Signatory Name: Ward McKenzie Pty Ltd

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1 Signatory Name: Ward McKenzie Pty Ltd The question numbers in this report refer to the numbers in the report template. t all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Please indicate your organisation's reporting period: Financial Year: 1 July June 2014 Calendar Year: 1 January December 2014 Please indicate the entire period your accepted APC Action Plan covers (e.g ) Start Date: End Date: 01/01/ /12/2015

2 Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? Provide details of policies and procedures 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 1 Have any new types of packaging been introduced during the reporting period? 12. Packaging Review (for existing and new products), Raw Material and Packaging Purchasing Policy, Supplier Approval Questionnaire, APC Supplier Questionnaire, General Specifications (per packaging type). 85 % If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 90 % 13. Please indicate your progress this year towards achieving your annual targets and milestones for KPI Full Audit of all corrugated fibre packaging with view to move board grades to 100% recycled board. Plastic bottles/jars - both local and imported plastic packaging ranging from PP to PET. Audit of composite cans to investigate head space in can with view to reduce overall height of can. Due to resource constraints (personnel) we focussed on our six major cases. These six cases represent over 50% of our corrugated business. The program commenced with 375g grain cases, we evaluated different designs by extensive trials and successfully qualified 100% recycled board for 375g. Implementation will commence January Due to impact of climate on recycled board, full review of 375g 100% recycled board cases will be concluded by mid 2015 prior to 500g and 1kg case changeover. Completed. PP line - entire product range was deleted due to business review. PET - please refer to new KPI (point 8). Completed. From the trials we concluded that the head space reduction is not possible. However, we had an opportunity to successfully change the board grade from 280 gsm to 240gsm which reduced the tonnage consummed per annum by 8.9 tonne as reported in previous years report.

3 4. 5. Formal implementation of the SPG for design, marketing, and procurement of packaging. New KPI - Program for landfill reduction SPG design, marketing and procurement are reviewed and approved for implementation. The program was not 100% able to be implemented due to personnel changes within our business. However, the business has recognised the importance of the guidelines and is committed for its full implementation in Foodservice ziplock material supplied on hardwood reels that would end up in the landfill post production. Through our SPG guildelines we identified an opportunity to remove the hardwood reel altogether, the new format of packing ziplock in corrugated box has been successfully trialled, the changeover will be made in the next purchase cycle. The corrugated box is recycled through our onsite recyling program New KPI - Introduction of generic cases and film. New KPI - Introduction of plain shrink film for finished products. New KPI - Investigate possibility of local sourcing of PET jars and bottles to reduce carbon footprint. With the introduction of new products, we evaluated product specific packaging versus generic film and cases for a range of new products. To enable generic packaging usage we invested in machinery to meet product and regulatory requirements. This resulted in less stock holdings in the warehouse, reduction of changovers on the production line and overall less wastage further reducing impact on the environment. We have 28 product specific printed top and bottom shrink films; this program is to evaluate the use of one generic shrink film for the bottom roll thus reducing changeovers on the production line and overall less wastage. Even after successful trial of generic unprinted bottom film roll, the project was not commercially feasible. Program in place to engage with local suppliers for commercially viable options; including recycled PET in our bottles and jars. 14. Describe any constraints or opportunities that affected performance under this KPI Constraints: On one hand there is a requirement for shelf friendly packaging to be easy opening at store level; however, on the other hand a stronger board grade is required to compensate for SFP requirements. At the same time optimising logistics by double stacking during warehousing and transportation. Even after trialling various perforation designs, at times it is difficult to implement SFP to meet these requirements. Change in organisation structure impacting timeline to implement initiatives as mentioned above. Lack of awareness/knowledge in our entire supply chain to implement APC programs. In 2014 we introduced packaging which had a tear notch and reclosable zip.

4 Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 15. Do you have on-site recovery systems for recycling used packaging? at all facilities/ sites at some, but not all facilities/ sites 16. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 On-site recovery systems for recycling used packaging. We currently have a company wide program to collect all office paper waste, production paper and paperboard for recycling this also aides in the reduction of paper/paperboard waste going to landfill. There is a separate program for all plastic waste including films, shrink and stretch wraps. Returnable outer packaging - successfully implemented with one supplier as previously reported in Program to identify returnable packaging with other suppliers via supplier review meetings (refer KPI 1 Number 5). 17. Describe any constraints or opportunities that affected performance under this KPI Complaints: As we import a number of packaging from overseas, we are unable to engage these suppliers in the discussion of returnable packaging. We ensure the packaging used in transit will allow protection without being over engineered, along with diversion from landfill. Being a SME we do not have sufficient resources to carry out measurable KPI's. KPI 4: Signatories implement formal policy of buying products made from recycled packaging. 18. Does your company have a formal policy of buying products made from recycled packaging? Provide details of policies and procedures (including names of policies/ procedures) Raw Material and Packaging Purchasing Policy. 19. Is this policy actively used? 20. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 Formal implemetation of 'buy products made from recycled packaging' Ongoing, see KPI

5 2. New KPI - exploring other areas of the organisation to support the recycled product purchasing policy. Implemented in 2014 the purchase of product which has recycled content: Office paper Paper towels in toilets Toilet paper We are currently implementing a collection of old mobile phones and used batteries in accordance with local council policy. The target implementation first quarter Describe any constraints or opportunities that affected performance under this KPI Constraints: Due to the lack of availability of quality recycled raw material in commercial quantities for example recycled PET resin. With the use of recycled packaging there is a lack of knowedge to understand the risks in food packaging. To engage everyone in the organisation to participate in waste reduction programs including recycling old mobile phones and used batteries. Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 22. Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Provide details of policies and procedures (including names of policies/ procedures) Formal regular supplier review meetings includes discussion of the opportunites to optimise packaging. 23. Please indicate your progress this year towards achieving your annual targets and milestones for KPI Formal process for working with the supply chain to improve packaging design and recycling. New KPI - Investigate opportunities to reduce energy consumption. New KPI - Engage with key packaging suppliers to reduce impact on enviornment. We regularly meet with our suppliers to ensure best practice is followed in designing and implementing new packaging as well as evaluating exising, this includes bench marking against best practices in the industry. As a business we regularly review our energy and water consumption which has led to decommissioning a high energy consumption production line. We also updated a more efficient packing machine during 2014 thus reducing product and packaging waste. This program will be continued for 2015 also. Implemented a program to refit Inductive and LED lights in the manufacturing and warehouse. This is an ongoing initative. Investigated use of solar energy, this project was not viable due to ROI. Supplier A - In used 50% of its energy through renewable sources. 17.5% of their water usage was through recycled water and desalination. Carbon dioxide emissions by 8% (due to renewable sources). Supplier B - ISO certfied.

6 24. Describe any constraints or opportunities that affected performance under this KPI Constraints: Investment on solar energy has a 13 year payback. Use of emerging technologies to reduce the energy and water consumption. KPI 7: % signatories showing other Product Stewardship outcomes. 25. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 2. Formal policy to review all packaging against the SPG. New KPI - Update all packaging specifications for online access. After reviewing our packaging and their usage we are converting pre-made pouches to online pouch production using rewinds. These changes will result in significant energy / material saving. We work closely with major retailers to implement waste reduction throughtout enitre supply chain. Program established July 2014 to update all specifications for online access for packaging/production/procurement/quality assurance to encourage a paperless work environment. 26. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? If yes, please give examples of other product stewardship outcomes For McKenzie's Jelly 2kg we decreased the pallet height from 5 to 4 layers to prevent cases crushing as the alternative was to increase board grade on these cases. Packaging specifications includes the limit of heavy metal additivies as per PAS223 requirements. Short shelf life product regularly donated to charities therefore diverting from landfill. Annual Clean up the Office day. 27. Describe any constraints or opportunities that affected performance under this KPI Investigate collection of e- waste with local council. KPI 8: Reductions in packaging items in the litter stream. 28. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Reduction of litter and packaging going to landfill (via take back and recycling of packaging). We endeavour to have reyclable packaging, however where we cannot we have clear instructions on the pack for after use disposal, including logos on inner and outer packaging. All paper waste from office and factory diverted from land fill.

7 29. Describe any constraints or opportunities that affected performance under this KPI Short shelf life product are regularly donated to charities thus diverting from landfill (as mentioned in KPI 7). Participate in community based programs to reduce litter. Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 30. Key achievements or good news stories There has been a wholistic approach to reduce the environmental impact by reducing landfill, water and energy consumption and reduce, reuse and recycle packaging where possible. We are proud of our inititives especially the use of 100% recycled board usage, use of energy efficient lighting and working with suppliers with clear environmental objectives. 3 Areas of difficulties in making progress against your plan, Covenant goals or KPIs Due to being a SME we struggle with resource constraints.