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New Zealand Packaging Accord 2004: Brand Owners and Retailers Sector Action Plan

1. Introduction

This action plan has been prepared by Brand Owners and Retailers to demonstrate the sector’s commitment to reducing the environmental impacts of packaging materials and products. This commitment includes working with other sectors, acknowledging that some aspects of the Accord require significant joint effort across all sectors to achieve desired outcomes.

Packaging is indispensable to the health and safety of consumers. It is important that, as Accord parties, Brand Owners and Retailers provide other sectors with the health and safety perspective on the packaging of their products. The packaged goods industry (and brand owners and retailers in particular) has a responsibility, during the design and manufacture of its products, to use resources sustainably and to minimise adverse environmental and social impacts.

Brand Owners and Retailers are high users of packaging and so have an equally large impact on the packaging lifecycle (from design through to recovery or disposal). For this reason Brand Owners and Retailers need to be actively involved in, and seek opportunities to improve, the sustainability of packaging used in New Zealand.

2. About this sector

The Brand Owners and Retailers sector is very diverse. The sector is comprised of a range of companies whose businesses supply or sell fast-moving consumables that satisfy personal needs, such as food, clothing, health and personal care products, and durable goods.

Some companies are represented by industry groups and professional bodies and others by the Packaging Council of New Zealand (PAC.NZ). There is currently no one group that represents all companies within the sector. This sector did not exist during the first phase of the Accord.

Within the action plan, therefore, sector group activities may reflect either company- or sector-level commitments. PAC.NZ has agreed to assist the sector as needed to collate and coordinate information, meetings etc.

As it currently stands (July 2004), a company must, in order to be party to the Accord, be a member of PAC.NZ or have an association with it, yet to be determined. Some organisations involved in developing this plan that are not PAC.NZ members continue to work with PAC.NZ and the Ministry for the Environment (MfE) towards resolving their status in relation to the Accord.

3. This sector action plan

As part of the process, all parties to the Accord have prepared sector action plans. Sectors represented in the Accord are:

  1. Aluminium
  2. Brand Owners and Retailers
    The Brand Owners and Retailers sector, and its plan, is the result of a merger of the Brand Owners: Grocery, Merchandise and Other groups, and the Retailers group.
  3. Central Government
  4. Glass
  5. Local Government New Zealand
  6. Paper
  7. Plastics
  8. Recycling Operators of New Zealand
  9. Steel

This sector action plan identifies the contribution that the sector and the companies and organisations it represents will make to the achievement of New Zealand Packaging Accord 2004 objective and, in so doing, related aspects of the New Zealand Waste Strategy.

It reflects the collaborative approach of the Accord process, which encourages all parties to work towards achieving a common objective and, of necessity, acknowledges that there are different ways of doing this.

Each party to this plan has agreed to the implementation of the activities/outcomes it lists as a minimum commitment to the Accord. The actions agreed to within the sector are detailed in the tables that follow, along with the timeframe the sector has to plan, implement and, where stated, achieve each of its commitments.

To allow for the diversity of the group, the activities are broad. The manner in which the group is coordinated and interacts (ie. via PAC.NZ, and also the New Zealand Food & Grocery Council and the New Zealand Retailers Association) and the relationship between the representative bodies will become clearer as the action plan is implemented.

4. Parties to this plan

The following companies have acknowledged their role in the packaging chain and have made a commitment to the Accord either directly through PAC.NZ or via their industry body. Companies participating in this sector action plan (at July 2004) are:

  • 3M New Zealand Ltd
  • Arnotts New Zealand Ltd
  • British American Tobacco (New Zealand) Ltd
  • Cadbury Confectionery Ltd
  • Chep New Zealand
  • Coca-Cola Amatil New Zealand Ltd
  • Codemark Ltd
  • Colgate Palmolive Ltd
  • Carter Holt Harvey Ltd - Carters
  • DB Breweries Ltd
  • Fisher & Paykel Appliances - Dunedin
  • Fonterra Co-Operative Group Ltd
    • Ingredients
    • Mainland Products
    • Tip Top Ice Cream
  • Foodstuffs (NZ) Ltd
  • Frucor Beverages Ltd
  • Griffins Foods Ltd
  • Healthcare Manufacturing Group
  • Heinz Wattie’s Australasia Ltd
    • Tegel Foods Ltd
  • Imperial Tobacco New Zealand
  • Johnson & Johnson Pacific
  • Lanes Capital Group Ltd
  • Lion Nathan
    • Maltexo Ltd
    • Lion Breweries
    • NZ Breweries (Canterbury)
    • Lion Nathan Wine & Spirits Ltd
    • Lion Nathan School of Business Ltd
    • McCashin’s Breweries
    • Contracting Bottling Company
    • Lion Nathan International
    • Speight’s Brewery
    • Canterbury Brewery
    • Wellington Brewery
    • Lion Nathan Liquor Distinguished Vineyards
  • McDonald’s Restaurants (NZ) Ltd
  • Mobil New Zealand Ltd
  • Montana Wines Ltd
  • Nestle New Zealand Ltd
  • Nutrimetics International NZ Ltd
  • NZ Dairy Foods Ltd
  • NZ Food and Grocery Council
  • NZ Retailers Association Inc
  • NZ Sugar Company Ltd
  • Pharmapac Ltd
  • Potatopak NZ Ltd
  • PPCS Ltd
  • Progressive Enterprises Ltd
    • Countdown
    • Foodtown
    • Price Choppers
    • Woolworths (NZ) Ltd
  • Sanford Ltd
  • Sanitarium Health Food Company
  • S.C Johnson & Son Pty Ltd
  • Sellagence Ltd
  • Shell New Zealand Ltd
  • Shiseido NZ Ltd
  • The Warehouse Ltd
  • The Wrigley Company (NZ) Ltd
  • TPF Restaurants Ltd
  • Unilever Australasia
    • Lever Rexona
  • Waste Management Ltd
  • Wella New Zealand

So that participants can clearly identify the sector action plan issues applicable to them, they have been further divided into five sub-groups, as follows:

Brand Owners: Grocery

Manufacturers of grocery (raw/pre-packaged food and household) items that sell their branded products via a retailer to the consumer.

Brand Owners: Merchandise

Manufacturers of branded merchandise (goods and commodities) other than grocery items that sell their products via a retailer to the consumer.

Brand Owners: Retail

Retailers that manufacture their own branded groceries or merchandise for direct sale to the consumer via their outlets.

Brand Owners: Other

Owners of brands or branded products that are generally not merchandise or grocery items that are sold at retail or wholesale outlets or by other methods.

Retailers

Owners/operators of outlets that sell products and materials directly to the consumer.

5. What this sector action plan contains

The sector has agreed to address all eight Accord measures of progress as listed below. It was agreed that not every measure will be equally applicable to individuals within the sector. However, as the areas are interconnected they should be read and interpreted in a synergistic manner. The measures for action are:

  1. Mass balance data
  2. Trends of annual estimated packaging waste to landfill (or other disposal methods) per person
  3. Packaging design and procurement
  4. Development of sustainable markets for reused and recycled packaging materials
  5. Programmes to achieve national targets (including plastic shopping bag reduction target)
  6. Consumer information and involvement
  7. Accord promotion
  8. In-house waste reduction and resource recovery.

In general, during the first two years of the Accord (Years 1 and 2) the sector will work towards benchmarking its activities and progress. In the last three years (Years 3-5) there is an expectation of improvements being made. The sector will work with all other sectors to reduce the consumption of packaging and improve its recovery. It will report annually on the activities listed in this sector action plan.

6. Sector action plan activities

1. MASS BALANCE DATA (CLAUSE 20)

PAC.NZ will report aggregates annually on behalf of brand owners, retailers and packaging manufacturer groups. Weights of packaging materials consumed and recycled will be collected and presented in formats used since 1994, thus allowing year-by-year comparisons. Reporting methodology will be improved and data will be independently reviewed.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Contribute to packaging consumption (including imports) and collection data. Each company will collect, collate and provide annual packaging consumption data as requested by PAC.NZ. This data will be collected in keeping with agreed formats. Years 1-5
The data will identify packaging materials that have been imported. Years 1-5
SECTOR Collate data by packaging types by sector.

Agree on the most appropriate format for providing mass balance data information (eg. by ratio of packaging weight to product weight).

Year 1
Establish benchmarks that sector participants can meet throughout the duration of the Accord. Year 2
The sector will provide packaging consumption data to PAC.NZ on an annual basis throughout the duration of the Accord. Years 1-5
Participate as required in PAC.NZ review of mass balance data formats, reports and reviews. Years 1-5
JOINT

Improve/revise format for mass balance data to achieve transparency.

PAC.NZ reports annually.

Independent review of PAC.NZ findings.

Cooperate with other sectors and participate in review as required. Years 1-5

2. TRENDS OF ANNUAL ESTIMATED PACKAGING WASTE TO LANDFILL PER PERSON (CLAUSE 21)

Annual estimates of packaging waste to landfill (or other disposal method) per person by material (paper, plastic, glass, steel, aluminium, composites) and in aggregate, by weight. An eventual reduction in these rates will be one of the important indicators of the Accord’s success.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Collect data and report findings to all sectors on packaging types. N/A  
SECTOR Improve packaging format for Solid Waste Analysis Protocol (SWAP). N/A  
JOINT Decrease in per capita rates of packaging waste to landfill. The sector, while not directly involved in the collection of this data, will, as stated throughout this plan, seek solutions that reduce the amount of packaging going to landfill (or other disposal method). Years 1-5

3. PACKAGING DESIGN AND PROCUREMENT (CLAUSE 22)

Annual sector action plan reports will document:

  • Packaging design: a drive for sustainability in packaging design by creating and participating in better design industry training programmes, reviewing new and existing packaging against codes of practice, cooperating with the resource recovery sector during packaging design, and dealing with non-compliance with the PAC.NZ Code of Practice
  • Packaging procurement: improving policies and practices by adhering to codes of practice for sustainable packaging procurement and through supply chain initiatives.
COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Ongoing review process for new and existing packaging using PAC.NZ Code of Practice.

Each company to implement as a minimum a process to demonstrate adherence to the Code of Practice for the Packaging of Consumer Goods, which includes an environmental design checklist.

  • Reference packaging design and materials for new products to the PAC.NZ Code of Practice.
  • Review existing packaging materials and packaging products at appropriate intervals eg. when packaging changes might be required for other reasons, to determine opportunities for environmental improvements that reduce packaging waste to landfill.
  • Develop and implement a packaging procurement policy referenced to the PAC.NZ Code of Practice, along with any additional environmental principles or other requirements appropriate to that company’s business.
  • Companies may, in addition to their mass balance data obligations, provide illustrative details to PAC.NZ of any packaging design and procurement activity relevant to the objectives of the Accord and the national recycling targets.
  • Each company will ensure that employees, particularly within supply chain and/or procurement departments:
    • are made aware of commitments to the Accord and any subsequent initiatives such as purchasing policy arising from it
    • understand how the code and activities within the action plan are to be applied.
Years 1-5
SECTOR Report the number/percentage of companies/organisations that have implemented a review process of new and existing packaging. Promote and seek compliance with PAC.NZ Code of Practice for the Packaging of Consumer Goods. Years 1-5
Liaise with the design and recycling industries and other sectors when making packaging decisions material to Accord objectives.

Years 1-5

Industry training programmes. Encourage and promote training and education throughout the sector in respect of packaging design, materials and procurement. Years 1-5
Rectify non-compliance complaints. The sector may, in addition to mass balance data requirements, provide illustrative details to PAC.NZ of any joint packaging design and procurement activity material related to the objectives of the Accord and the national recycling targets. Years 1-5
JOINT Design a checklist for packaging audits and identify and address design issues. Cooperate with all sectors. Years 1-5
The parties to the plan and/or sectors associated with the Accord may consider working with tertiary education institutions to ensure that environment is a consideration in programmes/courses related to packaging, procurement and supply chain, and that the content of such programmes is consistent with the aims, objectives and principles of the Accord. Years 3-5

4. DEVELOPING SUSTAINABLE MARKETS FOR REUSED AND RECYCLED PACKAGING MATERIALS (CLAUSE 23)

Closing the loop on waste by developing and fostering sustainable markets for reused and recycled packaging materials. Annual sector action plan reports will document cooperative ventures between industry sectors, identify any barriers to, and any frameworks supporting, sustainable resource efficiency industries in New Zealand, and any results from joint initiatives.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Develop purchasing policies that encourage the use of recovered materials.

Where appropriate companies will:

  • ensure their purchasing/recycling policy incorporates consideration for recycled content materials and products
  • ensure the recycled content ie. the percentage of total recycled content and the percentage of post consumer recycled content, is an evaluation criterion for their products
  • consider the recycled content of shipping and distribution packaging and an increase in the percentage of recycled content (and/or increased percentage post consumer recycled content).
Years 1-5
SECTOR Report the number/percentage of companies/organisations with purchasing policies that encourage the use of recovered materials. The sector will provide details (as above) of actions and practices that have been put in place by member companies regarding recycled content purchases. This information will be submitted to PAC.NZ for collation with annual data as and when required. Years 1-5
Make available, as requested, a representative to participate in reviews/working parties to identify issues and opportunities for buying recycled and/or developing sustainable markets for reused and/or recycled packaging materials. Years 1-2

Provide information on projects that contribute to sustainable markets for recovered materials, such as the uptake of recycled content materials and products, and quantify where possible the results of these projects in terms of amount of recycled content.

(Note: Format of measures to be agreed.)

Years 3-5
JOINT Work with other sectors to develop and support sustainable markets for recovered packaging materials.

Facilitate and participate in reviews/working parties to:

  • identify recovered materials markets
  • identify barriers, projects and mechanisms within the industry and amongst its stakeholders
  • encourage sectoral cooperation and combined effort under the Accord to improve the feasibility and availability of markets for these materials and products.
Years 1-2

5. PROGRAMMES TO ACHIEVE NATIONAL TARGETS (CLAUSE 24)

The following are 2008 national recycling targets for recovery of packaging materials (by weight as a percentage of consumption):

  • Aluminium 65%
  • Glass 55%
  • Paper 70%
  • Steel 43%
  • Plastic 23%

All sectors will review these targets and materials within two years of signing the Accord. A plastic shopping bag reduction target, by quantity, will be identified in the Brand Owners and Retailers Sector Action Plan (refer 5.1).

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Contribute to recovery and recycling systems. Each company will work with its respective recycling and waste service contractors, distribution/transport system and local government, where appropriate, to establish, improve and/or extend waste recovery programmes for paper, plastic, glass, aluminium and steel. Years 3-5
Each company will use the recovery targets for the above materials to determine individual company actions and progress towards agreed national recycling targets. Years 3-5
SECTOR

Meet agreed national recycling targets.

Use mass balance (and SWAP) data to track and report progress against targets.

Provide details, as requested, of actions and practices that have been put in place to contribute to the achievement of agreed recycling targets which will be submitted to PAC.NZ for collating with their annual data. Years 1-5
Make available, as requested and if required, a representative to participate in reviews/working parties and the like to identify issues and opportunities for increased recovery and recycling rates within the sector. Years 1-5
JOINT Identify and address recovery issues. Facilitate and participate in reviews/working parties and the like, if required, to identify issues and opportunities for increased recovery and recycling rates across all sectors. Years 1-5
Establish communication channels to notify recyclers of significant changes in packaging material. Years 1-2
Meet agreed national recycling targets. Ensure sectoral cooperation to reach national recycling targets by 2008. Years 1-5

5.1 PLASTIC SHOPPING BAG REDUCTION TARGETS

The retail sector signatories to this Accord believe that plastic shopping bags provide the most cost-effective and practical means for distributing merchandise at point of sale in supermarkets and in the general retail environment. They often provide an important secondary use within homes for storage and ultimate removal of waste.

Plastic shopping bags are estimated to contribute less than 0.2 percent (by weight) to the entire waste stream in New Zealand. It is often the litter impact of plastic bags that contributes to the perception that they are a waste problem. The retail sector can assist in promoting to the public the responsible disposal of plastic shopping bags to alleviate this litter problem.

Retail signatories to this Accord are committed to the responsible use of plastic shopping bags, including reducing unnecessary use of bags, providing reusable bag alternatives and collaborating with other sectors to promote the recovery and recycling of plastic shopping bags.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Individual retail signatories to the Accord will develop and implement plans in order to achieve national reduction targets for plastic shopping bags.

Reduce — discourage unnecessary use of plastic shopping bags.

Reduce - maximise the number of items packed per bag, appropriate to item type.

Reuse — provide alternative multi trip/reusable (cloth and plastic) shopping bags for sale in store.

Recycle — provide customer recycling facilities for checkout bags. (Implementation will differ according to type of retail environment.)

Targets — using the 2003 and 2004 years as a baseline, establish company reduction targets of a minimum of 20 percent by 2008 and adjusted for growth in sales.

Quantify — the usage of plastic shopping bags:

  • total units across all bag types
  • mass — bag type weight x units
  • recycled-content new bags — percentage of recycled content of total mass
  • relativity to sales — kgs HDPE per $1m sales
  • customer recycling — approximate mass of returned bags.

Forward above data to PAC.NZ on an annual basis for inclusion in national target reporting.

Promote — use company advertising media and in-store communications to engage consumer support for the above initiatives.

Years 1-5
SECTOR Retail Accord signatories will collaborate in non-commercially sensitive ways to achieve the national reduction target for plastic shopping bags. Standardise — while still retaining competitive differentiation and sourcing, the industry will investigate creation of a New Zealand standard for plastic shopping bags, incorporating a plastics ID code, appropriate messages promoting responsible reuse and recycling, and recycled material content and degradability (where this is an accepted option for all sector groups). Years 1-2
Recycle — investigate the feasibility of a retail industry standard checkout bag recycling receptacle for placement in large stores, malls and retail precincts. (Implementation will differ according to type of retail environment.) Year 1
JOINT Cross-sector collaboration to achieve the national reduction target for plastic shopping bags. Recycle — develop a joint recycling initiative with recyclers and local government to enable consumers to recycle their bags through established kerbside collection systems. Years 1-2
Promote — Investigate trans-sector initiatives to promote responsible use of plastic shopping bags targeting reduction, recycling and litter. Years 1-5

6. CONSUMER INFORMATION AND INVOLVEMENT (CLAUSE 25)

Ways of informing consumers and involving them in sustainable packaging design and packaging resource recovery programmes must be developed. Consumers must be made more aware of packaging issues and empowered to act on their decisions about packaging purchases, recovery and disposal.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Implement relevant parts of the programme. Nominate representatives to provide contributions to the sector development of Accord programmes. Years 1-5
Where possible provide information at point of purchase. Years 3-5
Where possible provide information to consumers on the recovery/disposal options available to them. Years 3-5
Where relevant to the organisation participate in joint and sector Accord programmes. Years 1-5
Where appropriate and beneficial apply Accord promotions within business. Years 1-5
SECTOR Assess programme and develop an implementation strategy. The sector will seek to ensure clear consistent messages are conveyed to consumers concerning the important role packaging plays in the marketing of consumer goods, the initiatives being taken by the industry to reduce and minimise the impact (of packaging) and the part consumers can play in the Accord. Years 1-5Year 1
Identify effective ways of conveying information about packaging and the PAC.NZ Code of Practice for the Packaging of Consumer Goods and the complaints procedures it contains. Year 1
Nominate representatives to participate in further development of the joint material and facilitate its development for application by the sector.  
Participate as appropriate to the sector in joint Accord programmes.

Years 1-5

JOINT Develop a communication strategy for consumer information on the Accord.

Establish a representative working group to:

  • Identify the critical components in educational material, cost-effective means for delivering messages and a timeline for implementation of activities. (This group should consider the timeframe over which educational materials will be produced and delivered and the date for review and modification of any programme).
  • Review and evaluate existing educational material and programmes. Also identify other specific opportunities that will support the Accord generally, and the sectors in particular.
  • Identify aspects which are consistent or inconsistent with Accord objectives and amend/delete them where they serve no other or a redundant purpose. Where programmes are consistent with objectives, critical factors are to be promoted and included in current and new programmes.
  • Develop clear, generic messages capable of implementation by all sector groups and appropriate for scaling to the size of individual operations. There should not only be consistency of message but also consistency of delivery.
  • Ensure that generic messages are aligned with existing material.
  • Identify and act on opportunities related to the New Zealand Waste Strategy and other programmes, such as lifeafterwaste.
  • Identify effective ways of conveying information about packaging and the PACNZ Code of Practice for the Packaging of Consumer Goods and the complaints procedures it contains.

Inform consumers about the need for and the role of packaging eg. health and safety, tampering/pilfering, social and economic issues, its contribution to the total solid waste stream, levels of packaging recovery and recycling, the environmental footprint of packaging types, gains made in packaging performance and recovery to date and the part consumers can play in the Accord.

Years 1-2
Monitor and review results and improve consumer information and education strategies as required. Years 3-5

7. ACCORD PROMOTION (CLAUSE 26)

Ensuring target sector and consumer audiences know about the Accord and that its issues involve them, as well as ensuring they understand the commitments embodied in sector action plans. It is also important to promote and recognise excellence in environmentally acceptable packaging.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Promote the Accord within the company/organisation.

Each company will undertake appropriate initiatives to promote the Accord. These may include:

  • participation in PAC.NZ, sector and Government promotions of the Accord
  • providing appropriate details of the Accord on company websites
  • nominating a representative to participate in cross-functional teams within the sector with respect to commitments and activities surrounding the sector plan, the Accord and related issues
  • ensuring suppliers are briefed about the Accord, its objectives, the commitments made and performance against the plan
  • ensuring their employees are briefed about the Accord, its objectives, the commitments made and performance against the plan
  • including relevant information in appropriate external communications, information concerning the Accord and the company’s participation in the Accord.
Years 1-5
SECTOR Promote the Accord within the sector. Work with PAC.NZ to encourage non-participants within the sector to become parties to the Accord and this plan.

Years 1-5

Form working parties etc. as required in order to facilitate implementation of the promotional plan for the Accord and the sector action plan.

Years 1-5

Seek to promote and disseminate information about the Accord both within the sector and to the wider public.

Years 1-5

Identify effective ways of conveying information about the Accord and commit to including Accord messages in existing and new communication channels eg. in-house newsletters etc.

Years 1-5

Provide ongoing assessment of the promulgation of these messages eg. increased returns in recovery rates, which may be provided by a different sector.

Years 1-5

JOINT

Work with other sectors to promote the Accord.

Target audiences:

  • signatories to the Accord (sector groups)
  • entire packaged goods industry (internal and external)
  • local government
  • central government
  • supply chain
  • media
  • consumers.

Develop concise and consistent messages for promotion within extended sector groups.

Promote and encourage participation in environmental awards programmes such as the Environmentally Acceptable Packaging Awards (PAC.NZ) and the Green Ribbon Awards (MfE).

Provide ongoing assessment of the delivery of these messages.

Years 1-5

8. IN-HOUSE WASTE REDUCTION AND RESOURCE RECOVERY (CLAUSE 27)

Promoting in-house waste reduction and resource recovery across sectors and reporting annually on any initiatives.

COMMITMENT
ACTIVITIES
YEAR
COMPANY/ ORGANISATION Initiatives to reduce waste and improve resource recovery. Each company may develop and implement a waste reduction and resource recovery strategy addressing issues and opportunities specific to the company’s own business and packaging waste issues arising from the operations and administration of the business. Year 2 (develop)
Year 3 (implement)
Conduct biennial packaging waste audits or similar in order to determine achievements in waste reduction and resource recovery. Years 3 & 5
Report on existing initiatives and strategies for in-house waste minimisation.

Years 1-5

SECTOR Report the number/percentage of organisations with initiatives. Promote in-house waste reduction and resource recovery. Years 1-5
Report waste reduction and resource recovery initiatives to PAC.NZ. Years 1-5
Confirm audits (or similar reviews) have taken place. Years 3& 5
JOINT (no joint commitment)