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TRANSCRIPT
Sustainable Packaging: Where to now?
1 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
2 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Moderator / Speaker
Lisa Pierce Executive Editor
Packaging Digest
3 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Sponsors
www.bwaycorp.com
www.dsm.com/
packaging
www.tricorbraun.com
www.xpedx.com/
packaging-solutions
Speakers
4 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Gail Tavill VP, Sustainable Development ConAgra Foods President American Institute for Packaging and the Environment (AMERIPEN)
Nina Goodrich Executive Director GreenBlue Program Director Sustainable Packaging Coalition (SPC)
Lisa Pierce Executive Editor Packaging Digest
Speaker
5 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Gail Tavill VP, Sustainable Development ConAgra Foods President American Institute for Packaging and the Environment (AMERIPEN)
The Hidden Value of Packaging
Gail Tavill
November 2012
6
American Institute for Packaging and the Environment (AMERIPEN)
North American industry and trade organization that advocates and educates on packaging policies related to the environment
Launched in 2011 by ten founding member companies
Drives for “The Power of Packaging in Balance”
7
AMERIPEN will achieve its vision by:
– Providing scientific & fact-based DATA – Taking ACTION that
–Reinforces the Value of Packaging –Increases Recovery of Packaging
– LEADING collaboration with other organizations
Why AMERIPEN Was Founded
To provide a material neutral voice representing the positive contributions of packaging
To promote improved system-wide impacts of packaging and increased recovery of packaging materials
To address challenges of the municipal waste stream and potential policies related to those challenges, such as Extended Producer Responsibility
9
AMERIPEN Members
Founding Members Recent Members
AMERIPEN Priorities - 2012-2013
Increase the recovery of packaging
Assess financial platforms for packaging end-of-life
Communicate the value of packaging
The Role of Packaging
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CONTAINMENT: of the PRODUCT to avoid spills and
waste and to facilitate use
PROTECTION: of the PRODUCT from damage,
spoilage, tampering, theft…
COMMUNICATION: of PRODUCT
attributes; nutrition, safety,
instructions…
DISTRIBUTION: get the PRODUCT
from point A to point B
RECOVERY: of the
PACKAGE for reuse,
recycling, energy or soil
A World Without Packaging: Social Benefits
Packaging Enables:
Global distribution and e-commerce
Confidence in product safety & authenticity
Reduced damage, spoilage & waste en route to market
Protection from product contamination
Communication of key information,
Access to basic needs during disaster relief
Protection of environmental investment in products
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Consumers would not live the way they do
Businesses would not function the way they do
Packaging Economics Defined
14
More than 750,000 people are employed in the packaging industry in the United States*
Packaging contributes at least $200 billion to the US economy, or about 2% of our GDP**
* U.S. Census Bureau
** U.S. Department of Commerce
For the first time, we know what contributions that packaging makes
to the economy – critical for influencing regulators.
Understanding Packaging’s Environmental Impacts
15
Energy used along each step of a
dairy products lifetime
INCPEN, Table for One, 2009
39.7 Million Tons
79.4 Billion
lbs.
Grocery Stores
11%
Full Service Restaurants
20%
Quick Service Restaurants
13%
Institutional 10%
Residential 44%
Industrial 2%
FOOD WASTED Annually in the US
(Municipal only)
>250 lb. pp / year
Foodservice
Plate Waste
Over Prep
Expired/Spoiled
Consumer Goods
Plate Waste
Damage
Expired/Spoiled
Obsolete
GMA/FMI/NRA Food Waste Reduction Alliance data
Food Waste Crisis
39.7 Million Tons
79.4 Billion
lbs.
Grocery Stores
11%
Full Service Restaurants
20%
Quick Service Restaurants
13%
Institutional 10%
Residential 44%
Industrial 2%
FOOD WASTED Annually in the US
(Municipal only)
>250 lb. pp / year
Foodservice
Plate Waste
Over Prep
Expired/Spoiled
Consumer Goods
Plate Waste
Damage
Expired/Spoiled
Obsolete
Packaging can be part of the solution: Product Protection - Extended Shelf Life - Portion Control
GMA/FMI/NRA Food Waste Reduction Alliance data
Food Waste Crisis
Food Waste - Some Statistics
18 1 U.S. Census Bureau
2 U.S. Department of Agriculture (USDA) and University of Arizona Garbage Project
33 – 50
percent of all food
purchased that we
waste in America2
$2600.00
Cost to a US
household if 33% is
wasted. Cost to the
US is over $300 billion
– $1,000 per person,
or $2,600 per
household.
$1 Trillion
Amount of food &
beverages that
Americans purchase
per year1
Food Waste - Some Statistics
19 1 U.S. Census Bureau
2 U.S. Department of Agriculture (USDA) and University of Arizona Garbage Project
33 – 50
percent of all food
purchased that we
waste in America2
$2600.00
Cost to a US
household if 33% is
wasted. Cost to the
US is over $300 billion
– $1,000 per person,
or $2,600 per
household.
$1 Trillion
Amount of food &
beverages that
Americans purchase
per year1
Packaging can be part of the solution: Product Protection - Extended Shelf Life - Portion Control
Packaging Can Reduce Waste & GHG Impacts
20
If just 5% of the edible food that is wasted in the US were recovered, that quantity would feed 4 million
people every day1
Almost all wasted food ends up rotting in landfills, accounting for nearly 25% of US methane
emissions2
1 Estimating and Addressing America’s Food Losses, Economic Research Service, USDA
2 EPA.
Packaging Can Reduce Waste & GHG Impacts
21
If just 5% of the edible food that is wasted in the US were recovered, that quantity would feed 4 million
people every day1
Almost all wasted food ends up rotting in landfills, accounting for nearly 25% of US methane
emissions2
1 Estimating and Addressing America’s Food Losses, Economic Research Service, USDA
2 EPA.
Packaging can be part of the solution: Product Protection - Extended Shelf Life - Portion Control
Value of Packaging
Reinforce the intrinsic value of packaging to key
decision makers and policy influencers.
Packaging as part of the solution.
Thank You
For more information, please go to
www.ameripen.org
23
Speaker
24 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Nina Goodrich Executive Director
GreenBlue Program Director
Sustainable Packaging
Coalition (SPC)
The Sustainable Packaging Coalition is…
An industry working group dedicated to creating a robust environmental vision
for packaging …
consisting of over 200 member companies, educational institutions, and government agencies involved with the
packaging supply chain.
Applying life-cycle thinking through DESIGN
to make packaging more sustainable
SPC How2Recycle Label
The Sustainability Journey
Process
Product
Where do we go from here?
Sustainable Packaging is a conduit to product sustainability and a vehicle for creating awareness
Linking Packaging Sustainability Strategies to Corporate sustainability strategies
Leveraging Packaging to enhance sustainability thinking
Nina GoodrichGreenBlue Executive Director and SPC Program Director GreenBlue600 East Water Street, Suite C, Charlottesville, VA 22902Tel: 434.817.1424 x336 www.greenblue.org
Speaker
38 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Lisa Pierce Executive Editor Packaging Digest
39
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
2012 Packaging Digest
Sustainable Packaging Study
40
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“Bottom line, people will often
show more loyalty (repeat
purchase) to
products/companies
exhibiting responsible
practices in packaging.”
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Food Safety
Training
Primary Activity of Company
Consumer packaged goods company
33%
Packaging material manufacturer 16%
Packaging services 16%
Packaging converter 11%
Retailer 10%
Packaging Machinery Manufacturer
7%
Transport/Logistics 6%
Industrial Manufacturing/B2B 4%
Other 1%
None/Not involved in packaging 9%
Type of Industry Involved In
Food 42%
Personal Care/Cosmetics 31%
Household products 28%
Beverage 24%
Pharmaceutical/OTC 22%
Medical Devices/Supplies 24%
Electronics 14%
Large Retail 12%
Media 6%
Transport/Logistics 10%
Other 14%
© 2012 Packaging Digest Sustainable Packaging Study
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Food Safety
Training
Type of Company
Privately Owned 54%
Corporation 46%
Number of Employees
Under 20 17%
20 to 99 14%
100 to 249 10%
250 to 499 7%
500 to 999 7%
1,000 or more 45%
Company Headquarters
United States 81%
Other North America 4%
South America 1%
Europe 10%
Asia 3%
Other 1%
© 2012 Packaging Digest Sustainable Packaging Study
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Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
• Online survey
• Summer 2012
• E-mail invitation to a
random sample of readers
• 39 questions
679 qualified returns
44
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
• Attitudes
• Costs
• Champions
• Recycling
• Globalization
45
Importance of Sustainability when Making Decisions About Packaging
Impact of Sustainability on Packaging Decisions
• Sustainability continues to play an increasingly important role in packaging decisions. Only 6% of respondents
indicate sustainability is not a factor in packaging decisions.
Very Important 25%
Moderately Important
35%
Sometimes a factor 34%
Not an important factor
6% Total Important*
• 2012 = 94% • 2011 = 92% • 2010 = 91%
* Very, Moderately or Sometimes Important
© 2012 Packaging Digest Sustainable Packaging Study
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Sustainability Is Still Relevant as a Differentiator in Packaging
Relevance of Sustainability as a Differentiator in Packaging
• A strong majority of respondents (84%) indicate sustainability is still relevant as a differentiator in packaging.
© 2012 Packaging Digest Sustainable Packaging Study
Yes
84%
No
16%
Reasons Sustainability is Differentiator:
• Consumers/customers demand/feel it is important (34%)
• Social responsibility/right thing to do (26%)
• Conserves natural resources/ preserves the earth (16%)
• Enhances brand reputation/image (15%)
• Required to stay competitive (13%)
• Consumers/Customers more knowledgeable about sustainability (9%)
• Pricing differences (5%)
• Marketing of the “green movement” (3%)
Reasons Sustainability is Not A Differentiator:
• Price driven (35%)
• Too many false claims/ empty buzz word (17%)
• Other factors more important such as quality/protection (15%)
• Lack of understanding/awareness (12%)
• lack of demand/priority (12%)
• Everyone does it/like a commodity (5%)
• Sustainability trend peaked (3%)
• Lack of good recovery systems (3%)
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Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“Given a choice between otherwise
equal competitors, consumers and
customers will choose the
sustainable packaging user —
if they know which one it is.”
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
48%
63%
65%
65%
71%
78%
80%
93%
27%
23%
16%
23%
21%
18%
16%
5%
25%
15%
19%
13%
8%
4%
4%
2%
Agree Neutral Disagree
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Level of Agreement with Statements Regarding Sustainability
Being more efficient and saving costs is an important part of any sustainability effort.
Failure to improve sustainability practices is a risk to a company’s brand and reputation.
Sustainability efforts are difficult to advance during an economic downturn.
Packaging sustainability is a primary business goal for my company.
Too many companies make false or unproven “green” claims on their packaging.
Mean
4.51
4.06
4.15
3.90
3.69
3.62
3.62
3.34
The industry needs simpler tools to guide decisions on sustainability issues.
Lack of recovery of materials is a barrier to improved packaging sustainability in the U.S.
Varying regulations at local, state and federal levels inhibit improvements in sustainability.
© 2012 Packaging Digest Sustainable Packaging Study
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Use Life-Cycle Analysis to Influence Package Design and Engineering
Life-Cycle Analysis
•Close to 40% of companies use life-cycle analysis in making decisions on package design and engineering. This is
similar to 2010. Close to a quarter of respondents (22%) indicate they have low or no confidence in the data sources
used for life-cycle analysis. Large companies are more likely to use life-cycle analysis than small companies.
Yes 39%
No 43%
Don’t Know 18%
Level of Confidence in the Accuracy of Data Sources
Used for Life-Cycle Analysis
High/Moderate Confidence (net)
44%
High confidence 6%
Moderate confidence 38%
Low confidence 19%
No confidence 3%
Don’t know 34%
Use Life-Cycle Analysis
By Size
Less than 100 employees 32%
100 to 1,000 employees 35%
Over 1,000 employees 46%
© 2012 Packaging Digest Sustainable Packaging Study
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Business Factors that Will Have the Greatest Impact on Strategic Direction of Company Over Next 5 Years
Factors that will Influence Future Business Strategy
• Sustainability continues to be a top factor that influences business strategy in the packaging industry, but cost
concerns hold the top two slots.
0%
10%
20%
30%
40%
50%
Managing costs
Pricing pressures
Consumer reqmnt
Sustain- ability
Opera- tional effic- iency
Gaining market share
New tech- nology*
Regu- latory
reqmnt
Finding new
markets
Compet- ition
Material availa- ility & pricing
Global- ization
Corp- orate image
Energy efficiency
Energy avail-
ability & pricing
Investor pressure
35%
28% 26%
24% 22% 22% 22%
21% 19% 19% 19%
15%
5% 5% 3%
1%
2011 Ranking 1 2 5 4 3 6 11 9 7 10 8 12 14 13 15 16
Overall, SUSTAINABILITY ranked 4th for the past 4 years
(2009-2012)
© 2012 Packaging Digest Sustainable Packaging Study
Less Than 100 Employees
• Managing cost 30%
• Pricing pressures 26%
• Regulatory req. 25%
• Consumer/Market requirements 24%
• Material availability and pricing 24%
• New technologies 24%
• SUSTAINABILITY 23%
• Finding new markets 23%
• Operational efficiency 19%
• Competition 18%
100-999 Employees
• Managing costs 35%
• Pricing pressures 33%
• Operational efficiency 30%
• Consumer/Market requirements 26%
• SUSTAINABILITY 25%
• Finding new markets 23%
• Gaining market share 21%
• Competition 19%
• Material availability and pricing 19%
1,000 Employees or More
• Managing costs 38%
• Pricing pressures 29%
• Consumer/Market requirements 27%
• Gaining market share 26%
• SUSTAINABILITY 26%
• New technologies 23%
• Operational efficiency 22%
• Regulatory requirements 20%
• Competition 20%
• Globalization 18%
51
Business Factors that Will Have the Greatest Impact on Strategic Direction of Company Over Next 5 Years
By Size of Company
© 2012 Packaging Digest Sustainable Packaging Study
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Biggest Challenges to Making Current Packaging Process More Sustainable
• As in 2010 and 2011, respondents report raw material cost is the biggest challenge to making the packaging
process more sustainable.
0%
10%
20%
30%
40%
50%
60%
Raw material
cost
Lack of alterna-
tives
Producing compar-
able quality
Compat- ability
w/pack- aging
process
Lack of stand- ards/
reporting/ metrics
Lack of recovery
infra- structure
Corporate support/
Buy-in
Regulatory compliance
Creating share- holder value
Training Compet- ition
Finding qualified
staff
48%
35%
26%
30%
25% 22%
19% 16% 15%
11% 13%
4%
Same Top 4 challenges for past 3 years
© 2012 Packaging Digest Sustainable Packaging Study
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Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“People are aware and offended by wasteful
packaging. There is an assumed connection
[between] costs and excess packaging.”
“Consumers generally like to feel they
are
contributing to environmental
stewardship,
as long as there is no significant cost
premium.”
54
• In 2012, individual champions emerged as a stronger role player than in 2011. C-level participation dropped
significantly this past year, from 32% in 2011 to 25% in 2012.
0% 10% 20% 30% 40% 50% 60% 70%
Not Sure
None
Company-wide
Inter-departmental task force
C-level initiatives
By Department
Individual champions
1%
2%
2%
19%
25%
32%
42% 31%
Level Within Company Driving Participation in Sustainability
© 2012 Packaging Digest Sustainable Packaging Study
26%
32%
15%
1%
2%
2%
% 2011
55
Importance of Significantly Improving Recycling and Recovery of Packaging in the Next Five Years
Improving Recycling and Recovery of Packaging
•Respondents universally agree (96%) that it is important to significantly improve packaging recycling and recovery
over the next five years. More than 60% consider it a very important issue.
Very Important 63%
Somewhat Important
33%
Not Important
3%
Don’t know 1%
© 2012 Packaging Digest Sustainable Packaging Study
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Criteria Company Uses to Evaluate Sustainable Packaging
•Recycled content and energy consumption are the most frequently used criteria to evaluate sustainable packaging.
0%
10%
20%
30%
40%
50%
60%
Recycled content
Energy consump-
tion
Toxic or harmful
chemicals
Life-cycle analysis
Carbon footprints
Material resource
consump- tion/
reduction
Recycled based on current
recycling rates
Design for recycling
or compost -ing
Water consump-
tion
Non- recyclable materials content
Social implica-
tions
Green- house gas emissions
49%
41%
34% 32% 31% 30% 29% 29%
24% 22%
20%
16%
© 2012 Packaging Digest Sustainable Packaging Study
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
16%
16%
21%
23%
25%
40%
26%
30%
37%
37%
40%
36%
31%
32%
29%
26%
25%
19%
27%
22%
13%
14%
10%
5%
High priority Moderate priority Slight priority Not a priority
95%
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Working to develop collection and recovery infrastructure
Reducing the amount of packaging or the materials required.
Using recycled material in packaging.
Social accountability
Sourcing of renewable materials in your packaging
Company’s Priority Level for Sustainability Practices
•Close to 60% of respondents indicate reducing their company’s dependence on fossil fuels is a low or non-existent
priority. But reducing packaging and using recycled content continue to be high priorities.
Using renewable energy to reduce dependence on fossil fuels
© 2012 Packaging Digest Sustainable Packaging Study
95%
90%
86%
87%
78%
73%
Priority*
58
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“We have to ensure our products meet
European standards, even though they are sold
in the U.S. We believe future U.S. regulations will
be based on European standards.”
59
Several Countries Outside the U.S. Have Established Tighter Regulations and More Specific Definitions for Sustainability.
Effect on Position in Global Markets.
Affect of Tighter Standards
•Respondents are somewhat evenly split on the effect of tighter regulations by countries outside the U.S. on their
company’s position in the global marketplace. (47% no impact, 41% impact)
Yes, positive 21%
Yes, negative 20%
No impact 47%
Don’t know 12%
Positive: • Increased company’s competitiveness • Creates brand leadership abroad • Company conforms to stricter requirements – broader reach •Synchronized practices for all areas of globe more efficient/saves money • Increases company’s knowledge
Negative: • Costs more • Requires more investment • Increases prices – less competitive on price • Complicates trade compliance • Difficult to obtain materials/develop processes • Difficult to obtain information on individual markets • Avoid certain markets
© 2012 Packaging Digest Sustainable Packaging Study
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Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“Cost is high and we can’t compete against
product made by companies that are under no
regulation to such responsibilities. We are
simply priced out. Only way is to move our
production into those countries to compete
globally.”
61
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
“In terms of regulations, costs and sourcing
methods, packaging competitors need to
consider sustainability as an imperative/priority
in a global harmonization environment.”
62
Food Safety
Training
© 2012 Packaging Digest Sustainable Packaging Study
Full study results available for $149 www.packagingdigest.com/
2012SusPack$urvey
Submit topics / questions for next year’s survey to [email protected]
Questions?
63 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Nina Goodrich Executive Director
GreenBlue Program Director
Sustainable Packaging
Coalition (SPC)
Lisa Pierce Executive Editor Packaging Digest
64 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast
Sponsors
www.bwaycorp.com
www.dsm.com
www.tricorbraun.com
www.xpedx.com
Thank you!
65 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast