Signatory Name: Aesop The question numbers in this report refer to the numbers in the report template. t all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation. 5. 6. 7. Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Please indicate your organisation's reporting period: Financial Year: 1 July 2014 30 June 2015 Calendar Year: 1 January 2015 31 December 2015
Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? Provide details of policies and procedures A new Packaging Checklist directly based on the SPGs has been created, and this template complements Aesop's existing Packaging Questionnaire issued to suppliers (for capturing compliance-specific packaging information). The new Packaging Checklist formalises the evaluation of all new or revised packaging components internally, against the SPGs, as part of the New Product Development process alongside our existing product approvals. 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 1 Have any new types of packaging been introduced during the reporting period? 1 50 % If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 100 % 13. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 Develop an internal process for packaging design and assessment, in line with the Sustainable Packaging Guidelines, to be incorporated into the New Product Development process and applied to all new and revised packaging items. Achieved on schedule. Aesop's new Packaging Checklist template based upon the SPGs, for new/revised packaging, was created in October 2014 (target was end 2014).
3. Review 100% of all new packaging items, and at least 50% of existing packaging formats (representing 90% of product sales by volume), as well as relevant point of sale items, against the Sustainable Packaging Guidelines. Follow the SPG design principles of fit-forpurpose, resource-efficient, made from low-impact materials, and reusable or recyclable at the end of its useful life. - Finalise packaging groups and prepare timetable for review. - Develop template to document the review of each packaging group. - Meet with relevant suppliers to discuss review outcomes and opportunities for improvement. - Develop centralised filing system / database to record all meetings, reviews, email correspondence and decisions relevant to the APC. Develop Purchasing Policy, which incorporates principles from the Sustainability Packaging Guidelines including buying recycled and locally where feasible. - Ensure the purchasing policy covers promotional and point of sale material, as well as office supplies and IT equipment. To be rolled out in addendum to primary Supply Chain policy. This target is on schedule. Within the review period: A timetable to review each packaging group on a quarterly basis was successfully created; A new template was devised with a built-in scoring capability to assess each packaging group with direct reference to the SPGs; A central electronic folder was created to hold all APC-related documents; Reviews remain on schedule, with opportunities for improvement already underway with multiple suppliers. Completed initiatives: Light-weighted 50mL PET bottles (confirmed in December 2015 for entry to Supply Chain 1Q16). 500mL lotion pumps with improved usability (confirmed in December 2015 for entry to Supply Chain 1Q16). 3. Transfer of Tea Tree Leaf Facial Exfoliant to recyclable bottle/cap (from rubber/aluminium format). Entered distribution network in August 2015. 4. Optimised sizing of sachet shippers to eliminate excess space. Approved by December 2015 across all suppliers. 5. Less printing and less ink used across entire range of shippers. Final shippers approved December 2015. 6. Eliminated sachet over-label for one third of product range in Japan/Korea - effective from January 2015. 7. Global sachet updated to bilingual, preventing the need for over-labels in French-speaking markets - effective from January 2015. 8. Recycle symbols now included on new/revised packaging components whenever possible. Original target dates were as follows: Policy created by end February 2015. Rolled out globally by June 2015. The policy has been drafted and is due for completion by end June 2016. 14. Describe any constraints or opportunities that affected performance under this KPI The purchasing policy development was placed on hold due to resource constraints.
Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 15. Do you have on-site recovery systems for recycling used packaging? at all facilities/ sites at some, but not all facilities/ sites 16. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 Undertake a review of waste management and recycling systems/practices at head office and Australian retail stores, to identify opportunities for improvement, and implement where possible. Example, packaging from suppliers, office waste paper, food/organic waste, printer ink cartridges, e- waste. This review will include an investigation of the recycling system of our Australian 3PL provider to ensure they are adequate. Investigate feasibility of collecting used Aesop packaging in Australian Aesop stores for re-use or recycling. Review completed on schedule (with the exception of the 3PL investigation). Outcomes: - Head Office in Australia has now introduced: 'Bokashi' food waste bins to collect organic waste to be composted for use on Aesop's '3000acres' community garden plot. It is estimated that these will divert more than 400kg of organic waste from landfill annually. Improved bin labelling to increase recycling and reduce waste to landfill. 3. Battery collection bins installed to ensure appropriate disposal. 4. Personal re-usable drink bottles for every staff member, to replace single-use water bottles. - The opportunity to implement co-mingled recycling facilities in four Signature Stores has also been identified. Target achieved. Outcome: This option is not considered necessary for glass and plastic containers, due to the quality of existing kerbside recycling infrastructure in Australia. However, Aesop continues to explore options for components that are more difficult to recycle, such as caps and other closures. 17. Describe any constraints or opportunities that affected performance under this KPI Target 1 - The 3PL investigation has been placed on hold to allow for a broader warehousing review.
KPI 4: Signatories implement formal policy of buying products made from recycled packaging. 18. Does your company have a formal policy of buying products made from recycled packaging? Please explain why not Although built into Aesop procurement processes already, this target will be formalised within the new Purchasing Policy (now targeting completion by end June 2016). 19. Is this policy actively used? 20. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 3. Include buy recycled principles in Purchasing Policy (as Per KPI 1/Action 2). Where not feasible to buy recycled, packaging should be sourced from renewable and sustainable sources where possible (such as plantbased plastics, or FSC/PEFC certified). Incorporate recycled PET content into new and existing PET bottles as appropriate. Develop Purchasing Policy, which incorporates principles from the Sustainability Packaging Guidelines including buying recycled and locally where feasible. This project is underway with completion expected by end June 2016. This project was initiated with Aesop's primary PET bottle supplier within the review period, with first samples to be assessed in 2016. This project is underway with completion expected by end June 2016. 2 Describe any constraints or opportunities that affected performance under this KPI The purchasing policy development was placed on hold due to resource constraints.
Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 2 Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Provide details of policies and procedures (including names of policies/ procedures) In meeting KPI 1, Aesop's major packaging groups by material are assessed with a newly designed checklist, and these formal assessments lead to discussions with suppliers to address opportunities. For example, a review of sample sachets led to formal discussions with primary suppliers to make improvements. The new Packaging Component Checklists are also designed to record any relevant discussions with suppliers to select the most sustainable option available whenever possible, for any current project (see KPI 1). 23. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 3. 4. Undertake a formal review of existing packaging against the Sustainable Packaging Guidelines, incorporating the SPG principle of design for resource recovery (as per KPI 1/Action 2). Meet with relevant packaging suppliers to discuss the application of the SPG, and options for improvement. Incorporate relevant information on the sustainability of Aesop packaging into consultant training and the Aesop website. Create packaging FAQ for website. Update consultant training module. Source suppliers who are signatories to the APC where possible (as part of Purchasing Policy, KPI 1/Action 3). Implement a Supplier Code of Conduct with all key direct product suppliers (including significant packaging suppliers). This Code contains criteria relating to labour practices, human rights, environmental protection and innovation. The Existing Packaging Reviews, grouped according to material type, remain on schedule. A section on 'Aesop's position on sustainable packaging' is included on the Aesop website. In May 2015 Aesop subscribed to PREP (Planet Ark's 'Packaging Recyclability Evaluation Portal') and has completed a number of initial assessments to elicit a better understanding of the recyclability of specific packaging components and combinations. This will be used to further address this target. This target is underway with completion expected by end June 2016. Since Aesop developed a tailored Supplier Code of Conduct in 2013, all significant existing Aesop suppliers have been asked to become signatories, with 88% (by FY15 spend) now having done so. All new suppliers must sign as a condition of doing business with Aesop. 24. Describe any constraints or opportunities that affected performance under this KPI The purchasing policy development was placed on hold due to resource constraints.
KPI 7: % signatories showing other Product Stewardship outcomes. 25. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 3. Commit to sourcing locally where possible to reduce carbon footprint (as part of Purchasing Policy, KPI 1/Action 3). Explore feasibility of offering refill packs for Aesop products. Continue Head Office staff volunteering program. Built into Aesop procurement processes already, this target will be formalised within the new Purchasing Policy (now targeting completion by end June 2016). New tooling projects have been initiated within this review period that will result in the local manufacturing of key packaging components previously produced overseas. These components include custom designed flip-top caps for our PET bottles; and updated PET bottles in four sizes. All are at various stages of development, with entry to supply chain expected by 4Q2016. PIQET life cycle analysis software was employed during the review period to compare different refill pack scenarios and their impacts. Further work will follow based on the measured merits of the above options. In April 2015 Aesop partnered with an external provider to deliver an Aesop-branded volunteer portal that connects our employees with volunteering opportunities in Australian communities, allowing employees to find local opportunities that match their location, availability and interest. To provide greater flexibility, volunteer leave is now offered as time in lieu, which allows employees to volunteer outside of work hours at a time most convenient. The portal launched in July 2015. 26. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? If yes, please give examples of other product stewardship outcomes - Aesop community garden (environmental/sustainability commitments) - Good Cycles, a social enterprise supporting employment of long-term unemployed, visited Melbourne Head Office to service staff bicycles 27. Describe any constraints or opportunities that affected performance under this KPI The purchasing policy development was placed on hold due to resource constraints.
KPI 8: Reductions in packaging items in the litter stream. 28. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Explore option for company to participate in a local community focused litter reduction activity such as Clean Up Australia Day. Consider incorporating as part of our ongoing staff volunteer program. Conduct a litter audit at local 3PL facility, as part of the waste and recycling review (KPI 3/Action 1). A group volunteer day for a team of nineteen employees has been planned with the Port Philip Eco Centre. Activities include a litter cleanup and audit along the native vegetation area of St Kilda West Beach. This is expected to pave the way for similar activities to be undertaken annually. Due to constraints on our resources, this target was not completed within the review period. 29. Describe any constraints or opportunities that affected performance under this KPI Due to constraints on our resources, Target 2 was not completed within the review period. Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 30. Key achievements or good news stories Key achievements include: Light-weighted 50mL PET bottles (confirmed in December 2015 for entry to Supply Chain 1Q16). 500mL lotion pumps with improved usability (confirmed in December 2015 for entry to Supply Chain 1Q16). 3. Transfer of Tea Tree Leaf Facial Exfoliant to recyclable bottle/cap (from rubber/aluminium format). Entered distribution network in August 2015. 4. Optimised sizing of sachet shippers to eliminate excess space. Approved by December 2015 across all suppliers. 5. Less printing and less ink used across entire range of shippers. Final shippers approved December 2015. 6. Eliminated sachet over-label for one third of product range in Japan/Korea - effective from January 2015. 7. Global sachet updated to bilingual, preventing the need for over-labels in French-speaking markets - effective from January 2015. 8. Recycle symbols now included on new/revised packaging components whenever possible. 3 Areas of difficulties in making progress against your plan, Covenant goals or KPIs When the Aesop APC Action Plan was first devised the opportunities that would later eventuate from the packaging reviews were unknown. This meant that during the review period priorities changed, and resources were redirected to actively pursue the improvements that became apparent. Difficulties in meeting some of the original time-frames largely related to constraints on resources and design/engineering complexities.