example sustainability assessment pack2 sustain
DESCRIPTION
An example of an assessment performed for a client that sought to understand the environmental, social and economic context for a set of packaging systems. All client-specific information has been removed due to confidentiality.TRANSCRIPT
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Sustainability Assessment for - (Client Omitted)
Over wrap Evaluation: Environmental, Economic and Social Performance January 2014
Purpose
Purpose
• The sustainability assessment summarized in this report seeks to understand the performance of three over wrap options being pursued by (client omitted):
• Polypropylene, 2.2 g • NatureFlex, 4.4 g
• Paper, 8.3 g
• All three sustainability metrics were evaluated within this assessment. The environmental metrics capture the entire packaging system, whereas the social and economic metrics focus on the over wrap variables.
• The Packaging Impact Quick Evaluation Tool (PIQET, link) was used for the environmental assessments, the Social Hotspots Database (link) provided the resource for social assessments, and the Industry Intelligence Inc. i2dashboard (link) facilitated the economic projections in this report.
Environmental
Environmental
PIQET was developed and is distributed by the Sustainable Packaging Alliance • Pack2Sustain is a Channel Partner with SPA, supporting the
expansion of PIQET in North America • PIQET is customized specifically for packaging applications, and
can assess impacts associated with design features across relevant material supply chains • LCI datasets from multiple global regions are available, and are
regularly updated
Environmental
Environmental
Advantage: Polypropylene, across all LCA environmental indicators except Minerals & Fuel*
*A measure of the additional resources required to extract non-renewables as these resources become increasingly scarce
Environmental
Minerals & Fuels Comparison
Individual Packs
Over Wrap
Environmental
Marketing Perspective - Disposal Options
Over Wrap Material EU Disposal Options
Polypropylene Energy Recovery (3%)
Paper Recycling (73%) Incineration with Energy Recovery (9%)
NatureFlex Energy Recovery (2%) Compost (0.04%)
Economic
Economic
The Industry Intelligence, Inc. i2dashboard service makes possible rapid, real-time and targeted research through:
• Customizable enhanced daily reports organized by user-defined industry, sector and topic
• Expanded & descriptive content headlines that optimize daily report review
• “Monitor” feature that explores the intersection of user search criteria with the bigger picture: o Economy o Sustainability o Mergers & Acquisitions o Capacity & Output o More…
Economic: Polypropylene
Source: Platts Global Polypropylene Index (link), via Industry Intelligence
After a 13% price increase year over year, polypropylene pricing may have peaked
Economic: Polypropylene
Source: Platts Global Petrochemical Index (link), via Industry Intelligence
Pricing Drivers
• September pricing: €1,264 / metric ton, up 2% since August 2012
• European contract prices for polypropylene rose by €110 / mt in Q3 2013, due to: • Strong demand • Planned & unscheduled plant outages • Persistently strong naphta pricing
• Pricing movement was in line with equity markets over the same period (August ‘12 to September ‘13) • Dow Jones Industrial Average: +2% • London Stock Exchange Index: +0.3% • Nikkei: +8%
Economic: Polypropylene
*Source: Innovia Films Ltd., via Industry Intelligence
Innovia BOPP Capacity Investment
• ₤20 million capital investment is underway to install 10% incremental BOPP film capacity + ‘state of the art’ gas turbine at Innovia’s UK site*
• Work commenced in August & is scheduled to be complete in 2015*
• The gas turbine will effectively reduce the carbon footprint associated with products produced at the Wigton, UK facility by 20%, including NatureFlexTM films*
• Addition of capacity is generally in line with industry predictions of peaked PP pricing
Economic: Polypropylene
Source: Industry Intelligence
Additional Capacity Expansions
Economic: Paper / NatureFlexTM
Source: Deutsche Bank & Industry Intelligence
Risk to containerboard prices remains on the downside ($20 - $30 / ton) over the next several months
Economic: Paper / NatureFlexTM
Pricing Drivers
• Weak October box volumes • Increasing capacity • Decline in OCC & input costs • Spot pricing discounts
The NatureFlexTM pricing assessment is grouped with paper due to common sourcing, but may move independent
of these drivers
Source: Deutsche Bank & Industry Intelligence
Economic: Paper
Source: Industry Intelligence
Industry Capacity Expansions
Social
Social Social Hotspots Database Mission
“Foster greater collaboration in improving social conditions worldwide by providing the data and tools necessary for improved visibility of social hotspots in product supply chains”
Social Hotspots Database Tool Outputs • Single Issue Risk Maps: Visualize global sector risks on a map for a specified social
issue • Multiple Issue Bar Charts: Analyze risks for multiple issues in a supply chain for
selected country-specific-sectors (CSS) • Multiple Issue Data Table: View a table of multiple issues for selected CSS and the
indicator data used to characterize risk • Risk Treemaps: Visualize all risks for a CSS compared to other CSS in a treemap • Social Hotspot Index: Compare the Social Hotspot Indexes for country-specific
sectors and identify the major contributing themes within a category
Social
Social Hotspot Index Categories Community Infrastructure • Access to hospital beds • Access to improved drinking water • Access to improved sanitation • Children out of school • Smallholder v. commercial farms
Governance • Corruption • Legal system
Social
Social Hotspot Index Categories, cont’d Health & Safety • Occupational injuries & deaths • Occupational toxics & hazards Human Rights • Gender equality • High conflict zones • Human health – communicable diseases • Human health – non communicable diseases & other health risks • Indigenous rights
Social
Social Hotspot Index Categories, cont’d Labor Rights & Decent Work • Child labor • Forced labor • Freedom of association, collective bargaining & right to strike • Labor laws • Migrant workers • Poverty • Unemployment • Wage assessment • Working time
Social
NatureFlex
Polypropylene
Paper
Paper
Polypropylene
NatureFlex
Smaller bar = less risk
Conclusions
Conclusions Environmental • Advantage: Polypropylene
Economic • Future pricing decreases indicated for all
three materials o Paper packaging shows stronger and more
substantiated downward trend o NatureFlex™ pricing trends are inferred
based on paper packaging data
Social • Advantage: Paper
