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NEW ZEALAND PACKAGING ACCORD 2004 - 2009
"Improving the sustainability of packaging used
Paul Curtis, Executive Director, Packaging Council of New Zealand (Inc) Hon. Trevor Mallard, Minister for the Environment Professor Ann Smith, Technical Manager, carboNZero Programme, Landcare Research Peter Smith, Managing Director, Progressive Enterprises Ltd David Perkins, NZ Recycling Manager, Transpacific Industries Group Barry Hellberg, Government Consultant Tony Nowell - Chair, Packaging Accord Governing Board Mark Brosnan - President, Packaging Council of New Zealand
Paul Curtis - Welcome and Introduction Good morning. My name is Paul Curtis and I’m the Executive Director of the Packaging Council of New Zealand.
I would like to open today’s seminar with a welcome to the Honorable Trevor Mallard, Minister for the Environment and to each of the 70 companies and organizations that are represented here today.
The New Zealand Packaging Accord was a world first. When it was signed in 2004, it was to my knowledge the only voluntary agreement on packaging in the world which brought together local and central government; recycling operators; packaging manufacturers; brand owners and retailers as equal partners in an agreed voluntary commitment to reduce packaging waste.
To get all of these parties to agree was no mean feat but as you will hear from the presentations today, we have not only got everyone together but have gathered an unprecedented momentum over the three and a half years since the Accord was signed.
And so you may wonder why it’s taken us this long to hold a conference on the Packaging Accord. Well it’s fair to say that we greatly underestimated the scale of the task to co-ordinate the activities of some 200 companies, 85 local and regional councils and 6 supporting trade associations and their members.
Anyone who thinks that a voluntary agreement is an easy way out has never tried it. We expected to spend the first year benchmarking and providing a framework for joint work programmes, but were faced almost immediately with a serious challenge to the Accord from changes in the market for recovered glass.
In year two a new word entered our collective vocabulary – comingling. Comingled or mixed household collections of recyclables can increase recovery rates by 15 – 25% as households are provided with a 240 litre wheelie bin. As more councils look to this new system, concerns were raised about the quality of the recovered material and much dialogue ensued to learn more about the new technology.
In year three, we grappled with the Green Party’s Waste Minimisation private members bill, subsequently followed by the government releasing its own preferred waste policy. The Accord Governing Board undertook a strategic review of the Accord to determine its place within the wider Waste Strategy.
And yet, through it all, there has been consensus between the Accord parties. These issues have been addressed head on through tough negotiation and creative thinking and I would like to thank the Minister and his predecessors for their continued support and patience.
It really took the Packaging Council’s 2007 Environmental Packaging Awards to make us realise quite how far we have come. Those of you who attended the awards evening, cannot fail to have been impressed by the innovation and excellence of the entries, many of which are on display in this room.
At the end of third year of the Accord, we hit a packaging recycling rate of 57%, which was a 20% increase on the previous year and which is up there with the rest of the world. They are doing slightly better across Europe with an aggregated rate of 60% but Australia has a very similar rate to our own at 56%.
True to the adage that imitation is the highest form of flattery, the recently signed Singapore Packaging Agreement is almost a carbon copy of the New Zealand Packaging Accord and the regional Hong Kong government is also taking strong interest in the Accord.
This success is due to the combined efforts of each of the parties to the Accord. To achieve this and more requires brand owners and retailers and their packaging suppliers to incorporate sustainability into their product development and supply chains; it requires local councils to continually review what they collect and how; it requires recycling operators to help develop new markets; and it requires central government to set the framework for all this to happen.
Together we are designing sustainable packaging solutions for New Zealand that best fit our country and we are doing it at best cost. What works elsewhere is not necessarily the right model for a country the size and geographical shape of ours with a small population.
The Packaging Accord provides the forum for all parties to collaborate towards a common goal. Industry is under no illusion that it has to meet its agreed targets and that this improvement must continue to secure a 3rd Packaging Accord when the current agreement ends in June 2009.
The Packaging Accord has finally come of age. There is a great momentum behind us and as we plan for the next Accord, we want to bring everyone along with us on the journey. That is the main reason for today’s seminar.
We believe that our actions speak louder than those who call to replace this voluntary accord with legislative alternatives. Much is being achieved under the umbrella of this Accord and today is about presenting the big picture – which often does not get seen.
Plastic supermarket shopping bags are a case in point. The media attention in New Zealand following China’s recent announcement to ban plastic shopping bags has been phenomenal, and yet they comprise less than 0.2% of our waste stream and are a valuable raw material for recyclers. Organic waste on the other hand makes up 40%.
I am delighted to welcome the Minister tasked with implementing the government’s waste strategy to provide us with an update on the Government’s sustainability initiatives and to set the scene for us today.
Please join me in welcoming the Honourable Trevor Mallard, Minister for the Environment.
Hon. Trevor Mallard - Minister for the Environment Packaging gives products an eco-edge in marketsEnvironment Minster Trevor Mallard's speech to the New Zealand Packaging Accord One Day Seminar, The Conference Centre, AUT Tech Park. Thank you for the opportunity to speak to you today about environmental sustainability – an issue that in a short period of time has substantially grown in profile and is now grabbing the attention of communities, business, governments, consumers and individuals around the world. Click here for the full speech.
KEYNOTE SPEAKERS PRESENTATIONS
Professor Ann Smith - Technical Manager, Landcare Research, CarboNZero Programme The Packaging Accord requires organisations to look across their whole supply chain. A sustainable supply chain means addressing the 3Ms - Measure, Manage, and Mitigate. Click here for the presentation
Peter Smith - Managing Director, Progressive Enterprises Ltd Governments and retailers are the driving forces behind most environmental initiatives to date and Woolworth's Australia has set itself ambitious waste and carbon dioxide reduction targets. Click here for the presentation
David Perkins - NZ Recycling Manager, Transpacific Industries Group The global economics of recycling is changing daily with new technology, new markets and increasing consumer demand. Click here for the presentation
Barry Hellberg - Government Relations Consultant, NZ Retailers Association Green consumerism - opportunities and threats for New Zealand retail. Click here for the presentation
Paul Curtis - Executive Director, Packaging Council of New Zealand (Inc) New Zealand Packaging Accord 101 Click here for the presentation
Ed Cordner - CEO, Australian Packaging Covenant Australian Packaging Covenant Click here for the presentation
GUEST SPEAKERS PRESENTATIONS Spring Humphreys - National Eco-Efficiency Manager, Fonterra Co-Operative Group Ltd Fonterra's award winning Eco-Efficiency Programme, initiated in 2003, is on track to achieve 90% reduction of waste to landfill by the end of 2009 across 136 site. Click here for the presentation Rachel Bergquist - Product Development Manager, Hubbard Foods Ltd In its 2007 sustainability report, Hubbards set out tough environmental targets. Click here for the presentation Nicola Sharp - Account Manager, Premier Plastics Ltd In 2005 Living Nature decided to change to a more environmentally friendly packaging format for a global relaunch of the brand. Premier Plastics was forced to develop its own blend of raw material for meet the design brief. Click here for the presentation Phil Matthews - Viscount Plastics Ltd In 2007 Foodstuffs Wellington introduced a Returnable Transit Packaging System developed by Viscount Plastics for the distribution of fresh poultry from suppliers to retail stores. Click here for the presentation George Adams - Coca-Cola Amatil (NZ) Ltd Coca-Cola Amatil were awarded for minimising waste to landfill by light-weighting all bottles and using recycled resin. They recycle 86% of all solid waste from plants and have also tested the economics of establishing 'away from home' recycling in New Zealand. Click here for the presentation Karen Warman - Marketing Manager, Resene Paints Ltd Resene's award winning "Paintwise programme is highly regarded as a model for product stewardship and has made a significant contribution to the steel recycling rate in New Zealand. Click here for the presentation Liane Donovan - Director, Donovan Boyd Communications CANZBAC is the award winning "public face of the Steel Can Association of New Zealand and is dedicated to promoting steel can recycling. Click here for the presentation Sharon Jereb - Environment Manager, Packaging Council of New Zealand Event recycling - how to 'green' your events. Click here for the presentation Lee Smith - Business Development Manager & PR, Visy Recycling In June 2008 Visy Recycling will open its NZ$20 million material s recovery facility in Auckland and will be the most technologically advanced recycling facility in the Southern Hemisphere. Click here for the presentation John Webber - General Manager, Glass Packaging Forum The Glass Packaging Forum was formally established in 2006 in response to the increase in glass recovery which exceeded the demand from its only existing market at the time. Click here for the presentation
CLOSING SPEECHES Tony Nowell - Chair, Packaging Accord Governing Board Expectation of Industry from Chair's Perspective
Thank you all for attending this seminar and for remaining to hear the tail end speakers.
I agree with Paul’s sentiments that we probably could not have staged this before today because, hand on heart, we were still grappling with many of the difficult issues you have heard about throughout this seminar.
Much has changed since the Accord was signed in 2004. The Government has put sustainability at the centre of its policy making; the legislative landscape is changing; markets for recycled products have opened up and consumers are now firmly in the camp that green is the new black.
Today’s’ presentations demonstrate the current momentum behind the Packaging Accord and the commitment by all of its signatories including industry, local and central government to make this voluntary agreement silence its critics.
But for those of you who weren’t around in the early years of this Accord and indeed for those of you who were, I would like to remind you of the journey so far.
In August 2004, I signed the Packaging Accord on behalf of brand owners and retailers. We are an important partner to the Accord as ultimately we make the final decisions on packaging design.
The process to bring about an agreement that could be signed by such diverse groups as industry, local government, central Government and recycling operators was long and onerous. The result was an agreement that included eight measures of progress which Paul has talked about earlier today.
The Accord also contains a clause which states that if the voluntary approach does not provide sufficient improvements in reducing packaging waste per New Zealander and encourage product stewardship, Government is prepared to do so by regulation.
In the words of American business writer Peter Drucker:
“Unless commitment is made there are only promises and hopes but no plans.”
Well at the outset each sector produced very detailed plans which ran to several pages categorizing what had to happen and by when. It is important to remember that there are 8 measures which makes this a much broader agreement than just meeting recycling targets.
But as John Lennon said:-
“Life is what happens when you are busy making plans.”
Year One was meant to be about benchmarking and providing a framework for joint work programmes between sectors.
However we were almost immediately faced with a serious challenge to the Accord from changes in the market for glass cullet. The subsequent reduction in the rate paid to recycling operators for glass recovery put the onus on industry to find a workable solution which would enable recyclers and communities to continue kerbside collection.
On the positive side, the paper sector exceeded its 2008 target of 70% recovery in the first year, which means that New Zealand has one of the highest rates of paperboard recovery in the world. This was a fantastic achievement. Unfortunately, our critics used it to claim that the Accord targets were not tough enough.
The problems around glass remind us that sustainability means balancing environmental, economic and social imperatives and that this is rarely easy. Society wants waste packaging to be collected and recycled. However, we need to have sustainable uses and an economic market for that recovered material otherwise we have expended money and resources collecting it for no net benefit to the environment or the economy.
Fast forward 3 and a half years and a Glass Packaging Forum has been established which has raised $2.8 million from its members which is financing work programmes to identify, fund and promote alternative recycling options for glass. This case study shows that voluntary measures work if everyone gets behind them.
Since we embarked on the Accord journey, there have inevitably been changes to the local and global marketplace. This is commercial reality; commodity prices for recovered packaging materials fluctuate, new policies are mooted, strategy changes.
Since signing the Packaging Accord, there have been four Ministers or Acting Ministers for the Environment; The Waste Minimisation (Solids) Bill has progressed through the Select Committee process and their final report was tabled in Parliament last week.
I am reminded of the Chinese Proverb:
“The wise adapt themselves to experiences as water moulds itself to the pitcher.”
Earlier this year the Governing Board participated in a strategic review of the Accord setting out what needs to happen to take this voluntary agreement beyond 2009 and to understand its continuing relevancy within the context of the Waste Bill.
Whilst there are those who say that a voluntary agreement is too weak or that the targets were not tough enough, the commitment shown by every member of this Accord reaffirms my view that organisations respond best if they are part of the solution.
Industry is under no illusion that it has a year and a half to prove to local and central government that it is making packaging decisions that maximise recyclability; help develop new recycling markets; and incorporating recycling messages as part of its marketing.
However this is a joint challenge because, as a net importer of packaged goods, materials which are recyclable overseas may not be collected for recycling in New Zealand.
So local and central government have a reciprocal responsibility to ensure that people know where, what and how to recycle and to encourage new markets for recycling. The Government's proposed public place recycling and the decision by Auckland and Manukau councils to build Australasia's most high tech recycling centre will assist in this process.
Industry must adapt to the prevailing legislative and economic framework. The Minister this morning made it very clear that packaging is considered to be a priority in terms of the government’s product stewardship targets along with other product types such as mobile phones, tyres, print cartridges.
There is a very persistent clamor from some communities and groups for container deposit legislation to be introduced as it is enabled through the Waste Bill. Those advocating container deposits claim that in countries where it has been introduced, recycling rates hit over 80%.
From our own research and the experience of several of you here who operate within container deposit territories, we know that these rates are very much overstated and that the costs of introducing mandatory deposits on beverage containers in NZ would be of the order of $120 million per annum. However, the pro legislation lobby continues.
A similar debate looms over plastic bags. Industry has based its Make a Difference campaign on what shoppers asked for. Research conducted by AC Nielson with 1000 shoppers early last year found that 3 out of 4 New Zealanders said they did not support a ban but wanted to be reminded to do the right thing by taking fewer bags at the check out. That’s because 75% bags taken are reused for household refuse, kids school needs etc.
With supermarkets working together towards a common goal, New Zealanders are taking around 115 million fewer plastic bags each year. Non food retailers including the fuel retail sector have signed up to the campaign and other major chains have agreed to use the Make a Difference logo to provide a common message to shoppers.
What we do however hear loud and clear from Government is that if industry wants to maintain a voluntary approach, the Accord needs to represent everyone. The government calls those who are not in the loop free loaders.
It is the government’s stated preference that voluntary accords with industry enable them to focus their legislative efforts on those sectors which have the most to do. The packaging sector has a proven track record; each sector will meet or beat its recycling targets and is under no illusion that getting a 3rd Accord signed will need us to raise our game even further.
The carrot is that we all benefit from increasing recycling rates and reducing waste to landfill; the stick if we don’t achieve this on our own is legislation which will bring huge compliance costs to our industry and our economy.
At a time when fuel, food and energy costs are spiraling; increased costs are being proposed through emissions trading schemes and a waste levy, we can help to prevent further intervention by leveraging the partnerships on which the Accord was founded.
I am proud of the success of the Packaging Accord and I would like to thank the Governing Board and each sector for being a part of this success that we have celebrated today. But our work is only part way through and we need everybody here to get on board the bus and prove that voluntary works because it is best for the environment, best for society and best for the economy. Mark Brosnan - President, Packaging Council of New Zealand Implementing the learnings from the seminar into your everyday business practices. Speaking after lunch is traditionally known as the graveyard speech but I think being the final speaker of this seminar, when 18 people have already spoken before me, is far more challenging.
Tasked by Paul with rounding up the day, not repeating what’s gone before, sending everyone away on a high but not taking too long as drinks are being poured as I speak is no mean feat.
I considered taking the approach that everything I could possibly say has already been covered by the experts and whilst this is undoubtedly the case, as President of the Packaging Council one of my roles is to ensure we are on message about the benefits of packaging and what we are doing to mitigate our environmental impacts.
Accordingly drinks will have to wait a little while.
International business and psychological motivator Anthony Robbins has helped me out here.
To quote him:
“Lots of people know what to do, but few people actually do what they know. Knowing is not enough! You must take action.”
If you didn’t before, after today you will know all there is to know about the Packaging Accord – but how do you now take action and transfer those learnings into your own organization tomorrow?
For most of the 17 years that I have been part of the grocery industry, packaging has been chosen to protect and preserve products from production to consumption.
For marketeers, packaging provides an opportunity to inform and to make your brand stand out on the supermarket shelf.
But packaging is now an integral part of every company's environmental image. It tells a story about how committed we are in reducing the impact which we have on the planet.
So let’s run through some Hot Tips to making the Packaging Accord real for your business.
Tip 1 – Get commitment from your leadership
Make sure that you have CEO and senior management team commitment.
It is important to have buy-in and commitment from your CEO to your company’s environmental policy, which should include a commitment to the Accord, but it mustn’t stop there. Key personnel also need to be aware of your environmental policy and what is required.
TIP 2 – Get the key people together
Whilst ordinarily I concur with Peter Drucker that
“Meetings are a symptom of bad organization. The fewer the better.”
If you haven’t already had a meeting or got a process in place to evaluate the type of packaging materials you use, I suggest you get together those in your company that make decisions about product design and packaging.
Then make a commitment as a team to research and replace packaging which has lesser environmental impact than alternatives.
Tip 3 – Look at your design process
History has shown that it is all too easy to innovate without having a clear picture of all the ramifications of changing the packaging material.
If you are responsible for new product development, check that your process includes early advice about the environmental impacts of your packaging. If you don’t have this expertise in house, talk to the Packaging Council or dig out your “Code of Practice for the Packaging of Consumer Goods”.
TIP 4 – Evaluate your logistics
Packaging is just one part of your overall supply chain but its choice can have a real impact on your total environmental footprint.
Look at both the primary and secondary packaging and then consider how your packaging type fits your distribution environment.
I know from the work done by Progressive that considerable savings can be achieved by combining different types of products and packaging shapes to maximize the vehicle cube and storage facilities.
TIP 5 - What gets measured gets managed
Collect and report site waste and recycling data. Record what you throw out! Circulate this information to others and implement a process for continuous improvement.
TIP 6 – Communicate your successes
Communicate your environmental benefits and success stories within your company and forward to the Packaging Council to be highlighted in their quarterly newsletter, ACCORDing to PACKAGING.
Talk to the Packaging Council and other sector groups. These are a great source not just of information but also of support. Let’s leverage these networks to best effect.
So, to summarise on how you can take action and transfer the learnings from today into your own organization tomorrow:
As 17th century orator Robert South said:
“Problems can become opportunities when the right people come together”
I am delighted that the right people have come together today.
The success of the Packaging Accord depends on all sectors having a single minded focus to deliver on their commitments.
As a nation we tend toward the glass is half empty rather than half full view. We now have a packaging recycling rate of 57% which is up there with the rest of the world and represents a 20% increase on our 2005 recovery rate.
To put this in perspective, this increase equates to an annual saving of around 33,000 tonnes of carbon dioxide or taking approximately 8000 cars off the road.
So I would like to thank everyone who has helped us achieve the 57% recycling result. With this momentum, we can show the rest of the world that a voluntary model works best. The New Zealand Packaging Accord is successful because it is a partnership between all sectors of the packaging and recycling industry and local and central government.
I am looking forward to announcing even better recycling rates at the end of Year Four and to successfully negotiating a 3rd Accord.
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TOWARDS SUSTAINABLE PACKAGING |
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