are implemented by the use of voluntary agreements or codes of practice, the Contractor shall comply with such agreements or codes of practice as if they were incorporated into English law subject to those voluntary agreements being cited in the tender documentation. Without prejudice to the generality of the foregoing, the Contractor shall:- Comply with all reasonable stipulations of the Authority aimed at minimising the packaging in which the products the subject of the Contract, or any products supplied by the Contractor to the Authority as part of performance of the Services, are supplied; Promptly provide such data as may reasonably be requested by the Authority from time to time regarding the weight and type of packaging according to material type used in relation to all products supplied to the Authority under or pursuant to the Contract; Comply with all obligations imposed on it in relation to the products/services the subject of the Contract by the Packaging Waste Regulations 1997 (or any other equivalent legislation giving effect in any part of the European Economic Area to the Packaging and Packaging Waste Directive 94/62/EC); Label all products supplied to the Authority under the Contract, and the packaging of those products, to highlight environmental and safety information as required by applicable UK and EU legislation; Unless otherwise agreed with the Authority, insofar as any products supplied under the Contract comprise or include electrical or electronic equipment, manage the said equipment and associated consumables at end of life to facilitate recovery, treatment and recycling and provide any information which the Authority may reasonably require from time to time regarding the costs of such activity;

8 Promptly provide all such information regarding the environmental impact of any products supplied or used under the Contract as may reasonably be required by the Authority to permit informed choices by end users; Where goods are imported into the United Kingdom then for the purposes of the Producer Responsibility Obligations (Packaging Waste) Regulations 1997 (as amended) the Contractor shall assume the rolled-up obligations for all the activities performed outside the United Kingdom in relation to the goods and the packaging which is used for the containment, protection, handling, delivery and presentation of the goods in addition to any other obligations he may have pursuant to the said Regulations. The Contractor shall collect without charge any returnable containers (including pallets) within 21 days of the date of the relevant delivery note unless otherwise instructed by the Authority or any Beneficiary. Empty containers not so removed may be returned by the Authority or such Beneficiary at the Contractor s expense or otherwise disposed of at the Authority s or such Beneficiary s discretion. The Contractor shall credit in full any charged containers upon collection or return. 8 Improvement Objectives for Policy Aim 2. Ensuring Legislative Compliance Improvement Objective B. Ensure compliance Duty of Care, hazardous waste and packaging regulations Compliance with environmental legislation is an on-going necessity for any organisation. The management of packaging waste is no different and we need to maintain an effective compliance management regime that requires timely co-operation from our waste management contractors and supply chain. Specifically we will establish a waste management matrix that identifies all waste streams arising from our distribution activities. This will include packaging waste. The matrix will specify compliance requirements for each waste stream and confirm the procedures to be followed and evidence to be gathered by Procurement Services for each waste stream. Suppliers and waste management contractors will be made aware of their responsibilities regarding waste management compliance for Procurement Services. i Welsh Assembly Government - Environment Strategy 2006 (17 May 2006)