Report by Benjamin Kearney Churchill Fellow

Transcription

1 The Winston Churchill Memorial Trust of Australia Report by Benjamin Kearney 2006 Churchill Fellow The 2006 Jack Sheeran Churchill Fellowship An investigation of sustainable and environmentally friendly packaging technologies for the baking industry. I understand that the Churchill Trust may publish this Report, either in hard copy or on the Internet or both, and consent to such publication. I indemnify the Churchill Trust against any loss, costs or damages it may suffer arising out of any claim or proceedings made against the Trust in respect of or arising out of the publication of any Report submitted to the Trust and which the Trust places on a website for access over the internet. I also warrant that my Final Report is original and does not infringe the copyright of any person, or contain anything which is, or the incorporation of which into the Final Report is, actionable for defamation, a breach of any privacy law or obligation, breach of confidence, contempt of court, passing-off or contravention of any other private right or of any law. Signed Dated Ben Kearney 17 th of January 2007

2 INDEX Page Introduction 3 Executive Summary 4 Fellowship Program 5 Packaging to the rescue, what is it all about? 6 Where is Packaging going wrong? 6 What can we do to change? 6 Bio Plastics 7-8 What are they? Why should we change to renewable and compostable forms of packaging? What can we use them for? How can we get hold of them? Other Sustainable/Renewable Products Paper/Cardboard 8 How Retailers are changing 8 Why is Sustainability and Sustainable Packaging important to the baking industry? 9 What is a Renewable Resource and why do we need our Packaging made from it? 9 What is a Degradable vs. Biodegradable vs. Compostable Packaging Product? What is Closed Loop Recycling and why can it help? 13 What is a Cradle-to-Cradle Product? 13 Why are Life Cycle Assessments important? 13 The Baking Industry sets a great example with Bread Crates 13 Ethical Issues to consider 14 Conclusions 14 Recommendations point Waste Plan for a more sustainable baking industry Develop a Waste Economy Embrace the Green Consumer Other Recommendations 2

3 Introduction The Jack Sheeran Churchill Fellowship enabled me to travel to Italy, Germany, the United Kingdom and the USA to study sustainable and environmentally friendly packaging technologies and examples of best practice in retailing with these products for the Australian Baking Industry. I would like to thank the Churchill Trust for the incredible opportunity my fellowship has given me. Also I would like to thank the Queensland Baking Industry Association for their ongoing support of the Churchill Trust and the Jack Sheeran Fellowship. I would also like to sincerely thank my family and staff in our business for supporting and enabling me to complete my fellowship. The Innovia Films Research and Development Centre, Wigton, United Kingdom 3

4 Executive Summary Ben Kearney 1830 Coles Bay Road, Coles Bay, Tasmania 7215 (03) My fellowship took place between the 24 th of September and the 16 th of November My fellowship was to investigate sustainable and environmentally friendly packaging technologies for the baking industry. I looked particularly at the evolution of renewable bio plastics and how retailers are responding to the advent of the green consumer. I investigated how the baking industry may respond to these new technologies and attitudes, so that we can continue to meet our customer s needs, remain profitable and encourage our industry to be a leader in this more sustainable future. Highlights: Visiting Novamont, manufacturer of Mater-bi cornstarch polymer in Novara, Italy. Attending IBA International Baking Expo in Munich, Germany to look at current trends in the Baking industry and how sustainable packaging and sustainability is being represented in the industry. Visiting Innovia Films in Wigton, UK, touring both their Natureflex cellophane plant and also their plastic film plant and discussing their R&D developments and sustainable products. Visiting Marks & Spencer in London and learning about the excellent work they are doing with renewable food packaging. Meeting the Co Operative Group of Companies Head of Packaging in Manchester and seeing their program to reduce waste and introduce more sustainable packaging. Attending Pack Expo 2006, International Packaging and Materials Expo in Chicago. Attending conference sessions on sustainable packaging. Including visiting the Sustainable Packaging Coalition site and sessions by Lyn Domblaser of Mintel International on green consumers, Creating a Sustainable Future: Growing the Bio-resin Market in a Greening Economy by Dennis McGrew, President & CEO NatureWorks LLC. The Financial and Environmental Impacts of Reduced Format Transit Packaging by Ralph L. Dillon Part owner of StraptPak and Home Compostable Palm Fibre Packaging a cradle-to-cradle solution by Shannon Boase, founder of Earth Cycle Packaging Ltd. Recommendations/Conclusions Develop a waste economy, by putting a value on it. i.e. Container Deposit Legislation Develop a 7-Point Packaging Waste Reduction Plan for a more sustainable Baking Industry. Embrace the Green Consumer as they are the future and are good for our business. Encourage the use of renewable, sustainable, cradle-to-cradle or closed loop packaging products in our industry. Realise the full potential of packaging in our industry, through managing waste and making it sustainable/renewable through ecologically intelligent design, (1) Educate our industry and all levels of government on the use of these products and how they can be managed in our current recyclate stream or made into valuable compost. Develop new industrial composting facilities around Australia to compost new biopolymers Implementation and Dissemination: My recommendations and report will be made available to all the baking industry associations around Australia. The Victorian Baking Industry Association, who are conducting a study into sustainability in Bakeries in partnership with the Victorian Government Department of Sustainability and the Environment, have asked to assess my findings as part of their study. I will continue to promote my findings through submitting articles to industry publications, through my ongoing environmental work with Planet Ark Founder Jon Dee and wherever possible through media interviews and public speaking. (1) Braungart, Michael; & McDonough, William (2002). Cradle-to-Cradle: Remaking the Way We Make Things. 4

5 Fellowship Program 25 th of September 1 st of October Milan, Italy Novamont Novara, Manufacturer of Mater-bi 2 nd 8 th of October Munich, Germany IBA 2006, International Trade Fair of Baking 9 th 11 th of October Manchester, United Kingdom Co-operative Group of Companies, Major UK Retailer 12 th 17 th of October Wigton, United Kingdom Innovia Films, Manufacturer of Natureflex Film 23 rd 27 th of October London, United Kingdom Marks & Spencer, Major UK Retailer 28 th of October 9 th of November Chicago, USA Pack Expo 2006, International Packaging and Materials Expo Conference sessions on sustainable packaging Meetings with Cargill Natureworks, Manufacturer of PLA 16 h of November Return to Australia 5

6 Packaging to the rescue, what is it all about? Packaging is the process of placing an object into a container. The main purpose of packaging is to physically protect the product inside. Packaging in its most basic infancy was a way to reduce waste! Mainly using wooden crates, woven bags and clay pots for transporting foods and liquids of all kinds, it reduced breakages, bruising, and contamination and was a way for people to preserve the life and quality of food. Through having less waste and food lasting longer it was possible to feed more people, over greater distances from the original food source. People could be more productive as the resulting food from their hard work would last longer and go further, thus saving time to do other things. Packaging these days can be made to protect products from extremes of heat and cold. It can protect the product from being contaminated by airborne pathogens or from being damaged by handling or pressure. It is quite remarkable the difference quality packaging makes to our lives every day! Where is Packaging going wrong? Packaging was revolutionized after the Second World War when there was an explosion of new cheap plastics on the market that were made from by-products of the oil industry. These new plastic polymers were cheap and had incredible properties from being impervious to water, to being able to be shaped into almost anything imaginable from plastic bags to bowls and cups. It is without question that plastic is a very valuable and important technology that has made our lives easier and safer. Where packaging is now going wrong is that oil, the source of these wonderful cheap plastic packaging products, is going to eventually run out. Long before it does, the price of plastics is going to increase significantly. We have had a bonanza for 50 years, where most consumers have assumed that packaging around our products is free. This has made us incredibly lazy and has given most consumers the attitude that all this plastic packaging has no real value. This has led to issues that are now affecting our environment such as litter and increased landfill and plastic packaging escaping into creeks and oceans and causing damage to wildlife. Instead of reducing waste like it should be, over packaging has become the waste. We need to realize that this wonderful stuff called plastic is valuable and we need to recycle it and use it as efficiently as possible. What can we do to change? We need to realize that our resources are finite and that our attitude to these finite resources needs to change. We have to put a higher value on some of these resources and we may need to make some small changes in our habits to see that we manage these resources properly. One of the best things we can do is to start using bio plastics or recycled/closed loop products for our packaging instead. 6

7 Bio Plastics - What are they? Bio Plastics or Bio Polymers as they are known are the first completely new plastic polymer in over 30 years. They are predominantly made from cornstarches and other organic starches. There are a number of different types of these polymers with different attributes. No one petroleum based plastic polymer does every job. It is the same with biopolymers. Some lend themselves very well to rigid items, others to films for bags and some are even transparent. The technology is very new and evolving all the time and as it does we will see more solutions to everyday packaging products. The best attributes of Bio Plastics are that they are made from renewable resources from annual crops such as corn. Some of them are recyclable and all of them are compostable, although some need industrial composting to achieve this. Many of them can be used in existing plastic converting facilities with some modifications. Bio Plastic can be up to three times as expensive as equivalent plastics. However, as consumer demand increases for these products and the price of oil increases, this gap will close considerably. Why should we change to renewable and compostable forms of packaging? World resources of oil are dwindling and plastic which is a by-product of the refining process of oil is becoming more expensive. Eventually this will lead us into a situation where we will need to find products from renewable resources to package our goods with. Plastic in the form of plastic shopping bags has been proven to do damage to wildlife and the environment and take thousands of years to breakdown. We need to reconsider our use of these products and consider wherever possible using reusable bags and containers for shopping with. Where this is not possible we need to use products that are renewable, readily biodegradable and compostable, so we are not leaving unsightly dangerous litter. Plastic in some cases may always be the best product to use for some packaging and where this is the case we need to value this resource more and recycle it in a closed loop system so we can enjoy the continued use of this resource well into the future. What can we use them for? Bio Plastics can be made into everything from rigid sandwich containers, to bottles for water, to shopping bags and disposable knives and forks or plates. There are some things, for health reasons or because of particular properties, where they may not be suitable, but many of these issues are being solved and like other plastic polymers before them, they will continue to improve. 7

8 How can we get hold of them? Many packaging companies in Australia are beginning to see the first examples of these products becoming available now. It will take time for them to be available everywhere as the manufacturers of the raw ingredients will take some time to be able to increase the volume of their production facilities to meet consumer demand. I would encourage everybody in the baking industry to start asking your packaging suppliers about these products and how soon they will have them available, as it is your demand, and that of your customers, that will make things change quickly! Other Sustainable/Renewable Products Paper/Cardboard Paper and cardboard and other cellulose based products like cellophane are also sustainable/renewable and have been around for a very long time and continue to fill a valuable role in the packaging industry. They are readily recyclable and biodegradable. Trees are a renewable resource that albeit a little slower growing can continue to be renewed. They continue to play an important role in a sustainable packaging industry. How retailers are changing I visited several major retailers on my fellowship and it has become quite obvious that many of them see packaging and the environment as the new battleground for large retailers. They are trying to take marketing advantage, and market share from each other through embracing the new green consumer. The environment is a major concern of many of their customers. Many large retailers are responding by greatly increasing their investment in staff and technology in their packaging departments. They are also addressing the issue of sustainability in their overall organization. Some retailers are even setting requirements for suppliers on what they will accept as packaging for products that go into their stores. They are trying to reduce the mass and weight of packaging, they are refusing to stock products that are packaged with some plastics that they think are bad for the environment or made from dangerous chemicals, they are reducing shelf lives on some products where they are using renewable packaging or less packaging. They are focusing on fresh short life foods in new packaging, as this is what their customers are demanding. They are replacing products that do not meet new standards and some of them are even inventing and developing their own biodegradable packaging where they have not been able to get a suitable solution from their regular packaging suppliers! Some have even set very big targets for almost completely replacing existing packaging with renewable/compostable and closed loop products over the next few years! 8

9 Why is Sustainability and Sustainable Packaging important to the baking industry? The baking industry, along with all other industries, will come under increasing pressures in the future from greater energy costs, packaging costs and other consumables. World demand for dwindling natural resources will continue to increase and will force up prices. Correspondingly further pressures on our environment, caused by increasing global demand for these resources and their consumption will force us to have to find better ways to run our businesses in order to remain profitable. This will require more sustainable resources to fuel the energy and material needs we have in our businesses. In order to do this we will need to start adapting now. Sustainability in short is improving our businesses so that we only take from the environment what we can replace rapidly and renewably while doing no harm to the biosphere. This means that eventually all the energy (electricity) we use will need to be renewable. All the Packaging we use will need to be made from renewable, carbon neutral products etc. This may seem utopian but in reality it is starting to happen all over the world right now. We can help it along by raising awareness in our industry of the measures needed to encourage this change and why we need to do it and demanding that our suppliers give us products that meet these necessary standards. What is a Renewable Resource and why do we need our Packaging made from it? A renewable resource is one that can be replaced within the time frame it takes us to consume it. For instance if we take solar power for example, we need enough sun and capacity in a day to replace what we have used in electricity that day, without causing any further damage to the environment while we are doing it. We can apply this to packaging by looking at some of the new starch based plastics that are produced from a crop of corn that can be grown annually, and are made using renewable green energy so they have a neutral (2) carbon footprint or can be replaced easily during the life cycle of the product. 9

10 Alberto Castellanza at Novamont, Novara Italy Pack Expo, McCormick Place, Chicago USA 10

11 What is a Degradable vs. Biodegradable vs. Compostable Packaging Product? Degradable Public Perception The public commonly thinks that degradable means biodegradable when in fact it is quite different, we need to be quite clear about the difference. Degradable products are typically conventional oil based plastics that have an additive that assists the material to degrade or breakdown into miniscule parts. While this may seem like a good idea it is still a wasteful use of non-renewable resources and still takes sometimes from 6 12months to break down. This is commonly seen with some plastic shopping bags leading people to believe that they are biodegradable and good for the environment. ISO (3) defines degradable as A Characteristic of a product or packaging that, with respect to specific conditions, allows it to break down to a specific extent within a given time. NOTE Degradability is a function of susceptibility to changes in chemical structure. Consequent changes in physical and mechanical properties lead to the disintegration of the product or material. These materials are not usually compostable and will not become humus. Biodegradable Public Perception The product will degrade through microbial activity and will change to compost in a quick time frame like most vegetable matter does. Biodegradable, ISO does not define biodegradable. The Oxford English Dictionary (4) in short defines biodegradable as, susceptible to the decomposing action of living organisms, especially from bacteria, broken down by biochemical processes, deterioration of a substance or material caused by the action of living organisms. This does not mean that it is only in compost either as this is a secondary facility used to increase the speed that biodegradation may take place in. It simply means that if it is exposed to natural elements like sun, wind, rain and dirt that it will decompose. 11

12 Compostable Public perception is that it is a product that can be put on their home compost heap and it will eventually break down to humus over a variable time frame although they would not expect it to be still there in a year. ISO defines it as A characteristic of a product, packaging or associated component that it allows it to biodegrade, generating a relatively homogeneous and stable humus-like substance There are two types of Composting Home compostable There is no accepted global standard for home composting although in Europe there is a standard called Home Compost OK certification, which appears to be becoming more recognized. Home compost heaps have irregular controls of heat and are often maintained poorly. The temperature inside only rarely is higher than 1-2 degrees C above the ambient air temperature. There are a couple of products that meet the home compost OK certification for packaging and these are mainly cellulose based products like paper/ cardboard and some cellophanes. Industrial Composting Most products that claim to be compostable including most of the new biopolymers, typically meet the ISO (5) certification for compostability, which uses the conditions that are found in an Industrial Composter. They are tested to this standard, this may also be known as Din Certco. Industrial composters are enclosed and are run to carefully manage temperature at degrees C. There are very few of these facilities in the world and more industrial composting is done in Windrows that are essentially very well managed, large-scale compost heaps. Many of the polymers that claim compostability will not break down in windrows or home compost heaps, as the temperature is not high enough or consistent enough to allow them to biodegrade. So more of these facilities will be needed to cope with the expansion of the use of biopolymers to make renewable packaging products. Additional Information The public routinely confuses degradable, compostable and biodegradable. It is very important when using any of these new technologies for packaging that we are very clear with the consumer. If making claims for any packaging about its compostability or otherwise, then it must be outlined in a very clear way its route for disposal. For instance, if something is compostable but only in industrial composting, then it must be clearly explained where a consumer should take this product to dispose of it, and how this might be different to their home compost bin. 12

13 What is Closed Loop Recycling and why can it help? Closed loop recycling refers to a process where a packaging product is used, recycled, without material loss, and then re-manufactured into the same product to be used again, following this process over and over again. For example cardboard cartons and fizzy drinks in PET plastic have used this model very successfully, without a great harmful effect on the environment. What is a Cradle-to-Cradle Product? In the past products were designed in a, Cradle to Grave way to be used from new, to eventually end up in landfill at the end of their usable life. Cradle to Cradle products are made to have their raw materials continually recycled in closed loops. Maintaining the materials in closed loops retains the materials value without affecting the environment. It is important to note that many products that can be manufactured in this way are not renewable or biodegradable but synthetic where it is an advantage to continue the use of the raw materials over and over again so they are not lost to us. Why are Life cycle assessments important? Life Cycle Assessments are a way to assess the environmental impact of a product, or process. By evaluating all the inputs and outputs in terms of energy and materials used and waste released to the environment including transportation, and then assessing its impact on the environment. We can look at how sustainable a product is and how it might be improved. The baking industry sets a great example with Bread Crates. The Plastic Bread crate is a reusable, recyclable, cradle-to-cradle product that is a great example for other industries! Rather than using cardboard boxes as transit packaging for bread, the use of the reusable bread crate is a sustainable, environmentally friendly way of transporting an essential product. It is estimated that for every tonne of corrugated cardboard saved from being needed in packaging that we save 1 tonne of Co2 from being released, 17 mature trees no longer are needed to produce it, gallons of fresh water can be better used else where and we save over 50 gallons of fuel (6). Not a bad reason to try and reuse our cardboard rather than throwing it away. 13

14 Ethical Issues to consider Fairtrade The Fairtrade Mark is often associated with coffee but is now being used with other products including packaging. It appears on products as an independent guarantee that disadvantaged producers in the developing world are getting a fairer deal for their product. It could be of great benefit for our products and the world if we chose to support this branding on our packaging. Forest Stewardship Council The Forest Stewardship Council (FSC) is an international network that promotes responsible management of the world s forests and is seen as the most recognized environmental standard for paper/wood products including paper bags and cartons. There are issues with availability of product that is FSC certified as not all pulp mills are certified but we can put pressure on packaging companies to supply this product to us. Genetically Modified Organism (GMO). It is important to know that some of the crops grown to produce Bio Plastics are GMO crops. In some parts of the world mainly, Europe and the UK, there have been widespread anti GMO campaigns run. Some of the manufacturers of Bio Plastics now offer customers non GMO Bio Plastics as well. Conclusions Industrial Composting It will be necessary as more and more bio plastics are introduced in packaging lines to have many more industrial composting facilities to deal with these products. Make it Happen! We are the only thing holding us back as an industry from being a leader in sustainability, making our customers happy and guaranteeing our future as a responsible, sustainable and importantly profitable industry. We have to make it happen! Recommendations: Develop a waste economy by putting a value on it. Legislation is changing around the world. There are big fees in some countries for retailers to send their waste to landfill. Here in Australia we really need to look at the importance of creating an economy around our waste stream to help get people more involved. We need them recycling well, and changing their attitude to the value of waste and littering. The best example of this is Container Deposit Legislation like many European Countries have, we have it in South Australia. If we set deposit values for many of the common items we see as litter it will help motivate and educate young people about how to properly deal with waste packaging and give value to these products while helping to change people s attitudes, and teach them more about how to live sustainably. 14

15 7-Point Packaging Waste Reduction Plan for a more sustainable Baking Industry 1. Prevention Plastic Shopping bags are a prime example where we can prevent use completely by encouraging our customers to use reusable bags. Say no to anything that is not completely necessary as it is simply wasteful. Prevention vs. Recycling always wins as there is no energy or time needed, and customers can see less packaging at the shop. 2. Minimization Reduce all forms of packaging that are not necessary, for example, using large paper bags when a smaller one would suffice and any other forms of over packaging. The money we save can be put to better use by buying sustainable packaging where we really need it. 3. Re-use Re-use any packaging you can. For instance, cardboard outers from deliveries can be re used to pack large orders or for storing other disposable stock in the bakery. 4. Replace Packaging that is essential with reusable, renewable, recycled/closed loop or compostable packaging. It costs a bit more but you will save in other areas to cover it. 5. Recycling It is important that we follow local government guidelines for recycling as it varies from area to area. In some areas recycling certain products is uneconomic and not sustainable as the energy needed to recycle the products through transport etc. is worse for the environment than not recycling. Talk to your council if you think this is the case in your area and see if there is a better solution like local composting of cardboard etc. It may be better to use these products for energy recovery. Involve your customers in this process. It is excellent marketing and will help educate consumers as to why we all need to try harder to have a sustainable industry. 6. Energy Recovery Where it is not possible to recycle and the right technology can be employed; some packaging can be used to generate energy. This could be in the form of organized methane collection during degradation or through using the packaging as a fuel source. Some bio plastics can even be burned cleanly. 7. Disposal Ensure that all compostable packaging is disposed of in the correct way so that it can be used to its full potential and that all recyclable material where suitable is recycled. Any remaining waste is suitably disposed off. 15

16 Embrace the Green Consumer Who is the green consumer? Well it s you and me and everyone else that is concerned in some way about the environment, climate change and how we as consumers might do something about it. We do not realize it yet but we have a lot of power and Brand Managers around the world are seeing consumer research showing a major shift in our concerns about packaging and the environment. Many of the companies I spoke with, said that their market research was showing a very sharp change in the concerns of their customers about how they can help the environment and what to do with packaging waste. Why packaging? Well for the most part it is one of the few things where a great number of ordinary people have an opportunity to do something for the environment by making a choice when they are doing their grocery shopping to opt for the more environmentally friendly brand or to buy the products that are easy to recycle and handle. They want to buy products with precise clear packaging that tells them exactly what it is made of and how to get rid of it. They want to shop with businesses that care about the environment and that make it easy for their customers to show that they care too. The baking industry needs to make sure that we are an industry that is ready for the green consumer, because they are already our customers and whether they remain so will be up to us. Other Recommendations: Encourage the use of renewable, sustainable, cradle-to-cradle or closed loop packaging products in our industry. Realise the full potential of packaging in our industry, through managing waste and making it sustainable/renewable through ecologically intelligent design, (1) Meaning that our packaging needs to be designed from the beginning with not only aesthetics, function and use in mind but its function at the end of its use to be recycled or converted to compost and best designing this into a packaging product from inception. Educate our industry and all levels of government on the use of these products and how they can be managed in our current recyclate stream or made into valuable compost. (1)Braungart, Michael; & McDonough, William (2002). Cradle to Cradle: Remaking the Way We Make Things. (2) Carbon Footprint The amount of CO2 produced to manufacture or use something is referred to as its Carbon footprint. (3) ISO ISO (International Organization of Standardization) ISO / Environmental Management Systems (EMS) (4) The Oxford English Dictionary - Oxford University Press 2006 (5) ISO ISO (International Organization of Standardization) Packaging - Requirements for packaging recoverable through composting and biodegradation (6) Environmental Impacts of Reduced Format Transit Packaging by Ralph L. Dillon Part Owner of StraptPak 16