Australian Packaging Covenant 5 year plan. March 2011 Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point, NSW 2061 ACN

Transcription

1 Australian Packaging Covenant 5 year plan March 2011 Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point, NSW 2061 ACN

2 CONTENTS 1. GLOSSARY KCA PROFILE EXECUTIVE SUMMARY RETAIL CONSUMER GOODS PACKAGING MATERIAL CATEGORIES Products Made in Australia Imported Products Baseline Packaging Usage Data SCHEDULE FOR PACKAGING REVIEWS ACTION PLAN SUMMARY TABLE ON SITE PACKAGING WASTE MANAGEMENT SUSTAINABILITY MANAGEMENT IN KCA Aspirational objectives Progress against objective MANAGEMENT ENDORSEMENT GLOSSARY GLOSSARY KCA KCP APC SPG TT TAT SKUs or skus RSC PE Kimberly-Clark Australia Pty Ltd KCA Professional Division, ie, away from home products Australian Packaging Covenant Sustainable Packaging Guidelines (form part of APC) Toilet Tissue Thick and Thirsty Towel Stock Keeping Units Regular Slotted Container (conventional corrugated box style) Polyethylene 2

3 2. KCA PROFILE GENERAL REQUIREMENTS Company name & subsidiaries: Nature of organization: What it does: Brands DETAIL Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point 2061, ph , ACN Australian subsidiary of major USA based, international company Makes pulp, paper, non-woven textiles, health care and personal hygiene products & garments KCA has many key consumer brands(retail Consumer Goods) including Kleenex Toilet Tissue and Facial tissues Wondersoft Toilet tissue Viva kitchen towels Thick and Thirsty kitchen towels Huggies nappies Snugglers nappies Poise pads Poise liners Depend Underpads Depend Briefs Kotex and U by Kotex feminine hygiene pads and tampons. KCA also has Business to Business (Professional and Health Care) brands including Scott interleaved, interfolded and single toilet tissue Cost saver TT Kimcare Hand cleansers Wypall performance wiping cloths Workforce wipers Kleengaurd Overalls KIMGUARD Sterile Wrap Technol face masks Evolution surgical gowns Safeskin gloves Size/turnover: $936.6m of packaged finished goods sold into the consumer marketplace in Australia. Excludes export and hard roll/pulp sales Location: HO Sydney, 2 mills in NSW, 1 mill in South Australia and distribution & sales centres in 3

4 GENERAL REQUIREMENTS Place in packaging chain: DETAIL capital cities. Some products imported from Kimberly-Clark global suppliers. Some products sourced from local contract packers. KCA uses packaging from packaging companies to package its retail and wholesale packs of products Frank Bova, Packaging Manager, ph; , ; Action Plan contact officer details: Back up Contact Ross Duggan, Environment Manager, ph , ; Time period: 2011 to

5 3. EXECUTIVE SUMMARY Following the launch of the new Australian Packaging Covenant KCA has held internal meetings and presentations to update the business on the new requirements. A series of development meetings involving KCA cross functional representation have been held will all the key Australian Packaging Suppliers. The requirements of the APC were discussed at these meetings together with KCA s expectation to identify, develop and implement new initiatives which will reduce packaging material use and cost. KCA places a high focus on technical training and development of its people. Development meetings are held at supplier premises in order to provide opportunities to fully understand supplier processes and create the best opportunity to identify pressure points which if relieved (ie find a smarter way of doing it) can lead to material, resource and cost savings. Development meetings are also held each month with each supplier to ensure packaging material reduction and optimization projects can be implemented as quickly and as efficiently as possible. In all cases the new packaging material or format must perform at par or better to the current status with respect to a total packaging system approach. In this 5 year APC plan a number of new initiatives are listed for perusal predominantly in 2011 and 2012 and as resources permit. This plan will be reviewed and updated each year. We have also set out a schedule for the review of each of packaging material category used by KCA. The predominant packaging materials used by KCA products packed in Australia are corrugated board, polyethylene film and solid carton board. Packaging material reviews will be carried out in partnership with our suppliers and a cross functional KCA team. Whilst KCA has implemented many reduction optimization projects for these materials over the years it is fully understood that packaging technology is constantly evolving and to this effect KCA has communicated to all suppliers that it expects all suppliers to be at the leading edge of material, cost efficiency and sustainability developments. KCA will continue to benchmark its materials both locally and globally to ensure that the most sustainable packaging solutions possible are used. At Kimberly-Clark we pride ourselves on leading the world in essentials for a better life. We ensure we protect our environment, look after the communities we operate in, treat our staff with the utmost respect and keep them safe when they re at work. To this effect, we are ensuring we have a sustainable business for generations to come. Each year, KCA will continue to report back on our progress against our sustainability objectives, with the aim of achieving world best practice in sustainability. This plan includes 2010 baseline data and we will include a summary of our performance against our aspiration objectives in each year s APC report. We will also ask our packaging suppliers to provide similar baseline and performance metrics. Frank Bova Packaging Manager 5

6 4. RETAIL CONSUMER GOODS PACKAGING MATERIAL CATEGORIES 4.1 Products Made in Australia 4.2 Imported Products Nappies; Polybags, Litho-laminated Corrugated boxes and standard Corrugated boxes Facial Tissues; Cartons and standard Corrugated boxes Bath Tissue; Poly label Rewind (PE film) and Poly bundle film (PE bundle film) Kitchen Towel; Poly label Rewind (PE film) and Poly bundle film (PE bundle film) Cleaning Wipes; Laminate film, labels, molded plastic lids, cartons, Shelf Ready shippers- litho laminated and standard perforated corrugated RSC styles. Feminine Care Pads; Polybags and standard Corrugated boxes ( currently developing Shelf Ready shippers) Feminine Care Liners; Polybags and standard Corrugated boxes ( currently developing Shelf Ready shippers) Tampons; Cartons and standard Corrugated boxes ( currently developing Shelf Ready shippers) Adult Care Breifs, Underpants Cartons and standard Corrugated boxes Baselinee Packaging Usage Data 6

7 5. SCHEDULE FOR PACKAGING REVIEWS Objectives review meetings with all Australian based packaging suppliers have been held in February These meetings covered the requirements of the new APC as well as the need to formally review packaging materials against the new Sustainable Packaging Guidelines (SPG). A number of further material reduction and hence cost saving projects were identified and will form part of KCA s joint packaging development objectives with suppliers. These initiatives and projects will be outlined in the KCA action plan table in the next section. Monthly review meetings are held with each packaging supplier and these meetings will be used to track progress of the continuous improvement initiatives. Annual cross functional meetings will also be held to review the initiative implementations as well as determine new objectives. New initiatives can also be introduced at the monthly review meetings. In addition to the identification and implementation of joint annual objectives it was also discussed that each packaging material category used by KCA will be put through a detailed SPG evaluation. This would also involve benchmarking against the industry best practice. The following SPG schedule will be applied to KCA packaging materials. Packaging Material Mills Review against SPG and benchmark to industry Corrugated Boxeslocal Ingleburn Millicent Albury Q Comments Process control development required to reduce property variation R&D required to better understand box compression strength (BCT) Corrugated Boxesimported Litho-Laminate Retail boxes Vietnam Czech Republic China UK USA Forward Sustainable Packaging Guidelines to import countries Limited influence over imported boxes. Communication re BCT and stacking safety factor requirements taking place. Ingleburn Q Process control development required to reduce property variation R&D required to better understand box compression strength (BCT) Poly bundles Millicent Q Further down gauging options-trials 7

8 underway in 2011 Poly bags-nappies Ingleburn Q New supplier being introduced 2011 Poly-bags-AFC products-imported Vietnam Czech Republic China UK USA Q Forward SPG and APC requirementsseek buy in. KCV reviewing poly bag light weighting opportunities. Min influence in other countries. Poly Rewind Millicent Q Low weight film development underway Facial cartons Millicent Q for gsm reductions Requires Amcor paper mill upgrade Paper Rewind USA Q Gsm currently minimized benchmarked to KCC global equipment and paper rewind Wipes Packaging Laminates, label closures etc Stretch Wrap Contract Packer Q Investigate laminate film technology Ingleburn Millicent Albury DCs all States Review against industry benchmark and SPG Meet with Supplier Discuss APC requirements Ensure optimised specification being used in all locations 6. ACTION PLAN SUMMARY TABLE Meetings have been held with all packaging suppliers to review the new APC and identify new initiatives. KCA representatives were from procurement, Mill operations and packaging. Following are packaging material reduction-optimisation opportunities that will be evaluated by Packaging and Mill operations. Procurement will also follow up cost savings and assist in driving objectives within the Business. Covenant Performance Category Design Actions Responsibility Baseline Data Target or Performance Goal Evaluate dynamic loading of shippers in transport. Compare to static loading. Optimise board gsm. Evaluate increasing layers of column stacking to see if gsm reduction is possible. Investigate contribution of inner Shipper Supplier Shipper Supplier Shipper Supplier Currently designing to stacking safety factors of Currently designing to stacking safety factors of Currently designing to stacking safety Need to maintain stacking safety factor. Target est 5% reduction in gsm. Need to maintain stacking safety factor. Target est 5% reduction in gsm. Need to maintain stacking safety Timeline milestone (MM/YY) End 2012 or 8

9 Covenant Performance Category Actions Responsibility Baseline Data Target or Performance Goal facial cartons to top load capacity and potential for shipper gsm reduction Review pallet stacking to determine if lower gsm boxes can be used. Evaluate removal of varnish via UV ink for facial cartons Visy-Albury mill move from twin to single board grade Evaluate opportunity of moving Viva palletisation from 8 to 9 bundles per layer. Transport saving. Shipper Supplier Carton supplier Shipper Supplier Distribution Category management factors of Currently designing to stacking safety factors of Litho ink aqueous varnish ink system TBA Move from 48 bundles per pallet to 54 bundles per pallet factor. Target est 5% reduction in gsm. Need to maintain stacking safety factor. Target est 5% reduction in gsm. Remove varnish Ink must have sufficient scuff resistance Need to maintain stacking safety factor. Target est 5% reduction in gsm. 12% reduction in pallets Timeline milestone (MM/YY) Mid 2011 or Move Wondersoft bundles supplied to Woolworths from 4 per layer to 6 per layer Evaluate 20% film for all KCA5 TT and Towel skus. Evaluate 12% reduction in KCA5 poly bundle film Review bag cut off & lip sizes. 1) review of finished bag size and look for consistencies to standardise 2) review of film width at extrusion Distribution Category management Millicent Operations Ingleburn Operations Ingleburn Operations Move from 24 bundles per pallet to 36 bundles per pallet 33% reduction in pallets Mid 2011 Current specification 20% reduction Mid 2012 Current specification 12% reduction End 2012 TBA TBC estimate 2% Investigate returnable shippers for nappy bag delivery. Corflute? Ingleburn Operations TBA Kg corrugate savings to be advised. Evaluate Poly Bundle film reduction for Wondersoft by 27% Evaluate Tissue carton without poly window Evaluate possibility of 12% reduction for clear nappy bags Evaluate 16% reduction for handle film on nappy bags. Develop & evaluate 12% film for tissue & bath products Review stretch wrap specifications Ingleburn Operations Marketing Dept Ingleburn Operations Ingleburn Operations Millicent Operations Distribution Packaging support re technical film properties Current specification Current specification Current specification Current specification Current specification Current specification 27% Mid 2012 Film elimination Kg TBA Mid % reduction Mid % reduction End % reduction Q TBA following meetings with Supplier End

10 Covenant Performance Category Actions Responsibility Baseline Data Target or Performance Goal Timeline milestone (MM/YY) or Recycling Packaging team visit to MRF Evaluate Returnable sleeves for delivery of tissue cartons into Millicent (corflute or plastic?) N/A Team training/update Q Carton Supplier TBA Eliminate corrugated board use Net packaging material use reduction Develop addition of PIR(post industrial recycling) content into clear nappy bags Buy Recycled Packaging where technically and economically feasible Nappy bag supplier Procurement Packaging Nil 20% addition End 2012/2013 All cartons have 95% recycled fibre content All corrugated boxes have 100% recycled fibre content Maintain status In place Product Stewardship Set up a review meeting with copackers. Objective: way in which we conduct projects, strengths/opportunities (in conjunction with Steve Sparke) Procurement Shipper and palletizing design guidelines being used. Work with contract packers to explore further opportunities Ensure Contract packers familiar with APC requirements and have them actively look for opportunities Cartons and poly bags Packaging Specifications Benchmarking vs KCC vs Competitors Evaluate opportunity to have nappy bags recovered from consumers and used for recycled plastic applications. Obtain information from KCC US. Procurement Retailers Current specifications All kerb-side flexible film ends up in landfill as there is no infrastructure in Australia to recycle post-consumer film packaging. Explore 5% caliper reduction Divert 20 % of used bags into recycling streams End 2012 Develop a packaging Sustainability questionnaire and issue to all packaging suppliers. Review packaging material categories against criteria listed in Sustainable packaging guidelines with KCA cross functional teams and suppliers Packaging Department Environment manager Packaging KCA cross functions Suppliers engaged in sustainability discussions as part of monthly development meetings Review current specifications Systems in place to cover C02 emissions, energy use and water quality. KCA packaging to be at industry benchmark or better. Mid 2011 Complete all material reviews by End of 2013 Commence program in

11 7. ON SITE PACKAGINGG WASTE MANAGEMENT Onsite waste collection programs are underway at Ingleburn, Albury and Millicent operations. Work is continuing to try to find a way of recycling SAM bags and fibre glue drums at Ingleburn baseline data is as follows 8. SUSTAINABILITY MANAGEMENT IN KCA Our global environmental management System (EMS) is based on the world recognized ISO standard. We have formal and active procedures to manage key environmental aspects ncluding energy, water use and lower environmental loads in wastewater, air and solid wastes. 8.1 Aspirational objectives 1. To reduce Millicent Mill s water use to meet process specificc benchmark targets by end 2014 (NB: the water use targets vary with production process. Benchmarks for each process are 30 kl/t tissue, 60 kl/t thermomechanical pulp, 75 kl/t bisulfite pulp). 2. Reduce BOD load (Biological Oxygen Demand) in wastewater discharge to Lake Bonney by 15% by 2014 i.e. from 113 t/annum to 96 t/annum. 3. Reduce TSS (Total Suspended Solids) in wastewater discharge to Lake Bonney by 15% by 2014 i.e. from 198 tonne/annum to 168 tonne/annum. 4. For virgin wood and fibre sources ensure greater than 90% is certified to a recognised forest management system by Decrease the carbon intensity (i.e. tonne CO2 / tonne paper product) by 2.5% in 5 years. 6. Reduce percentage of landfilled waste by 0.25% per year (3. 5% of all manufacturing wastes were landfilled in 2006). Reduce waste production from 69,300 tonne in 2004/5 to less than 62,4000 tonne in 2009/10. 11

12 8.2 Progress against objective 1. Water usage increased slightly over the previous year and is above the aspirational target. 2. BOD is 14% above 2014 target. 3. Levels still remain below our 2014 target % of our virgin fibre is certified under PEFC or FSC; both being recognised forest management systems, thus meeting our 2010 target. 5. Carbon intensity has reduced by 2.7% in the last 5 years. 6. Our Total landfill disposal in 2010 was 1.8% of total wastes generated. All Mills waste generated was 64,777 tonne, 3.8% above our stated aspirational objective. (See KCA sustainability policy and 2010 report which can be downloaded at the following website) Each year, we will continue to report back on our progress against our objectives, with the aim of achieving best practice in sustainability and corporate social responsibility. 9. MANAGEMENT ENDORSEMENT KCA s 2010 NPC report has been endorsed by Ross Hearne (South Asia Corporate Services General Manager). APC Plan compiled by Frank Bova Packaging Manager-South Asia 12