11

Initiatives impacting paperboard packaging

presented by Laura Rowell, Director,

Sustainable Packaging, MWV

April 27, 2011

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Packaging

Brands We Shape

Markets We Serve

Beauty & Personal Care

Beverage

Commercial Printing

Consumer Electronics

Food Packaging

Food Service

Agriculture

Healthcare

Home & Garden

Electronics

Tobacco

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MWV Sustainability Leadership

Industry Initiatives/Leadership

Global Packaging Project (Consumer Goods Forum)

ISO Packaging and the Environment Standards

Keystone Center’s Green Products Roundtable

AMERIPEN founding member

Sustainable Packaging Coalition founding member

Recognition

Carbon Disclosure Project / Supply Chain Collaboration

Cited for leadership and performance 2010

Dow Jones Sustainability Index

• Listed for past 7 years; containers and packaging leader for 6 years

• Ranked #161 on Newsweek’s 500 Greenest US Companies

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Objectives

Update on Global Packaging Project

Brief review on status of ISO Packaging and the Environment Standards

Discuss impact on packaging industry

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Global Voluntary Initiatives

In addition to legislative challenges, sustainable packaging initiatives are also being driven by organizations not on the legislative/regulatory radar

This is being supported by retailers and brand owners who feel they can act more quickly, and with more positive results, than governments

Compliance is voluntary, but expected, and will impact:

How we DO what we do

How we MEASURE what we do

How we TALK about what we do

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Players

Consumer Goods Forum Merger of CIES, Global CEO Forum and the Global Commerce

Initiative (GCI)

Co-chaired by CEOs of Coca Cola and Carrefour

Has assumed responsibility for the Global Packaging Project

EUROPEN EU voice for packaging and the environment

Consulting support to GPP and ISO work

Sustainable Packaging Coalition Established in 2002

A project of GreenBlue

Along with EUROPEN, provides staff support and consulting to Global

Packaging Project

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Sustainable Packaging

CoalitionEUROPEN / AMERIPEN

Global Packaging

Project

A-B/Inbev -- -- / -- --

Coca Cola Yes Yes / Yes Yes

Colgate-Palmolive Yes Yes / Yes Yes

ConAgra Yes -- / Yes Yes

Danone Yes Yes / -- Yes

Dow Yes -- / Yes Yes

Dupont Yes Yes / Yes Yes

Johnson & Johnson Yes -- / -- Yes

Kellogg’s Yes -- / Yes Yes

Kraft Foods Yes Yes / -- Yes

L’Oreal Yes Yes / -- Yes

Mars Yes Yes / -- Yes

Nestle Yes Yes / -- Yes

Pepsi-Cola Yes Yes / -- Yes

Procter & Gamble Yes Yes / Yes Yes

Sealed Air Yes Yes / Yes Yes

Tetra Pak Yes Yes / Yes Yes

Unilever Yes Yes / -- Yes

Walmart -- -- / -- Yes

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99

1010

Global Packaging Project

Underlying concept: Development of common definitions and metrics, used

and communicated in compliance with applicable international standards, will

avoid unintended burden shifting

Approach Draft metrics and methodologies originally drawn from SPC

• Social

• Environment (attribute and LCA)

• Economic

Alignment with globally recognized standards and measurements

Test metrics through pilot projects

Impact on paperboard packaging industry Avoid multiple approaches to scorecards and metrics; uniform scope and

methodologies

Allows everyone to speak the same language

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Global Packaging Project

Overall an excellent (but sometimes a bit confusing) document

Results

Good clarity that choice of metrics (and amount of them) depends on business

interests and goals

• However, this may not be an option for packaging suppliers

42 metrics, covering:

• Social – 13 (most are a checklist of policies relating to workplace practices)

• Environment – 11 plus 2 on performance of EMS and energy audits

• LCA indicators and attributes – 14

• Economic – 2

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Specific Metrics

Environmental Attributes

Packaging weight and minimization

Packaging to product weight ratio

Material waste

Recycled content

Renewable content

Chain of custody

Toxicants concentration

Water from stressed resources

Packaging reuse rate

Packaging recovery

Cube utilization

Environmental management system

Energy audits

[checklist]

Life Cycle Indicators

Cumulative energy demand

Fresh water consumption

Land use

Global warming potential

Ozone depletion

Toxicity, cancer

Toxicity, non-cancer

Particulate respiratory effects

Ionizing radiation (human)

Photochemical ozone creation potential

Acidification potential

Aquatic eutrophication

Freshwater ecotoxicity potential

Non-renewable resource depletion

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Specific Metrics

Social Indicators

Packaged product shelf life

Community investment

Child labor

Excessive working hours

Responsible workplace practices

Forced or compulsory labor

Remuneration

Freedom of association

Occupational health

Discrimination

Safety performance

On-pack end of life communication

Product safety

[checklist]

Economic Indicators

Total cost of packaging

Packaged product wastage

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Global Packaging Project

Specific issues of concern

Hit and miss alignment with globally recognized standards and measurements

Material waste metric includes raw material manufacturing waste

Recycled content metric includes a discussion relating to up-cycling (glass, steel

and aluminum) and down-cycling (paperboard, plastic)

Toxicants concentration metric not in alignment with ISO or EN approach

Too many LCA metrics; most can only be obtained through use of LCA or LCA-

lite tool

Determination of function units will vary

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Walmart Packaging Scorecard

Walmart sits on the steering committee for the Global Packaging

Project

Amy Zettlemoyer-Lazar on metrics

Leon Hall on pilots

New / improved metrics will come from the GPP

Previously announced revisions on hold

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ISO Standards

Environmental Packaging Standards

Goal to transpose the EU CEN Standards to global ISO Standards

These cover

EN 13427 – Umbrella Standard

EN 13428 – Optimization by Source Reduction (and affiliated reports)

EN 13429 – Reuse

EN 13430 – Material Recovery

EN 13431 – Energy Recovery

EN 13432 – Organic Recovery

Addition of Technical Report on Chemical Recovery

Impact on paperboard packaging industry

Global approach to standards; discourage development of proscriptive requirements

Supports Global Packaging Project metrics and methodologies

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Summary of Projects

Global Packaging Project

42 metrics overall

Still encompassing environmental, social and economic inputs

Some metrics of concern

Methodology not totally consistent with global standards

LCA metrics require use of tools

Identification of functional unit may be confusing

ISO Standards

New standards will impact/support GPP metrics

Wal-Mart Scorecard

Changes to scorecard will come from GPP

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Conclusion

If you only remember one thing from my presentation today it should be:

Know your data -- we are all being asked to disclose more and more information. Don’t be caught without a plan.

When you get back to your office/business, the one or two things you should do are:

Develop that plan; understand what your customer will want from you and be prepared to answer. Note that I didn’t say give them all the data, just that you must have an answer.