AUSTRALIAN PACKAGING COVENANT

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1 AUSTRALIAN PACKAGING COVENANT ACTION PLAN APRIL 2012 to MARCH P a g e

2 Table of Contents Executive Summary 3 Endorsement 3 Company Overview 3 Locations 3 Our Brands 4 Integria Healthcare Packaging Operations 4 Packaging Groupings and Review Schedule 5 Approach on review of existing 5 Related Initiatives 6 Packaging Consolidation 6 Shipper Consolidation 6 People 7 Covenant Contact Officer 7 Australian Packaging Covenant Team 7 Defining Required Actions 8 Design Actions 8 Recycling Actions 8 Product Stewardship Actions 8 Action Plan 9 2 P a g e

3 Executive Summary Integria Healthcare (Australia) Pty Ltd (IHC) is a signatory to the Australian Packaging Covenant (APC) as a Brand Owner and is committed to embedding responsible stewardship across the business and establishing a practical approach to contributing to APC goals and the related KPI s. In doing so IHC has developed this Action Plan to address the 3 goals of the Packaging Covenant s Strategic Plan: Design, Recycling and Product Stewardship. 1. Design: We are aware of the importance of the Sustainable Packaging Guidelines (SPG s) and are fully supportive of it being implemented in all new product/ developments whilst also reviewing existing. 2. Recycling: We will continue to look for opportunities to increase recycled contents in in compliance with the Therapeutic Goods Administration guidelines for pharmaceutical. Additionally IHC is committed to continuous improvement of its recycling efforts, and outlines the measures that will be taken in this area within the following Action Plan. 3. Product Stewardship: IHC will work to improve the design and recycling of its and take measures, where possible, to effect the reduction of items in litter. Endorsement This APC Action Plan is endorsed on behalf of Integria Healthcare (Australia) PTY Ltd, by Ms S. Moore, Chief Executive Officer. Company Overview Integria Healthcare is a leader in evidence based natural healthcare, delivered through a strong portfolio of brands to a range of healthcare professionals and retail customers, dedicated to superior efficacy based on credible science. Locations We operate in Australia and New Zealand, and export to several countries across the globe. Head Office Level 1, 8 Clunies Ross Court, Eight Mile Plains, Qld, P a g e

4 Our Brands Practitioner Only Brands Retail Brands We have a long and rich heritage through our industry leading brands and manufacturing facilities based in Warwick, Queensland and Ballina, New South Wales. Our product range is manufactured in accordance with the Australian Code of Good Manufacturing Practice. Integria Healthcare Packaging Operations IHC packages a wide variety of products from tablets to lotions and herbal extracts to oils. These products are sold to local and international customers including practitioners, pharmacies and healthcare retailers. This mandates an assortment of containers, closures, applicators and inner/outer secondary formats, to ensure stability of products, application, dispensing, and that customer demands are provided for. Packaging materials range from pharmaceutical glass and plastic bottles (HDPE,PP, PET), a range of materials specific to closure requirements (POM, PP, HDPE, LDPE) plus secondary and tertiary materials (cardboard, stretch and shrink wrap) that are common to most goods manufacturers. Shelf friendly also has a place, as is becoming a common requirement in the retail environment. 4 P a g e

5 Packaging Groupings and Review Schedule Table 1.0 Packaging Item Review Timing Reviewing Party Shippers May December 2012 Manager Glass Bottles January March 2013 Manager Point of Sale Material January May 2013 Brand Manager Plastic Bottles/Toothpick Container April August 2013 Manager Tubes September October 2013 Manager Inner/Display Cartons and Trays November 2013 February 2014 Manager Plastic Film (Shrink/Pallet) March May 2014 Manager Labels June August 2014 Manager Closures/Applicators September November 2014 Manager Blister Packs/Pouches December 2012 February 2015 Manager Approach on review of existing The approach to reviewing current will be as specified in the table 1.0. This review will include applying the Sustainable Packaging Guidelines and documenting the outcomes, and required actions where improvement is possible. The logical approach to reviewing a diverse range of formats and materials is by its categorised type. The reviewing party will work in consultation with the APC Team to ensure SPGs, regulations and business requirements are considered during the review process. Additionally, as required, other internal and external parties will be consulted to ensure compliance and appropriate specifications are maintained, and that opportunities are thoroughly investigated. Where the investigation calls for action to be taken, rollout will be sequenced by customer and brand to ensure smooth transition. 5 P a g e

6 Related Initiatives Packaging Consolidation During 2011 IHC reviewed its overall on primary and secondary levels. The outcome is to implement change to affect a reduction in both primary and secondary formats, with a flow on effect to streamlining of inbound supply chain, production efficiency and improved warehousing capacity. A summary of the targets is displayed in the table below. Table 1.1 Baseline Data Current formats (%) Overall Packaging types Primary Packaging (Containers) Primary Packaging (Closures) Secondary Packaging (Shippers) 100% 100% 100% 100% Target post consolidation (% of baseline) *Data excludes product deletions 85% 93% 96% 66% Shipper Consolidation IHC has reviewed its secondary with a view to rationalising the number of formats of shipping cartons. During this review consideration was given to increased use of recycled materials for shipping cartons. As a result the number of shipper types is planned to be reduced by more than 30% (see table 1.1), and rollout of this consolidation is currently a work in progress with a target date of end 2012 for the majority to move to the revised format. 6 P a g e

7 People Covenant Contact Officer Stewart Layt General Manager - & Planning Level 1, 8 Clunies Ross Court (PO Box 4854) Eight Mile Plains QLD 4113 Australia PH: E: Australian Packaging Covenant Team IHC has established an Australian Packaging Covenant Team, comprising of the people outlined in Table 1.2. This team will be responsible for meeting the commitments outlined in the Action Plan. However, it is acknowledged that the initiatives in the plan are part of our responsibilities to our environment, which belong to the entire business. The team will therefore work in consultation with other areas of the business to ensure all departments are aware of, and contributing to, our commitments to the APC. This will include Sales, Customer Service, Quality, Technical, Regulatory Affairs, Human Resources, Logistics and Information Technology. Table 1.2 Name Reg Lehmann Stewart Layt Morgan Bell Danielle Tunks Beau Staples Reece Ryan Damien Lawler Doreen Lim Responsibility General Manager Research and Development General Manager and Planning Brand Manager Manager Health, Safety and Environment Manager Production Manager Assistant Production Manager Packaging Specialist 7 P a g e

8 Defining Required Actions The APC sets out a numbers of goals and related KPIs for signatories to address in their action plans. The following is a summary of the actions IHC will implement in meeting its requirements as a signatory. Design Actions IHC is committed to implementing SPG s for the design of new products/ and to reviewing current ranges in line with the guidelines. A checklist is under development for use by the New Product Development Team and for reviewing current ranges. We have continuing commitment as a signatory to the APC to utilise this checklist and apply the broader principles to the day to day operation of the business, and in doing so intend to become an increasingly sustainable signatory to the APC. Recycling Actions Recycling is common place at IHCs manufacturing plants; however there is always room to improve. Through a review of current practices and a commitment to continuous improvement in this area, IHC aims to improve its recycling procedures. All areas of the business will endeavour to apply sustainable practices that have positive outcomes for minimisation, re-use and recycling. Both manufacturing and administrative areas will under-go auditing to highlight where improvements can be made to ensure reduced waste to landfill within the business. Utilising outputs of recycling is another area that the business will continue to invest in. This commitment will be demonstrated through the development and implementation of a Buy Recycled policy supporting KPI 4 of the APC. Product Stewardship Actions In achieving design and recycling objectives, IHC will work with others to fill knowledge gaps and improve current practices. Additionally we will make our supply base and colleagues aware of the importance of our commitment to the APC and collaborate on initiatives to meet APC goals. Whilst current practices include the use of returnable containers for bulk products, we will work further in this area to wherever possible increase the use of returnable. We will also provide information to our customers and consumers on appropriate reuse, recycling or disposal of our over the product lifecycle. 8 P a g e

9 Action Plan Integria Healthcare (Australia) Pty Ltd 2012 KPI 1 Proportion of signatories in the supply chain implementing the SPGs for design or procurement of APC Goal Action Performance measure 1 - Packaging Develop SPG SPG checklist in design checklist/s, and place incorporate into SOPs for NPD and review of existing Covenant KPI KPI 1 Baseline Data Checklist not in place Target/Goal Responsibility Timeframe Develop and implement checklist APC team June 2012 Review all NPD and refreshed products against Sustainable Packaging Guidelines Identify all new and refurbished products for review against SPGs checklist KPI 1 Checklist not in place, NPD process review to include SPG checklist Utilise checklist in all NPD and product refreshes NPD team September 2012 Review 100% of all existing and Point of Sale material against the Sustainable Packaging Guidelines checklist by 2015 Executing the review in line with the schedule, documenting outcomes, action where appropriate KPI 1 refer to table 1.0 Assess current against the SPG checklist and make improvements where possible Manager Review 100% of by March 2015 Consolidate different types of primary items used in manufacture % of consolidation rolled out KPI 1 refer to Table 1.1 Reduction in number of varying primary items procured, improved line efficiency Packaging Specialist Dec P a g e

10 Action Plan Integria Healthcare (Australia) Pty Ltd 2012 KPI 3 Proportion of signatories with on-site recovery systems for recycling used 2 - Recycling Conduct waste audit with the aim of reducing the amount of recyclables in the general waste stream a)waste Audit completed b) Outcome of audit determining a schedule of action KPI 3 Recycling systems are in place. Review and improve. Understand amount of recyclable waste to landfill, investigate opportunities to reduce. HSE Manager Dec 2012 KPI 4 Proportion of signatories with a policy to buy products made from recycled. All Covenant signatories will have a formal, documented policy of buying recycled products or materials Develop buy recycled Policy for materials Policy Documented KPI 4 Policy not in place Policy documented and in use. March 2013 KPI 6 Proportion of signatories that have formal processes for working with others to improve design and recycling of 3 - Product Stewardship Develop formal processes for working with others to improve design and recycling of Document formal processes KPI 6 No formal processes in place Apply the formalised processes and document outcomes APC team March P a g e

11 Action Plan Integria Healthcare (Australia) Pty Ltd 2012 Develop a plan for meeting with primary suppliers Document a schedule will relate to Table 1.0 KPI 6 Current practice is engagement on a needs basis Identification of opportunities and innovations relating to design Manager October 2012 (schedule in place) Review arrangements with waste management partners Documentation of reviews and potential improvements KPI 6 Current practice mandates some recyclable waste to landfill Engage suppliers that reduce waste to landfill and HSE Managers Dec 2012 Use reusable tertiary where possible Continue the use of reusable + investigate more KPI 6 No current formal process Inclusion in the Buy recycled policy Ongoing KPI 7 Proportion of signatories demonstrating other product stewardship outcomes Continue work with our suppliers to increase usage of recycled content - carton level % of cartons made from recycled board/with increased recycled content KPI 7 Majority of existing cartons used kraft outer layer Less than 10% of shippers using a portion of kraft material Packaging Specialist End 2012 Introduce policy on 2 sided printing to reduce consumption of paper % reduction in paper usage for printing KPI 7 No current policy Policy in place APC team July P a g e

12 Action Plan Integria Healthcare (Australia) Pty Ltd 2012 Inform both internal and external parties of our commitments to the Covenant, and educate where possible Document communication methods and action a rollout KPI 7 High level internal awareness only Inform internally and externally via the identified methods APC Team Ongoing Will be reported on annually KPI 8 Reduction in the number of items in litter Establish a process to audit and work internally and with external packers to introduce appropriate disposal symbols to Introduction of the disposal symbols to KPI 8 No current formal process Process in place Manager In line with reviews (Table 1.0) Reporting Report regularly on sustainability performance Annually Report on progress against this Action Plan to the Australian Packaging Covenant Report on time and in full Development of Action Plan Report on progress General Manager and Planning March Annually 12 P a g e

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