COLGATE-PALMOLIVE 2013-2014 for The Australian Packaging Covenant Australian Packaging Covenant Action Plan Page 1 of 18
Contents Executive Summary... 3 Statement of Company Purpose & Commitment... 4 Colgate s Sustainability Journey... 6 Global Sustainability Strategy... 7 Product Integrity... 8 Improving Sustainability... 8 Focus on Packaging... 9 Reducing Energy Use and Greenhouse Gas Emissions... 9 Moving Products to Consumers... 10 Reducing Waste... 10 Supplier Responsible Sourcing Assessments... 11 Engaging Suppliers on Climate and the Environment... 11 Responsible Sourcing of Forest Commodities... 12 Paper and Board... 12 Company APC Historical Timetable... 13 2013-2014 Action Plan... 14 Appendix 1... 17 Australian Packaging Covenant Action Plan Page 2 of 18
Executive Summary Colgate-Palmolive (Australia) was a signatory to the National Packaging Covenant MK I, and subsequently MK II, from the year 2000. The company also became a signatory to its successor, the Australian Packaging Covenant, in 2011. The Australian Packaging Covenant is a commitment by industry and government to the sustainable design, use and recovery of packaging. It is Australia s way of managing the impacts of packaging. Action Plans and the implementation of Sustainable Packaging Guidelines are important undertakings by Australian Packaging Covenant signatories. As required under the provisions of the Australian Packaging Covenant, Colgate- Palmolive (Australia) is pleased to prepare and submit this Action Plan. This action plan outlines the activities to be completed and target goals to be achieved for the period 1 January 2013 to 31 December 2014. This Action Plan reiterates our commitment to the guiding principles of Product Stewardship and roles and undertakings of the Covenant. The specific initiatives in this Action Plan have due regard to the expectations of the Sustainable Packaging Guidelines (Australian Packaging Covenant, 2010). In the packaging supply chain, Colgate-Palmolive (Australia) is classified as a packaging user. This action plan incorporates a matrix of specific actions and initiatives that we will undertake as a packaging user, in order to meet the relevant goals of the covenant. Australian Packaging Covenant Action Plan Page 3 of 18
Statement of Company Purpose & Commitment Colgate-Palmolive (Australia), having established its operations in 1921, exists to support the parent company in becoming the leading and best truly global consumer products company. Our name and brands are trusted in over 200 countries where we specialise in oral health care, personal care, household and fabric care products. Our internationally recognised brands include Colgate, Palmolive, Ajax, Dynamo, Cold Power and Fab. In Australia, Colgate-Palmolive (Australia) has manufacturing sites at Villawood, NSW and Labrador, Queensland and a head office in Sydney. With over 480 employees Australia wide, our local mission is to work together as one team, accelerating profitable growth through innovation, speed and excellence in everything we do. By living our universal values Caring, Global Teamwork and Continuous Improvement we have built a reputation as a company with the highest ethical standards. We all share the responsibility to preserve and enhance this reputation, abiding by the uppermost principles of integrity, honour and concern for one another. The protection of our environment and the health and safety of our customers, our people and the communities in which we live and operate is an integral part of Colgate-Palmolive s mission to become the best truly global consumer products company. It is our worldwide policy to manufacture and market our products and operate our facilities so that we comply with or exceed applicable quality, environmental, health and safety rules and regulations. We have established a set of responsible packaging principles that guide all our decisions concerning products and packaging. Colgate-Palmolive (Australia) became a signatory to the National Packaging Covenant in the year 2000 and it supports the guiding principles of shared responsibility for reducing the environmental impacts of consumer packaging. Australian Packaging Covenant Action Plan Page 4 of 18
As a signatory to the Australian Packaging Covenant, Colgate-Palmolive (Australia) acknowledges its commitment to the Product Stewardship, and roles and undertakings of the Covenant, as relevant to the practical scope of its commercial operations. Chris Pedersen Managing Director, Colgate-Palmolive (Australia) Australian Packaging Covenant Action Plan Page 5 of 18
Colgate s Sustainability Journey Colgate-Palmolive Company ( Colgate ) has long focused on the principles of sustainability. We ve always been dedicated to providing quality products that delight consumers, and we ve had programs in place to promote oral health in communities and to reduce our energy use and increase efficiency for years. Colgate s values of Caring, Global Teamwork and Continuous Improvement go handin-hand with the idea of sustaining both our business and the planet for generations to come. In 2008, we organized our sustainability efforts under the three pillars of People, Performance and Planet. A global Sustainability Council and a network of Sustainability Sponsors and Champions worked with others to implement the goals under each pillar. Australian Packaging Covenant Action Plan Page 6 of 18
In 2010, a global team of Sustainability Leaders representing each functional unit at Colgate helped develop a 2011 to 2015 Sustainability Strategy with focused measurable goals that align with our business objectives. Our commitments reflect the global challenges and opportunities that are material to both Colgate and our stakeholders. Colgate s 2011 to 2015 strategy maintains its emphasis on People, Performance and Planet, with focused, measurable goals that align with the Company s business objectives. Global Sustainability Strategy Australian Packaging Covenant Action Plan Page 7 of 18
Product Integrity Colgate s internal business integrity extends to the integrity of our products their safety, efficacy, quality and sustainability. We are committed to finding ways to improve the sustainability profile of our product portfolio. We re also committed to bringing products to consumers that meet their needs and expectations, and are continuously working to develop products that have a reduced impact on the planet. Product integrity also includes a commitment to providing affordable products to consumers at lower income levels, and linking our products to bettering communities, through programs such as our Bright Smiles, Bright Futures oral health education initiative and our global hand washing education programs. Improving Sustainability As part of our 2011 to 2015 Sustainability Strategy, we ve committed to increase the sustainability profile in all new products we produce and in the balance of our portfolio. 1 We have also committed to reduce the environmental impact of our products and packages by 20 percent, by increasing the use of sustainable materials and recycled content. In 2012, Colgate began evaluating new products using a Product Sustainability Scorecard to drive improvement across the product life cycle. The scorecard rates products with 35 parameters across eight focus areas: responsible sourcing, materials, energy and greenhouse gases, waste, water, ingredient profile, packaging and social impact. So far, we have improved the sustainability profile in 24 percent of our products. 2 1 A 10% or better improvement in at least one of the following: Ingredient Profile, Responsible Sourcing, Packaging, Waste, Water, Energy and Greenhouse Gases. 2 Results are based on a sample of representative new and existing products Australian Packaging Covenant Action Plan Page 8 of 18
Focus on Packaging Colgate s goal by 2015 is to increase the amount of recycled content in our packaging by 5 percent per year, including post-consumer materials, materials from renewable resources and recyclable materials. Additionally, we are committed to responsible package design and are researching and testing bio-plastic options made from renewable resources. Approximately 35 percent of our packaging materials globally are from recycled sources, and we re working to expand the use in all Colgate regions by identifying new technologies and sources of supply. Reducing Energy Use and Greenhouse Gas Emissions We believe businesses have a vital role to play in the global issue of climate change, and we re committed to continuously improving our greenhouse gas governance and performance around this challenge. Our 2015 goal is to reduce the energy consumption and carbon emissions per unit of production associated with the manufacture 1 and distribution 2 of our products by 20 percent. We are on track for this reduction, with a 15 percent reduction in energy, and a 14 percent reduction in carbon emissions per unit of production in 2012 vs. 2005. 3 1 vs.2005 2 vs.2008 for Europe and Hill s delivery; 2010 for U.S., Hill s Replenishment; 2011 for Greater Asia; 2013 for South Pacific and Africa. 3 Subject to certification by third-party auditor. Australian Packaging Covenant Action Plan Page 9 of 18
Moving Products to Consumers In 2012, Colgate undertook an aggressive initiative to increase the reporting and analysis of CO 2 associated with the distribution of our products (logistics). We now calculate the carbon impact for over 80 percent of our global production volume. In both the U.S. and Europe, we have reduced our logistics CO 2 emissions by over 20 percent per ton of finished goods moved. We re also working to increase the amount of intermodal transportation in which goods are shipped in an intermodal container or vehicle that can move through different modes of transportation, such as by sea and rail. When compared with using trucks and aircraft, intermodal transportation reduces greenhouse gas emissions and saves cost. Reducing Waste Colgate s 2011 to 2015 goal is to reduce waste sent to landfills per unit of production from our operations by 15 percent. So far, we ve reduced waste by 10 percent in the past two years. Our sites have been working on this initiative for many years, but in 2012 Colgate formalized our approach to driving reduction. We are piloting a simplification program aimed at reducing the number and complexity associated with our waste vendors, bringing both cost reductions and improved alternatives to landfill disposal. We are also developing standardized Waste Scorecards to help increase the visibility and understanding of our waste reduction opportunities. Australian Packaging Covenant Action Plan Page 10 of 18
Supplier Responsible Sourcing Assessments Managing responsibility across the supply chain for all of our suppliers and products is a complex process. In 2012, we launched a number of new programs and tools to help increase certainty that our suppliers are operating responsibly. Colgate s Supplier Responsible Sourcing Assessment Program is one important new initiative. We use an industry-standard self-assessment questionnaire focused on labour practices, health and safety, environmental management and business practices to assess suppliers. When suppliers are assessed as high risk, we perform third party audits of their facilities. Engaging Suppliers on Climate and the Environment In addition to our efforts to decrease greenhouse gas emissions associated with our own operations, we have also participated in Carbon Disclosure Project s Supply Chain Leadership Collaboration Project since its inception in 2008, increasing the scope of suppliers each year. By working with this program, Colgate gathers data to obtain a better understanding of our overall environmental footprint. In 2012, 85 percent of our largest suppliers (based on total direct material spend) reported through the CDP Supply Chain survey. Over 40 percent of our suppliers responding through the CDP Supply Chain survey have set an energy reduction target. We also have a continuous improvement program involving suppliers around the world called Supplier Enhancement Program. With this program, we review continuous improvement opportunities that help suppliers improve their overall competitiveness. Australian Packaging Covenant Action Plan Page 11 of 18
Responsible Sourcing of Forest Commodities Many consumer products contain ingredients or packaging that can be labelled as forest commodities because they come from trees as in paper and packaging or from agricultural cultivation on land that has been deforested. Deforestation leads to biodiversity loss and accounts for approximately 15 percent of the world s greenhouse gas emissions, the equivalent of the entire transportation sector. According to CDP, the main driver of deforestation globally is land use change for agriculture. Colgate has strategies to govern the responsible sourcing of these forest commodities, and we are seeking opportunities for continual improvement. We responded to the Forest Footprint Disclosure for the first time in 2012, and will do so again as part of CDP Forests in 2013. Paper and Board Much of Colgate s packaging material is derived from wood-derived or paper-based products. Colgate strives to purchase paper packaging from well-managed forests or from recycled material when available. We understand the priority of purchasing certified wood-derived products in order to prevent illegal logging, deforestation and conversion of old-growth forests to monoculture plantations. Our procurement teams are now asking companies that sell paper products a series of sustainability questions. In 2011, we undertook an internal mapping to understand how much of our purchases come from suppliers that had been certified by reputable organizations: approximately 70 percent of our spend came from suppliers certified by groups such as the Forest Stewardship Council (FSC), the Programme for Endorsement of Forest Certification Schemes (PEFC) and the Sustainable Forestry Initiative (SFI). Australian Packaging Covenant Action Plan Page 12 of 18
We also have a goal to increase the recycled content in our packaging by 20 percent by 2015, and thus avoid the use of new paper and board. Today, approximately 35 percent of our packaging materials globally come from recycled sources (includes both paper and other recycled materials). Company APC Historical Timetable Colgate-Palmolive (Australia) has been submitting Action Plans and Performance Reports on an annual basis over the life of the National Packaging Covenant MKI & II. The Company will continue its commitment to the requirements of the Australian Packaging Covenant. It addresses the commitments undertaken by Colgate-Palmolive (Australia) only. Action Covenant Mark I made effective (1999) Indicative Action Plan (2005-2010) Colgate-Palmolive (Australia) signed Covenant First Annual Report (2006) MK I (2000) Year 1 Action Plan (2001) Revised Action Plan (2005-2010) Year 2 Action Plan (2002) 2006 Annual Report (2007) Year 1 Report (2002) 2007 Annual Report (2008) Year 3 Action Plan (2003) 2008 Annual Report (2009) Year 2 Report (2003) Final MK II Annual Report (2010) Year 4 Action Plan (2004) APC Action Plan (2011-2012) Year 3 Report (2004) 2011 Annual Report (2012) MK I Final Report (2005) 2012 Annual Report (2013) Covenant MK II effective (2005) APC Action Plan (2013-2014) Colgate-Palmolive (Australia) signed Covenant MK II (2005) Australian Packaging Covenant Action Plan Page 13 of 18
2013 2014 Action Plan Covenant performance goals and KPIs Actions Responsibility Baseline data Target 1. Design optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety. KPI 1 Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging Target: 70% of Covenant signatories with documented policies and procedures for evaluating and procuring packaging using the SPG or equivalent Target: 70% of Covenant signatories assessing 100% of new packaging and 50% of existing packaging against the guidelines [KPI 1] Broaden engagement on APC principles and goals within Colgate- Palmolive (Australia), by establishing a cross functional team to monitor progress and support packaging sustainability initiatives. Have team in place by end 2013. Team will report progress to senior management quarterly. [KPI 1] Embed Colgate s Global Product Sustainability Scorecard process, targeting 80% of new products assessed by end 2014. [KPI 1] Support ongoing application of Sustainable Packaging Guidelines assessment to all new products made in Australia. Periodically audit to ensure continued compliance. or performance goal B. Naidu N/A Team established B. Naidu 31% of new products assessed in 2012 B. Naidu N/A 100% of Australian made products assessed Timeline Or milestones (MM/YY) 12/13 >80% 12/14 12/14 Australian Packaging Covenant Action Plan Page 14 of 18
Covenant performance goals and KPIs Actions Responsibility Baseline data Target 2. Recycling the efficient collection and recycling of packaging KPI 3 Proportion of signatories with on-site recovery systems for recycling used packaging KPI 4 Proportion of signatories with a policy to buy products made from recycled packaging All Covenant signatories will have a formal, documented policy of buying recycled products or materials [KPI 3] Reduction of all Australian factory material losses to <1% by end 2014. [KPI 3] Audit current recyclable materials collection systems for effectiveness and opportunities for improvement, for all Colgate-Palmolive ( Australia) sites. [KPI 4] Increase the amount of recycled content for South Pacific packaging, in line with the corporate product sustainability goals. M. Hodge D. Marsden or performance goal Timeline Or milestones (MM/YY) 1.2% (2012FY) <1% 12/14 N. Mitrevski N/A Current system effectiveness B. Naidu 39% (end 2012) >44% >49% 12/13 12/13 12/14 Australian Packaging Covenant Action Plan Page 15 of 18
Covenant performance goals and KPIs Actions Responsibility Baseline data Target 3. Product stewardship a demonstrated commitment to product stewardship by the supply chain and other signatories KPI 6 Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging Target: 70% of Covenant signatories are implementing formal policies and procedures in working with others to improve design, procurement and recovery of packaging. KPI 7 Proportion of signatories demonstrating other product stewardship outcomes KPI 8 Reduction in the number of packaging items in the litter stream. Target: Continuous reduction in the number of packaging items in litter [KPI 6] Through the Colgate global Supplier Enhancement Program, aim to conduct key supplier partnership reviews to identify opportunities to improve packaging design and recycling. [KPI 7] Work with Terracycle Australia to identify opportunities to reduce landfill by providing consumers a mechanism to recycle used Colgate packaging. [KPI 7] Roll-out Colgate global Working Towards Zero Waste program, targeting a reduction in Colgate-Palmolive (Australia) landfill waste by 2.5% each year. [KPI 7 & KPI 8] Identify opportunities to improve sustainability of each manufacturing location, by adding Sustainability to regular site management forums. This will include reviews of site waste management, litter reduction, and consideration of participation in local community litter reduction campaigns. or performance goal S. Petrillo 1 review in 2012 1 review 2 reviews R. Wilson N/A Opportunities assessed N. Mitrevski Program initiated 2013. J. Azouli M. Lonorgan N/A 2.5% annual reduction Regular leadership team discussions Timeline Or milestones (MM/YY) 12/13 12/14 12/13 12/14 12/14 Australian Packaging Covenant Action Plan Page 16 of 18
Appendix 1 Colgate-Palmolive (Australia) Site Locations Colgate-Palmolive (Australia) manufactures and markets fast moving consumer goods in Oral Care, Personal Care, Fabric Care and Surface Care categories. In terms of the packaging chain, Colgate-Palmolive (Australia) is classed as a packaging user. The Colgate-Palmolive Company is listed on the New York Stock Exchange and has annual worldwide sales of over US$17 billion. Colgate-Palmolive (Australia) supplies products predominantly to the South Pacific region. Head Office: 345 George St, Sydney, NSW Chief executive Colgate-Palmolive s business operations in South-Pacific region and in Australia are headed by Mr Chris Pedersen, Vice-President South Pacific Region Executive Chairman & Managing Director Australia. Manufacturing Executive Colgate-Palmolive s South Pacific manufacturing operations are led by Mr Paul Rubenach Director Manufacturing (South Pacific) Australian Packaging Covenant Action Plan Page 17 of 18
Manufacturing Facilities 50 Marple Avenue, Villawood, NSW 2163 Captain Cook Drive, Labrador, Qld 4215 These facilities manufacture fast moving consumer goods for the South Pacific region markets in the following product categories: Fabric Care Home Care APC Contact The project leader and contact person for the Australian Packaging Covenant compliance activities is: Peter Woodward Network Operations Manager 50 Marple Avenue, Villawood, NSW, 2163 Ph: (02) 9794 5115 Fax: (02) 9794 5003 E-mail: peter_woodward@colpal.com ------------------------------------end of document---------------------------------- Australian Packaging Covenant Action Plan Page 18 of 18