APC Wrap Up August 2014 by Packaging Covenant

APC WRAP UP AUGUST EDITION

Research and Policy Update The APC Packs a Lot in! It was a busy week for the APC during Packaging Week (15 – 20 June 2014). The APC attended and sponsored the 19th International Association of Packaging Research Institutes (IAPRI) World Conference, partnered and attended the Australasian Pulp & Paper Industry Technical Association (APPITA) Market Outlook Forum and attended the 2014 Australian Institute of Packaging (AIP) National Conference in Sydney. The IAPRI World Conference brought together 140 delegates from 25 different countries to hear leading researchers and global experts discuss the latest and most innovative developments in packaging, distribution and logistics. Packaging sustainability was a key theme of the conference, with presenters covering a range of topics from technological innovations, to reducing waste to landfill, to communicating sustainability both within organisations and to external stakeholders. One of the many interesting innovations presented at the conference was beverage bottles made of paper pulp. While still being researched, the aim for the project is to enable the bottle to be put through recycling streams and/or be biodegradable. The APPITA Market Outlook Forum, held on 19 - 20 June, investigated the globalisation of packaging markets, provided updates on critical food safety compliance considerations, security and quality of fibre supply, rising imports of pre-converted material and the related increase in ‘off-shoring’ of completed manufacturing. Keynote speaker Visy Industries Chief Operating Officer John Wheeler spoke of strong underlying growth for fibre packaging and the need for industry to recover more from the waste fibre stream. Stan Moore, CEO of the APC, talked about looking creatively ‘in the Style of Dali’ at challenges in paper recovery to develop market opportunities for fibre recyclate. All the events during packaging week, including the AIP Packaging and Innovation Excellence National Conference, highlighted the important role packaging plays in minimising food waste in the supply chain. The AIP event also presented a number of important updates including the trends, opportunities and challenges in the sector.

Completed Projects Recycling Data Informs Decision Making The APC recorded an overall recycling rate for post-consumer packaging in Australia of 64.2% in 2013 from the 39% baseline established in 2003. The increase in the national packaging recycling rate is an important reminder to the wider community that the current collaborative product stewardship approach to increasing recycling and reducing litter is working. It is a great way of showcasing the efforts of all of the APC’s stakeholders: local, state and federal governments, industry and the community. Jessica Sheehan, Research and Policy Manager at the APC, said the data was also used by industry, government and the community to make investment decisions and inform programs to address recycling nationally. The recycling rate is calculated by a methodology that was approved by the Australian Packaging Covenant Council back in 2009. The consultants undertaking the work talk to a number of organisations throughout the supply chain to get this data, many of whom are APC signatories. By providing information these organisations play a crucial role in ensuring that the data is the best picture of packaging recycling nationally. To ensure the APC continues to have a world leading methodology best suited to the Australian context, this year it is commissioning a major project reviewing the current approach. Learning from best practice and reconsidering current and future needs, a new methodology will also be developed that, subject to further review, will be used by the APC for future counts. An essential part of the review will be an analysis of how to minimise the reporting burden on the APC’s stakeholders. The calculation of the national packaging recycling rate is important as the APC requires it to address a key KPI of improving recycling rates for used packaging, with a target of 70% by 2015.

Glass Turned to Sand as Lismore City Council Targets Massive Reduction of Waste to Landfill More than 15,000 tonnes of recyclables, including 4,000 tonnes of glass, will be processed each year through a new $3.65 million Materials Recovery Facility and Glass Processing Plant, launched in Lismore last month. The Glass Processing plant is projected to reduce waste to landfill by 4,000 tonnes per annum, reduce the demand for raw sand and fine aggregate materials and reduce truck movements in the local area. The facility extracts glass fines from co-mingled material at the local recycling centre. The fines are then further processed to produce recycled crushed glass for blending into road base and asphalt. This type of glass recovery and reuse is exciting and representative of a new way of thinking about the circular economy. Lismore City Council worked in collaboration with Ballina Shire and Richmond Valley Councils, the APC and the Australian Food and Grocery Council’s Packaging Stewardship Forum to deliver the project. The project will achieve long term benefits for Lismore City Council and the wider region. At the official opening of the facility were Council General Manager Gary Murphy, Australian Packaging Covenant CEO Stan Moore, Mayor Jenny Dowell, Lismore MP Thomas George, EPA Manager of Waste and Recycling Infrastructure Mark Jackson and Council Waste Operations Coordinator Kevin Trustum.

Away From Home Recycling Made Easy for Shoppers Nationwide New installations and upgrades to existing away from home recycling systems have now been completed across 29 Regional, Urban and Mixed Use Retail Shopping Centres across Australia. The 184 recycling bins provide away from home recycling opportunities to around 280 million visitors to Colonial First State Retail Property Trust Group managed centres each year. The front-of-house recycling systems enable shoppers and visitors to sort and recycle rubbish when they are out and about in the same way they do at home. Through well-placed bin infrastructure and promotion of the Do the Right Thing, Use the Right Bin message, the new recycling bins will help ensure recycling rates continue to rise and there is a reduction in litter. The scheme was launched on 13 June by Mr Jon Black, Director-General of the Department of Environment and Heritage Protection and is a joint venture between the APC, CFS Retail Property Trust Group (CFX) and the Packaging Stewardship Forum of the Australian Food and Grocery Council (AFGC).

Projects News Overwhelming Response to 2014/15 Funding Round The APC would like to thank all those who took the time to submit proposals for the 2014/15 funding round. With over 60 applications received, the funding round was a huge success. The focus for this funding round was projects that will be completed by 30 June 2015 and fit into the following areas: • Major Infrastructure & High Yield • Litter Reduction • Local Government, Regional and Remote Communities The APC has been funding projects for over 15 years and since 2005 has contributed $33 million toward 165 projects with a total project value of over $140 million in all states and territories. APC projects accounted for up to 32.4% of the overall increase in recycling tonnes in the period from 2005-2012, and have also played a role in the 37.1% decrease in tonnage to landfill. The APC will reveal the successful projects for 2014/15 in due course. 2

Australian Packaging Covenant CEO Stan Moore, Chair of the WA Waste Authority Marcus Geisler and Centre Manager of Midland Shopping Centre Jacqueline McKenzie attended the Perth Colonial Launch.

South East Queensland Set for State-of-the-art Glass Recycling Plant

New Projects

A new recycling plant will soon have the capacity to process and recover all glass currently recycled by consumers in South East Queensland and regional centres within approximately 500km of Brisbane.

Winemakers Commit to Sustainability

The new plant will ensure that all glass recovered in the region has the opportunity to be diverted from landfill and recycled.

New waste and recycling bins will be wrapped with messaging encouraging visitors to recycle and dispose of rubbish in a responsible manner as they move along the Barossa Bike Trail in South Australia.

The APC has provided $1.5 million in funding to the Queensland Cullet Optical Sorting Plant project, which began mid-2014. The project, valued at $3 million and due for completion in early 2015, will establish a state-of-the-art recycled glass sorting plant to recover large volumes of glass for use in the production of new bottles.

Pernod Ricard Winemakers were successful obtaining $15,000 funding from the APC to support the installation of the bins. The project, due for completion in early 2015, will enhance existing infrastructure and way-finding in the region.

The facility will be built by Queensland Glass Recycling’s engineering arm with assistance from a European optical sort equipment supplier. The recyclable glass will then go to Owens-Illinois (O-I), the world’s largest glass container manufacturer, that has a plant in Brisbane. This project will allow O-I to collaborate directly with Brisbane and Gold Coast City Councils on issues such as improving collections systems and public place recycling, to increase the amount of glass recovered and recycled into new bottles.

The messages on the bins will highlight the benefits of recycling, impact of landfill waste – such as greenhouse emissions – and the need to reduce contamination in the region’s recycling stream. The project’s objective is to increase recycling rates and reduce litter by educating cyclists and other visitors. It is anticipated that the project will lead to reduced litter on the roadside, in car parks and along the bike trail in the Barossa. The new bins are also expected to result in decreased contamination of the existing recycling streams at Pernod Ricard’s Jacobs Creek Visitor Centre.

Reprocessed Glass Waste Turned to Walking Trails on Rottnest Island A glass waste reprocessing project is underway on Rottnest Island, Western Australia. Due for completion mid-2015, it involves the purchase and installation of a glass crushing machine to reprocess glass collected from the Rottnest Island business community. The Rottnest Island Hotel and Rottnest Island Lodge are key targets for the program and a capture rate of 90% is anticipated. APC funds will go towards the procurement, installation and commissioning of an appropriate glass crusher as well as associated infrastructure such as a glass storage bay. The infrastructure will be managed by staff at the Rottnest Island Authority (RIA) who will reprocess glass material to minus 4 mm Recovered Crushed Glass (RCG) to meet specifications for use in pipe bedding and as a fine aggregate in civil construction. The reprocessed glass may be used for resurfacing walk trails or in park management. The performance and operating costs of glass crushing infrastructure will be closely monitored in the first six months to enable cost benefit reporting. The RIA will also undertake a feasibility analysis of implementing visitor glass collection systems outside of the initial commercial precinct to increase capture rates and ensure the effectiveness of the operation.

Member Services Update

Update Workshops to be Held Across Australia

APC Recognises Highest Performing Signatories

‘APC Update’ workshops are being held for signatories in Adelaide, Perth and Melbourne – following successful sessions hosted in Sydney and Brisbane.

The APC Awards Nights, hosted in Melbourne and Sydney in July, recognised signatories that are performing ‘above and beyond’ and leading the way in packaging sustainability.

Signatories are encouraged to send new contact officers and APC teams along to the workshops. Attendees will be provided guidance on how to practically apply APC KPIs and goals. They will also receive help with implementing and reporting against action plans.

The twenty-two award winning signatories, who achieved the highest result in their industry category this year, demonstrated exactly how packaging innovations can create business resilience and avenues for earnings growth. The APC congratulates, and is proud to acknowledge, its 2014 high performing signatories in the following categories:

Run by the APC’s Member Services Team, the sessions will serve as a forum for members to network, collaborate and problem-solve with one another.

Food and Beverage

In the lead up to the workshops, invitations will be distributed to signatories and registration will become available on the APC website: http://www.packagingcovenant.org.au/pages/register.html

• Small – Medium Food Company: Chobani Pty Ltd • Large Food Company: Campbell Arnott’s Australia • Small – Medium Beverage Company: Bundaberg Brewed Drinks Pty Ltd • Large Beverage Company: Coca-Cola Amatil Limited

Adelaide, South Australia: Venue TBC – Wednesday 17 September, 8am-12pm

Retailers

Perth, Western Australia: Novotel Langley – Tuesday 23 September, 1-5pm

• Retailer: Metcash Trading Limited Australasia • Quick Service Restaurants: McDonald’s Australia Limited

Melbourne, Victoria: Monash Conference Centre – Tuesday 14 October, 8-12pm

Pharmacy and Personal Care • Small Pharmacy and Personal Care: McGloins Pty Ltd • Medium Pharmacy and Personal Care: Jurlique International Pty Ltd • Medium Pharmacy and Personal Care: Blackmores Limited • Large Pharmacy and Personal Care: Bristol-Myers Squibb Australia Pty Ltd Hardware and Homewares • Small Hardware and Homewares: Fibrecycle Pty Ltd • Medium Hardware and Homewares: ASSA ABLOY Australia Pty Ltd

Further enquiries regarding the workshops can also be sent to: apc@packagingcovenant.org.au

• Large Hardware and Homewares: OfficeMax Australia Ltd Communications and Electronics • Small-Medium Communications and Electronics: Fuji Xerox Australia Pty Limited • Large Communications and Electronics: Nokia Australia Pty Ltd Clothing, Footwear and Fashion • Small Clothing, Footwear and Fashion: Birkenstock Australia Pty Ltd • Large Clothing, Footwear and Fashion: Kathmandu Pty Ltd Packaging Manufacturer

APC Strives to Increase Member Engagement and Overcome Challenges

• Small-Medium Packaging Manufacturer: CHEP Australia Pty Ltd • Large Packaging Manufacturer: Huhtamaki Australia Pty Limited

To further the APC’s ability to engage effectively with its members, and identify the challenges and opportunities signatories face, the APC carried out in-depth interviews with key stakeholders throughout May.

Recovery and Recycling

Overall, interviewees reported a positive change in communication and engagement from the APC over the past 18 months. The interviews also revealed the following:

• Winner: Veolia Environmental Services (Australia) Pty Ltd Transport, Fuel and Tobacco

• Nearly 90% of respondents say the APC has improved its ability to efficiently and effectively manage packaging;

• Winner: Philip Morris Limited

• Resources provided by the APC are considered very useful and tools are easy to use; and

Most Improved

• Winner: Murray Goulburn Co-Operative Co Limited

• Action plan and reporting processes are clear and simple, and the APC provides appropriate support. The public nature of plans and reporting also helps signatories push for continuous improvement.

To see the action plans and reports of these award winning signatories please go to:

Feedback from the interviews also revealed several key challenges, which the APC will seek to address. For example, limited influence over packaging design was cited as an issue by contact officers.

http://www.packagingcovenant.org.au/pages/award-winners-2014.html

To assist signatories, the APC intends to promote packaging assessment case studies, explore the delivery of design workshops, and continue to encourage entire signatory teams to attend APC workshops to boost collaboration and creativity.

Neil McGregor from Bristol-Myers Squibb accepts award for the Large Pharmacy and Personal Care category from APC Councillor Peter Bury

Mathew Cormack, Shelley Javier, Mariana Abdo and Brett Giddings (APC) at the Cormack Packaging Awards

APC Supports Design Students through Continued Commitment to Cormack Innovation Awards The APC joined the Cormack Innovation Awards for the first time in 2013 by creating and sponsoring the ‘APC Sustainability Award.’ APC Logo 2013 - Primary Logo

Each year, the Cormack Awards present a design brief to industrial design students to engage and educate them on packaging options, challenges and innovation. Students are provided with a support framework throughout the program including resources from Cormack Packaging, in-house factory tours and the opportunity to examine real samples and products to inspire their ideas and concepts. Brett Giddings, Manager of Member Services at the APC, hosts a session for students on the Sustainable Packaging Guidelines, as well as the role of packaging in delivering goods to consumers. The Awards focus on developing students’ practical skills with guidance and feedback from technical staff provided prior to submission of the concepts. Finalists’ designs are then judged by key industry stakeholders to determine the placegetters. The APC considers its involvement in the awards as a great opportunity to instil the importance of sustainability in the minds of up-and-coming Primary Logo (Horizontal) designers. It looks forward to continuing to educate and promote sustainable packaging through the 2014 Cormack Innovation Awards.

Primary Logo (Vertical)