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The National Packaging Covenant

Year Three Plan Progress Report

March 2003 to December 2003

Qenos Action Plan Number Four

January 2004 to December 2004

The National Packaging Covenant

Contents

Page

Executive summary 3 The Qenos Commitment 5 Introduction to Qenos 7 The Polyolefins Markets in Australia 8 Qenos and the NPC Stewardship Categories 9 Year 3 Action Plan Progress versus Commitments 11 Year 3 Activities and Plan 4 Actions – Summary Table 21 New Action Items - Action Plan 4 25 Contact Details 26 Appendix 1 – Action Plan 4 Ownership Table 27

The National Packaging Covenant - Qenos

Executive summary Qenos is the sole manufacturer of polyethylene in Australia. We also manufacture polypropylene, olefins and BR rubber in addition to distributing a wide range of specialty products. The Qenos Action Plan commitments are made to facilitate the ongoing reduction in environmental impact of our products and our processes. Qenos is pleased to be a part of the National Packaging Covenant, which represents the next generation of environmental thinking. We recognise the inherent value in this innovative program with its shared involvement of all members of the packaging chain. We are working with our customers and other members of the chain to realise the mutual benefits offered by the National Packaging Covenant and to reduce waste in line with the principles of Reduce, Reuse, Recycle. This submission contains Qenos progress versus our third action plan up to December 2003 and outlines Qenos’ next plan which covers the January to December 2004 period. Qenos’ National Packaging Covenant Action Plan and reporting process has moved to calender year as the programs are becoming embedded into standard business goal setting and reporting processes. Qenos’ fourth plan aims to build on our achievements and work toward a sustainable future. Qenos’ commitments in our Action Plans fall into the following categories. These reflect the wide range of Qenos activities and align with both internal and external stakeholders. Action Areas:

1.0 Qenos Production and Continuous Process Improvement 2.0 Distribution 3.0 Working with Our Customers 4.0 Working with Recyclers 5.0 Working with Industry and Researchers 6.0 Education and the Community 7.0 Support for Kerbside Recycling

Reporting in the above areas is made available to the National Packaging Covenant Council in this document. However, some activities, particularly those relating to specific customer projects and commercially sensitive internal plans, will remain commercial in confidence and have not been disclosed as a matter of course. Further information may be made available to the Covenant Council on request.

Thanks go to the action item owners across all areas of Qenos for providing the data and information for this report.

The Qenos Commitment Qenos believes supporting and complying with the National Packaging Covenant is a natural extension of our Safety, Health and Environment Policy and our commitment to Responsible Care. As such, we embrace the principles of Product Stewardship and Shared Responsibility throughout the packaging chain, to facilitate waste reduction in line with the concepts of Reduce, Reuse, and Recycle. Qenos’ Safety, Health and Environment Policy At Qenos, we believe that all injuries, occupational illnesses and environmental incidents are preventable.

We are committed to, and everyone who works at Qenos must show responsibility for, operations, products and practices that protect the safety and health of our employees, contractors, customers and the community, as well as protecting the environment.

This is more than another element in our business competing for priority; it is an absolute requirement.

We will:

• strive for a workplace that is free from injury, illness and incident

• encourage employee initiatives that contribute to a safe and improved environment at work, home and in the community

• minimise risks associated with the manufacturing, transportation, use and disposal of our products

• anticipate, analyse and discuss risks with those affected, and monitor events to ensure proper control

• conduct all operations and market all products with adequate safeguards

• be prepared for emergencies, responding quickly and effectively to incidents resulting from our operations

• efficiently use materials and energy, and dispose of wastes in a safe and environmental sound way

• continuously improve our safety, health and environmental performance through effective management systems, measurements and targets

• expand our knowledge of safety, health and the effect of our operations on the environment, and share this knowledge with others

• strive to be a trusted and responsible member of the community through performance, full and open communication, and involvement

• work with others to develop responsible laws, regulations and standards, based on sound science and assessment of risks, as required to further safeguard the workplace, community and environment.

These commitments are in addition to our basic intent to comply with all safety, health and environmental laws, regulations and Responsible Care requirements.

Risk: identify it, assess it, control it.

In addition, all employees are asked to sign a Safety, Health and Environment Charter. The Charter sets out accountabilities for all employees and line managers. Qenos SH&E CHARTER Everybody • Learn and follow all SH&E requirements related to the job

• Maintain SH&E awareness in all tasks, preventing injuries, illnesses or safety or environmental incidents

• Maintain a clean and orderly work area at all times

• Constantly review the workplace for hazards which could lead to injury, illness or incident and initiate appropriate corrective actions

• Report to work fit for duty without impairment from alcohol, drugs, medications or other influences

• Address improper SH&E practices observed in co-workers including contractors

• Look for opportunities to improve SH&E performance and actively participate in SH&E improvement activities

• Immediately report all injuries, illnesses and safety and environmental incidents

• If ill or injured, actively participate in rehabilitation programs to promote recovery.

Line Managers • Clearly communicate the vision and Expectations and keep SH&E as the top priority in all

decisions, actions and communications

• Provide leadership for the development and implementation of SH&E plans

• Ensure that rules and procedures for preventing all SH&E incidents in your work area are in place and are enforced

• Lead by example by setting high SH&E standards, following rules, procedures, and using good work practices

• Know the SH&E requirements of the job performed by the people you lead and ensure they are appropriately trained

• Audit work practices frequently and do not tolerate any deviations from required standards, addressing any known SH&E non-conformance or opportunity for improvement with appropriate priority

Introduction to Qenos Qenos is a joint venture of the Australian company Orica and ExxonMobil bringing together the skills, experience and technology of the former Kemcor Australia and the Orica Polythene business. Qenos employs approximately 800 people at sites in Altona and Laverton in Victoria, and at Botany in New South Wales. Qenos manufactures a full range of polyethylene, including high density polyethylene (HDPE), low density polyethylene (LDPE), linear low density polyethylene (LLDPE) and medium density polyethylene (MDPE), polypropylene and polybutadiene rubber. These products are complemented by a comprehensive range of specialty polymers from Qenos’ international partners, including: ExxonMobil Polymers, ExxonMobil Films and Korea Kumho Petrochemical Company. Polyethylene is manufactured at Qenos plants in Botany and Altona. Capacity is in the order of 200,000 tonnes HDPE, 90,000 tonnes LDPE and 110,000 tonnes of LLDPE. At Altona based plants, polypropylene capacity is roughly 40,000 tonnes, and rubber capacity is approximately 12,000 tonnes.

The Polyolefins Markets in Australia The Australian market for virgin polyethylene is roughly 450kt. Of this, approximately 50% are used in the packaging industry. The Australian polypropylene market is around 200kt in which Qenos is a minor player. Polyethylene Qenos is the sole manufacturer of polyethylene in Australia, and manufactures a full range of polyethylene: linear low density, low density, medium density and high density. Qenos also offers metallocene polyethylene and plastomers sourced from its shareholder ExxonMobil. Polyethylene is used for pipes and fittings; in wire and cable applications; in the automotive components sector; for tanks and storage, in household goods, and in construction, in addition to its use in the packaging market. Material sold to the consumer-packaging segment can be divided into rigid and flexible markets. The rigids market is made up predominantly of bottles and containers for milk, juice and household and industrial chemicals, as well as caps and closures. The flexibles market is made up primarily of films for food packaging including frozen foods, bread and fresh produce; shopping bags; cling and shrink wraps; industrial films and extrusion coating applications such as liquid paper board. Whilst Qenos is the sole local producer of polyethylene, imports are readily available and make up a significant proportion of virgin polymer consumption. Also, some segments of the packaging market, such as HDPE supermarket bags are predominantly serviced by imported finished goods. Few of these importers are currently signatories of the Covenant, or have programs in place to support recycling or reuse of these products. Polypropylene Qenos is one of two manufacturers of polypropylene in Australia, and holds a minor market position. Again, importers are also active in this market. Polypropylene can be used for numerous applications, including injection moulded household goods, automotive components and packaging. Within the packaging sector, polypropylene is used for ice-cream tubs, caps and closures, as well as margarine tubs, takeaway food containers and OPP film for flexible food packaging.

Qenos and the Packaging Covenant Stewardship Categories This section describes how the National Packaging Covenant product stewardship categories, where appropriate, have been addressed in Qenos’ action plans. Packaging Design Qenos is a raw material supplier therefore packaging design is not core to our business, however Qenos works with our customers on elements of their packaging design including material selection and optimisation. Research Qenos is continuously working with our customers, with recyclers and industry in support of programs for recycling and waste reduction, and to optimise packaging solutions. Qenos is able to contribute significant polymer technical expertise. Qenos personnel also access shareholder expertise and regularly hold formal technology exchanges with international experts, gathering data on technology advances including the use of recycle in value adding applications. Qenos contribute relevant data to industry research such as studies into raw material use, packaging and recycling. Qenos’ product development system includes a series of electronic prompts to ensure that consideration is given to the National Packaging Covenant Principles and the environment, throughout scoping and developmental stages of projects. The covenant principles are generally consistent with “better product” demands for efficiency and effectiveness and hence easy to apply.

Production Qenos manufacturing facilities are continuously monitoring the energies and materials used and any wastes generated. Production teams are involved in implementation of improvements for example, waste minimisation programs, sourcing outlets for generated scrap and reworking material where possible. Qenos also has commitments to Greenhouse Challenge and the implementation of Environmental Improvement Plans.

Disposal Qenos provide customers with options for Qenos product packaging, actively promoting and supporting our customers to convert to bulk to eliminate bags. Qenos bags are made from recyclable polyethylene and options are available for customers to recycle Qenos plastic bags. Where product is supplied in semi bulk packaging, the Qenos bulkerbags are reusable.

Distribution Qenos endeavours to reduce the impact of the distribution of Qenos product by the provision of bulk and reusable packaging types where possible. Qenos packaging and distribution operations have systems in place to track and report product losses with a view to continuous improvement. Qenos has onging projects to implement packaging improvements, supporting principles of the Packaging Code of Practice, including downgauging, and logistics rationalisations.

Labeling In those cases where bagged product is supplied, Qenos product bags are made of recyclable polyethylene. Implemented during Qenos’ first year as Covenant signatory, 100% of Qenos bags display appropriate plastics identifier code for ease of identification and sorting for recycling. Market Development As a raw material supplier, Qenos work with its customers on their developments to aid expansion of markets for recyclable materials and products containing recyclate.

Education Qenos continues with its commitment to educate and inform local communities, schools and industry stakeholders. This has taken many forms including: providing education material to schools; support for various exhibitions and events; speeches and presentations on recycling and maintaining involvement in relevant industry associations.

Year 3 Action Plan Achievement Versus Commitments (March 03 – December 03) 1.0 Qenos Production and Continuous Process Improvement

1.1 Continue with Greenhouse Challenge membership, targeting and monitoring further Greenhouse gas abatement activity at Qenos.

Measure: Greenhouse Challenge reports submitted as required Achievement: Qenos has renewed yearly commitments to Greenhouse Challenge and has projects scheduled to be completed over the next 4 years which are expected to result in savings of 16-17000 tonnes of carbon dioxide per annum.

1.2 Continue to implement the Environmental Improvement Plan for Altona. A number of the items included in the Environmental Improvement Plan run over a multi-year time frame and will not be completed in the timeframe of this Action Plan. Progress against these action items will be carried over to future Action Plans as appropriate.

Measure: Implement EIP 2003 actions Achievement: 17 EIP 2003 items have been completed and 3 items will carry over to next period. Progress in implementing EIP actions has been monitored and is regularly reported to Environment Monitoring Team members. During this reporting period, the first Environmental Improvement Plan for Qenos’ Botany site has been developed. Development of this plan has taken 12 months and has involved consultation with the City of Botany Bay, Sydney Water Corporation and the NSW Environmental Protection Authority. Progress of the implementation of Botany EIP1 actions will be incorporated in future reports.

1.3 - Item complete Year 2

1.4 Plant scrap from the polyethylene plants will continue to be monitored and minimised. Scrap will continue to be sold to recyclers for reprocessing in preference to being sent to landfill.

Measure: Amount of scrap sold Achievement: There has been 593 tonnes of polymer scrap sold from Qenos polyethylene operations.

1.5 In the BR rubber plant, start up and non-first grade material will be reincorporated into the process, at levels controlled so as not to impact on the technical properties of the final product. Qenos will measure the quantities of start up and non-first grade rubber reused in this way.

Measure: Amount of start up and non-first grade rubber reincorporated Achievement: The amount of potential second grade BR rubber reincorporated was 1.7% of total production. Reincorporated start up material made up 3.9% of total production. 100% of the start up and non-first grade rubber was either reprocessed or with negotiation, went to customers.

1.6 Ensure regular communication and updates with key internal stakeholders, including the senior management team and shareholders.

Measure: Regular updates on progress Achievement: There have been informal updates given on the status of the packaging covenant, relevant industry issues and Qenos’ action plan. The NPC newsletter has been distributed electronically and the Product development and sales and marketing teams have been kept informed of publication of company Action Plans and reports via Packaging Council Web site. Activities in Qenos Action plan have been subjects of internal and external publication; for example Qenos provided several articles for the PCA National Packaging Covenant “The Benefits” web site.

2.0 Distribution

2.1 Qenos key strategy in packaging for the Polyolefins business is to continue to favour and increase the supply to customers of bulk packaged product. This reduces the packaging involved to reusable steel containers, containing only a recyclable polyethylene liner, rather than pallets of material packed in individual bags, or semi bulk containers. Measure: Change in % domestic sales packed in bulk Achievement: There was 2.4% increase in sales in bulk from previous period. Increase enabled as some of Qenos customers converted their facilities to enable the supply of bulk product.

2.2 Where bulk supply is not appropriate, semi-bulk packaging will be made available. Where feasible, semibulk will focus on the use of re-useable bulkerbags, rather than non-reusable resinpacks or octabins, or multi-bag pallets, again reducing waste. Measure: Change in % of domestic sales packed in semibulk

Change in % of domestic sales packed in bulkerbag

Achievement: Domestic sales packed in semibulk increased by 1.0% in reporting period. Domestic sales packed in bulkerbags increased by 1.1%. Of the domestic sales in semibulk packaging 98% were in returnable/reusable bulkerbags. During this period we have initiated a bulkerbag rationalisation program to help facilitate recycling and have rationalised out the use of Resin packs (cardboard).

2.3 Continue to implement downgauging of Qenos bags in line with the Reduce principle. Measure: % reduction in the average gauge of bag rewind Achievement: Progress on program to implement further downgauging opportunities has involved formulation developments and customer trials. Late in reporting period this program has been delayed due to supplier withdrawing the polymer grade that film formulation trials had been using. This program to be finalised in the next reporting period and will deliver significant downgauging of average bag rewind.

2.4 Product losses at offsite packaging sites and transport companies will be regularly measured and monitored with a view to continuous reduction. Material lost in this way will be sold as scrap for alternate use and recycling in preference to going to landfill.

Measure: Product losses monitored and reported Amount of material sold to recyclers Achievement: The results from offsite packaging operations show a total of 205T of polymer scrap was generated in April 2003 to December 2003 period. Outlets have been established for packaging scrap that enables a 100% recycle rate. During the previous reporting period a Packaging Team was established to identify and implement programs to monitor and reduce product losses. Scrap rate levels are reviewed against target of 0.2% on a monthly basis. This team consists of the following personnel:

Logistics Manager Distribution Coordinators Logistics Service Provider packaging personnel.

For Qenos Action Plan 4 Product losses at off-site packaging and transport sites will be measured as “% scrap rate” as this is one of the KPI's that Qenos appraise our logistics providers on.

2.5 The Qenos Elastomers business will continue to pack into reusable steel crates for domestic sales.

Measure: % domestic sales sold in reusable crates

Achievement: 100% of Qenos BR production for domestic sales has been sold in reusable crates in this period. These crates are used on average 50 times, at which time they are reconditioned and returned to service. This continues to be the most effective way of eliminating packaging waste for the Qenos Elastomers business.

2.6 Where economically and technically feasible, Qenos will utilise returnable crate technology for imported SBR rubber.

Measure: Amount of SBR rubber imported in returnable crates Achievement: There has been 3003 tonne of SBR imported in returnable crates in the Apr 03 – Dec 03 period. This is 91% of the total SBR imported.

Qenos have offered all SBR customers returnable crates and are capable of supplying 100% in returnable packaging; it is unlikely that the remaining customers will convert as investment is required to handle the imported reusable packs.

2.7 - Item deleted Year 3

2.8 If capital funds available, implement new pallet packaging standard for Qenos

Botany products. Eliminate cardboard pallet pads currently used.

Measure: Implementation of new pallet standard Number of cardboard pallet pads avoided

Achievement: July 2003 new pallet packaging standard implemented and the use of pallet pads ceased. The supply of product with pads, due to inventory, was phased out during remainder of 2003. Based on current packaged (bagged) sales, 6000-7000 cardboard pads per month have been eliminated from packaging of Qenos products.

2.9 Implement new standard bulk container for distribution. Higher capacity containers will result in reduced energy use in distribution and impact of transport related greenhouse gases.

Measure: % increase in average bulk container weight Achievement: Plant modifications to facilitate high cube containers completed in July 2003. The phased introduction of the new high cube containers continued throughout 2003 and by year end delivered in an increase of 15% in average container weights. This flows through as an equivalent % reduction in truck and rail movements from our plants and in bulk deliveries to our customers. Qenos business processes now include the reporting of average container weights ensuring that this will continue to be monitored and optimised.

2.10 If capital funds available, implement new standard pallet unit for Qenos Alkathene (1.25t). Reduced stretch wrapping per kg bagged product.

Measure: Implementation of new pallet standard

Amount of stretch wrap waste avoided Achievement: July 2003 Qenos implemented standard 1.25t pallet configuration for Alkathene products. New configuration delivers 10% saving in stretch wrap used for packaging Alkathene products.

Note: Approximately $7M was spent during the July 2003 major plant shutdown on facilities to enable the implementation of projects described in 2.8, 2.9 and 2.10.

2.11 Implement logistics rationalisation program including the filling of empty

containers prior to relocation interstate. Resulting in significant reduced energy in distribution and resultant transport greenhouse emissions.

Measure: % reduction in empty container movements interstate Achievement: No empty container movements occurred in this period.

2.12 Implement new distribution process utilising railway trip from manufacturing to warehouse site in place of truck transport. Resulting in reduced energy use in distribution.

Measure: Number of distribution kilometres avoided Achievement: July 2003 Qenos implemented product movement by rail between manufacturing and warehouse. Approximately 630 truck trips between Botany/Yennora (NSW) and Laverton (VIC) have been eliminated in this reporting period as this material movement is now done via rail. Prior to July 2003 Alkathene product was packaged at Botany and then relocated for sale. Now Alkathene product leaves the Botany site in bulk and is moved by rail to either Yennora (for NSW, QLD, S.A. & W.A. sales) or to Patrick (Laverton) for packaging (for VIC sales). The major impact of this change is the elimination of the truck movement of packaged product between Botany/Yennora and Laverton.

2.13 Investigate feasibility of downgauging container liners for bulk packaged product.

Measure: Assess feasibility and develop plans Achievement: Preliminary investigation has taken place during this reporting period and resources allocated to access feasibility. If deemed feasible, it is expected that trials be scheduled for third quarter 2004 with implementation by year end 2004.

3.0 Our Customers

3.1 Work with, encourage and support our customers to implement National Packaging Covenant principles, actions and responsibilities, including investigation of downgauging opportunities. Measure: Actions taken in projects identified Achievement: There has been progress in a number of relevant projects with joint activity between Qenos and other parties. This work is confidential.

4.0 Working with Recyclers

4.1 Encourage and work with customers and the recycling industry to develop recycling options for packaging materials made from products manufactured by Qenos.

Measure: Progress on identified projects Achievement: There has been progress on specific projects. The activities and outcomes are confidential.

In working these projects there is often involvement from parties from all aspects of the manufacturing supply chain. ie. raw materials (Qenos), Qenos customers/processors, recyclers and materials scientists.

4.2 Act as a resource for setting appropriate standards for polyethylene and polypropylene recyclate.

Measure: Respond where reasonable and where resources allow to requests for assistance. Achievement: There have been a few approaches seeking technical input from Qenos as both a polyethylene and polypropylene supplier. We have been able to respond to these by providing basic information and confirming the accuracy of the data being tested with us.

5.0 Working with Industry, and Researchers

5.1 Continue to support relevant industry programs for recycling and waste reduction, particularly in the area of polyethylene and polypropylene. This is likely to be in areas where Qenos can add specialist value, e.g. polymer technology expertise.

Measure: Programs supported

Involvement through PACIA in relevant recycling activities

Achievement: We have been involved in a number of programs in this area. In most cases we have given technical input to, or reviewed, project plans and reports.

5.2 Involvement in appropriate industry bodies, including PACIA, at a committee level or for specific meetings, where Qenos personnel can add value and support relevant waste reduction, Covenant promotion or recycling projects.

Measure: Activities carried out Achievement: Qenos has representatives at the board level of PACIA and in each of the four industry councils, with Qenos personnel being chairpersons for 2 of these councils. Involvement includes meetings as well as email and other written correspondence and activities on issues such as environmental management, waste reduction, Covenant promotion and recycling projects. Qenos have also provided input into the review of the National Packaging Covenant through participation in a focus group, interview and survey.

5.3 Act as a resource for industry bodies and researchers in areas where polyethylene information is required, e.g. contribution of information to life cycle analysis studies

Measure: Respond where resources allow to requests for information Achievement: There have been a few approaches in this period. Qenos has been able to respond to all in providing basic information and confirming the data for which review was sought.

6.0 Education and the Community

6.1 Make the Qenos Covenant Action Plan – year three and Report – year two - available via the Qenos website

Measure: Plan and report available Achievement: The Qenos Covenant Action Plan has been made available on the Qenos website along with additional information providing links to the Packaging Council of Australia website where interested parties can access full details of the National Packaging Covenant, its principles, members and activities.

6.2 Continue to sponsor the education of school communities and industry via plant tours and provision of information outlining Qenos recycling activities and encouraging recycling of materials made or supplied by Qenos.

Measure: Number of tours held

Achievement: There have been a total of 10 formal plant tours held within the reporting period. Preparations had commenced for an Open Day to be held early 2004 and included plans for stand providing information on the NPC however this event was once again cancelled on advice from PACIA due to security concerns. Qenos is providing local school communities with CD-rom’s of the Ollie Recycles program. Qenos sponsored the Ollie Recycles program, along with other PACIA members.

6.3 Continue the consultation and communication program with the community in Altona through the Altona Complex Neighbourhood Consultative Group (ACNCG) on Qenos environmental performance.

Measure: Number of meetings held Achievement: There have been 5 ACNCG meetings held with members of the community, complex and regulators over the reporting period.

6.4 Continued participation with Altona community representatives in the Environmental Monitoring Team process to monitor specific EIP activities

Measure: Number of meetings held Achievement: There have been 4 EMT meetings, as per the current schedule, in the reporting period covering Qenos activities at all Altona sites.

6.5 Continue the consultation and communication program with the Botany community

Measure: Number of meetings held Achievement: There have been 2 meetings within the period, of the Botany Industrial Park Community Consultative Committee (BIPCCC).

7.0 Kerbside Recycling

7.1 Qenos will support Kerbside Recycling through an appropriate financial contribution in accordance with transitional funding arrangements set out in the National Packaging Covenant.

Measure: Contribution made to transitional funding Achievement: Qenos has contributed to the National Packaging Covenant transition fund as per the schedule.

Year 3 Activities and Plan 4 Actions – Summary Table

Qenos Initiative Measure Year 3 Achievements

Action Item for Plan 4

1.0 Qenos Production and Continuous Improvement 1.1 Continue Greenhouse Challenge membership

Report submitted

Greenhouse challenge commitment reaffirmed

1.2 Implement Environmental Improvement Plan

Implement 2003 actions

17 EIP 2003 actions completed Developed first EIP for Botany site

Progress of both Altona and Botany EIP’s will be reported

1.3 Item complete Year 3

1.4 Scrap from the polyethylene plants to be sold to recyclers in preference to being sent to landfill

Amount of scrap sold

593 tonnes

1.5 Reincorporate non-first grade BR rubber into process

Amount of start up and non-first grade rubber reprocessed

97% start-up and non-first grade rubber reincorporated (remaining 3% sold)

1.6 Ensure regular communication and updates with key internal stakeholders

Regular updates on progress

Informal updates using information gathered using internal progress reports

2.0 Distribution 2.1 Favour bulk packaging Change in %

domestic sales in bulk

2.4% increase bulk domestic sales

Continue to favour bulk

2.2 Make available semi-bulk and multi-use bulkerbags

Change in % domestic semibulk sales and change in % domestic bulkerbag sales

1.0% increase semibulk domestic sales, 1.1% increase domestic sales in reusable bulkerbags. Cardboard packs rationalised out

Rationalisation program to be finalised first half 2004.

2.3 Progress downgauging opportunities for Qenos bags

% reduction in average rewind gauge

Program progressed to trials however delayed due to polymer unavailability

Revised implementation target second half 2004. Reduction target %18.

2.4 Product losses at offsite packaging and transport sites

Losses monitored and reported Amount of material sold to recyclers

205 tonnes generated 100% sold to recyclers

Measure changed “% scrap rates” as forms KPI of logistics providers

2.5 Domestic SBR rubber packed into reusable crates

% domestic sales sold in reusable crates

100% domestic sales in reusable crates



2.6 Returnable crates for imported SBR rubber

Amount of rubber imported in returnable crates

3003 tonnes in returnable crates 91% of SBR imports in returnable crates

2.7 Item removed Year 3

2.8 Implement new pallet packaging standard for Botany products eliminating pallet pads

Number of cardboard pallet pads avoided

Implemented July 03 6000-7000 per month pads avoided

X Complete

2.9 Implement new bulk container for distribution saving on fuel

% increase in average container weight

Implementation commenced July 03 15% increase in average container weight

X Complete

2.10 Implement new pallet unit for Alkathene reducing stretch wrap use per kg product

Amount of stretch wrap waste avoided

Implemented July 03 10% reduction in stretch wrap

X Complete

2.11 Implement logistics rationalisation reducing empty container movements

% reduction in empty container movements

No empty container movements for period

Continue to monitor

2.12 Implement distribution process utilising rail trip from manufacturing site to warehouse

Number of distribution kilometres avoided

Implemented July 03 ~630 road trips eliminated

X Complete


Assess feasibility and develop plans

Scoping commenced If feasible, implement end ‘04

2.14 Monitor and investigate unnecessary product movements.

% change tonnes per month unnecessary movements

New item

2.15 Implement Container Park at Yennora

Number of container double handling eliminated

New item

2.16 Maximise product movements by sea

Change in % stock moved by sea

New item

2.17 Investigate options for rail transport packaged goods to Brisbane ex Sydney


New item

2.18 Futile product deliveries

% change in number of futile deliveries

New item

2.19 Minimise small, frequent deliveries

% change in average delivery size

New item



3.0 Our Customers 3.1 Work with, encourage and support our customers to implement National Packaging Covenant Actions and responsibilities

Actions taken in projects identified

Progress in relevant projects – details confidential

4.0 Work with Recyclers 4.1 Encourage and work with customers and the recycling industry to develop recycling options for Qenos manufactured products used in packaging materials

Progress on identified projects

Progress in projects – details confidential

4.2 Act as a resource for setting appropriate standards for polyethylene and polypropylene recyclate

Respond where reasonable and where resources allow to requests for assistance

Responded to several approaches

5.0 Work with Industry and Researchers 5.1 Continue to support relevant industry programs for recycling and waste reduction, particularly in the area of polyethylene and polypropylene

Programs supported


Provided input into programs Involvement through PACIA in recycling, reduction and other activities

5.2 Involvement in appropriate industry bodies including PACIA

Activities carried out

PACIA involvement at board level and on each of 4 industry councils

5.3 Act as resource for industry bodies and researchers where polyethylene information is requested

Respond where resources allow to requests for information

Responded to few approaches for information

6.0 Education and the Community 6.1 Make Qenos NPC Action Plan and Report available from Qenos website

Year 1 Report and Year 2 Plan available

Qenos web site provides link to Packaging Council website

6.2 Continue to sponsor education of community through tours and provision of information encouraging recycling of materials made or supplied by Qenos

Number of tours held

10 formal plant tours

6.3 Continue consultation and communication program with the community in Altona through ACNCG

Number of meetings held

5 ACNCG meetings



6.4 Continue participation with Altona community representatives in the Environmental Monitoring Team Process


4 EMT meetings

6.5 Continue community consultation program with Botany community


2 BIPCCC meetings

7.0 Kerbside Recycling 7.1 Support Kerbside Recycling through appropriate financial contribution to transitional funding

Contribution made to transitional funding

Contributions as per schedule

New Action Items - Action Plan 4 (January 04 – December 04) A number of new Distribution items are included in Qenos Action Plan 4. Implementation of these actions will deliver reductions in the energy in distribution and resultant transport greenhouse emissions.

2.14 Measure and investigate unnecessary stock movements and implement corrective actions to reduce occurrences.

Measure: Change in tonnes per month unnecessary stock movements

2.15 Implement new container park facility at Yennora reducing the double

handling of containers from Botany, to current container storage at Port Botany and then to Yennora for packaging. This will also be a reduce forklift movements around the Yennora site with proposed container park closer to packaging line.

Measure: Implementation of Yennora Container Park Number of container double handling movements eliminated

2.16 Maximise product movement by sea to domestic customers to reduce rail and/or truck product movement. Measure: Change in % of stock movement by sea

2.17 Investigate options for rail transport of packaged product from Sydney to

Brisbane.

Measure: Internal report issued, including plans to implement if feasible.

2.18 Investigate root causes of futile deliveries of product to customers and implement reduction plans. Measure: Change in the number of futile deliveries

2.19 Minimise small, frequent deliveries to customers. July 2003 Qenos implemented "Customer Service Delivery Standards" which included incentives for customers to take delivery of full truck loads of packaged products. This will enable Qenos' carrier partner to progress a long term fleet change program and reduce the truck movements involved in delivery of Qenos product.

Measure: % change in average delivery size

Contact Details

Qenos is fully committed to an active program working with key stakeholders – our customers, the community, regulators, employees and others. For comments or questions regarding our Action Plan, please contact:

Qenos Pty Ltd 251 Maidstone Street, Altona, Vic 3018 Ph 03 9258 7333 Fax 03 9369 6624 http://www.qenos.com Contact: Packaging Covenant Coordinator

[email protected]

http://www.qenos.com/

mailto:[email protected]

Appendix 1 – Ownership of 2004 Action Plan Items Qenos Initiative Measurement Program Owner

1.1 Continue Greenhouse Challenge membership

Actions implemented and reports submitted as required

Environmental Affairs Advisor

1.2 Implement Environmental Improvement Plans

Implement 2004 actions Environmental Affairs Advisor

1.3 Item deleted

1.4 Scrap from the polyethylene plants to be sold to recyclers in preference to being sent to landfill

Amount of scrap sold Plant Business Forums & Logistics and Customer Service Manager

1.5 Reincorporate non-first grade BR rubber into process.

Amount of scrap rubber sold or disposed of

Elastomers Process Planner

1.6 Ensure regular communication and updates with key internal stakeholders

Regular updates on progress NPC Coordinator

2.1 Favour bulk packaging % domestic sales in bulk Logistics and Customer Service Manager

2.2 Favour multiuse bulkerbags % domestic semibulk sales; % domestic bulkerbag sales

Logistics and Customer Service Manager

2.3 Progress downgauging opportunities for Qenos bags

% reduction in average rewind gauge


2.4 Product losses at offsite packaging and transport sites

% scrap rates % scrap material sold to recyclers

Packaging Team via Logistics and Customer Service Manager

2.5 Domestic SBR rubber packed into reusable crates

% domestic sales sold in reusable crates

Product Manager

2.6 Returnable crates for imported SBR rubber

Amount of rubber imported in returnable crates

Product Manager

2.7 - 2.10 Items deleted

2.11 Implement logistics rationalisation reducing empty container movements

% empty container movements interstate


2.12 Item deleted




Qenos Initiative Measurement Program Owner 2.14 Monitor and investigate unnecessary product movements.

% change tonnes per month unnecessary movements


2.15 Implement Container Park at Yennora

Number of container double handling eliminated


2.16 Maximise product movements by sea

Change in % stock moved by sea


2.17 Investigate options for rail transport packaged goods to Brisbane, from Sydney.



2.18 Futile product deliveries % change in number of futile deliveries


2.19 Minimise small, frequent deliveries

% change in average delivery size


3.1 Work with, encourage and support our customers to implement National Packaging Covenant Actions and responsibilities

Actions taken in projects identified

National Sales Manager & Product Development Manager

4.1 Encourage and work with customers and the recycling industry to develop recycling options for Qenos manufactured products used in packaging materials

Progress on identified projects.

Product Development Manager

4.2 Act as a resource for setting appropriate standards for polyethylene and polypropylene recyclate

Respond where reasonable and where resources allow to requests for assistance


5.1 Continue to support relevant industry programs for recycling and waste reduction, particularly in the area of polyethylene and polypropylene

Programs supported


Product Development Manager & Product Technology Manager

5.2 Involvement in appropriate industry bodies including PACIA

Activities carried out CEO, General Manager Commerical, Product Technology Manager & Community Relations Manager

5.3 Act as resource for industry bodies and researchers where polyethylene information is requested

Respond where resources allow to requests for information


6.1 Make Qenos NPC Action Plan available from Qenos website

Year 1 Report and Year 2 Plan available

Corporate Affairs Officer & NPC Coordinator

Qenos Initiative Measurement Program Owner

6.2 Continue to sponsor education through tours and provision of information encouraging recycling

Number of tours held Community Relations Manager & Corporate Affairs Officer

6.3 Continue consultation and communication program with the community in Altona through ACNCG

Number of meetings held, scheduled 2 monthly

Environmental Affairs Advisor & Community Relations Manager

6.4 Continue participation with Altona community representatives in the Environmental Monitoring Team Process

Number of meetings held Environmental Affairs Advisor

6.5 Continue community consultation program with Botany community

Number of meetings held, scheduled quarterly

Community Relations Manager

7.1 Support Kerbside Recycling through appropriate financial contribution to transitional funding

Contribution made to transitional funding

NPC Coordinator

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