Signatory Name: Kimberly-Clark Australia Pty Ltd The question numbers in this report refer to the numbers in the report template. t all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation. 5. 6. 7. 8. Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Please indicate your organisation's reporting period: Financial Year: 1 July 201 0 June 201 Calendar Year: 1 January 201 1 December 201 Please indicate the entire period your accepted APC Action Plan covers (e.g. 2011-201) Start Date: End Date: 12/05/2011 0/12/2015
Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 1 Have any new types of packaging been introduced during the reporting period? 12. Provide details of policies and procedures Kimberly-Clark Australia (KCA) has an NPI process that requires an SPG template form to be filled out for any new packaging or new product category. This requirement is controlled by inclusion on KCA s NPI gate approval documentation.check point question on KCA Basis for commercialisation documentation. This documentation is signed by a cross functional management group including the Packaging manager. The project cannot proceed if all points not covered to the satisfaction of management. 100 % If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 100 % Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 2... 5. 6 Printed Polybundle film converted to plain unprinted film with printed film strip. Printed film strip used with polybundling gauge reduction Huggies Nappies Jumbo Retail boxes upcounted Walker 22 Palletisation improvement Junior 20 Palletisation improvement Implementation completed in 201 saving 6% overall poly bundle film.excel calculation filed in Packaging Share drive. New specifications set up and issued. Printed film strip used with plain poly bundle film has been further optimised to reduce weight of the strip by 20%. This project achieved the following sustainability metrics: 10% pallet usage reduction per year for the Huggies nappies Jumbo retail box range. 7% reduction in corrugated board usage % reduction in poly bag film usage 18% reduction in pallet use for Walker 22 product. 17% reduction in pallet use for Walker 22 product. 6. 7. Huggies Nappies Mega and Costco size retail shippers elimination of contract packing and associated delivery shippers via development of shipper format that can run on KCA in-house equipment. 7 Kleenex Cottonelle Toilet Tissue Palletising optimisation Eliminated 66 tonnes of repacking shippers for Huggies mega and Private Label codes. Solution eliminates need to send product to contract packer for repacking. 50% more product on the pallet, and 0% reduction in pallet usage. 9% saving in overall film weight usage. This was a major sustainability initiative for KCA involving all KCA cross functions and supply chain customers and stakeholders.
Describe any constraints or opportunities that affected performance under this KPI Additional targets/objectives added to KPI 1 category as above All KPI 1 initiatives in KCA APC plan have been completed. 1 SPG template completed 2 stretch wrap film review completed. Current specificatuion is optimised. Review of corrugated board grades concluded all board grades as optimised. Evaluation re use of common print colours did not result in any savings as advised by packaging supplier 5 Alternative facial cartonboard options continue to be evaluated. 201 evaluation completed. Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 5 Great work on achieving significant reduction in packaging across a range of your products! This demonstrates significant progress in this area. For the next goal plan consider targets that are more specific and time-bound. A resource to help you is available here: http://bit.ly/1gzaxzt Goal 2: Recycling KPI : % signatories applying on-site recovery systems for used packaging. 15. Do you have on-site recovery systems for recycling used packaging? at all facilities/ sites at some, but not all facilities/ sites 16. Please indicate your progress this year towards achieving your annual targets and milestones for KPI Packaging recycling at all facilities / sites. Manufacturing sites packaging recycling rate: Millicent 100% Albury 100% Ingleburn 85% Cardboard, low density polypropylene, glass, aluminium, high-density plastic chemical containers, salt bags, wood waste, printer cartridges recycled. Compiled data from each site (excel spreadsheets) and Millicent Mill recycling pamphlet set up. Recovery and recycling volumes compiled by each manufacturing facility.compiled and detailed by each mill site (excel spreadsheets) 17. Describe any constraints or opportunities that affected performance under this KPI Glue drums at Ingleburn mill cannot be recycled. Email confirmation from Sustainability Engineer at Ingleburn Mill
Goal 2: Recycling KPI : % signatories applying on-site recovery systems for used packaging. Well done on achieving excellent recycling rates at all of your sites. This fulfils the key requirement of this KPI. For future reporting, consider including other waste management practices at your sites, in addition to recycling of packaging materials. KPI : Signatories implement formal policy of buying products made from recycled packaging. 18. Does your company have a formal policy of buying products made from recycled packaging? Provide details of policies and procedures (including names of policies/ procedures) Buy Recycled packaging policy in place. Policy : PRHOPU0009 19. Is this policy actively used? 20. Please indicate your progress this year towards achieving your annual targets and milestones for KPI Review Buy recycled packaging policy Discuss further opportunities for recycled content packaging with all suppliers Policy emailed to all suppliers and recycled content discussed and minuted every month at packaging supplier development meetings. 2 Describe any constraints or opportunities that affected performance under this KPI Discussions held with potential recycled HDPE supplier and KCA film suppliers requested to evaluate this source. To date feasability and functionality requirements have not been achieved. Discussions to continue in 2015. Goal 2: Recycling KPI : Signatories implement formal policy of buying packaging made from recycled products. It is good to see you have a packaging procurement policy in place. Remember that this KPI relates to recycled content of any products, not just packaging, such as recycled content office supplies. Consider reporting your progress in purchasing products with recycled material in this KPI to improve your score.
Goal : Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 22. Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Provide details of policies and procedures (including names of policies/ procedures) Packaging Development Objectives defined each year with all Australian suppliers. Monthly development meetings held with all Australian Packaging suppliers. Packaging and palletising design guidelines are regularly reviewed and updated throughout the year. 2. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 2. Monthly packaging development meetings held with each supplier Mainatain detailed packaging specifications Development meeting minutes Project emails SPG templates filed. Packaging specifications updated for all projects. Specifications include packaging material weight and recycling content metrics. Shipper and polybundling specifications include distribution optimisation metrics. 2. Describe any constraints or opportunities that affected performance under this KPI Packaging optimisation is constantly in place for all key packaging materials. 2015 will continue to drive to the next level of optimisation with cartons, shippers, polybags and rewind film. Recycled content of flexible films has been a constraint for our film suppliers as they have so far been unable to find a suitable source of recycled film that can be added with no impact of film property variation. All KCA polybundle film is however recycled at back of stores and retail flexible items (bags, printed film) carries the Red Cycle logo and return to front of store collection info Goal : Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. Good work in meeting with each of your suppliers on a monthly basis and recording the outcomes of the meetings. For future reporting, please provide some detail on the outcomes achieved as a result of the meetings, such as improvements in packaging, trials, or development of new packaging products. KPI 7: % signatories showing other Product Stewardship outcomes. 25. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 Set annual sustainability targets under the three pillars of Sustainability-People, Planet and Products. The following initiatives have been undertaken in regard to product stewardship and waste reduction efforts: Signed an agreement with Relivit, an Australian start-
up company that will be able to recycle absorbent hygiene waste (pre and post consumer). This agreement will help us significantly reduce our manufacturing waste at our Ingleburn Mill and provide K-C brands a product stewardship partnership to help consumers divert used nappies, feminine products and continence products from landfill. Continued partnership with REDcycle, a product stewardship program to collect and recycle soft flexible plastic packaging; this included the collection of plastic packaging from our employees at the Head Office. Implemented a formal e-waste and battery recycling program at our Head Office Continued partnership with MobileMuster, a product stewardship program for recycling of mobile phones We have begun the journey to paper independence by establishing a team to implement processes and timelines to significantly minimise the amount of paper consumed through printers and sent to recycling. Provide employees coffee grounds from our Head Office coffee machine for gardening to eliminate coffee waste from going to landfill. Eliminated the use of Styrofoam cups from our offices and promote using reusable glasses We also set sustainability targets in 2011 under three pillars of Sustainability - People, Planet and Products, to achieve by end of 2015. These targets and 201 results are below: PEOPLE Volunteering: Goal of 0% of employees participating by 2015. Achieved one year early with just over 0% of our employees volunteering in 20 Giving: Goal of 10% of employees participating in workplace giving programs. We had a record year of % of our employees directly involved in 201, increasing participation by 18% from year before. Safety: Goal to achieve a culture of safety excellence. On track Achieved our best ANZ result yet with a 12.5% reduction in recorded injuries. PLANET Ethical Sourcing: Achieved goal of 100% fibre from Forest Stewardship Council (FSC ) certified or controlled Sources for third year in a row. Additionally, we reduced the amount of controlled wood used by.2% from last year. Alternate Fibres: Goal of 50% of fibres used in our products from alternate sources by 2025. We launched two consumer products containing FSC certified bamboo fibres VIVA Bamboo and Kleenex Cottonelle Bamboo. Emissions: Goal to achieve 0% absolute reduction in carbon dioxide emissions from FY11 levels. Achieved x% reduction in 201 from 2011 levels. Manufacturing Waste: Goal of 100% manufacturing waste diverted from landfill. In 201, we diverted 8% of manufacturing waste from landfill, falling short of our 2015 goal. Office Waste: While reducing manufacturing waste is our key focus for waste, we re also committed to
reducing office waste at our Head Office in Sydney, along with our state sales offices and distribution centres across Australia and New Zealand. See above-mentioned accomplishments in office and electronic waste re MobileMuster partnership, paper independence program, toner recycling program, battery recycling program, on-site flexible plastic packaging program, etc. Water Quality: Water quality was tested in the main drain and the clarifier to see if could be considered drinkable and passed all tests to meet The Australian Drinking Water Guidelines (ADWG) except for the detection of E.Coli, which can be explained by the increase in the number of ducks on the ponds where the discharged water is aerated and processed. Additionally, our Millicent Mill has been working collaboratively with the EPA and in October 201 transitioned from an Indenture Agreement to a Conventional License Agreement with the EPA. PRODUCT: Post-Consumer Waste: Goal for all consumer product divisions to have a program in place. Met goal with above-mentioned partnership and REDcycle partnerships in place. Packaging: Goal to reduce weight of flexible packaging and increase recycled content in packaging. See above for progress on weight and recycled content in packaging. 26. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? If yes, please give examples of other product stewardship outcomes Please see section 1 above for list of product Stewardship outcomes. 27. Describe any constraints or opportunities that affected performance under this KPI Relivit has not started operations so we are continuing to source short-term solutions for our manufacturing waste at Ingleburn Mill. Goal : Product Stewardship KPI 7: % signatories showing other Product Stewardship outcomes. 5 You have demonstrated a breadth of great programs and activities that you are undertaking which are relevant to the KPI. Great work!
KPI 8: Reductions in packaging items in the litter stream. 28. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Litter reduction activity Carbon emission reduction from 2011 is 29.07% - and is on track for exceeding our 2015 goal of 0%. Acheivements through our partnership with REDcycle for period Jan-Jun 201 are 15% increase in recovered volume of KCA packaging from the previous period (July to Dec 201) with no additional REDcycle locations added, so same stores only (80 Coles). Total units of KCA packaging recovered in FY 1 (July 1 to June 1) are million. Total weight for KCA packaging recovered in FY 1 (July 1 to June 1) is 5.6 tonnes KCA held a product sale and raised money that was donated to Clean Up Australia as an alternative to Business Clean Up day. KCA matches donations (dollar for dollar) made to Clean Up Australia by our employees 29. Describe any constraints or opportunities that affected performance under this KPI It was difficult to locate an appropriate location to participate in the Business Clean Up initiative through Clean Up Australia. However, we are working to plan and participate in an event in second quarter 2015. Goal : Product Stewardship KPI 8: Reductions in packaging items in the litter stream. It is good to see you are working with others to improve litter reduction outcomes, well done. In future reporting, consider providing information on how you ensure your packaging does not end up as litter in the environment. Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 0. Key achievements or good news stories 201 Awards: 201 Australian Business Award for Innovation for our Cogeneration Facility 201 Australian Business Award for Technology for our Cogeneration Facility 201 Banksia Award: Environment Minister s Cleaner Environment Award KCA recognised for contribution to a cleaner environment 11 vember 20 Seen in WWE Magazine. At the Banksia Awards ceremony today, Federal Environment Minister, The Honourable Greg Hunt MP, awarded Kimberly-Clark Australia (KCA) with the Environment Minister s Award for a Cleaner Environment.
The award recognises our Millicent Mill for its contribution towards achieving the objective of a cleaner, healthier, environment and a more resilient sustainable Australia. Achievements of Millicent Mill include: Improvements to wastewater, which has resulted in it now meeting Australian Drinking Water Guidelines, as verified by independent testing. Collaboration with the local community to restore biodiversity including wetland restoration and driving the establishment of a breeding program for the critically endangered Yarra Pygmy Perch. More than halving the site s energy and carbon footprint over the past 5 years, assisted by the start-up of a $ million cogeneration facility, which takes the mill off the electricity grid. Diverting on average 95% of the Millicent sites manufacturing waste from landfill. For 55 years, KCA has been a proud contributor to Australia s South East as the region s largest single employer and an active contributor in the community. The work at Millicent complements our overarching enterprise sustainability strategy that sets out proactive targets across our three pillars of sustainability of people, planet and products. Celebrating environmental excellence at KCA -?28 October 201 Seen in WME Magazine Event was held at Millicent Mill to celebrate our recent sustainability achievements and investments in the South East region. The event marked the expiry of the mill s 50 year indenture with the South Australian Government, which allowed businesses like K-C to extract groundwater and discharge waste water into Lake Bonney, all part of attracting investment into the region during that era. Since 2007 we have been working closely with the EPA and the local community to improve our waste water, which is now drinking water quality, and reduce our water usage, which has had a significant impact on the overall health of Lake Bonney, which was re-opened for recreational use last year. Chief Executive of the South Australian EPA, Tony Circelli applauded our proactive approach to sustainability, saying: It is pleasing to see a leading South Australian manufacturer demonstrate a continuous improvement culture, reducing its footprint from an energy and environmental perspective." The Honourable Tom Koutsantonis MP commended Kimberly-Clark Australia, saying: It is great to see the largest employer in the South East region making investments and confirming its commitment to manufacturing in South Australia" Closing the Loop in Nappy Recycling Kimberly-Clark Australia partners with Relivit with the aim of recycling used products to reduce landfill 5 January 2015 Seen in: Australian Financial Review; Retail World, and WME Magazine We are excited to announce that Kimberly-Clark Australia is partnering with an innovative start-up company called Relivit, who are pursuing Australia s first solution to recycling disposable nappies, female hygiene and adult incontinence products. The successful partnership with Envirocomp in New Zealand has created a positive halo effect on the Huggies brand in NZ by helping divert over 800 tonnes of nappies and other absorbent hygiene waste from landfill just last year. This initiative showcases our commitment to reducing waste to landfill and demonstrates why we have been working hard to identify a waste processing option in Australia to enable Huggies Nappies, Poise, Depend and U by Kotex products to be recycled after use. Areas of difficulties in making progress against your plan, Covenant goals or KPIs Difficulty in waste related activities: Post-consumer waste processing of absorbent hygiene waste has not been possible in Australia, and will not until Relivit is operational. This means that there is not only no choice for consumers to divert this waste stream from landfill, but also demonstrates a key constraint in diverting our preconsumer manufacturing waste from our nappy manufacturing site in Ingleburn from landfill.
Summary of ratings: KPI 2015 (0-5) 201 comparison 201 comparison 2012 comparison KPI 1 5 KPI KPI KPI 6 KPI 7 5 5 KPI 8 2 Average rating for this signatory.0.5.8.5 Average rating across all signatories TBC 2.8 2.9 2.8 Congratulations on performing well this reporting year. Several of your initiatives in KPI 1, and 7 were very impressive, and demonstrate your commitment to the objectives of the APC. To improve your reporting, be more descriptive in your goals and targets. A guide to support reporting is available here: http://www.packagingcovenant.org.au/data/resources/better_reporting_examples_09.0pdf?bcsi_scan_ 01d9982f6c0b1=0&bcsi_scan_filename=Better_Reporting_Examples_09.0pdf