National Packaging Covenant II 2010 REPORT. October 2010 Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point, NSW 2061 ACN

Transcription

1 National Packaging Covenant II 2010 REPORT October 2010 Kimberly-Clark Australia Pty Ltd 52 Alfred St, Milsons Point, NSW 2061 ACN

2 CONTENTS 1. GLOSSARY KCA PROFILE EXECUTIVE SUMMARY PACKAGING USAGE DATA ON SITE PACKAGING WASTE RECYCLING PROGRESS AGAINST ACTION PLAN TARGETS AND KPIs for KCA Blown Film PROJECT CASE STUDY and film reduction for Viva Towel SUSTAINABILITY MANAGEMENT IN KCA MANAGEMENT ENDORSEMENT GLOSSARY GLOSSARY KCA KCP Kimberly-Clark Australia Pty Ltd KCA Professional Division, ie, away from home products NPC & NPC II National Packaging Covenant, Revised 2005 ECoPP IDAS TT TAT HC BFC CE CEN TGA SKUs or skus Environmental Code of Practice for Packaging Industry Data Aggregation System Toilet Tissue Thick and Thirsty Towel KCA Health Care Division Basis for Commercialisation (Product Development approval document) European conformity mark European Committee for Standardization Therapeutic Goods Administration Stock Keeping Units 2

3 2. KCA PROFILE GENERAL REQUIREMENTS Company name & subsidiaries: Nature of organization: What it does: Size/turnover: Expected 2010 result. 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 $936.6m of packaged finished goods sold into the consumer marketplace in Australia. Excludes export and hard roll/pulp sales HO Sydney, 2 mills in NSW, 1 mill in South Australia and distribution & sales centres in capital cities. Location: Some products imported from Kimberly- Clark global suppliers. Some products sourced from local contract packers. KCA uses packaging from packaging Place in packaging chain: companies to package its retail and wholesale packs of products Frank Bova, Packaging Manager, ph; , ; fbova@kcc.com Action Plan contact officer details: Back up Contact Ross Duggan, Environment Manager, ph , ; ross.duggan@kcc.com Time period: 2009 to

4 3. EXECUTIVE SUMMARY In 2009/2010 KCA continued with the implementation of further packaging optimisation initiatives. The key achievements were All Huggies Newborn, Infant & Crawler Huggies nappy bags were reviewed for size optimisation and as a result, 32 bags were reduced in length. This resulted in a 2.3% reduction in bag weight (1,784 kg of film diverted from landfill) The board area used to make up the glue lap on jumbo shippers was trimmed. The reduction in the size of the glue lap will save approx 10,000kg of board annually KCP toilet tissue poly bundle film was reduced by 25%.This saved 21,200kg of PE film per annum. Blown film project was completed and Viva film was reduced by 20% saving 36,875 kg of film. Please see the case study included in section 7. During the course of NPC I and NPC II all key packaging materials used by KCA Australian operations have been reviewed and optimized. Opportunities for further optimization, as technology changes, will be continually reviewed with KCA stakeholders and suppliers. To build on this, a formal review system and schedule will be set up for each of KCA s packaging material categories. This will be included in KCA s new Australian Packaging Covenant plan. A summary of the key NPC I and II packaging optimization is as follows. Nappy bags using higher stiffness, wider sealing window resin film set the standard for the category s lowest gauge bags. Premium brand positioning has been maintained by using a numerical colour management approach for prepress and printing. 20% by weight savings have been achieved for nappy bags. KCA Facial cartons are now using 95% recycled content board. A 10% gsm reduction has been achieved and the cartons run well on high speed cartoning equipment by employing a scientific approach to equipment setting and supplier process control. Corrugated boxes gsm optimized with stacking safety factors of This was enabled by using box compression estimation calculations and palletisation optimization software. Board gsm has been minimised whilst the box performance has been optimized by using best practice design knowledge. Poly bundle film for most roll products has been reduced by 27%. This was possible by using new high stiffness, wide sealing window film technology. Work is continuing to enable this on older equipment. Towel film has been reduced by approx 20% via new film technology and optimized, standardised equipment run settings. The above packaging materials make up approximately 97% of KCA Australia operations packaging material by weight. 4

5 KCA s packaging usage metrics for 2010 show a 1.2 % reduction in packaging weight to product weight. The ratio of recycled content packaging to total packaging decreased by 2.7%. In 2010 Kimberly-Clark Australia operations continued to maximise recycling of all on site packaging wastes and other waste. 94% of onsite packaging waste is now recycled and diverted from landfill. This is a 4% improvement on last year. Frank Bova Packaging Manger PACKAGING USAGE DATA The following table outlines KCA s packaging weight and recycled content based on product sales in Australia from June 2009 to July 2010 inclusive. 5

6 The following graph shows the NPC KPIs for 2010, 2009 and

7 5. ON SITE PACKAGING WASTE RECYCLING In 2010 Kimberly-Clark Australia operations continued to maximise recycling of all on site packaging wastes and other waste. 94% of onsite packaging waste is now recycled and diverted from landfill. This is a 4% improvement on last year. The following flow charts show KCA5 Millicent mill operations onsite packaging waste processes 7

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10 Further on site packaging waste reduction improvement targets for Ingleburn include Continuing to source an adhesive fibre drum recycler Continue to work on investigation of recycling, reuse or material substitution for woven PP plastic bags used for absorbent material 6. PROGRESS AGAINST ACTION PLAN TARGETS AND KPIS FOR KCA KCA set out a number of initiatives in its NPC plan to support the following goals. 1. Packaging optimised to integrate considerations about resource efficiency, maximum resource re-utilisation, product protection, safety and hygiene 2. Efficient resource recovery systems for consumer packaging and paper 3. consumers able to make informed decisions about consumption, use and disposal of packaging 4. Demonstrate how actions contribute to goals 1-3 above 10

11 5. Demonstration of continuous improvement in the management of packaging through the action plan and annual reports KCA s ACTION PLAN TARGETS are as follows PACKAGING WEIGHT-see progress item 5 in the table below Report the weight of all local and imported packaging against product weight. Use global benchmarking to identify weight reduction and alternative material Opportunities. Develop and Implement packaging design best practice guidelines to ensure all new packaging design is optimised for lowest weight and performance on equipment and in total supply chain from a structural and presentation perspective. Use pallet design optimisation software to select minimum weight traded unit packaging with optimised distribution cost. Investigate opportunity for further 12% weight reduction for nappy bags. Investigate opportunity for 4-8% reduction in poly label rewind weight. Investigate opportunity for 5 % weight reduction of corrugated board used in NSW following supplier process improvements. Trial new polybundle film to enable 27% weight reduction for Wondersoft TT. Investigate light weighting opportunities for all packaging materials using scientific basis and packaging technology skills to ensure performance properties are maintained or improved. RECYCLED CONTENT OF PACKAGING-see item 24 in the table below Report the recycled content for all packaging. Report the recycled content of cores for roll products. Undertake evaluation with suppliers and operations to determine where the recycled content of packaging can be increased. Select the highest possible recycled content carton board whilst ensuring minimum board weight and functionality. CONSUMER INFORMATION TO AID PACKAGING CHOICE-see item 16 and 17 in table below. Communicate recycled content and packaging disposal advice on all packaging. Use the plastics recycled number system on packaging where appropriate. Ie, where the recycling and/or reuse infrastructure is in place. Use recycling logo on all recyclable packaging Update KCA website to give summary of NPC commitments and packaging design and selection policy to minimise environmental impacts. CONTINUE IMPLEMENTATION OF ECoPP-see item 8 and 22 table below. Packaging justification statements to be included in new product introduction approval documentation. 11

12 Principles of ECoPP to be applied in design and selection of new packaging as per KCA packaging development procedure. Review use of post consumer packaging and renewable materials in KCA flexible packaging. Benchmark with developments by KCC in USA and Europe. ON-SITE POST CONSUMER PACKAGING RECYCLING-see item 19 table below Report the total weight of on-site post consumer packaging that is recycled or sent to landfill. Work towards the goal of recycling or re-using 100% of post consumer packaging where functional and practical. REVIEW AND UPDATE TARGETS-cross functional meetings held to set packaging development and optimisation objectives in Dec each year. Update targets as continual improvement developments allow and following further analysis of baseline data which may highlight opportunities. The table below lists the progress with KCA initiatives and future activity via new APC. Note full internal reviews and stakeholder meetings will be carried out to develop a new APC 5 year plan. ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals 1. 1 Maintenance of Specification database listing packaging weight and type for all skus 1 by product code to allow for accurate calculation of packaging use parameters report Future Target Packaging weight data added to specifications as new products introduced Packaging specifications enable calculation of all metrics. APC plan Continue Timing In place NPC data obtained for imported consumer sales products Maintenance and Shipper and Palletising Design guidelines In place 1 Stock Keeping Units 12

13 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals implementation of best practice packaging and palletisation design guidelines report Future Target design guidelines updated for new 1500mm pallet requirement. Outside of design guidelines approval form lodged in cases where packaging solutions are forced outside the guidelines e.g. imported product where dimensions cannot be changed. Optimisation software used for all new packaging design Optimised Palletising solutions kept on packaging database. APC plan applied to all new products Timing 3. 1 Maintenance and implementation of Packaging safety assessment system 4. 1 Promotion of growth share for bulk product forms for Tissue/Towel/Nappies Applied to HC products which exceed weight limit. Caution heavy stickers applied to shippers. Promotional sales strategy implemented to drive bulk pack sizes. Continuing application of procedure Continuing to offer bulk pack formats. In place Achieved 5. 1 ACTION PLAN TARGET Investigate trial and implement packaging weight reduction ideas agreed to at sector NPC meetings. Report the weight of all local and imported packaging against product weight. All data being reported Systems in place for all new product introduction s Use global benchmarking to identify weight reduction and alternative material opportunities. Use pallet design optimisation software to select minimum weight traded unit packaging with optimised distribution cost. Underway Results will be used to develop APC plans Systems in place to apply this to all new products Achieved 13

14 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals 2010 report Future Target APC plan and review existing products 12% further weight reduction for nappy bags not progressed due to bag performance issues which required priority. Work has been completed to reduce bag curling which was impacting bag waste. 4-8% reduction in poly label rewind weight not possible in 2010 due to issues with repeat length and film stiffness. Focus was put on suppliers' control of gauge, COF and repeat length variation. Lighter weight films will be continued to be investigated with suppliers. Limiting factors are opacity, handle seal strength and film stiffness Implementation after supplier process control capability development Timing Investigate high stiffness resin options. Bags currently at world benchmark. Preliminary trials mid Q Investigate the opportunity for further 2-5 % weight reduction of corrugated board following supplier process improvements and board area reduction initiatives Trial new polybundle film to enable 27% weight reduction for Wondersoft TT. Reduce paper packaging weight by 14% via improved equipment technology. Investigate light weighting opportunities for all packaging materials using scientific basis and packaging technology skills to ensure Box compression strength variation still too wide to enable board grade reductions. Currently box design is optimized at safety factors of approx 4 for non load bearing and 3.5 for load bearing primary packaging. Review with mill and supplier. Requires improved resin formulation development. completed All current materials optimized. Measurable properties training to continue for Continue working with suppliers re process control and reduction of box compression variation. Mid 2011 completed completed 14

15 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals 2010 report Future Target performance properties are maintained or improved. APC plan operations and packaging team members Timing 6. 1 Review shipper style for side palletised shippers to enable board grade reduction 7. 1 Environmental Code of Practice for Packaging to be used for the assessment of all new packaging Packaging Change approval form to be circulated for approval to key stakeholders outlining reasons for packaging changes. This document will include summary of Environmental Code of Practice for Packaging considerations Maintenance of Specification database listing packaging weight and type for all skus by product code Calculation and reporting of total weight, by type of non recyclable packaging KCA Packaging to be evaluated for recycled/increased recycled content where functional. 33% weight reduction in nappy bag handles not successful 25% weight reduction in KCP poly bundles implemented Facial carton poly window film reduction of 20% Reverse flute shipper trials carried out. Successful equipment modifications have enabled a reduction in board weight by 16%. Principles of the ECoPP applied to all new packaging selection. KCA BFC documentation requires packaging justification. Change approval/advice form is being used for packaging changes. Cost and material weight reduction is highlighted via this notification. Database updated each time packaging updated or new product imported. Calculation of packaging data completed Data made ready for into Industry Data Aggregation System (IDAS). Advice has been that IDAS will be shut down for new APC. Safety factors reviewed. Pallet stacking reduced to increase safety factors whilst maintaining current boards. No further evaluation Optimization complete Implemented September 2009 Equipment modification complete and reverse flute shippers were implemented early Continue applying principles when new packaging introduced. On going use of change procedure notification and approval. Achieved Maintain database to facilitate weight and recycled content calculations Testing completed will not progress Completed 2010 Complete Complete Achieved Achieved Achieved Completed for 2010 Completed Packaging collection- Programs in operation at all Programs continuing Achieved 15

16 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals recycling programs maintained at each mill report Future Target mills. Data supplied. APC plan Timing Investigation of means of reusing low-grade mixed plastic waste stream at Ingleburn mill. Waste Plastic sent to recycler. No longer sent to landfill. Complete Investigate recycling of used adhesive drums steel and board drums at Ingleburn Steel drums recycling have started in July In addition the lotion yield optimization work carried out means that adhesive waste has been reduced by 55%. This will save 3.5% in drum usage and saves approximately 17 tonnes of steel going to landfill. Program implemented complete Yield optimization work has also progressed with adhesive fibre drums. This has reduced drum usage by 289 drums per year and saves 2462 kg of fibre going to landfill. Work is continuing to find a recycler that can take the used fibre drums Investigate the opportunity to recover cores for imported raw materials. (requires automation for stripping of plastic from the cores) The imported cores waste are now being stripped and recycled. This started in April Next financial year should see above 90% recycled for this waste stream. Completed On pack information-include recycled content logos and disposal advice as appropriate Communicate KCA environmental policy including commitment to the NPC on its website Disposal statement included on facial cartons. This carton is made from 95% recycled board. Please dispose of in your recycling bin. Website has KCA environmental policy and KCA commitment to NPC. Review and enhance if appropriate disposal information for all pack artwork Completed Packaging evolution award story promoted throughout KCC intranet Completed completed 16

17 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals Employees committed to minimise the amount of materials generated wastefully and to recover waste streams wherever possible 2010 report Future Target Employees operating to KCC environmental policy. zero manufacturing waste to landfill. KCA Millicent and Tantanoola mills have formed the green team which will further drive an ambitious plan to reduce the mills landfill waste to zero. APC plan Continue existing recycling programs. Ingleburn Green team formed at Millicent Timing Achieved Milsons Point Head office has implemented colored waste and packaging recycling bins at the Milsons point head office Regular training for mill personnel on good segregation of recyclables Annual Environmental training at each mill emphasizes requirement for packaging segregation of recyclables. Continue existing programs. Achieved All KCA HC medical device products (excluding class 1) that are listed with the TGA will carry CE marking by CE marking is the manufacturer's declaration that the product and packaging complies with all the relevant health, safety and environmental legislation as detailed by the relevant European product directives which include CEN standards for packaging. HC marketing has been working closely with the KCC-US team to ensure that all surgical products have the CE mark on them. Packaging updates continuing over the next few months. All critical care and enteral feeding products are CE marked already as are gloves. All appropriate HC TGA listed products to carry CE marking. completed Policy to preferably use cardboard and plastic packaging with high levels of recycled material stated on labeling. Packaging design guidelines aim to use recycled content packaging where functional. Completed Material selection procedure based on the new Environmental Code of Principles of ECoPP embedded into KCA packaging function. All team Ensure any new packaging complies with Achieved 17

18 ITEM NPC GOAL KCA NPC plan initiatives to support NPC KPIs and Goals Practice for Packaging (ECoPP), developed and implemented. Written justification, review and approval for all new packaging materials. Current packaging materials will be reviewed against the considerations of the new ECoPP report Future Target members applying procedures and policy as part of their daily job. Approval gained for addition of ECoPP statement in BFC product commercialization documentation. APC plan the ECoPP. Timing Calculate and report packaging use data Submit report against plan each year and update plan as appropriate Review setting of recycled content targets following establishment of baseline data and evaluation of functionality and availability of materials. Data calculated. Imported packaging use estimated based on average board gsm and packaging surface area. Report the recycled content for all packaging. Report the recycled content of cores for roll products. Undertake evaluation with suppliers and operations to determine where the recycled content of packaging can be increased. Maintain database For new products. completed The recycled content of cores is 100% Discussions with suppliers re post consumer and renewable content for polyethylene based packaging. Key issue is maintaining film properties. completed completed completed Complete for fibre based packaging Work towards the goal of all cartons using 95% recycled content where functional and available. Complete 95% recycled maximum recycled content possible from Amcor cartons Complete 18

19 7. BLOWN FILM PROJECT CASE STUDY AND FILM REDUCTION FOR VIVA TOWEL. Cast Film conversion to Blown film for paper roll products In 2008 KCA commenced a program of converting its poly label rewind film for all bath tissue and towel products made at Millicent from cast film to blown film. This program was completed in late 2009 in partnership with Amcor Flexibles. Project brief, scope and objectives It was agreed that blown film would open up more options and opportunity to develop a suitable film structure that would be compatible with high speed wrapping equipment and at the same time enable light weighting. A move to blown film would also help resolve a logistics constraint ie the cast film which is manufactured on a flat die extruder could only be made at cyclic monthly intervals. The conversion to blown film involved trials and verification of performance on many wrapping machines across a very high volume operation. The project involved extensive transport trialing. The project objective was to convert all bath tissue and towel products over to blown film and at the same time deliver on improved equipment performance and packaging material reduction. Prior to carrying out trials key measurable film properties were evaluated for potential film substitution options. These properties were compared against those for the current film and also KCC parent company films. Once suitable film properties were developed by our supplier Amcor Flexibles preliminary trials were carried out. This involved evaluations on selected production lines and preliminary transport trials. These trials were gradually up scaled before carrying out full production runs and signing off the new film specification. Properties of film evaluated 19

20 Measureable properties included PROPERTY Film Formulation No Caliper +/-10% units um 1% Secant Modulus MD/CD MPa Young s Modulus MD/CD MPa Tensile Strength MD/CD MPa Elongation MD/CD % strain Tear Resistance MD/CD (Trouser) Grams Haze Haze units Gloss 60 Gloss units COF at extrusion Outside/Outside COF after 72hrs Outside /Outside (Film) COF after 72hrs Inside/Inside (Film) COF after 72hrs Inside/Inside (Print) Treatment level At extrusion Treatment level After 24 hrs Temperature Sealing Range (under AFA Deg C Lab test conditions only) 20

21 Challenges and Considerations The key challenges and considerations were Planning so that trials could take place whilst at the same time meeting production requirements in our very high volume packing environment. Ensuring suitability of new film on different styles of wrapping equipment. Ensuring properties of new film were on par or better than the existing film. Managing the project with many KCA stakeholders including operations, marketing, packaging, and logistics and purchasing. Re-establishing optimized equipment run settings-centre lining Working with new film operation to ensure focus and control of on key film properties ie repeat length, caliper and COF. Focus on driving the project from mill and packaging perspective in a climate of many other priorities including business critical new product launches and upgrades. Carry out benchmarking of film properties with KCC parent company Convincing marketing those suitable film properties could be obtained with blown film. Ie cast has excellent clarity and the challenge was to develop a blown alternative to have good clarity. Convincing the mill that blown film technology had developed significantly over the past decade and that on par or better to cast film properties could be achieved. Convincing the mills that the film could be light weighted relative to the cast film specification. Ensuring that the packs on shelf had improved film tightness Ensuring consistent high quality printing ie colour management used to ensure seamless printing transition to blown film Updating press profiles, carrying out print trials and using printing by numbers (colour management, spectrodensitometry and densitometry measurements) to ensure KCA print standards were maintained on the new film substrate. Environmental outcomes The project has produced some rather significant environmental outcomes. The blown film developed has been the result of Amcor utilising its know-how and capability in new resins to establish films that will enable further reductions in material usage. Significant work was undertaken by Amcor Flexibles R&D laboratory to initially develop film formulations on lab line equipment, which were then scaled up to production line trials. This work was complimented by Amcor Forensic Science laboratory, where detailed analysis of the new films was undertaken to ensure film properties were fully understood and optimised. The comprehensive trialing program run by KCA in consultation and support by Amcor enabled the move to the new blown film without significant supply chain interruption that could have easily undone the energy and material savings that have now been achieved. It is expected in 2010 that this year s annualised savings in materials will equate to 36,875 kg of film, and have also coincided with a reduction of at least 150,000 km of truck transport travel. 21

22 Business benefits Moving to blown will save KCA a net of 36,875 kg based on KCA 2010 forecast volumes. This was due primarily to VIVA towel film reductions of 20%. That means we can wrap 10.5 million single rolls of paper towel with the kgs of film saved. Or in other words we saved the packaging on 10.5 million rolls of paper towel. From a monetary perspective KCA saved approximately $80K/yr. There are plans to extend this film technology to other products and thus capture additional film weight and cost savings. A key precursor to this is moving to the next level of process control during the manufacture of the film. The new film is able to be sealed at lower temperature and it also has a wider sealing window thus enabling better line sped and also higher integrity sealing. The new film has also improved pack tightness and helped develop tighter packs which improve retail pack presentation. The new blown film based on the PIQET analysis conducted by AFA has enabled the following environmental outcomes:- 1. Climate change Impact reduction of 502,000 kg of CO2-eq per annum. This is the equivalent to the carbon absorbed by 754 trees growing to maturity. 2. Cumulative energy demand reduction of 9,054,800 MJ per annum. This is the equivalent of running 63,400 households for 1 day, or 174 households for a year 3. Photochemical oxidation to be reduced by 719 kg of C2H4-eq per annum. This is the equivalent of reducing 906,000 annual passenger car kilometers per year or removing 45 cars from our roads each year. 22

23 8. SUSTAINABILITY MANAGEMENT IN KCA (See KCA sustainability policy and 2009 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). Report compiled by Frank Bova Packaging Manager-South Asia 23