The Australian Packaging Covenant Action Plan
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- Imogen Owens
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1 The Australian Packaging Covenant Action Plan January 2011 December 2015 Smith & Nephew Pty Ltd Healthcare Division Page 1 of 15
2 CONTENTS Page Executive Summary 3 Action Plan Endorsement 3 1 Introduction 4 2 About Us 4 3 Locations 5 4 Consumer Packaged Brands 5 5 CEO Endorsement 5 6 Covenant Contact Officer 5 7 Action Plan Overview 6 8 Covenant KPI Deliverables Action Plan Page 2 of 15
3 Executive Summary Smith & Nephew, a leading global medical device company and brand owner, supports the principles of the Australian Packaging Covenant (APC). In Australia, Smith & Nephew Pty Ltd provides a range of wound care products directly to the consumer via the retail pharmacy channel. Smith & Nephew s action plan over the next 5 years is to install a cross functional APC team and schedule that ensures the organisation supports and progresses the performance goals of the APC. The performance goals of the APC will be pursued through the development of a set of policies and procedures based on the Sustainable Packaging Guidelines; to improve the environmental sustainability of designed or procured packaging by reviewing all product packaging categories applicable and, actioning applicable changes to packaging as a result of the review. Smith & Nephew will also ensure onsite recycling opportunities are present and improved over time. Any other opportunities associated with product stewardship will also be explored by the APC team. Action Plan Endorsement As President, Asia Pacific, for Smith & Nephew Advanced Wound Management, I endorse this plan as our organisation s commitment to the Australian Packaging Covenant. Leon Hoare President, Asia Pacific, Advanced Wound Management Page 3 of 15
4 1 Introduction The Australian Packaging Covenant (APC) is an agreement between companies in the supply chain and all levels of government to reduce the environmental impacts of consumer packaging. It commenced in July 2010, replacing its predecessor the National Packaging Covenant (NPC), operating since The APC is designed to minimise the overall environmental impacts of packaging via three performance goals; 1. Design: optimising packaging to use resources efficiently and reduce environmental impacts, 2. Recycling: the efficient collection and recycling of packaging, 3. Product Stewardship: working cooperatively across the entire packaging supply chain to address the various product stewardship categories (design, disposal, education, labelling, recycling/reprocessing). Key to the APC is the implementation of the Sustainable Packaging Guidelines (SPG) to ensure packaging design minimises materials used, optimises recyclability and reduces the potential for litter. Associated with the performance goals of the APC are a number of key performance indicators (KPIs) that will measure achievement to plan of the APC. Please note, several KPIs are not in scope for Smith & Nephew as a brand owner. Performance Goal KPI KPI Description Design 1 Implement the Sustainable Packaging Guidelines (SPG) Yes Recycling 2 National recycling rate for packaging No Recycling 3 On site recovery systems for recycling used packaging Yes Recycling 4 Policy to buy products with recycled packaging Yes Recycling 5 Tonnes of material reprocessed through Covenant sponsored projects No Product Stewardship 6 Formal processes for working with others in the supply chain to improve packaging and design Product Stewardship 7 Other product stewardship outcomes demonstrated Yes Product Stewardship 8 Reduction of packaging items in litter Yes In Scope Yes 2 About Us Smith & Nephew Pty Ltd was established in Australia in It is a wholly owned subsidiary of Smith & Nephew plc, founded in Hull, UK in Smith & Nephew is a global medical device company developing innovative products that help people improve their lives after illness or injury. Globally, Smith & Nephew operates on a worldwide basis and has distribution channels in over 90 countries. It has annual revenues of approximately US$4 billion. Smith & Nephew locally conducts its Wound Management business in both the professional and retail sectors, employing approximately 215 people. Smith & Nephew was a signatory to the National Packaging Covenant and intends to build on this capability for the Australian Packaging Covenant. Page 4 of 15
5 3 Locations Smith & Nephew operates out of its head office in Mount Waverley, Victoria and state based sales offices in the major capital cities. Products are distributed via a third party warehousing provider with a national distribution centre at Derrimut, Victoria and a regional distribution centre in Perth, Western Australia. 4 Consumer Packaged Brands With respect to the APC, Smith & Nephew is a brand owner, providing a continuum of care across a number of indications and patient settings, with retail pharmacy being a core element. Major brands include Smith & Nephew, HEALTHCARE IN THE HOME retail range of wound care, CUTI retail range of wound care, BSN Medical, Handy, Propax, Leuko variants and the JOBST range of compression garments. The packaging systems used for these products vary and have been designed to comply with the requirements of the Therapeutic Goods Administration s Essential Principles for medical devices. With respect to primary packaging, approximately 50% of products are packaged in medical grade, peelable paper or paper/poly sachets. A further 40% are bagged in cellophane or plastic. A small number of wet products are contained in high density polyethylene tubes and paper/foil composites. The majority of products are enclosed within paperboard inners for retail sale. Products are distributed to retail distributors in fibreboard outer cartons. 5 CEO Endorsement Smith & Nephew s President, Asia Pacific, Advanced Wound Management, endorses the activities of the covenant and demonstrates this by having signed the APC and delegated responsibility for the covenant to a member of the executive team, the Operations Director, Australia & New Zealand. 6 Covenant Contact Officer Bill Cain Operations Director, Australia & New Zealand Smith & Nephew Pty Ltd 315 Ferntree Gully Road, Mount Waverley, 3149, Victoria Telephone: Mobile: Fax: bill.cain@smith-nephew.com Page 5 of 15
6 7 Action Plan Overview The primary focus of our Action Plan will be consumer (retail) product packaging aspects of the business. Smith & Nephew views product stewardship as a significant, environmental responsibility. As a medical device manufacturer, patient information and safety is paramount to the design of packaging, however, principles of environmental sustainability must also be considered. The approach of the Smith & Nephew APC Action Plan is to create a number of work streams that address the various performance goals and KPIs of the APC. Each work stream has; a schedule of tasks to be conducted over the life of the plan. an owner responsible for the progression of the tasks in the schedule and reporting progress of the schedule to the core APC team. The plan anticipates the following key outcomes by work stream; Work Stream A: the implementation of the Sustainable Packaging Guidelines (SPG) within the business and the formal review of new and existing packaging according to the SPG. Work Stream B: the establishment and improvement of onsite recycling and other office related product stewardship outcomes. Work Stream C: the monitoring and external reporting of our APC Action Plan progress. Annual reports will provide information on Smith & Nephew s progress to plan, details of packaging review schedules developed and other pertinent information required by the APC. Work Stream D: the resourcing and progress of the overall APC Action Plan. SKUs and Types of Packaging at Smith & Nephew Smith & Nephew has approximately 700 sku s in their consumer range of products made up of the following primary packaging types. Secondary and tertiary packaging types are primarily paperboard and fibreboard cardboard. Primary Packaging Type Percent of SKU S Paper/polyethylene composite/grid lacquer pouches 30% Paper pouches 20% LDPE / HDPE / PP bags and tubes 30% Cellophane bags 15% Paper/polyethylene/foil composite pouches 5% Page 6 of 15
7 8 Covenant KPI Deliverables The following table outlines Smith & Nephew s Action Plan deliverables relative to the Covenant s performance goals and KPIs. Covenant performance goals and KPIs Actions Responsibility Baseline data Target or performance goal Timeline/ milestones Goal 1. Design optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety Target: 70% of Covenant signatories with documented policies and procedures for evaluating and procuring packaging using the SPG or equivalent Target: 70% of Covenant signatories assessing 100% of new packaging and 50% of existing packaging against the guidelines KPI 1 ~ 700 skus, of variously Sku list and appropriate Listing and categorising SKU s and developing an described primary categories analysed and in place appropriate SPG decision procedure tool and packaging types (refer reporting template for product reviews above) KPI 1 Updating internal Quality System procedures to incorporate the SPG and associated decision template in the new product introduction process. KPI 1 1. Prepare product packaging review schedule and timeline. 2. Select and educate stakeholder review team. 3. Prepare attendees and review meeting timetable. KPI 1 Review product SKU s per the product packaging schedule and timeline; report six monthly progress to plan; identified improvement opportunities and update baseline data per the decision procedure tool and reporting template. KPI 1 Generate, approve, report and action packaging improvements. (plus stakeholder sub team) Not in place Not in place Review & decision template to be completed To be baselined, (re)targeted & reported annually Appropriate procedures updated and in place Review schedule in place, review team educated and timetable of review meetings in place Approx 700 SKU s reviewed on a category even balance basis, baseline data accumulated and reported annually from Oct 11 Opportunities identified and changes actioned July 2011 Sept 2011 Sept 2011 Sept 2013 Sept 2015 Page 7 of 15
8 Covenant performance goals and KPIs Actions Responsibility Baseline data Target or performance goal Timeline/ milestones Goal 2. Recycling the efficient collection and recycling of packaging KPI 3 Baseline and report current site recycling activities B) Quality Systems Coordinator Not in place Baseline articulated July 2011 KPI 3 Form sub-team, identify opportunities for further office/site recycling, improved environmental sustainability and office supplier engagement B) Quality Systems Coordinator Not yet started Opportunities articulated Sept 2011 KPI 3 Implement, track, generate targets and report improvements in office recycling and environmental sustainability B) Quality Systems Coordinator To be baselined, (re)targeted and reported annually Improvements to target realised Sept 2015 KPI 4 Document S&N recycle policy and update relevant Quality System procedures (product introduction and change, purchasing) to seek to buy recycled materials. Not in place Policy and procedure updates In place Aug 2011 Page 8 of 15
9 Covenant performance goals and KPIs Actions Responsibility Baseline data Target or performance goal Timeline/ milestones Goal 3. Product stewardship a demonstrated commitment to product stewardship by the supply chain and other signatories (Target: 70% of Covenant signatories are implementing formal policies and procedures in working with others to improve design, procurement and recovery of packaging) KPI 6 Document S&N sustainable supplier and customer policy and update relevant Quality System procedures (supplier evaluation, product introduction and change, purchasing) to reduce the impacts of packaging Not in place Policy and procedure updates In place Sept 2011 KPI 6 1. Prepare supplier / customer review schedule and timeline. 2. Select and educate stakeholder review team. 3. Prepare attendees and review meeting timetable. 4. Action review schedule through engagement with supplier / customer base Not in place Review schedule in place, actioned and reported. Sept 2013 KPI 7 Form sub-team, identify opportunities for improved environmental sustainability and office supplier engagement B) Quality Systems Coordinator Not yet started Opportunities articulated Sept 2011 KPI 7 Implement, track, generate targets and report improvements in office related product stewardship and environmental sustainability B) Quality Systems Coordinator To be baselined, (re)targeted and reported annually Improvements to target realised Sept 2015 Page 9 of 15
10 Covenant performance goals and KPIs Actions Responsibility Baseline data Target or performance goal Timeline/ milestones KPI 8 Per the implementation of the sustainable packaging guidelines (refer KPI 1 above), the product review will seek opportunities for reducing packaging per product, utilising recyclable materials and providing consumer education on artwork with respect to packaging disposal A To be baselined, (re)targeted and reported annually SPG implemented with respect to litter reduction opportunities Sept 2015 Page 10 of 15
11 9 Action Plan The following schedule outlines Smith & Nephew s APC Action Plan schedule for Step Task Start End Owner APC ACTION PLAN LAUNCH Form APC Core Team (Operations Director,, Regulatory Affairs & 1.0 Quality Assurance Manager, Quality Systems Coordinator) Mar-11 Apr-11 OD 2.0 Launch the APC Action Plan Program Mar-11 Apr-11 OD STREAM A: IMPROVING THE ENVIRONMENTAL SUSTAINABILITY OF DESIGNED OR PROCURED PRODUCT PACKAGING 1.0 Understand the APC and SPG May-11 May-11 D&SM Generate applicable product list per the scope of the APC and define appropriate product categories based on like packaging types, vendors, product types, etc. May-11 May-11 D&SM Develop and articulate S&N s approach to implementing sustainable packaging using the SPG. Jun-11 Jul-11 D&SM Document the strategy and approach Jun-11 Jun-11 D&SM Document the questionnaire/decision procedure considering the principles and strategies of sustainable packaging (per the SPG). Jul-11 Jul-11 D&SM Document the packaging review reporting template. Jul-11 Jul-11 D&SM Document formal policy and processes for working with others in the supply chain to improve design and recycling of packaging ( sustainable customer and supplier policy and associated procedures) Jul-11 Jul-11 D&SM Document formal processes for buying of recycled products or materials Jul-11 Jul-11 D&SM 4.0 Approve the S&N packaging sustainability strategy and procedures (via the QS). Aug-11 Aug-11 D&SM 5.0 Plan and conduct communications and education/training to relevant stakeholders Aug-11 Sep-11 D&SM Page 11 of 15
12 Step Task Start End Owner 6.0 Integrate the sustainability packaging strategy components / review process into PIC Procedure to cover new product category introductions. Aug-11 Sep-11 D&SM 7.0 Prepare product packaging review schedule, meetings, attendees Sep-11 Sep-11 D&SM 8.0 Update annual reporting templates on progress to plan, packaging sustainability improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-11 Sep-11 D&SM Review product codes by existing product categories using our adopted SPG strategy and questionnaire/decision template, ensuring it is auditable and captures full decision process of opportunities for packaging change or the status quo, attempts to influence suppliers, etc. Oct-11 Sep-13 D&SM Update annual reporting templates on progress to plan, packaging sustainability improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-12 Sep-12 D&SM Perform supplier and customer review and engagement to seek ways to reduce packaging impacts in the S&N supply chain Oct-12 Sep-13 D&SM For applicable product categories reviewed, generate product packaging change timeline by SKU / SKU Group. Sep-13 Sep-13 D&SM Update annual reporting templates on progress to plan, packaging sustainability improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-13 Sep-13 D&SM 14.0 Approve product packaging changes (per PIC processes and financial approval processes). Oct-13 Sep-14 D&SM Action product packaging changes (including test phase) per existing product categories according to timeline or new product categories (according to the PIC plan). Oct-13 Sep-15 D&SM Update annual reporting templates on progress to plan, packaging sustainability improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-14 Sep-14 D&SM Update annual reporting templates on progress to plan, packaging sustainability improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-15 Sep-15 D&SM Page 12 of 15
13 Step Task Start End Owner STREAM B: ONSITE RECYCLING AND OFFICE RELATED PRODUCT PACKAGING STEWARDSHIP 1.0 Understand the APC and SPG May-11 May-11 QSC 2.0 Articulate recycling activities on site (articulated and base lined) Jul-11 Jul-11 QSC Research opportunities for further recycling, plans, goals aligned to APC performance gaols and KPIs (articulated, reviewed) Jul-11 Sep-11 QSC Review office / site supply contracts and seek opportunities to improve environmental outcomes with respect to packaging, waste, consumed resources, etc. Jul-11 Sep-11 QSC Implement and track onsite recycling and other office product stewardship improvement initiatives Oct-11 Sep-15 QSC Update annual reporting templates on progress to plan, recycling improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-11 Sep-11 QSC Update annual reporting templates on progress to plan, recycling improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-12 Sep-12 QSC Update annual reporting templates on progress to plan, recycling improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-13 Sep-13 QSC Update annual reporting templates on progress to plan, recycling improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-14 Sep-14 QSC Update annual reporting templates on progress to plan, recycling improvements achieved (improved resource efficiency, improved low-impact materials, improved resource recovery) and other evidence to indicate the SPG has been implemented. Sep-15 Sep-15 QSC Page 13 of 15
14 Step Task Start End Owner STREAM C: PLAN MONITORING AND REPORTING 1.0 Understand the APC and SPG May-11 May-11 RAQAM 2.0 Agree and Draft Periodic APC Review Meeting Agenda and Minutes Format May-11 May-11 RAQAM 3.0 Convene June 2011 APC Meeting Jun-11 Jun-11 RAQAM 4.0 Draft reporting template including templates per stream (to be populated by stream owners) Sep-11 Sep-11 RAQAM Ensure baselines for each performance gaol and KPI are established and reported. Sep-11 Sep-11 RAQAM 5.0 Convene Sept 2011 APC Meeting Sep-11 Sep-11 RAQAM 6.0 Draft, Approve and Submit 2011 Annual APC Report (and publish via website) Oct-11 Oct-11 RAQAM 7.0 Convene Mar 2012 APC Meeting Mar-12 Mar-12 RAQAM 8.0 Convene Sept 2012 APC Meeting Sep-12 Sep-12 RAQAM 9.0 Draft, Approve and Submit 2012 Annual APC Report (and publish via website) Oct-12 Oct-12 RAQAM 10.0 Convene Mar 2013 APC Meeting Mar-13 Mar-13 RAQAM 11.0 Convene Sept 2013 APC Meeting Sep-13 Sep-13 RAQAM 12.0 Draft, Approve and Submit 2013 Annual APC Report (and publish via website) Oct-13 Oct-13 RAQAM 13.0 Convene Mar 2014 APC Meeting Mar-14 Mar-14 RAQAM 14.0 Convene Sept 2014 APC Meeting Sep-14 Sep-14 RAQAM 15.0 Draft, Approve and Submit 2014 Annual APC Report (and publish via website) Oct-14 Oct-14 RAQAM 16.0 Convene Mar 2015 APC Meeting Mar-15 Mar-15 RAQAM 17.0 Convene Sept 2015 APC Meeting Sep-15 Sep-15 RAQAM 18.0 Draft, Approve and Submit 2015 Annual APC Report (and publish via website) Oct-15 Oct-15 RAQAM Page 14 of 15
15 Step Task Start End Owner STREAM D: PLAN MANAGEMENT 1.0 Prepare overall APC Action Plan and APC Team Resourcing Mar-11 Mar-11 OD 2.0 Submit APC Action Plan (and publish via website) Mar-11 Apr-11 OD 3.0 Chair APC Team meetings, act as Covenant Contact Officer, ensure plan is resourced and progressing Mar-11 Dec-15 OD Trademark of Smith & Nephew Registered Trademark Page 15 of 15
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