Topics in Sustainable Packaging. Anne Johnson PMMI PMC Meeting St. Petersburg, FL, Feb 28, 2007

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1 Topics in Sustainable Packaging Anne Johnson PMMI PMC Meeting St. Petersburg, FL, Feb 28, 2007

2 Overview Why you should care Drivers environmental, business and social Thinking about what sustainable packaging means Implementation Case examples of improved packaging

3 A Moment of Fundamental Change Difficult as it is to accept, there is no natural history anymore. There is only human history. Braden Allenby AT&T, 2000

4 Scales of Impact: Global

5 Scales of Impact: Molecular

6 A POV from the Triple Bottom Line PLANET PEOPLE PROFIT

7 A few facts Americans now use about 18 tons of resources apiece over the course of a year compared to 1.8 tons in the early 1900 s America consumes a million gallons of oil every two minutes With the amount of aluminum discarded in the US, we could replace the entire US fleet of commercial aircraft every three months The US with 5% of the global population produces 25% of its greenhouse gases (soon to be surpassed by China)

8 Risk and a changing business climate States regulate energy use all on their own. Washington Post High price of plastics is a legacy of Katrina. Associated Press Energy reshapes China s priorities. To meet its soaring demand for energy, China is scouring the globe for oil, natural gas and other sources, and that drive has major implications for North America. Seattle Times Steps to take before the collective well runs dry. According to a Government Accountability Office report in 2003, some 36 of 47 states participating in its water survey expected shortages within 10 years. New York Times Environment: A Social Issue. China's environmental problems are so widespread that they have begun to generate social instability. Philadelphia Inquirer E-waste legislation grows in Canada Get ready for Canada's WEEE-like e-waste regulations, which are being rolled out across several provinces. The aim is to cut the amount of waste in landfills and to move the burden of disposal costs to producers. 02/19/2007

9 Wall Street adds climate change to bottom line The environmentally tinged takeover of TU Corp. illustrates global warming's increased financial relevance. By Ron Scherer Staff writer of The Christian Science Monitor Feb 27, 2007

10 Financial Incentives Dow Jones Sustainability Index Launched for North America ZURICH and NEW YORK, Sept. 26, SAM Group has expanded its family of Dow Jones Sustainability Indexes (DJSI) with dedicated benchmarks for North America and the United States. The Dow Jones Sustainability North America Index and Dow Jones Sustainability United States Index will comprise the top companies in terms of economic, environmental, and social criteria from the two regions and provide solid benchmarks for sustainability-driven North American and U.S. equity portfolios.

11 Business Drivers for Corporate Sustainability Globalization Corporate Social Responsibility Sarbanes-Oxley Shareholder resolutions NGOs Risk Reduction Institutional Investors

12 Drivers for Sustainable Packaging Same as corporate drivers And legislation Started with brand owners, raw material manufacturers And now, Wal-Mart

13 Material Suppliers Converters Brand Owners Retailers Consumers Recyclers 1970 Clean air and water acts RCRA/Superfund legislation US EPA created US EPA created Rainforest & Old growth forest advocacy/certification Consumer interest in Green Packaging & Recycling US Brundlandt EPA created Report CSR Reporting Globalization NGO advocacy Producer responsibility x FSC Certification system x Sarbanes-Oxley Katrina/Oil price increases Wal-Mart Climate change

14 Why packaging? Significant use of materials Consumer visibility Municipal burden Short term nature of most packaging Corporate and Brand issue Summed up in a recent statement Posterchild for waste EU minister for the Environment, 2007

15 And headlines like these Trash burning can threaten human health. For most of us, getting rid of the garbage is as simple as setting it at the curb, but not everyone can get garbage pickup. So, instead, they burn their trash. That creates dioxin. Lakes Radio Consortium Peanut butter, chips, juice and lead? In Oregon and nationwide, parents are learning through Web postings, s and word of mouth that their child's soft vinyl lunchbox may pack a potentially dangerous ingredient: lead. Portland Oregonian Diabetes from a plastics? Estrogen mimic provokes insulin resistance. Great Exposure to small amounts of an ingredient in polycarbonate plastic may increase a person's risk of diabetes, according to a new study in mice. Science News

using renewable energy and once used, is recycled

16 So what is sustainable packaging? is sourced responsibly, is designed to be effective and safe throughout its life cycle, meets market criteria for performance and cost, is made entirely using renewable energy and once used, is recycled efficiently to provide a valuable resource for subsequent generations.

17 Expanding the definition of quality Icon Design Objective Conventional Definition Expanded Definition technical performance cost appearance regulatory compliance optimize resources responsible sourcing material health resource recovery

18 Where do you start? Does your company have a clear sustainability directives from the top? What issues have been identified as corporate priorities? Triage the issues Are there issues that have particular significance to your business Health, safety, agriculture, social issues

19 How do you prioritize? Your company Suppliers Other stakeholders Communities & Individuals Cost & Performance Renewable Energy x Recycled/Renewable materials Safe materials x x Optimize use of energy and materials Clean production Collection & recovery x x

20 Strategies for Implementation Sustainable Packaging Systems Shareholder Value Eco-efficiency Source reduction Limiting toxics Energy efficiency Optimization Sustainable materials Effective material recovery Renewable energy Stakeholder Value Time 2005 MBDC, LLC

21 Need clear priorities to define goals A journey of a thousand miles begins with a single step Confucius Identify top priorities and go from there Recycled materials vs energy Needs to fit with your company Walk the talk Educate your people on sustainability issues Use your stakeholders

22 Shampoo Bottle Redesign Updated Design Reduced weight PCR 45% to 80% 150 tons virgin material saved $1mm saved

23 Origins Paperboard 100% renewable energy used for paper production, converting & printing 50% FSC certified virgin fiber 50% FSC certified PCR fiber

24 SmartCycle PET Clamshell is SmartCycle 150 PET with 50% PCR bottle flake Folding carton uses PET with 25% PCR SmartCycle label is an effort to educate consumers to recycle bottles & clamshells

25 A different type of clamshell At or below cost compared to alternatives Primary packaging is corrugated with a minimum 35% PCR content Also contains 100% RPET blister Designed for easy separation of materials

26 What the system looks like 2006

27 Thank you

The Sustainable Packaging Coalition

The Sustainable Packaging Coalition Anne Johnson, GreenBlue EPA National Workshop on the Resource Conservation Challenge Programs Arlington, VA March 6, 2008 Overview GreenBlue Packaging Drivers for Sustainable