Packaging Sustainability Metrics. Nigel Bagley Director, Industry Affairs Unilever

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1 Packaging Sustainability Metrics Nigel Bagley Director, Industry Affairs Unilever

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3 A history of responsibility Corporate Responsibility has been central to our way of doing business since we started out making soap in 1884 Founded by William Lever a leading British philanthropist

4 The Power of Industry Antony Burgmans - Chairman Unilever 1999 to 2007 Past chairman/founder of member of: - ECR Europe - Global Commerce Initiative - Global CEO Forum

5 The Consumer Goods Forum: Industry Leadership on Sustainability Paul Polman CEO, Unilever Paul Polman CEO, Tesco

6 Packaging

7 Over-Packaging or Good Packaging?

8 Optimum Packaging: The Innventia AB model Negative environmental impact OPTIMUM PACK DESIGN MINIMUM EVIRONMENTAL IMPACT UNDERPACKAGING OVERPACKAGING MINIMUM MATERIAL Increasing packaging material weight or volume 1

9 Objective Clear understanding of sustainability Holistic approach to Packaging Packaging: - Protects - Promotes - Informs - Is convenient - Improves utilisation - Improves handling

10 Objective Clear understanding of sustainability Holistic approach to Packaging Globally applicable common packaging sustainability indicators and metrics Provide companies with a common language that can be used internally or jointly with trading partners, to shape discussion and action. Unified industry approach to sustainability metrics Standard method of reporting and shared understanding Cost reduction Reduced negative impacts Improved consumer perception Improved decision making Demonstrate industry-wide leadership for: Others to emulate Applying the model to achieve other common goals The Burning Platform: Governmental and NGO pressure Independent company programmes Independent national initiatives

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12 ECR Europe/EUROPEN & SPC

13 Principles Packaging makes a valuable contribution to economic, environmental and social sustainability through protecting products, preventing waste, enabling efficient business conduct, and by providing consumers with the benefits of the products it contains. The fundamental role of packaging is to deliver the product to the consumer in perfect condition. Attempts to reduce packaging impacts should only be pursued if they maintain or reduce the impacts of the packed product. Because of its role in protecting the product packaging can only be properly evaluated as part of a complete product life cycle Optimal performance is achieved when product and packaging are designed together from conception. There is no such thing as a fundamentally good or bad packaging material: all materials have properties that may present advantages or disadvantages depending on the context within which they are used.

14 Indicators and Metrics c.15 Core indicators, along with supporting and correlating indicators, are being finalised These are based on existing work completed by the Sustainable Packaging Coalition and incorporating the EUROPEN/ECR Europe guidelines Examples: Total Material Use Water Consumption Life-Cycle Energy Intensity Transport Cube Efficiency Chain of Custody Life-Cycle GHG Emissions Recyclability of Packaging Child Labour

15 Example: For each indicator Indicator Type Definition Metrics Examples What to Measure What not to measure Life Cycle Green House Gas Emissions Core (supporting and correlating indicators linked) The mass of GHGs released to the atmosphere during the sourcing or raw, recycled and reused materials and the production, filling, transport and/or disposal of packaging materials, packaging components or units of packaging. Mass released per functional unit of final packaging material, packaging components, packaging or time (expressed in CO2 equivalency). Kilograms / kilograms of final packaging material Kilograms / 1000 units of packaging Metric tons / year (based on production rate) Measure all direct and indirect GHG emissions released during the growth, harvest or extraction and processing of raw materials, collection and processing of recycled or reused materials, production of final packaging materials, conversion of final packaging materials into packaging components, assembly of packaging components into units of packaging, filling of packaging units, transport of raw, recycled and/or reused materials, final packaging materials, packaging components and/or units of packaging and the end-of-life processing of packaging. Include direct and indirect GHG emissions from energy sources used to heat, cool and illuminate any facility space in which any of the operations specified above are performed. For additional guidance, refer to ISO standards and 14044, the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and PAS Do not include direct or indirect GHG emissions released during the transport of packaging that contains product. Do not include GHG emissions released as a result of heating, cooling and illuminating facility space that is not used for packaging-related functions or activities, e.g., administrative offices, unless the facility is used exclusively to produce final packaging materials, packaging components or units of packaging.

16 Next Steps: Pilot Projects Prove, through pilot projects, the applicability and value of all the project deliverables Call to action to the Consumer Goods Forum: Commit your company to participate in a pilot What is required What will be provided Senior management sponsorship Packaging point person Resource and support for pilots starting Q Confirmation of category and geography Pilot Packs (Mid December) User manual Scorecard Launch meeting January 19th/20th Toronto

17 Challenges Getting alignment is not easy! We need to move faster We need to communicate more

18 Packaging Sustainability Metrics Nigel Bagley Director, Industry Affairs Unilever

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