Australian Packaging Covenant. LyondellBasell Australia Action Plan

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1 Australian Packaging Covenant LyondellBasell Australia Action Plan 1 st July 2016 to 30 th June 2017

2 Table of Contents Executive Introduction... 1 Introduction... 2 Company Background... 2 Market Background... 3 Role within the Packaging Supply Chain... 3 Packaging Types Used by LBA... 4 Domestic Packaging:... 4 Imported Packaging:... 4 LBA Action Plan for Goal 1: Design... 5 LBA Action Plan for Goal 2: Recycling... 6 LBA Action Plan for Goal 3: Product Stewardship... 7 LyondellBasell Australia - APC Plan

3 Executive Introduction As a signatory to the Australian Packaging Covenant (APC), LyondellBasell Australia is committed to the principles of the Covenant and its emphasis on the whole of life viewpoint in relation to packaging material usage in Australia. Our operations locally are guided by the principle of continuous improvement, and we see our involvement in the APC as part of our commitment to the principles underpinning sustainable business growth, along with the other environmental sustainability programs we currently have in place, (ISO Certification, PACIA s Responsible Care Program, National Greenhouse and Energy Reporting and the EPA s National Pollutant Inventory). Implicit in all of these initiatives is a focus on Resource Efficiency and Conservation, a focus consistent with the objectives of the Australian Packaging Covenant. This plan has been prepared by our APC focal point with the support and goodwill of the management team. It details our plans relating to APC KPIs and other related Product Stewardship initiatives, which cover the period from 1 st July 2016 to 30 th June We maintain our commitment and will continue to seek opportunities to work with interested partners within the polymers value chain to help minimise our environmental footprint and maximise the societal benefits arising from the use of our products. Barry Kelly Managing Director LyondellBasell Australia Packaging Covenant Focal Point David Sutton LyondellBasell MDL Refinery Road, Corio, VIC, 3124 Ph: david.sutton@lyondellbasell.com LyondellBasell Australia - APC Plan 1

4 Introduction LyondellBasell Australia Pty Ltd, (LBA) is committed to the principles of the Packaging Covenant and welcomes the shift in emphasis to the whole of life philosophy in dealing with packaging design, usage and end of life stages. LBA will continue working with supply chain partners on projects related to the responsible and sustainable development, use, recovery and recycling of the polypropylene resins it manufactures and markets. Going forward, LBA will: - Continue to review and refine existing sustainable business growth principles within the organisation s management systems. - Continue to pursue opportunities to develop and put to market new products that enable customers to take advantage of efficiency gains within their own processes. - Whenever possible explore ways of improving internal environmental management. - Continue to pro-actively engage with our customers and signatories regarding responsible whole of life material usage. Company Background On 20 th December 2007, Basell and Lyondell Chemical Company completed a merger, creating LyondellBasell, one of the world s largest polymers, petrochemicals and fuels companies. LBA was formed on 18 th August 2008, and is part of LyondellBasell s Polymer Division, which produces, markets and sells industry-leading advanced polyolefins, polypropylene and polyethylene resins. LBA is the sole manufacturer of polypropylene (PP) in Australia which is sold under the trademarks Moplen and Adstif. Polypropylene resins are manufactured in Geelong Victoria using propylene feedstock from local refineries and petrochemical plants. LBA s marketing activities in Australia and the Asia Pacific region are supported by a development laboratory based in Geelong which provides both technical support for the manufacturing site as well as testing and development facilities for LBA s customers. LBA markets polymers both domestically and in the export markets of the Asia Pacific region from our Melbourne-based Head Office. LyondellBasell Australia - APC Plan 2

5 Market Background The overall consumption of virgin and recycled polypropylene resin in the Australian domestic market for was estimated at 232,000 tonnes, of which an estimated 24 % was recycled at end of life. 1 Polypropylene is converted into a wide range of products (both durable and consumer items). Some of these include food packaging containers, carpet, industrial mouldings, packaging film, medical gowns and fabrics, furniture, automotive components, polymer bank notes and white/electrical goods. 1 Source: National Plastics Recycling Survey Role within the Packaging Supply Chain LBA s role in the packaging supply chain is one of raw material supplier. LyondellBasell Australia - APC Plan 3

6 Packaging Types Used by LBA Domestic Packaging: The types of packaging used for protection and shipment of LBA s domestically manufactured products sold to our domestic and international customers are: 1) Palletised bags (25 kg) consisting of: Recyclable 25 kg polyethylene bags; Recycled content cardboard pallet sheets; Recyclable polyolefin-based stretch hood/wrap film; Multi-trip wooden pallets. Sustainable Packaging Guidelines (SPG) already reviewed 2) Semi-bulk bags (1100 kg) consisting of: Recyclable polypropylene bulk bags; Recycled content cardboard pallet sheets; Recyclable polyolefin-based shroud (only for export); Multi-trip wooden pallets. SPG reviewed 3) Containerised bulk (22,500 kg) consisting of: Purpose built reusable containers without liners. SPG reviewed Imported Packaging: The types of packaging used for protection and shipment of LBA s imported products sold onto LBA s domestic customers are: 1) Palletised bags (25 kg) consisting of: Recyclable 25 kg polyethylene bags; Recycled content cardboard pallet sheets; Recyclable polyolefin-based stretch hood/wrap film; Multi-trip wooden pallets. SPG to be completed 2) Semi-bulk bags (various capacities) consisting of: Bulk bags (vary with supplier; no shrouds); Recycled content cardboard pallet sheets; Multi-trip wooden pallets. SPG to be completed 3) Containerised sea bulk consisting of: Containers with liners. SPG reviewed 4) Octabins (1100 kg) consisting of: Cardboard Octabin; Recyclable polyolefin-based stretch hood/wrap film; Multi-trip wooden pallets. SPG reviewed LyondellBasell Australia - APC Plan 4

7 LBA Action Plan for Goal 1: Design Australian Packaging Covenant Performance Goals KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. Goal 1 Action Plan: Design Review all 3 forms of domestic packaging used for manufactured product against the SPG to ensure maximum sustainability as part of a continuous review program. Aim is to identify areas for improvement and formulate a plan for completion by end Q Since all domestic packaging has now been reviewed using the SPGs, continue to apply the guidelines to imported packaging, now focusing on imported palletised 25 kg bags; identify areas for improvement and formulate a plan for completion by end Q Research the key impacts associated with LBA packaging formats and identify a range of better practice alternatives for internal discussion. Measure and report the changes in packaging format deliveries over baseline data. Reported by calendar year. Responsibility SPG Evaluation Team SPG Evaluation Team Project Team LyondellBasell Australia - APC Plan 5

8 LBA Action Plan for Goal 2: Recycling Australian Packaging Covenant Performance Goals KPI 3: % signatories applying on-site recovery systems for used packaging. KPI 4: Signatories implement formal policy of buying products made from recycled packaging. Goal 2 Action Plan: Recycling Annual review of onsite recovery systems to identify any operational issues. Measure and track on-site recycling volumes with the aim of increasing recycling as a proportion of the total waste generation. Target a 5% reduction in waste to landfill and 5% increase in recycling based on improved efficiencies and communication of the waste management plan during normal production periods. Reported by calendar year. LBA s Melbourne head office needs to relocate in Q As a key requirement in sourcing new premises, LBA will ensure that the new office location either has suitable recycling facilities in place or the potential to incorporate them. Scope out the current best practices in sustainable office design. Report the volume and type of recycled content materials purchased for packaging of our product. - Review existing products purchased and investigate new (recyclable and/or sustainable) product options. The above are reported by calendar year. Building on the existing buy-recycled policy, report sustainable procurement within the office and investigate replacing future product purchases with recycled and sustainable product. Note: many office products are already purchased based on their sustainability credentials; target changing over 3 existing items to new sustainable/eco suppliers. Reported by calendar year. Responsibility Environmental Engineer Office Manager Business Manager Project Team Procurement LyondellBasell Australia - APC Plan 6

9 LBA Action Plan for Goal 3: Product Stewardship Australian Packaging Covenant Performance Goals KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. Goal 3 Action Plan: Product Stewardship Account Managers to continue engaging with customers to discuss and promote the APC, SPG and recycling as specified in our Sales Manual. Offer to contribute to customer SPG teams and make available details of recycling companies to customers. Account Managers to continue to collaborate with customers to seek out sustainable business opportunities through product stewardship. LBA commits to innovate in order to develop new PP grades that enable our customers to make more sustainable products either by down gauging (less material usage and reduced volume to transport) or with improved efficiencies during manufacturing, such as reduced cycle times, processing temperatures and resource usage etc. Continue to track our performance via LBA s Innovation Index KPI. Continue to develop the supply/value chain for a typical PP grade in order to seek out new opportunities to improve packaging sustainability both up and down our supply chain. Identify areas for improvement and formulate a plan for completion by end Q Responsibility Account Managers Product Management Companywide Project Team KPI 7: % signatories showing other Product Stewardship outcomes. Investigate other Product Stewardship activities applying the concepts of reduce, reuse, recycle or recover. Continue to apply our Environmental Management Systems (ISO 14001) to deliver improved environmental and sustainability outcomes. KPI 8: Reductions in packaging items in the litter stream. LBA will review its Waste Management Procedure to ensure that all waste is dealt with appropriately and does not become litter. Organise and conduct litter picking activities. LyondellBasell Australia - APC Plan 7

10 All information ( Information ) contained herein is provided without compensation and is intended to be general in nature. You should not rely on it in making any decision. LyondellBasell accepts no responsibility for results obtained by the application of this Information, and disclaims liability for all damages, including without limitation, direct, indirect, incidental, consequential, special, exemplary or punitive damages, alleged to have been caused by or in connection with the use of this Information. LyondellBasell disclaims all warranties, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose, that might arise in connection with this information. Adstif and Moplen are trademarks owned and/or used by the LyondellBasell family of companies. Moplen is registered in the U.S. Patent and Trademark Office. LyondellBasell Australia - APC Plan 8