o-i new zeala n d sus ta in ab ility report · sus ta in ab ility report 2013. ... organisation to...

O-I New ZealaNdSuStaINabIlItyRepORt2013

O-I GlObal

O-I is headquartered in Perrysburg, Ohio, USA, and reported revenues of $US 7.0 billion in 2012. The company employs approximately 22,500 people at 79 plants in 21 countries. O-I delivers safe, sustainable, pure, iconic, brand-building glass packaging to a growing global marketplace.

O-I’s global campaign Glass Is Life™, launched in June 2011, promotes the widespread benefits of glass packaging in key markets around the globe. Sustainability is a major focus of the campaign and O-I engaged prominent environmentalist Celine Cousteau to educate brand-owners and consumers on the environmental benefits of glass packaging.

With over 240,000 Facebook fans and a presence on other social media channels including Twitter, Pinterest and Tumblr, O-I is well on its way to ensuring the world understands glass is a packaging choice people can feel good about. For more information visit www.glassislife.com

O-I New Zealand 4

O-I New Zealand’s Product Stewardship History 6

Product Stewardship 9

Recycling and Reprocessing 9

Local Government Collaboration 10

Container Design 13

O-I New Zealand Glass Environmental Fund 14

O-I New Zealand Waste M8 Initiative 14

Energy 17

Air Quality 17

Industry Collaboration 18

CONteNtS

2013 O-I New Zealand Sustainability Report

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O-I New Zealand (O-I NZ) is New Zealand’s only glass container manufacturer and supplies a range of leading food and beverage brands. O-I NZ is also the country’s largest user of recycled glass and employs around 250 people at its Auckland plant which includes three furnaces and six production lines.

In 2012, O-I NZ achieved an average recycled container content of 60% through its use of recycled glass, also referred to as cullet. This included 45% post-consumer cullet and 15% internal cullet. O-I NZ works closely with local governments and the waste recovery sector to increase the availability of usable recycled glass.

To help drive positive sustainability outcomes at O-I’s plants around the world, the company has established a series of aggressive 10-year global sustainability goals. These include lowering energy consumption by 50%, reducing carbon dioxide-equivalent emissions by 65% and achieving a post-consumer recycled content of 60% in containers globally, by 2017.

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O-I New ZealaNd

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O-I New ZealaNd’S pROduCt

StewaRdShIp hIStORy

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O-I NZ has a long history in voluntary product stewardship and from 1973 to 2012, O-I NZ has diverted more than 1.6 million tonnes of container glass from landfill and prevented more than 475,000 tonnes of greenhouse gas emissions.

In 1973, O-I NZ established the country’s first glass recycling program predating legislation by more than 30 years. Entirely designed and funded by O-I NZ, the program appointed a network of glass recovery agents and deployed bottle-banks in public places, specifically for the recovery of container glass.

O-I NZ has also been a signatory to the voluntary and industry led packaging Product Stewardship Accord since its inception in 1996. The Product Stewardship Accord is an agreement

between the New Zealand government and the packaging industry with the aim of reducing packaging waste. The Packaging Accord was replaced by the Waste Minimisation Act in late 2008.

Along with other companies in the glass manufacturing supply-chain, O-I NZ helped established the Glass Packaging Forum (GPF) in 2004. The GPF heavily invests in research and development that is focused on glass recycling solutions and the introduction of glass recovery infrastructure.

The GPF developed a formal product stewardship scheme which was submitted to the Ministry for the Environment in May 2010. As a result, the GPF became the second organisation to achieve accreditation under the Waste Minimisation Act.

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Glass is a unique packaging material as it is 100% infinitely recyclable. O-I NZ makes significant efforts to maximise and continuously increase the amount of recycled glass used in its production process.

Maximising the amount of recycled content in the glass making process creates a number of environmental benefits:

• It reduces the amount of raw materials that must be extracted, transported and used in production;

• It reduces the amount of waste sent to landfill; and

• Every 10% of recycled glass used in production reduces carbon emissions by about 5% and energy use by around 3%.

In 2012, O-I NZ introduced new sources of recycled glass to its operations, including the use of window glass, fine grind cullet* and materials recovery facilities (MRF) flint fine grind. By developing technologies such as fine grind, or the use of window glass in container manufacture, O-I NZ is able to use a broader range and greater volume of cullet.

ReCyCLING ANd RePROCeSSING

MRF FlINt FINe GRINd*

Flint refers to clear or uncoloured glass. As it is visually similar to other glass-like materials such as pyroceramic and decorative glass, it is often difficult to recycle. Unfortunately, the current sorting process used in a materials recovery facility (MRF) cannot distinguish flint glass from similar looking material. This leads to a large amount of contaminated glass being discarded.

In March 2013, O-I NZ introduced a flint fine grinding process enabling the plant to use poorly sorted MRF flint fine grind. Managed offsite by a third-party supplier, the process involves washing, drying and crushing the material to a size that allows contaminants to be absorbed when the glass is melted.

O-I NZ projects it will use an additional 4,000 tonnes of recycled glass due to the introduction of this process.

uNdeR 8mm FINe GRINd*

The mechanical recycling process creates small particles (below 8mm) that cannot be sorted using MRF optical sorting devices. This is problematic as a MRF receives and produces a certain proportion of crushed and broken glass.

In tandem with the use of fine grind flint, O-I NZ developed a way to use this fine-ground material in its recycling process. This involves washing, drying and screening the material as this fine matter contains a proportionately higher load of contaminants than other cullet.

Introduced in July 2013, this initiative will enable O-I NZ to use an additional 8,000 tonnes of recycled glass.

Flat OR wINdOw GlaSS

Window glass is manufactured using a different process to container glass and it has different physical and melting properties to container glass. The introduction of window glass to O-I NZ’s recycling program in 2012 required research and trialling to develop a way of processing window glass along with recycled container glass.

O-I NZ’s successful implementation of this process is projected to result in an additional 7,500 tonnes of recycled glass use per annum.

*Fine grind cullet is ground recycled glass that is processed to remove metal and organic contaminants so that it is suitable for use in glass container manufacturing.

pROduCt StewaRdShIp

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O-I NZ continues to look for new opportunities to partner with other organisations to increase its overall recycled glass volumes. The company’s collaboration with external stakeholders including local government and waste recovery groups is key to increasing its cullet use.

This collaboration has resulted in the successful establishment of glass-only collections or split-stream systems in Dunedin, Wellington, Palmerston North and Manawatu.

To maximise cullet use O-I NZ needs to receive colour-sorted and contaminant-free container glass. When glass is commingled and compacted on collection it breaks, resulting in different colours of glass being mixed together. Glass is also mixed with other recyclable materials, such as paper. O-I NZ estimates that its unable to use around 50% of glass collected through existing commingling systems.

A split-stream system ensures glass is collected in separate bins to other recyclables, and specialised collection vehicles are used to sort the glass which currently occurs in

Dunedin, Wellington, Palmerston North and Manawatu. This allows glass to be re-used at its highest value and result in a greater diversion of materials that would otherwise go to managed fill or landfills or require further processing to be utilised by low-value secondary markets.

O-I NZ’s involvement in the introduction of split-stream recycling systems has resulted in significant positive recycling outcomes including:

• March 2011 – Dunedin introduced a split-stream system for recycling. From March 2011 to December 2012, Dunedin City recycled 5,389 tonnes of cullet. Prior to this, no glass was being recovered from Dunedin for use by O-I NZ.

• May 2011 – Wellington introduced a split-stream system for recycling, resulting in a 34% increase in cullet recovery (2012 compared with 2010).

• December 2012 – Palmerston North and Manawatu introduced split-stream systems. It is estimated that these systems will result in a 70% increase in glass recovery back to O-I NZ’s Auckland furnaces.

LOCAL GOveRNmeNT COLLABORATION

pROduCt StewaRdShIp

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O-I Asia Pacific’s container design, innovation, new product development and total packaging solutions teams understand the impact of design on product stewardship and have been using it to enhance environmental outcomes for well over a decade.

The regional design team, responsible for developing O-I NZ’s industry and proprietary bottle designs, seeks to balance environmental objectives with market appeal, filling line handling and distribution efficiencies.

Lightweighting glass, in particular, has been aggressively pursued by O-I NZ in recent years across many segments including wine, beer, and food.

In 2012, O-I New Zealand reviewed its product portfolio for design, size and lightweighting improvements. Six products focusing on lightweighting were successfully completed. Almost 29 million containers were subsequently lightweighted and reductions totalling more than 900 tonnes of glass packaging were achieved.

In addition, the weight of selected wine bottles has been reduced significantly over the past ten years which has been driven by several factors, most notably the local wine industry’s sustainability objectives and market requirements.

In 2004, O-I NZ reduced the weight of its standard Burgundy and Bordeaux wine bottles from 565g to 500g. In 2010, the weight of these bottles was further reduced to 450g, and this year O-I NZ is in the process of producing industry standard 417g bottles.

These lightweighting projects have the potential to lead to significant reductions in packaging; the transition from 565g to 417g at current volumes, would result in a reduction of 22,600 tonnes of glass packaging per annum.

O-I NZ also recently produced a 407g Burgundy wine bottle, developed to test the boundaries of existing technology while retaining the classic Burgundy design.

CONTAINeR deSIGN

pROduCt StewaRdShIp

CaSe Study

In February 2013, O-I NZ launched a 750mL lightweight burgundy wine bottle which was almost 10% lighter than its predecessor but retained its premium look and feel.

Manufactured at O-I NZ’s Auckland plant, the bottle’s weight was reduced from 450g to 407g and was adopted first by local wine brands Saint Clair Family Estate, and New Zealand Vineyard Estates – producers of Mud House and Waipara Hills wines.

Improvements to the bottle’s design delivered environmental benefits including a 9% reduction in CO2 per container and a 9% reduction in water per container.

Saint Clair Family Estate chose to package its Vicar’s Choice 2012 Sauvignon Blanc in the 407g bottle to support the company’s export business.

“O-I’s new burgundy bottle provided us with a lighter alternative particularly suited to export markets such as Canada’s which only accepts wine in bottles weighing 420 grams or less,” said Liz Chapman, Production Manager, Saint Clair Family Estate.

New Zealand Vineyard Estates’ use of the lightweight bottle for its Mud House and Waipara Hills ranges complemented the company’s broader efforts towards improved sustainability across its business.

“We’re always open to exploring new innovations in the wine industry and our use of this bottle has helped us to improve our sustainable position in a global marketplace,” said MJ Loza, CEO, New Zealand Vineyard Estates.

“It has also minimised our environmental impact, by reducing glass use and improving transport efficiencies.

“O-I’s lightweight bottle also reduces the weight of a case of wine, providing health and safety benefits to our domestic and export partners, something I’m sure they’ll value highly.”

O-I NZ’S LIGHTWeIGHT BURGUNdy WINe BOTTLe

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CaSe Study

Wellesley College received funding from the O-I NZ Glass Environmental Fund in 2003, contributing to its Days Bay sand dune restoration project. The dunes, situated in front of the college were much abused – covered in weeds, litter and impacted by cars.

The grant, combined with funds from Greater Wellington, enabled the school to dig out weeds, build-up dunes and revegetate and landscape the area. A range of design features were implemented to minimise sand movement and salt-laden wind and enable native species to be planted.

The sand dune project also provided the school, as well as communities and visitors, with a valuable educational resource that is still accessed and maintained today.

WeLLeSLey COLLeGe SANd dUNe ReSTORATION

The O-I New Zealand Glass environmental Fund was established by O-I NZ in 1983 and has since provided almost $NZ 620,000 in study grants to over 400 schools across the country.

The fund encourages schools to implement sustainability projects that help to develop students’ skills in identifying, investigating and finding solutions to environmental issues. Each year the fund allocates around $NZ 25,000 in school grants which is designed to support these initiatives.

Past entries have included studies on marine environments; the impact of farming, industry and recreation; alternative energies; pests and noxious weeds; and the creation of native bush corridors for birds and animals.

O-I NeW ZeALANd GLASS eNvIRONmeNTAL FUNd

pROduCt StewaRdShIp

In 2011, O-I NZ introduced WASTe m8, a waste minimisation program, at its Auckland plant. WASTe m8 is an onsite recycling system for glass, cardboard, paper and organic waste as well as wood, metals and used rags and mops.

There are three WASTE M8 recovery depots and three glass recycling points at O-I NZ’s Auckland plant which are used to separate the different waste materials.

The system encourages employees to bring in glass from home for recycling and separates glass into colour groups, making it appropriate for use in the plant’s furnaces. The system also includes the recycling of plastic and general recyclables.

Since establishing WASTE M8, the site has reduced its waste to landfill by 40%, and has increased the recovery of mixed recyclable material, such as cans and plastics, by 85%.

WASTE M8 mirrors an ideal municipal or commercial waste recovery system as it separates the different waste types and maximises the amount of onsite waste that can be recovered and recycled.

O-I NeW ZeALANd WASTe m8 INITIATIve

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CaSe Study

The compressed air system at O-I NZ’s Auckland plant uses energy to drive machinery and tools and is key to the forming process when a bottle’s shape is created.

O-I NZ’s engineering team reviewed the plant’s high pressure air system efficiency and identified significant energy saving opportunities.

A compressor load sharing system was installed ensuring larger, more efficient compressors were used where possible, and smaller, less efficient compressors were shut-down when they were not required during the forming process. This energy reduction initiative delivered around a 30% reduction in compressor energy use.

eNeRGy

O-I NZ has decreased its per-tonne energy consumption by approximately 8% during the past four years. This is largely due to a range of energy efficiency initiatives developed and implemented by O-I NZ’s energy team that have also been supported by manufacturing.

O-I NZ’s efforts to increase its use of cullet have also led to reductions in energy use. In 2012, O-I NZ achieved an average recycled container content of 60%.

The energy saving associated with using this recycled material, due to its superior melting properties, was approximately 406,000 GJ. This is the same amount of energy required to boil around 450 Olympic swimming pools, or to power 1,280 New Zealand homes for a year.

Other key areas of focus have included improving furnace efficiency, running machine cooling fans more efficiently

and trialling lighting improvements. O-I’s regional Corporate Energy Group, established in late 2007, has been instrumental in embedding energy efficiencies into the operating practices of the business.

A thorough and comprehensive energy assessment process has also been developed. Energy assessments have been conducted at O-I NZ’s Auckland plant and data generated is useful to benchmark performance against regional and global sites and identify improvement opportunities.

eNeRGy

pROduCt StewaRdShIp

At the end of 2012, O-I NZ completed the installation of an electro-static precipitator (eSP), a state-of-the-art emissions control device that prevents Pm10 particulate emissions, small particles commonly produced by combustion engines such as motor vehicles.

O-I NZ’s ESP removes PM10 particles by charging them with static electricity so they can be removed from the air-stream and safely disposed. New Zealand’s national air quality standard is 50 micrograms per cubic metre and with the ESP in place, the highest concentration of PM10 particles produced by O-I NZ at neighbouring sites is below four micrograms per cubic metre.

AIR QUALITy

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pROduCt StewaRdShIp

In addition to its efforts in design, recycling and resource efficiency, O-I NZ also participates in several industry associations to further its product stewardship.

Glass Packaging Forum (GPF) member (accredited voluntary product stewardship scheme, 2008 Waste minimisation Act)

O-I NZ is a member and major contributor to the GPF. Through the GPF, O-I NZ supports Love NZ recycling initiatives, directly investing in a number of waste recovery programs throughout New Zealand.

Packaging Council of New Zealand (PCNZ) member

O-I NZ is a financial member of the Packaging Council of New Zealand, and O-I NZ's General Manager is PCNZ’s Vice President. The Packaging Council of New Zealand’s role is to assist its members in minimising the environmental impact of packaging by championing cost effective, sustainable solutions, and product stewardship.

Waste management Institute of New Zealand (WastemINZ) member

O-I NZ became a member of WasteMINZ in 2000. Established in 1989, WasteMINZ is the largest representative body of the waste and resource recovery sector in New Zealand and its 1,000 members include small business operators through to councils and large companies.

INdUSTRy COLLABORATION

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O-I NeW ZeALANd IS PROACTIve IN WORkING TOWARdS eNvIRONmeNTAL BeST PRACTICe ANd ATTAINmeNT OF STANdARdS BeyONd BASIC COmPLIANCe.

aCI Operations NZ ltd, trading as O-I New Zealand 752 Great South Road, penrose, auckland 1061 New Zealand phone +64 9 976 7100 www.o-i.com

© Copyright O-I August 2013. Not to be copied in whole or in part without prior written permission from O-I.

Printed on 100% recycled FSC certified paper.

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