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Packaging product stewardship:
just compliance or is it critical to market access?
Paul Curtis
Executive Director
Packaging Council of New Zealand Inc.
10th July 2012
What is Product Stewardship?
New Zealand Packaging Product Stewardship Scheme– KPIs (waste reduction, education, re-use, recycled
content, community investment)
– Code of Practice for Packaging Design, Education
and Procurement
Australian Packaging Covenant– Action plans
– Sustainable Packaging Guidelines
Can the reporting protocols behind product stewardship
schemes be used as a basis
for gaining competitive advantage?
Shift in consumption
structure and
consumption behaviour
Ease of opening and closing
Resealability
Portioning aids
Shelf life
Multifunctional packaging
On-the go packaging
Packaging Inventions Being
Protected
Convenience vs Conscience – Food Packaging in the 21st Century, Thomson Reuters, 2011
Analysis of 14,000 patents between 2004 and 2009
Analysis of 14,000 patents between 2004 and 2009
Packaging Inventions Being
Protected
Convenience vs Conscience – Food Packaging in the 21st Century, Thomson Reuters, 2011
Analysis of 14,000 patents between 2004 and 2009
Analysis of 14,000 patents between 2004 and 2009
In conclusion, there is limited ability to use product stewardship reporting protocols for competitive advantage at the consumer marketing level.
Five Core Issues
While there are dozens of sustainability-related issues that any given company might be concerned with, there are five core issues that are serving as vehicles for companies’ broader sustainability strategies.
These issues are being used as ‘hooks’ to hang broader discussions off.
Five Core Issues
Packaging will receive more and more attention in the future.
While energy and water use will become more constrained and governments put more efforts into reducing waste, the packaging market will continue to grow.
ISO Standards, Packaging and
the Environment
ISO/DIS 18601 - Packaging and the environment - General
requirements for the use of ISO standards in the field of packaging and
the environment
ISO/DIS 18602 - Packaging and the environment - Optimization of the
packaging system
ISO/DIS 18603 - Packaging and the environment - Reuse
ISO/DIS 18604 - Packaging and the environment - Material recycling
ISO/DIS 18605 - Packaging and the environment - Energy recovery
ISO/DIS 18606 - Packaging and the environment - Organic recycling
Why have they done it?
Sustainability is an essential element of business strategy
Packaging is critical to this strategy
Using consistent measures of sustainability reduces complexity, costs and enables better results
Government agencies are coming down hard on unsubstantiated environmental claims
Shelf ready packaging and displays
Closed loop packaging
Bulk transportation
Selling & transport unit cube utilisation
Supply Chain Efficiency
Retail Pressures
Shelf ready packaging and displays
Closed loop packaging
Bulk transportation
Selling & transport unit cube utilisation
Supply Chain Efficiency
Retail Pressures
Shelf ready packaging and displays
Closed loop packaging
Bulk transportation
Selling & transport unit cube utilisation
Supply Chain Efficiency
Retail Pressures
Shelf ready packaging and displays
Closed loop packaging
Bulk transportation
Selling & transport unit cube utilisation
Supply Chain Efficiency
Retail Pressures
Shelf ready packaging and displays
Closed loop packaging
Bulk transportation
Selling & transport unit cube utilisation
Supply Chain Efficiency
Retail Pressures
Source: The Consumer Goods Forum
Smaller package footprint. For a bottle this means more rectangular
but does not mean it needs to look like a rectangle.
Less headspace, especially for products sold in cartons or other
rectangular packages.
Change the package height to fully utilize the available pallet height.
Taller/thinner packages or shorter/deeper packages with an
additional layer per pallet.
Change round containers to square or rectangular.
Case sizing and pallet pattern that fully utilizes the pallet.
Divider design that reduces the case size.
Eliminate the case or other secondary packaging.
Novel shipping platform that takes less volume than a wood pallet.
Design packages so they nest.
For flexible products, tighter packaging to compress the product
Options to Consider Increasing Cube Utilization
External Sustainability Reporting
Source: Packaging Council of NZ, Code of Practice for Packaging Design, Education & Procurement
In a nutshell, all the issues I’ve described are creating a demand
right across the supply chain for greater transparency.
2010 - INTERNATIONAL STANDARDS
ORGANISATION (ISO)
Development of ISO 18600 Series
Packaging & Environmental Standards
2011 - INTERNATIONAL STANDARDS
ORGANISATION (ISO)
Draft Standards in global circulation
for review & comment
2012 - INTERNATIONAL STANDARDS
ORGANISATION (ISO)
ISO 18600 series finalised & in use
2011 - GRI G3.1 Guidelines Released
2012 - CONSUMER GOODS FORUM/ISO/GRI/PAC.NZ
Global Protocols on Packaging Sustainability
Indicators & metrics framework all aligned
2008 - GLOBAL CEO FORUM
Global Packaging Project
initiated by Consumer Goods Forum
on Packaging Sustainbility 2.0
2011 - CONSUMER GOODS FORUM
Release of The Global Protocol
2010 - CONSUMER GOODS FORUM
A global Language for Packaging & Sustainability
2010 - 11 Pilot Phase/Testing
2010 - PAC.NZ
2006 GRI G3 Guidelines Released
2012 - PAC.NZ
Release of Code of Practice
Version 2.0
2009 - AUSTRALIAN PACKAGING
COVENANT - Draft
Sustainable Packaging Guidelines
2010 - AUSTRALIAN PACKAGING
COVENANT - Release new
2009 - PAC.NZ
Develop new Code of Practice
Release new Code of Practice
GLOBAL DEVELOPMENT OF PERFORMANCE INDICATORS AND METRICS 1997-2012 USED IN THE CODE OF PRACTICE
Sustainable Packaging Guidelines
2011-12 - PAC.NZ
Review Code of Practice
2008-9 SUSTAINABLE
PACKAGING
COALITION (SPC)
Develops Sustainable
Packaging Indicators
& Metrics Framework
2007 - WALMART
Packaging Scorecard
2008-10 - GLOBAL BRAND OWNERS & RETAILERS
Release of variety of Supplier Scorecards
1997 GRI Founded
2002 - GRI G2 Guidelines Released
Reporting Protocols
There is a great deal of synergy and interconnectivity between the various reporting protocols, measurement systems and metrics so it is often not an onerous as it would first appear to calculate a range of metrics.
It is good practice to establish measure and monitor systems within your own business, which are relevant to your own industry, operations and those of your clients/customers. With further demands for operational transparency, particularly around environmental and social issues, it is important to build a flexible approach within your business to meet these demands through establishing good reporting structures and meaningful metrics which will withstand the closest of scrutiny from both internal and external stakeholders.
Global Protocol on Packaging Sustainability 2.0 GRI Protocol – G3.1 Reporting Guidelines ISO Standards Pac.NZ Packaging Product Stewardship Scheme KPI
Summary
Product stewardship is essentially a compliance
exercise.
It’s difficult to translate product stewardship reporting
protocols into a marketing opportunity at the consumer level.
There is considerable scope for using the product
stewardship reporting protocols with trade marketing to gain competitive advantage through the global
supply chain.