Abbott Sustainable Packaging Program. Curt Michols Sr. Principal Specialist Abbott Laboratories Global Environment, Health, Safety & Energy

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1 Abbott Sustainable Packaging Program Curt Michols Sr. Principal Specialist Abbott Laboratories Global Environment, Health, Safety & Energy

2 Abbott Snapshot Company founded in 1888 Diverse, global health care company Presence in more than 130 countries 91,000 employees globally $38.9 billion in sales - 58 percent outside the U.S. Among Fortune's "Most Admired Companies" since 1984 No. 71 on Fortune 500 Named to Dow Jones Sustainability World Index seven straight years Listed on numerous global best employer lists 2

3 Agenda 1. Sustainable Packaging Quiz 2. Sustainable Packaging Program 3. Why Sustainable Packaging is Important & What it Means to Abbott 4. Priorities & Goals 5. Current Activities & Plans 6. Considerations 7. Quiz Re-Vote & Answer 3

4 Sustainable Packaging Quiz Which is the most sustainable container? 1. HDPE & PP SimplePac 2. Composite paper, plastic & aluminum can 3. Steel Can 4

5 Abbott Sustainable Packaging Program Global Operations Council Divisional Supply Chain Leaders Engineering Executive Council Divisional Engineering Leaders EHS Initiatives Steering Committee Abbott Packaging Council Core Sustainable Packaging Team Divisional Packaging Mangers & Engineers Global EHS Specialist Global Purchasing Services Specialist 5

6 Why Sustainable Packaging is Important With a projected population of 9 billion by 2050, resources will be more scarce with rising costs - so alternative at e packaging ag g materials a & structures must be developed. Rapidly increasing expectations of companies to maintain end of life use/disposal options. Legislation is in place mandating reductions and sustainability. Sustainability initiatives are critical strategies and increasingly important to Abbott brand image and reputation: - Named to 2012 DJSI 300 of largest 2,500 companies in DJ Stock Market Index selected 8 th straight year Both World and North America Indexes Investment value 6

7 What it Means to Abbott Continuous optimization of packaging solutions that minimize our ecological impact and provides economic and social benefits. Enhances the environmental, economic, & social impact of our packaging. Is a necessary design feature of packaging, materials & systems. Considers complete lifecycle impacts on energy use, emissions & solid waste. A means to assess inevitable trade-offs that effectively balance all requirements of the package. Driving toward Sustainable Packaging is a journey - not an end point. True sustainability is a continuous process. 7

8 Priorities & Goals Strategic Priorities: 1. Deliver Material Source Reduction Opportunities. 2. Pursue Recyclability and Reuse Opportunities for Packaging Materials. 3. Promote Innovative Use of Renewable / Certified Packaging g Resources. 4. Enhance Sustainable Packaging Communications. 5. Maintain and Implement Abbott Sustainable Packaging Design Guidelines. LRP Goals: 1. Reduce key product packaging by 5% by Eliminate use of PVC in applications not requiring a regulatory filing by

9 Priorities & Goals Reduce key product packaging ag g by 5% Set in 2008: - Four divisions participating. - Total baseline of 245,609, pounds of packaging. Achieving through several initiatives: - Reduce. - Remove. - Redesign. - Replace. Three additional divisions added and working toward reductions. On track to meet goal by end of W e ig h t R e d u ction (lbs) Total Cumulative Material Weight Reductions Target Goal = 5% (12,280,453 lbs) % Total Reduction (lbs.) Year 9

10 Priorities & Goals Initiatives - GPO Applied information onto Aluvia bottle instead of outer carton: - Resulted in 1,370,000 fewer outer cartons. - Reduced 43,500 lbs of paper. - Less environmental impact: Energy reduction = 1,200 MM BTU s Greenhouse gas reduction = 155M lbs of CO 2 Wastewater reduction = 510M gal Solid waste reduction = 49M Lbs Converted to 100% recycled paperboard corrugate for all Lake County facilities: - Less annual environmental impact: Trees saved = 17,000 Power reduction = 3MM KWh Greenhouse gas reduction = 995 tons CO 2 Water saved = 4.5MM gal Landfill space saved = 2,090 yd 3 10

11 Priorities & Goals Initiatives - AN Replacement of EZO powder can ends: Replaced secondary packaging from bundle wrap to Hi-Cone carrier: - Replaced heavy steel with lighter aluminum. - Eliminates >1,300, lbs of packaging. - Material is photo-degradable. - Annual weight reduction of 250,000 lbs. Steel Panel Aluminum Membrane Reduced corrugated shipper packaging for ready-to-hang liquid products: - Annual reduction of >740,000 pounds. - Approximately $150,000 in savings. 11

12 Priorities & Goals Initiatives - ADD Shipping Container Return / Reuse: - Expanded polystyrene containers for shipping refrigerated diagnostic products. - Largest US customers participate. - Over 99% of >3,000 returned containers are being reused for distribution. E-Label Website: - Allows download of package inserts to eliminate need for printed inserts. - Annually saves 330,693 lbs of paper. - Approximately $1,000,000 in annualized savings. 12

13 Priorities & Goals Initiatives - AV Xience Sterilization Case Reuse Program: - Cases used during sterilization and were then discarded. - Eliminates i 27,000 pounds of corrugate annually. Weight Trees Saved Vehicles removed from road CO 2 reduction metric tons Less garbage truck loads 1 ton less paper tons

14 Priorities & Goals Eliminate PVC in applications not requiring regulatory filing Set in 2008: - Four divisions participating. Goal achieved. Achieved through several initiatives: - Replace. - Removal. - Redesign. - Elimination. Items including: - Blister trays. - Labels. - Neckbands. - Cap liners. 14

15 Current Activities & Plans Continuing to implement reductions to meet our goal. Assessing potential new LRP goals and objectives to: - Continue optimization of packaging structures. - Best deliver on future expectations. Developing and implementing a Life Cycle Assessment (LCA) tool to: - Integrate into our packaging development process. - Quantify environmental impact of packaging options. On-line training on Abbott s Sustainable Packaging Design Guidelines. Increasing sustainable design efforts and best practices on new packaging concepts. 15

16 Considerations Alignment with Commercial to prioritize sustainability communication: - Limited resources and time to communicate sustainability benefits. - Focus is on health care benefits. - Continue to work with Commercial and develop communication tools. Divisional management engagement: - Not on radar screen. - Priority, time and resources. - Continue to work with management to connect business value. Establishing and documenting goals: - Setting and collecting data to document accomplishments. - Make worthwhile and connected to business value. Cost of sustainable improvements: - Can add costs. - Show added business value that can result in increased market share. 16

17 Quiz Re-Vote & Answer Which is the most sustainable container? 1. HDPE & PP 2. Composite paper, p 3. Steel Can SimplePac plastic & aluminum can Ranking - Life Cycle Inventory Solid Waste 1. SimplePac 2. Composite Can 3. Steel Can Global Warming Potential 1. SimplePac 2. Composite Can 3. Steel Can Energy 1. Composite Can 2. Steel Can 3. SimplePac pe 17

18 Abbott Sustainable Packaging Program Thank You 18