Packaging Sustainability

2006 EMA Spring Meeting

Interest is Growing

• Albertson• Coca Cola• The Dannon Company• Estee Lauder Company• Johnson & Johnson• Kraft Foods• McDonald’s

• Microsoft• Nike• Pepsi Cola / Frito Lay• REI• Starbucks• Target• Unilever

Members:

How long before you may be asked what you are doing about sustainability?

Vision of Sustainability

The Sustainable Packaging Coalition envisions a world where all packaging is…

Sourced responsibly Designed to be effective and safe throughout its life

cycle Meets market criteria for performance and cost Made entirely using renewable energy Once used, is recycled efficiently to provide a valuable

resource for subsequent generations In summary: we envision a true cradle to cradle

system for all packaging.

Definition of Packaging Sustainability Is beneficial, safe, and healthy for individuals and

communities throughout its life cycle Meets market criteria for performance and cost Is sourced, manufactured, transported, and recycled

using renewable energy Maximizes the use of renewable or recycled source

materials Is manufactured using clean production technologies

and best practices Is made from materials healthy in all probable end-of-

life scenarios Is physically designed to optimize materials and energy Is effectively recovered and utilized in biological and /

or industrial cradle-to-cradle cycles

Beginning the Journey No company in the world has achieved a

truly sustainable package. Assess current status (benchmark)

Energy use Materials use Transportation End of life options

Move incrementally to sustainability Develop long term goals Set annual objectives

Sustainability – not entirely about oilBUT – oil drives the economics

At $70/barrel the market will seek out alternatives to petrochemical derived materials and energy sources

There is an oil price point that either drives or diminishes movement to other technologies 1970’s – solar heating/solar panels 1990’s – that market goes bust

Uncertainty will inhibit the progress New technologies are capital intensive Oil was $13/barrel as recently as 1999

Uncertainty in the Oil Fields Petroleum Intelligence Weekly (PIW)

Internal Kuwaiti records reveal that the nation's oil reserves are far below the officially stated amount of about 99 billion barrels.

Simmons and Company analysis of the International Society of Petroleum Engineers statistics on Saudi Arabia: 90% of its oil comes from the five super giant fields discovered

between 1940 and 1965. No new discoveries of giant fields since the 1970’s. Ghawar oil fields are 55-60% of total production - 6.25% of the

world's oil production. The northern regions are almost depleted.

Two other giant fields, Abqaiq and Berri, also seem to have peaked in the 1970s.

Hubbert peak theory – Diminishing new oil discoveries The worldwide peak in oil production has already passed.

Non Sustainable Envelope InksAll Petroleum Based Chemistries

Vehicles – Styrene Acrylic Organic Pigments - bright, clean, intense

Reds and Yellows Azo and Diazo Napthol and Beta Napthols

Blues and Greens Phthalocyanide

Violet aniline Dioxazine

Black Carbon

Additives – Waxes – Defoamers – Wetting agents

Sustainable Envelope InksWhat is Available?

Vehicles – the good news Soy Protein - already commonly used (Soy Seal) Wood based resins – the original water envelope ink

resins – still in use Wood Rosin - aged tree stumps Gum rosin - sap Tall oil rosin - by-products of the paper making process

Methylcellulose – some usage Shellac – Insect secretion - seldom used Casein – milk protein Polysaccharides - agricultural raw materials –

interesting properties for envelope inks Recycled PET – plastic beverage bottles – new PLA (polylactic acid) – derived from corn – new,

nothing yet available for graphic arts

Sustainable Envelope InksWhat is Available? (cont.)

Pigments Natural pigments – made from plants and insects

some examples: Madder root - made from dried, ground roots Indian Lake – derived from the same insects as shellac Anthocyanins – derived from flowers and fruits - bright red to

blue. carotenoids – common to plants -reds, orange, and yellow Betalains – beets or beetroots Cochineal (carmine)– insect based crimson color

Iron Oxide pigments Were manufactured from natural clays but now typically

synthetic The bad news: natural pigments typically lack the color

intensity, strength, permanency, or compatibility as expected from petrochemical derived products.

Oxide pigments are dull muted colors but otherwise suitable

Is landfill disposal sustainable?

No – landfills are “graves” in unsustainable “cradle to grave” approaches to waste

Current reality: the majority of envelopes end up in landfills If the question arises: what is the impact of ink

on the biodegradability of paper? Ink can be broadly described as a plastic

ASTM D 6868-03 – Biodegradable Plastics used as Coatings on Paper and other compostable substrates References lamination and extrusion to paper

ASTM D 6400-04 – Standard Specifications for Compostable Plastics

Ink Effect on Paper Degradation - Composting

ASTM D 6400-04, Section 6.2 Disintegration During Composting Notes that satisfactory disintegration occurs, if after controlled composting, less than 10% of the original dry weight remains after sieving.

Industry Interpretation: The weight fraction of a typically applied ink

comprises so little of the printed paper product total weight as it may not be a consideration in the testing.

Another Viewpoint From a press release on the Internet:

“Several plastics masquerade as biodegradable, but actually break down into tiny invisible bits that could affect the soil and animals such as earthworms. Of the few plastics that are genuinely biodegradable, many contain toxic residues from catalysts. One plastic, that's biodegradable and contains no nasty residues, is called PHB, polyhydroxybutyrate.”

Who will be pushing Envelope Manufacturers to Sustainable Technologies?

Members of the Sustainable Packaging Coalition Direct Mail Advertising Letterhead Envelopes Consumer monthly statements – bill payments

Environmental groups Sierra Club Nature Conservancy Many others

Non Profits Government Agencies The EMA – Sustainability is in everyone’s best interest

Waste Programs Ink Companies use of ink separators

Fluid Inks – separate water from solids Offset inks –

Reclamation through recycling Solids created

Printing Companies Some have separators for Flexo Inks Offset inks handled by waste companies – recycle not practical

Cost of Flexo Water Waste lower than cost of Water Ink Waste –

Reduce amount of ink at press (go from 5 gallon pail to smaller quantity)

Chambered systems require less ink and thus creates less waste

Stay open ink systems creates less waste NO skin on ink that needs to be thrown away Less press clean up because of drying up on the press

VOC Issues Flexo Water Inks –

Alcohol eliminated from most water inks pH Neutral Inks reduce the Amines that are main

VOC in current products Costs slightly higher printer

Offset Inks High Solid Inks provide low VOC products Some New Offset Inks are VOC free Costs are higher for printer

Press Washes Low VOC Products available Costs are about the same Some products not as effective

Contact Information Flint Group

Michael Impastato 1-314-200-9127 michael.impastato@na.flintgrp.com

INX International Joe Kelly 1-630-681-7131 joe.kelly@inxintl.com

Kohl Madden John Vogel 410-903-3501 john.vogel@kohlmadden.com