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AUSTRALIAN PACKAGING COVENANT
ACTION PLAN
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Executive Summary
3
Endorsement
3
Company Overview
3
Locations
3
Our Brands
4
Integria Healthcare Packaging Operations
4
Packaging Groupings and Review Schedule
5
Approach on review of existing packaging
5
Related Initiatives
6
Packaging Consolidation
6
Shipper Consolidation
6
People
7
Covenant Contact Officer
7
Australian Packaging Covenant Team
7
Defining Required Actions
8
Design Actions
8
Recycling Actions
8
Product Stewardship Actions
8
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Executive Summary
Integria Healthcare (Australia) Pty Ltd (IHC) is a signatory to the Australian Packaging Covenant (APC) as a Brand Owner and is committed to embedding responsible packaging stewardship across the business and establishing a practical approach to contributing to APC goals and the related KPI’s. In doing so IHC has developed this Action Plan to address the 3 goals of the Packaging Covenant’s Strategic Plan: Design, Recycling and Product Stewardship.
1. Design: We are aware of the importance of the Sustainable Packaging Guidelines (SPG’s) and are fully supportive of it being implemented in all new product/packaging developments whilst also reviewing existing packaging.
2. Recycling: We will continue to look for opportunities to increase recycled contents in packaging in compliance with the Therapeutic Goods Administration guidelines for pharmaceutical packaging. Additionally IHC is committed to continuous improvement of its recycling efforts, and outlines the measures that will be taken in this area within the following Action Plan.
3. Product Stewardship: IHC will work to improve the design and recycling of its packaging and take measures, where possible, to effect the reduction of items in litter.
Endorsement
This APC Action Plan is endorsed on behalf of Integria Healthcare (Australia) PTY Ltd, by Ms S. Moore, Chief Executive Officer.
Company Overview
Integria Healthcare is a leader in evidence based natural healthcare, delivered through a strong portfolio of brands to a range of healthcare professionals and retail customers, dedicated to superior efficacy based on credible science.
Locations
We operate in Australia and New Zealand, and export to several countries across the globe.
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Our Brands
Practitioner Only Brands Retail Brands
We have a long and rich heritage through our industry leading brands and manufacturing facilities based in Warwick, Queensland and Ballina, New South Wales.
Our product range is manufactured in accordance with the Australian Code of Good Manufacturing Practice.
Integria Healthcare Packaging Operations
IHC packages a wide variety of products from tablets to lotions and herbal extracts to oils. These products are sold to local and international customers including practitioners, pharmacies and healthcare retailers. This mandates an assortment of containers,
closures, applicators and inner/outer secondary packaging formats, to ensure stability of products, application, dispensing, and that customer demands are provided for.
Packaging materials range from pharmaceutical glass and plastic bottles (HDPE,PP, PET), a range of materials specific to closure requirements (POM, PP, HDPE, LDPE) plus secondary and tertiary materials (cardboard, stretch and shrink wrap) that are common to most goods manufacturers. Shelf friendly packaging also has a place, as is becoming a common requirement in the retail environment.
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Packaging Groupings and Review Schedule
Table 1.0Packaging Item Review Timing Reviewing Party
Shippers May – December 2012 Procurement Manager
Glass Bottles January – March 2013 Procurement Manager
Point of Sale Material January – May 2013 Brand Manager
Plastic Bottles/Toothpick Container April – August 2013 Procurement Manager
Tubes September – October 2013 Procurement Manager
Inner/Display Cartons and Trays November 2013 – February 2014 Procurement Manager
Plastic Film (Shrink/Pallet) March – May 2014 Procurement Manager
Labels June – August 2014 Procurement Manager
Closures/Applicators September – November 2014 Procurement Manager
Blister Packs/Pouches December 2012 – February 2015 Procurement Manager
Approach on review of existing packaging
The approach to reviewing current packaging will be as specified in the table 1.0. This review will include applying the Sustainable Packaging Guidelines and documenting the outcomes, and required actions where improvement is possible. The logical approach to reviewing a diverse range of packaging formats and materials is by its categorised type. The reviewing party will work in consultation with the APC Team to ensure SPGs,
regulations and business requirements are considered during the review process. Additionally, as required, other internal and external parties will be consulted to ensure compliance and appropriate specifications are maintained, and that opportunities are thoroughly investigated. Where the investigation calls for action to be taken, rollout will be sequenced by customer and brand to ensure smooth transition.
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Related Initiatives
Packaging Consolidation
During 2011 IHC reviewed its overall packaging on primary and secondary levels. The outcome is to implement change to affect a reduction in both primary and secondary packaging formats, with a flow on effect to streamlining of inbound supply chain, production efficiency and improved warehousing capacity. A summary of the targets is displayed in the table below.
Table 1.1 Overall Packaging types Primary Packaging (Containers) Primary Packaging (Closures) Secondary Packaging (Shippers) Baseline Data Current formats (%) 100% 100% 100% 100% Target post consolidation (% of baseline) 85% 93% 96% 66%
*Data excludes product deletions
Shipper Consolidation
IHC has reviewed its secondary packaging with a view to rationalising the number of formats of shipping cartons. During this review consideration was given to increased use of recycled materials for shipping cartons. As a result the number of shipper types is planned to be reduced by more than 30% (see table 1.1), and rollout of this consolidation is currently a work in progress with a target date of end 2012 for the majority to move to the revised format.
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People
Covenant Contact Officer
Stewart LaytGeneral Manager - Procurement & Planning Level 1, 8 Clunies Ross Court (PO Box 4854) Eight Mile Plains QLD 4113
Australia
PH: 07 3423 6582
Australian Packaging Covenant Team
IHC has established an Australian Packaging Covenant Team, comprising of the people outlined in Table 1.2. This team will be responsible for meeting the commitments outlined in the Action Plan.
However, it is acknowledged that the initiatives in the plan are part of our responsibilities to our environment, which belong to the entire business. The team will therefore work in consultation with other areas of the business to ensure all departments are aware of, and contributing to, our commitments to the APC. This will include Sales, Customer Service, Quality, Technical, Regulatory Affairs, Human Resources, Logistics and Information Technology.
Table 1.2
Name Responsibility
Reg Lehmann General Manager Research and Development Stewart Layt General Manager Procurement and Planning
Morgan Bell Brand Manager
Danielle Tunks Procurement Manager
Beau Staples Health, Safety and Environment Manager
Reece Ryan Production Manager
Damien Lawler Assistant Production Manager
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Defining Required Actions
The APC sets out a numbers of goals and related KPIs for signatories to address in their action plans. The following is a summary of the actions IHC will implement in meeting its requirements as a signatory.
Design Actions
IHC is committed to implementing SPG’s for the design of new products/packaging and to reviewing current ranges in line with the guidelines. A checklist is under development for use by the New Product Development Team and for reviewing current ranges. We have continuing commitment as a signatory to the APC to utilise this checklist and apply the broader principles to the day to day operation of the business, and in doing so intend to become an increasingly sustainable signatory to the APC.
Recycling Actions
Recycling is common place at IHCs manufacturing plants; however there is always room to improve. Through a review of current practices and a commitment to continuous improvement in this area, IHC aims to improve its recycling procedures. All areas of the business will endeavour to apply sustainable practices that have positive outcomes for minimisation, re-use and recycling. Both manufacturing and administrative areas will under-go auditing to highlight where improvements can be made to ensure reduced waste to landfill within the business.
Utilising outputs of recycling is another area that the business will continue to invest in. This commitment will be demonstrated through the development and implementation of a “Buy Recycled” policy supporting KPI 4 of the APC.
Product Stewardship Actions
In achieving design and recycling objectives, IHC will work with others to fill knowledge gaps and improve current practices. Additionally we will make our supply base and colleagues aware of the importance of our commitment to the APC and collaborate on initiatives to meet APC goals.
Whilst current practices include the use of returnable containers for bulk products, we will work further in this area to wherever possible increase the use of returnable packaging. We will also provide information to our customers and consumers on appropriate reuse, recycling or disposal of our packaging over the product lifecycle.
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measure KPI Data
KPI 1 – Proportion of signatories in the supply chain implementing the SPGs for design or procurement of packaging 1 - Packaging design Develop SPG checklist/s, and incorporate into SOPs for NPD and review of existing packaging
SPG checklist in place
KPI 1 Checklist not in place
Develop and implement checklist
APC team June 2012
Review all NPD and refreshed products against Sustainable Packaging Guidelines
Identify all new and refurbished products for review against SPGs checklist
KPI 1 Checklist not in place, NPD process review to include SPG checklist Utilise checklist in all NPD and product refreshes NPD team September 2012 Review 100% of all existing packaging and Point of Sale material against the Sustainable Packaging Guidelines checklist by 2015 Executing the review in line with the schedule, documenting outcomes, action where appropriate
KPI 1 refer to table 1.0 Assess current packaging against the SPG checklist and make improvements where possible Procurement Manager Review 100% of packaging by March 2015 Consolidate different types of primary packaging items used in manufacture % of consolidation rolled out
KPI 1 refer to Table 1.1 Reduction in number of varying primary packaging items procured, improved line efficiency Packaging Specialist Dec 2012
10 | P a g e of signatories with on-site recovery systems for recycling used packaging
with the aim of reducing the amount of recyclables in the general waste stream completed b) Outcome of audit determining a schedule of action systems are in place. Review and improve. amount of recyclable waste to landfill, investigate opportunities to reduce. KPI 4 – Proportion of signatories with a policy to buy products made from recycled packaging. All Covenant signatories will have a formal, documented policy of buying recycled products or materials Develop ‘buy recycled’ Policy for packaging materials
Policy
Documented
KPI 4 Policy not in place Policy documented and in use. Procurement March 2013 KPI 6 – Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging 3 - Product Stewardship Develop formal processes for working with others to improve design and recycling of packaging Document formal processes KPI 6 No formal processes in place Apply the formalised processes and document outcomes
11 | P a g e meeting with primary packaging suppliers schedule – will relate to Table 1.0 practice is engagement on a needs basis opportunities and innovations relating to design Manager (schedule in place) Review arrangements with waste management partners Documentation of reviews and potential improvements KPI 6 Current practice mandates some recyclable waste to landfill Engage suppliers that reduce waste to landfill Procurement and HSE Managers Dec 2012
Use reusable tertiary packaging where possible
Continue the use of reusable + investigate more KPI 6 No current formal process Inclusion in the ‘Buy recycled’ Procurement policy Procurement Ongoing KPI 7 – Proportion of signatories demonstrating other product stewardship outcomes
Continue work with our suppliers to increase usage of recycled content packaging - carton level % of cartons made from recycled board/with increased recycled content KPI 7 Majority of existing cartons used kraft outer layer Less than 10% of shippers using a portion of kraft material Packaging Specialist End 2012 Introduce policy on 2 sided printing to reduce consumption of paper % reduction in paper usage for printing
KPI 7 No current policy
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and external parties of our commitments to the Covenant, and educate where possible communication methods and action a rollout internal awareness only internally and externally via the identified methods Will be reported on annually KPI 8 – Reduction in the number of packaging items in litter Establish a process to audit and work internally and with external packers to introduce appropriate disposal symbols to packaging Introduction of the disposal symbols to packaging KPI 8 No current formal process
Process in place Procurement Manager In line with packaging reviews (Table 1.0) Reporting Report regularly on packaging sustainability performance Annually Report on progress against this Action Plan to the Australian Packaging Covenant Report on time and in full Development of Action Plan Report on progress General Manager Procurement and Planning March Annually