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Coca-Cola Amatil (Aust) Pty LtdNational Packaging Covenant
Action Plan2006 2008
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Message from our Managing Director
It gives me great pleasure to introduce Coca-Cola Amatils (CCA) third individual National Packaging Covenant Action Plan. We submitted our
first plan in 2003, in addition to supporting the Australian Food and Grocery Council (AFGC) action plan.
CCA is of course known as the manufacturer and distributor of the worlds best-known brand, Coca-Cola. What we are less known for is our
commitment to minimising the environmental impact from our operations.
In 1994 CCA was the first company in the world to package a food grade product using recycled content in PET. Initially this was achievedusing a layering technique, whereby the recycled PET was inserted in between virgin PET and later CCA was the first business in Australia to
blend post consumer resin with virgin resin for a food quality package. In 2005, under the banner Refresh, Recycle, Renew, we partnered with
local authorities and our customers to trial public place recycling in key locations.
We have made great progress in reducing the material used in our packaging and in utilising material with recycled content wherever practicable.
Our progress has meant that we have either reached or are approaching physical limits in these areas. With the success of kerbside we see the
challenge for the second covenant to increase away from home recovery rates and at the same time lift the bar in overall industry performance in
packaging design and selection. We look to governments to do their part to ensure that free riders do not gain any competitive advantage from
not complying with both the letter and the spirit of the second covenant.
I invite you to read CCAs 2006-2008 Action Plan, where our focus is on consolidating the work commenced on increasing public place
recycling, improving data collection and on incorporating the new Environment Code of Practice for Packaging into our work processes.
Warwick White
Managing Director
Coca-Cola Amatil (Aust) Pty Ltd
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Our 2006-2008 Action Plan Focus
Public Place Recycling
Over the last 10 years CCA, government and industry has focussed on kerbside recovery. For the next 36 months and beyond CCA will focus
on assisting the expansion of public place recycling. Around half of our products are consumed away from home and CCA is committed to
removing them from the general litter and waste streams. Our objective is to use the knowledge we have on consumer behaviour to assist the
extension of public place recycling.
Kerbside recovery has led to significant environmental savings, with over 800,000 tonnes of material recycled through the system each year.
Kerbside recycling has demonstrated that most Australians are prepared to Do the Right Thing. The challenge now, is to encourage people to
Do the Right Thing away from home. The solution is to make it easy, convenient and cost effective for local authorities.
Our plan complements the extensive activity being undertaken under the Australian Food and Grocery Council (AFGC) industry plan. Our
experience has been that local governments have been reluctant to partner with individual companies in public place recycling. Over the life of
this plan CCA will focus on working with our customers to implement public place recycling in sites such as tourist attractions, public events,and shopping centres. Our approach is to complement and assist work being funded under the National Projects Group of the NPC.
Doing More of the Right Thing
As indicated in our previous Action Plan, whilst we will continue to look at opportunities to reduce packaging weights across our packaging
range, both in primary and secondary packaging, after a decade of continuous improvement in this aspect of our packaging design, we are
approaching the physical limit where further reductions may not be possible without compromising the quality of our product.
CCA will continue to refine our data tracking systems at our manufacturing facilities to record waste to landfill as well as the percentage of our
overall waste being recycled. In 2006 CCA will implement an internal Covenant database to assist in improving our packaging outcomes and to
assist us to meet our Covenant reporting obligations.
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Covenant Commitment
CCA was a founding member of the National Packaging Covenant and continues to be a strong supporter. The Covenant has encouraged even
greater focus on the environmental performance of our packaging and assisted in highlighting the importance of packaging minimisation
throughout the supply chain.
The role of packaging
Packaging is an important component of a product. Packaging allows products to be effectively transported, maintain their quality on shop
shelves, is used to provide information to consumers and ensures their safety is not jeopardised. Less packaging does not necessarily mean a
reduced environmental impact. Light weighting cardboard boxes to the point where they are too weak will result in increased waste through
greater stock losses in transportation. Packaging also ensures products arrive in the consumers hands as they left the production line. Tamper
proof packaging is now an integral component to the safety of consumers.
Focussed on Packaging
Coca-Cola is the worlds most recognised brand. Through our marketing and of course the contour bottle, Coke is differentiated in the
consumers mind. Packaging in fast moving consumer products is essential to distinguish our products and attract potential customers attention.
Packaging is an integral component of new product development.
CCA has commenced incorporating the revised Environmental Code of Practice for Packaging into our new product process. This will include
educating all those involved in the development of new packaging about the environmental impact of that packaging and the issues that need to
be assessed prior to decisions being made about materials and design.
Continually Raising the Bar
Coca-Cola Amatils mission is to To become the supplier of choice every time. Our values are based on continual improvement and
challenging the way things are done. Environmentally, this is reflected in our corporate environmental policy and particularly with the
commitment to always look for a better way. Looking for a better way in new product and packaging has also meant actively seeking better
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environmental outcomes. This means continuous dialogue between our team responsible for new products development, The Coca-Cola
Company technical team and our environmental managers about ensuring the optimal environmental capability of new product packaging.
Working with Industry
CCA is a member of several industry groups in Australia, many of which work with us to meet and exceed covenant commitments. Participation
and support of industry groups such as the Australian Food and Grocery Council (AFGC)enable industry to undertake environmental initiatives
collectively through rationalising the costs involved.
CCA participates in and supports several relevant industry bodies including
Australian Food and Grocery Council and the Packaging Council of Australia
We also represent industry on the National Project Group of the National Packaging Covenant.
Environmental Focus
CCA is committed to conducting our business operations in a sustainable manner. CCA's operations are primarily focused on the manufacturing
and distribution of beverages and are considered to be of low environmental impact.
In assessing the environmental impact of its operations, CCA has identified four key areas:
Water Use Energy Use Waste from Operations Post Consumer Packaging Waste
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Whilst this action plan focuses primarily on packaging, packaging systems are just one component in the overall production and consumption
systems for these products. Our environment assessment process for new packaging is now incorporating these broader impacts.
Shift in Culture
The Covenant and the responsibilities arising from its reporting requirements have fostered an important change in corporate culture over the
past 24 months. Improved processes have been established and followed. Environmental impacts of new products are now considered in the
early stages of the decision process and any changes to primary and secondary packaging are considered in the context of our commitment to the
NPC. Channels of communication have been developed and have greatly aided the business by having environmental impacts of productsconsidered from the outset, rather than as an afterthought. Building on this culture shift is a priority of this action plan.
Who we are
Coca-Cola Amatil (CCA) is a major public company listed on the Australian Stock Exchange. Headquartered in Sydney and operating in the
Asia-Pacific region, CCA is Australias largest manufacturer and distributor of soft drinks and other non-alcoholic beverages, and the market
leader in the industry.
CCA purchases concentrate and beverage bases from The Coca-Cola Company to manufacture its trademarked products including Coca-Cola,
diet Coke, Coca-Cola Zero, Vanilla Coke, Fanta, Sprite, Liftand POWERaDE. CCA also owns a portfolio of its own beverage brands including
Mount Franklin and Kirks.
Coca-Cola Amatil employs over 16, 000 people across our six countries of operation, 2,980 of those in Australia.
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CCA Locations
CCA is headquartered in Sydney and has offices in each state as well as sales offices right across the country. CCAs manufacturing facilities
including Pacific Beverages, Neverfail and Peats Ridge are located at:
Location Address
Northmead (NSW) 128 Briens Road
Northmead 2152
Smithfield (NSW) 1 Sturt St
Smithfield 2164
Richlands (QLD) 260 Orchards Road
Richlands 4077
Thebarton (SA) 33-43 Port Road
Thebarton 5031
Moorabbin (VIC) 16 Levenswell Road
Moorabbin 3189
Melbourne (VIC) 41 Jersey Road
Melbourne 3153
Kewdale (WA) 19 Miles Road
Kewdale 6105
Peats Ridge (NSW) 229 Euloo
Peats Ridge 2250
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Arndell Park (NSW) 16 Lidco Street
Arndell Park NSW 2148
Malaga (WA) 261 Beringarra Avenue
Malaga WA 6090
Torrensville (SA) 70 Hardys Road
Torrensville SA 5031
Springwood (QLD) 2-8 Tolmer Place
Springwood 4127
Garbutt (QLD) 40 Hugh Ryan Drive
Garbutt 4814
CCA Suppliers and Customers
Primary and Secondary Packaging
For the purpose of this Action Plan when reference is made to primary packaging CCA is referring to product packaging (bottles, cans) as well
any other packaging sold to the consumer such as the micro flute used for multipacks. Secondary packaging is anything to do with the
transportation of the product to our customers, such as cardboard cartons and shrink wrap.
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Primary PackagingMaterial Supplier
PET Visy
Hot fill PET AMCOR/ Visy
Aluminium Cans AMCOR
Glass ACI and Sutton Group
Labels Paper Abaris, Label MakersLabels Polypropylene FPSI, Pope Packaging
Closures AMCOR/ Portola
Multi-packs (micro flute) Visy / Amcor
Bag in Box Scholle
HDPE Peats Ridge Bottles Visy Industrial Packaging
Polypropylene Bottles for returnable
Neverfail bottles
Aquatek
Secondary Packaging
Material Supplier
Cardboard Visy
Shrink wrap AMCOR
Stretch wrap AMCOR
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Major Customers7-ELEVEN BP AUSTRALIA LTD
CALTEX AUSTRALIA COLES/MYER
FAL GREATER UNION/BCC
HUNGRY JACKS MCDONALDS
METCASH MOBIL NATIONAL
RED ROOSTER SUBWAY SYSTEMS AUSTRALIA
THE WAREHOUSE GROUP UNITED CONVENIENCE BUYERS
WOOLWORTHS LIMITED
Scope of this Action Plan
This action plan covers all CCA beverage activities in Australia. This action plan also covers CCA owned Pacific Beverages as well as CCAs
water bottling facilities, Peats Ridge and Neverfail/Piccadilly.
Measuring CCAs Action Plan
Success of this action plan will be internally tracked and regular reports and updates given to management. CCA will report on this plan yearly
including reporting on progress or as the Covenant Council dictates. CCAs action plan will also be available on the companys website:
www.ccamatil.com.au
Contact for Action Plan
Alec WagstaffCoca-Cola Amatil
Phone: (02) 9259 6571
Fax: (02) 92413872
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Final Report on Coca-Cola Amatil 2004 -2005 National Packaging Covenant Action Plan
1. Public Place Recycling
Action Status Comment
Partner with councils who respond from
the initial 50 councils CCA have
approached to increase public place
recycling. The execution of this will be ona case-by-case basis, dependent on council
needs and current systems.
Ongoing Of the 50 Councils who CCA contacted only nine responded. Of these Councils,
CCA met with six and have entered into programs with two and the Sydney
Harbour Foreshore Authority. Of the other Councils that CCA met with three have
since established PPR systems, however chose to do so without the assistance ofCCA.
Conduct two public place trials with major
customers operating in high traffic areas
such as food-halls and attractions such as
Zoos.
Achieved CCA launched PPR programs with Taronga Zoo, Thredbo Ski Village and is
working with a number of our other customers on implementing programs
including food halls. CCA will continue to work with our partners to expand the
availability of PPR. Details of these programs can be found on the CCA website:www.ccamatil.com.au
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2. Packaging Design
Action Status Comment
Lightweight glass packaging to a target of
6%
On-hold These plans were put on hold due to questions around continued production of the
330ml glass bottle.
Discontinue use of PVC in Pacific
Beverages Cordials and move into PET
packaging across the cordial range
Achieved In late 2004 CCA completely exited PVC packaging.
Include recycling logo on all newpackaging.
Ongoing All CCA primary packaging continues to feature the recycling logo and relevantmarkings for material type.
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3.Distribution
Action Status Comment
Investigate compostable and bio-
degradable shrink/ stretch wrap for our
multi-packs and also for secondary
packaging used for transportation.
Not currently
feasible
The current quality of compostable and bio-degradable shrink/ stretch wrap does
not meet CCAs quality standards. CCA has also engaged State Environment
departments, who have expressed concern about both compostable and bio-
degradable shrink wrap.
To address the issue of shrink and stretch wrap CCA has begun discussions withour major customers on programs for recovery of the materials.
Provide retail customers with details of
secondary packaging supplied to them to
assist with their NPC commitments
Ongoing In 2004- 2005 we responded to two customer requests for information.
Set up internal database with all
information relevant to our NPC
commitments and to also meet the needs of
our customers request for information.
On-hold This was not completed in this action plan, due to the KPIs for Covenant 2 not
being set within its timeframe. These systems will be set up for reporting under
Covenant 2.
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4.Disposal
Action Status Comment
Conduct regular manufacturing site reviews
to maintain and improve practices, waste
generation and movements across our
operations.
Ongoing Continuous improvement of waste practices has been integrated into site
management and reporting structures as part of CCAs ISO14001 platform. This
includes waste service providers providing total integrated waste management
solutions, incorporation of waste issues into monthly team and staff meetings, and
the expansion of recycling systems to now include areas of the business and
material types not previously included
Further improve our waste tracking system
to include sites from all states.
All CCA, Pacific Beverages, Peats Ridge and Neverfail sites provide monthly
reports, which are fed into CCAs EPM Report. The recently acquired Crusta site
will be integrated into this reporting system over the next two years.
Move to recording all environmental data
in finished beverage litres (FBL).
Currently this is done to record most of our
environmental data, however over this
action plan we will move to record all data
in this form to make it consistent.
Completed Waste, water and energy are all reported monthly as either L/FBL, kg/1000 FBL or
FBL/GJ.
Audit recycling stations located at all
operations
Completed Waste service providers at our Richlands site undertake formal visual audits. Other
sites undertake a weekly visual audit to monitor bin content, the results of which
are then used to raise staff awareness of the correct system. Environmental
snapshots also include performance in waste management and recycling.
Continue to refine reporting systems to
provide comprehensive data across all
recycling activities.
Ongoing The quality of data being collected at the site level has improved over 2004-2005,
however there are still some inconsistencies with what is being measured. CCA is
currently reviewing what data should be collected to enable a more consistent
format and structure.
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Quantify amount of waste product for
acquired sites as a base line for futurecomparisons.
Achieved Sites acquired prior to this Action Plan now report on waste and recycling figures
as part of the EPM report. The recently acquired Crusta site will be integrated intothis reporting structure over the next two years.
Reduce amount of general waste sent to
landfill to 5% of total waste across
Australia
Ongoing The current average across all sites is 26% of generated waste sent to landfill, with
the other 74% recycled.
The 2006 target for diversion from landfill is 80%.
This is an ambitious long-term target for CCA.
Continue support for AFGC initiatives Ongoing CCA has used AFGCs Dont Waste Australia campaign on the bumper bars of
all the sales fleet. CCA has also been working closely with AFGC on a number ofour PPR programs.
Maintain continual improvement initiatives
using ISO 14001 as a benchmark
Completed:
All CSD
Operations
now certified
under ISO
14001:2004
Environmental KPIs are set annually at a national level. Sites then setthemselves KPIs to compliment the national target.
Continual improvement is the overarching objective of these KPIs, whichgenerally set a 5% improvement on the previous target.
Our review process comprising surveillance and certification audits under14001:2004, and internal GAP audits, identify risks and/or areas ofimprovement.
On the managerial side our Management Review Committee meetings both ata national/HO and site level ensure adherence to the objectives and targets set
across all levels of the business
Full implementation and maintenance of
Pacific Beverages Environmental
Management Systems
Ongoing with
aim of full
integration by
Q1 2006.
Pacific Beverages are in the process of developing their EMS with a target for
implementation by Q2 2006.
Refine contracts with all waste contract
companies to supply information in full on
amount of waste recovered and percentage
going to landfill.
Achieved All sites are provided with a full breakdown of materials and weights for disposal
and recycling by service providers.
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5. Education
Action Status Comment
Continue to deliver Environmental
awareness training module (Includes
reference to principles and objectives of the
NPC) to all manufacturing staff as they join
CCA or as needed
Ongoing Waste management training is incorporated into induction programs and general
environmental awareness training delivered across operations sites. Over the next 6
months, it is anticipated that greater detail on the NPC and its impact on sites
activities will be delivered to key site personnel. The National Environmental
Awareness Training program is currently under review and will be updated to
reflect CCAs involvement and activities within the Covenant.Formally include environmental
consideration through developing a
checklist derived from the ECoPP into the
Capital expenditure approval process for
new products to ensure that environmental
impacts of new packaging investments are
considered in the initial stages of putting
proposals forward.
On-hold This was put on hold until the revised Code for Covenant 2 was finalised and will
be integrated into CCAs product development processes.
Install additional office container recycling
stations in meeting rooms to complement
individual paper recycling stations and
container recycling facilities in kitchens.
Completed All CCA offices have recycling stations and there are plans in place to provide
recycling facilities for all acquired sites.
Through our push into public place
recycling, extend the consumer education
program to point of sale where appropriate
Ongoing In Summer 04-05 CCA placed recycling communication at the point of sale in
Councils that had existing PPR systems. As part of the Thredbo PPR program a
recycling campaign has been developed for use in all shops and businessesthroughout the resort to promote the program. A general recycling promotion
program was also integrated in to the Coca-Cola Summer 2004-2005 program.
Finalise Environmental and OH&S check
list and adapt for use in the new product
development and marketing teams.
On-hold This was put on hold until the revised Code for Covenant 2 was finalised and will
be integrated into CCAs product development processes.
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2006-2008 National Packaging Covenant Action Plan
Covenant KPI Responsibility CCA Response Timing
1. Total weight of consumer packaging
(domestic & imported) sold per annum into
the Australian market and the total weight
of products packaged.
1A Report tonnes of packaging by materialtype by source (local or imported).
1B Report tonnes of packaged product sold
1C Report ratio of product to packaging (by
weight).
Individual
brand owners.
CCA has conducted an initial baseline assessment of its
packaging usage.
CCA will report its packaging usage by type on a commercial in
confidence basis to the NPCC.
In Australia CCA sold some 1.7 million tonnes of packaged
product during 2005.
For the 2005 calendar year CCAs ratio by weight of product to
packaging was 15:1.
Ongoing.
Data will be
reported
internally on
a quarterly
basis.
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Covenant KPI Responsibility CCA Response Timing
4. Changes to protection, safety, hygiene,shelf life or supply chain considerations
affecting amount & type of packaging used.
4A Report changes to protection, safety,
hygiene, shelf life or supply chain
considerations affecting amount and type of
packaging used with examples, and theirassociated impact on the amounts and types
of packaging used.
4B Quantitative details of changes should
be provided of substantial changes where
possible eg additional tonnes of packaging
required, changes to materials used etc.
All packagingsupply chain
signatories.
CCA is currently in the process of implementing the ECoPP, sothat the environmental impacts of new packaging investments
are considered and documented.
This will ensure environmental impacts are taken into
consideration at the inception and supply chain stages of
packaging design and development, and in the event of any
substantial changes made to packaging.
Changes shall be reported as part of the Annual Report in
October 2006.
Ongoing.Data will be
reported
internally on
a quarterly
basis.
6. Total weight, by type, of non-recyclable consumer packaging sold per
annum into the Australian market.
6A Report tonnage of non-recyclable
packaging sold by material type and total.
6B Report total non-recyclable as a % of
total packaging sold.
Individualbrand owners.
CCA will report tonnage of non-recyclable packaging sold bymaterial type on a commercial in confidence basis to the NPCC.
Total non-recyclable packaging sold is 5.20% of the total
packagingsold by CCA.
Ongoing.Data will be
reported
internally on
a quarterly
basis.
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Covenant KPI Responsibility CCA Response Timing
16. Percentage of signatories providing
recycling collection facilities for post-
consumer packaging generated on-site.
16A Report whether on-site recycling
facilities are provided or not.
16B If yes, provide details.
All signatories. All key CCA sites have recycling collection facilities for post-
consumer packaging.
CCA will maintain office container recycling stations in
meeting rooms to complement individual paper recycling
stations and container recycling facilities in kitchens.
CCA will continue to review and modify recycling practiceswithin these operations.
Environmental snapshots will continue to include performance
in waste management and recycling.
CCA will continue to refine reporting systems to provide
comprehensive data across all recycling activities.
Ongoing.
Data will be
reported
internally on
a quarterly
basis.
17. Amount and type of consumerpackaging in the litter stream.
State, Territorygovernment
signatories.
CCA will continue to provide significant financial supportthrough AFGC to encourage appropriate litter disposal
behaviour.
Ongoing.
20. Improvement in littering behaviour. State, Territory
government
signatories.
Through the AFGC, CCA will encourage other consumer
goods companies to join in cooperative programs to support
effective litter programs.
Ongoing.
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Covenant KPI Responsibility CCA Response Timing21. Estimated tonnage of consumer
packaging sent (a) for recycling and (b) to
landfill from on-site collection facilities.
21A Report on amounts of consumer
packaging from on-site collection which is:
i) sent for recycling (tonnes and % oftotal waste); and
ii) sent to landfill (tonnes and % of
total waste).
All signatories. CCA has established an internal long term target to reduce the
amount of general waste sent to landfill to 5% of total waste
across Australia.
Waste management training is incorporated into induction
programs and general environmental awareness training
delivered across operations sites. Over the next six months, it isanticipated that greater detail on the NPC2 and its impact on
sites activities will be delivered to key site personnel. The
National Environmental Awareness Training program will be
updated to reflect CCAs involvement and activities within the
Covenant.
CCA sent a total of 3, 993.1 tonnes of consumer packaging
waste to recycling from key sites between January andDecember 2005. This represents an average of 74% of total
waste.
CCA sent a total of 1, 238.9 tonnes of consumer packaging
waste to landfill from key sites between January and December
2005. This represents an average of 26% of total generated
waste.
Ongoing.
Data will be
reported
internally on
a quarterly
basis.
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Covenant KPI Responsibility CCA Response Timing22. Number of signatories who have
formally adopted the ECoPP and developed
systems for its implementation.
22A Report whether ECoPP has been
formally adopted.
22B Report actions and commitments that
demonstrate the ECoPP has been
implemented.
Packaging supply
chain (designers,
manufacturers,
brand owners,
retail buyers and
product
importers).
CCA will formally adopt and implement the ECoPP.
A checklist derived from the ECoPP will be developed and
added to the approval process for new products and packaging.
This will ensure that environmental impacts of new packaging
investments are considered and documented in the initial
stages of new product development.
Ongoing.
Process to
be fully
operational
by June
2006 and
reviewedannually.
Data will be
reported
internally on
a quarterly
basis.
26. Implementation of Buy Recycled
purchasing policy or practices.
26A Report whether the signatory has
implemented a Buy Recycled purchasing
policy or practices.
26B If yes, provide details and quantitative
data if available.
All signatories. CCA will maintain its current purchasing policy which
commits us to give preference throughout our business topurchasing products which have recycled content, where
economically and practically feasible.
Ongoing.
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Covenant KPI Responsibility CCA Response Timing
27. Establishment of baseline performancedata.
27A Report indicative baseline data (where
available) including qualifiers and
assumptions, by 30 November 2005.
27B Report established baseline data by 31
October 2006.
All signatories. CCA has established and reported preliminary baseline datafor 2005.
The data collection process will be refined during 2006.
Completed.
Ongoing.
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Covenant KPI Responsibility CCA Response Timing28. Annual reporting against action plan.
28A Report to be lodged by 31 October
each year commencing 2006.
All signatories. CCA will establish an internal database and reporting system
with all information relevant to our NPC commitments.
Progress against our NPC commitments is reported at Board
level.
CCA will publicly report progress against this plan.
Annual
reporting.
29. Demonstrated improvement and
achievements against individual targets &
milestones.
29A Annual report to clearly demonstrate
continuous improvement and performance
against individual targets and timelines in
action plan.
All signatories. CCA is committed to maintaining continual improvement and
developing new initiatives using ISO 14001 standards as a
guide.
CCA will report on its improvement and performance against
targets and timelines in this Action Plan during our Annual
Report.
Initial
database
established
in January
2006, to be
subject to
annual
review.
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