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What Is Renewability In Packaging, And Why Should We Care?

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Tetra Pak has launched a campaign to raise industry awareness of the importance of the front end of the packaging life cycle--the sourcing of renewable materials--and is calling on the consumer goods …

Tetra Pak has launched a campaign to raise industry awareness of the importance of the front end of the packaging life cycle--the sourcing of renewable materials--and is calling on the consumer goods industry to commit to prioritizing renewability. As part of the kick-off to the campaign, called “Moving to the Front,” Tetra Pak has also released this white paper with input from the WWF, which outlines how using renewable resources creates value that can help businesses grow.

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  • 1. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 2 EXECUTIVE SUMMARY sustainability by transitioning from the linear ‘take, make, dispose’ model for packaging to a circular, restorative model that considers every stage of the package life cycle.2 In particular, businesses could shift the traditional focus from the end of the package life cycle to the beginning, by considering the raw materials and quantity used in the creation of a package. The main role of a package is to protect the product within, but as long as this is upheld, the sourcing of raw materials and renewability can become a priority. The world is growing. Increased travel, greater populations in urban areas, and higher demand for convenience products and packaging are putting an alarming strain on the world’s supply of scarce natural resources. Supplies of clean air and water are under pressure; and oil, natural gas, and minerals are expected to run out by the end of this century.1 We are playing a self-destructive game with the limits of our planet, and the time to change, innovate, and lead is now. Businesses can become leaders and protect their long-term
  • 2. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 3 ‘Renewability’ – or simply ‘the ability to renew’- is about using a resource that can be regrown or replenished naturally with the passage of time, such as paperboard- based packaging and renewable polymers such as bio-based polyethylene (PE). Renewability in packaging is vital to the future of our planet to help offset pending resource scarcity, and also offers many environmental benefits such as mitigating changes in climate patterns, serving as a carbon sink, and enabling biodiversity. Using renewable resources whenever possible – and the smallest amount required for the package to do its job – will have a positive impact on our global economic stability and the ongoing health and biodiversity of our planet. Renewable resources in packaging are only a good alternative if they come from responsibly managed sources. Forests and land both have credible certification schemes to ensure the ongoing benefits of trees, plants, and food security to our local ecosystems and communities. Forest Stewardship CouncilTM (FSC) is considered to be the leading global certification program by most NGOs and is supported by World Wildlife Fund (WWF). Different certifications schemes and standards also address the sustainable production of specific crops. Bonsucro, a relatively new scheme, is dedicated to reducing the environmental and social impacts of sugar cane production. There is no perfect package today, but we can learn about the carbon impact at each life cycle stage using a tool called Life Cycle Analysis (LCA). By revealing the big picture, LCA helps avoid improvement in one area at the expense of another. LCAs show that using renewable materials in packaging can provide a step change for positive results. For example, if 75% of a package’s weight is from renewable paperboard, that element of the package only contributes 20% of the carbon impact throughout the package life cycle. 3
  • 3. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 4 Adopting renewable resources in packaging means less price volatility and a more reliable supply chain. For businesses today, using renewable resources in packaging doesn’t have to be only about managing costs. Decreasing physical availability, economic scarcity, and geopolitical issues all contribute to an insecure supply of finite natural resources. Embracing and promoting renewability in packaging is also a differentiating strategy for businesses. If companies adopt renewable packaging today, they will be on the cutting edge of a growing movement and have an opportunity to increase brand equity by being a more trusted, responsible and sustainable business. Businesses can look at their own operations for renewable packaging opportunities, and take a leadership role with industry and consumers. Similar to the evolution of recycling, as ‘green’ consumers better understand the concept of renewability, they will embrace it and put pressure on businesses to offer renewable packaging.
  • 4. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 5 Tetra Pak® takes a holistic approach towards our environmental footprint evaluating and setting meaningful targets to reduce the environmental impact of our products throughout their whole lifecycle. As such, we have set targets for reducing our carbon emissions and have been global packaging industry leaders in recycling from the start. But recycling isn’t enough – and soon our customers and consumers will expect more too. Therefore, without losing an inch of ground around our current commitments, we must now turn our attention to the front end of the lifecycle and how materials are sourced. We must establish a new industry commitment to renewability — protecting natural resources and rewarding best practices and innovations that focus on the front end. Such a commitment will keep our industry strong and viable in an increasingly volatile economy. Recycling will continue to be a key part of a restorative circular economy, but it is not the only component. With this white paper as a starting point, we are launching a new campaign to help define how our industry achieves important renewability goals around the sourcing of raw materials. Working together, the decisions that businesses and consumers make now can help shape a brighter future for our economic wellbeing, our global communities, and our planet. Please join us in this important conversation. We invite you to visit http:www.doingwhatsgood.us/moving-to-the-front/, follow us on Twitter @TetraPak _NA_Eco, and visit our website at www.tetrapakusa. com. Thank you for caring about renewability in packaging. JOIN US IN LEADING A NEW MOVEMENT - TO THE FRONT
  • 5. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 6 The world is growing. And so is demand for our scarce natural resources. There will be nine billion of us sharing the planet by 2050, including three billion new middle-class consumers.4 Increased road and air travel, greater populations in urban areas, and higher demand for convenient packaged goods and products will put an alarming strain on the world’s supply of clean water, air, and other natural resources. Fossil fuels – including oil and natural gas - are predicted to run out in the next 30-70 years depending on consumption rates, according to a 2012 futures report by the BBC.5 Minerals - including aluminum, copper, and silver – are also expected to be gone by the end of this century.6 While our growing population is using up resources, we are also throwing away more and creating new landfills to support our waste. Solid waste generated per person per day will increase from 2.6 pounds today to 3.1 pounds by 2025 – an increase of almost 20%. 7 INTRODUCTION CHANGE NOW: OUR PLANET AND BUSINESSES DEPEND ON IT
  • 6. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 7 Our growing global population is using natural resources and creating waste at a rate that our planet is struggling to support. If we don’t change the current trajectory, we’ll find ourselves living and working in a world that cannot sustain its inhabitants. Predictions vary for what this world will look like. Some extreme views - for the depletion of oil in particular - include “soaring gas prices, the end of globalization, widespread anarchy, and the relentless exploitation of previously protected drilling sites.” 8 This scenario would cause major disruption to businesses and consumers around the world, and would permanently damage the earth’s natural environment and biodiversity. Other views claim the decreasing supply of oil will inspire increased innovation, such as the recent development of hybrid cars, which will result in fewer and different resources being used to support our needs. A McKinsey article on resource scarcity supports innovation as an outcome: “Will shortages of energy, materials, food, and water put the brakes on global growth? Far from it. By combining information technology with industrial technology, as well as through harnessing materials science and biotechnology, innovators are showing that it is possible to produce more with less and to access resources at far lower costs.”9 The true outcome will likely fall somewhere in between these different viewpoints. We do know that global oil supply, for example, cannot meet current global oil demand forever. Even if innovation and new technologies allowed us to harvest every last drop of oil in the planet, decreased supply and higher prices would necessitate widespread change long before we actually ran out of oil.10 The same is true for other fossil fuels and minerals. Whichever scenario aligns most closely with your beliefs – extreme, or perhaps less so – the truth is we are running dangerously low on natural resources and playing a self-destructive game with the limits of our planet. The time to change, innovate, and lead is now.
  • 7. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 8 Businesses can become leaders in this space - and protect their long-term prospects - by transitioning from the traditional linear ‘take, make, dispose’ model for packaging to a circular, restorative model that considers every stage of the package life cycle,11 and by growing awareness about this. The traditional linear model relies on “large quantities of easily accessible resources and energy, and as such is increasingly unfit for the reality in which it operates.”12 The circular economy, in contrast, relies on resources that can be replenished, eliminates the use of toxic chemicals throughout the life cycle, and minimizes waste through careful planning and design. 13 a large quantity of resources was used, and the resources have a limited natural supply, there is a pressing need to consider smaller quantities and alternative resources, as long as product protection remains intact. Packaging is a good place to start considering the circular approach. First and foremost, the role of a package is to protect the product inside. Only when product protection is achieved can we consider material and system trade-offs to improve environmental impacts of the package itself. Today, most consumers focus on the ‘dispose’ stage of the linear model, and specifically on whether or not a package is recyclable. This is not surprising given the decades of investment that recycling access and education have received. Recycling is a key part of the circular economy, but not the only one. Sometimes, even if recyclable, a package may have had a significant environmental impact in earlier life cycle stages, which is why each stage needs to be considered. One critical question is what kind of resources and how many of them went into the creation of the package? If
  • 8. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 9 ‘How were the resources extracted from the earth, and what impact did this have on local ecosystems and biodiversity? How much water, and what type of energy, was used during manufacturing? How much transportation fuel was required to get it to market? Is the package leading to wastage due to size, re-sealability, or other characteristics? What will happen to the package at end of life – is it recyclable, biodegradable, or reusable?’ And the cycle starts again. Asking and getting answers to these questions will provide a holistic view of the full life cycle of packages, and help consider the impact at each stage. There are a number of other questions to ask in the next stages of the circular model: In this paper, we will focus on the beginning of the life cycle. This is not to say we believe other stages are less important, but rather that the beginning of the circular model usually receives less visibility - especially when the subject is sourcing of raw materials and renewability.
  • 9. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 10 The definition of ‘Renewability’ – or simply ‘the ability to renew’ – is about using a resource that can be regrown or replenished naturally with the passage of time. By renewable materials, we mean materials made from natural resources that are inexhaustible or replaceable by new growth. A good example is paperboard – a resource to make packaging – made of fiber from forests that are constantly and progressively replanted, and/or naturally regenerated. There is a common perception that cutting down trees is bad for the planet. However, if forests are well-managed so that trees can regrow, they become a sustainable source of raw material that will be replenished and, therefore, available for many generations to come. “Wood, which is the most abundant renewable material on Earth, is made with solar energy in the forest. We believe the correct policy is to grow more trees and use more wood, not less.” – Dr. Patrick Moore, Founding Member and former President of Greenpeace WHAT IS RENEWABILITY, AND WHY IS IT VITAL?
  • 10. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 11 Another example of a renewable material – and a more recent innovation - is bio-based plastic made from crops such as sugar cane, dent corn or wheat. The beginning of a departure from plastics made of fossil fuels, which are nonrenewable, is a positive step. Still, similar to forests, the land that sources bio-based plastics must be well-managed to ensure sustainable food supplies and prices for our global population. Well-managed forests and land must also uphold the environmental and social values in the surrounding communities. The use of renewable resources in packaging started with paperboard-based packaging, which businesses have been using for many decades. Recent innovations have meant a gradual move towards growing applications of renewable polymers, such as bio-based polyethylene (PE), a plastic sometimes made from ethanol derived from sugar cane (as mentioned above). The first bio-based plastics were used in the early 20th century, to replace ivory used in mirrors and hair combs. More recently, applications of bio-based plastics have been increasing due to the concern over finite resources such as petroleum. These recent applications of renewable polymers started in the automotive and beauty & care segments, and have been expanding to the food & drink industry. For example, the cosmetics company Shiseido has the ambition to replace 50% of petroleum-based materials with renewable materials in products by 2020. For Procter & Gamble, that ambition is 25% by 2020. Coca-Cola, PepsiCo, and Danone have stated similar ambitious targets for the use of green polymers in their packaging. On April 28, 2014, Tetra Pak announced the use of bio-based plastics in packaging for all customers in the Brazilian market.
  • 11. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 12 “We are particularly proud to be the first in the industry to use bio-based low-density polyethylene (LDPE) in carton packages. We believe that the best way to protect the sustainable future of the packaging industry and meet the global challenge of a growing scarcity of fossil-fuel based raw materials is to further increase the use of renewable resources. We have set an ambition to develop a 100% renewable package, building from an average of 70% today. This launch – which brings the content of renewable materials to as much as 82% in a Tetra Brik® Aseptic 1000ml Base package – is an important step in that direction.” – Charles Brand, Vice President Marketing & Product Management at Tetra Pak
  • 12. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 13 While the first generation of renewable polymers is from crops such as dent corn, sugar cane, and wheat, there has been recent innovation in polymers from materials such as waste biomass and algae. One commonly held view is that the introduction of these new materials in renewable polymers will help resolve competition with food and feed crops, and begin to provide a partial solution for environmental impacts such as land use change. “In a world in which the population is growing at a fast pace and demand for food and feedstock are on the rise, the use of feedstock for non-food purposes is often debated. Cereplast’s future family of bioplastics will leverage an algae source rich in ingredients suitable for plastic development, but that also has no effect on the food chain, resulting in a sustainable and population conscious plastic alternative.” – Frederic Scheer, Chairman and CEO of Cereplast “In addition to testing new materials from renewable resources like green-PE, bio- PET and PLA, and identifying opportunities for the use of cardboard from only certified wood sources, we are committed to offering consumers more sustainable product choices. ” – Philippe Bonningue, Vice President of Packaging, L’Oreal USA Food demand is a valid concern, but all of the variables for food security must be considered to assess the overall impact of a bio-based material. These variables include fresh water availability, land and soil management, government regulations, climate events, trade sanctions, and more. There may not be one solution for bio-based plastic that is clearly better than others, but perhaps a variety of solutions will be optimal in different situations. Our society is on a journey of constant improvement and innovation to find solutions with the lowest environmental impact. Whether from paperboard or bio-based plastics - or even new materials that haven’t yet been discovered - renewability in packaging is vital to the future of our planet to help offset impending resource scarcity, and the unknown severity of consequences on business. Depletion of today’s most commonly used resources will force a change in the way we do business and consume products, whether we act now or wait until we don’t have a choice.
  • 13. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 14 Not only does renewability in packaging help offset the economic challenges of resource scarcity, but it also has environmental benefits when the renewable resources are tied with responsible land and forest management, which ensures that the supply is always higher than the demand. For example, well-managed forests are always growing, and wood and wood-based products serve as a sink to absorb growing levels of Co2 from the atmosphere. By soaking up Co2 and other greenhouse gases, forests play a critical role in mitigating ongoing changes in climate patterns.14 Forests also play a major role in protecting the biodiversity of the planet - which is currently under threat - by giving whole ecosystems of plants and animals a place to live. Forests cover 31% of the world’s total land area15, and provide homes for around 50% of all plant and animal species16 and 80% of the world’s terrestrial biodiversity.17 These forest ecosystems are complex webs of organisms that include plants, animals, fungi and bacteria – many of which are still undiscovered. Using renewable resources in packaging wherever possible to begin with, and then using the smallest quantity possible of those resources, will have a positive impact on our global economic stability, the quality of our atmosphere and our planet, local habitats of plants and animals, and biodiversity.
  • 14. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 15 SUSTAINABLE SOURCING DRIVES SUSTAINABLE SUPPLY initiatives, and should form the basis of any forest management certification scheme. The three key areas of attention are: • Economic viability, including the maintenance of a sustained yield of timber and non-timber products and services • Social responsibility, including respect for human rights as well as the rights of workers, indigenous people, and local communities • Environmental sustainability, including maintaining the ecological functions of the forests, maintaining high conservation values, and protecting biodiversity. Forest management certification is a voluntary process through which an accredited body verifies the environmental, social, and economic qualities of a forest against agreed-upon standards, while chain Renewable resources in packaging are only a good alternative if they come from responsibly managed sources, and responsible sourcing relies on credible certification schemes. For example, although wood is used efficiently and for many different purposes, it can take many decades for a tree to grow back. Land must also be carefully managed to ensure its reliable presence as a key variable for food security. The responsible management of forests and land is critical to ensure continuing benefits of trees, plants, and food security to our local ecosystems and communities, as well as climate regulation, air and water filtration, prevention of erosion and sedimentation, ensuring wildlife habitat. Responsible forest management can vary at an operational level because forests differ enormously in social, economic, and environmental characteristics around the world. However, common principles for responsible forest management have been described or prescribed in a number of different
  • 15. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 16 of custody certification confirms the connection from the forest floor to the point of sale. Third- party verified forest management and chain of custody certification is more credible than a self- declaration from suppliers as proof that wood fiber came from well-managed forests. There are a number of forest certification schemes, including Forest Stewardship CouncilTM (FSC), Sustainable Forestry Initiative (SFI), and American Tree Farm System. World Wildlife Fund (WWF) and other leading environmental organizations consider FSC as the only credible forest certification system available globally given the robust environmental and social protections it upholds. There are also specific crop management certifications such as Bonsucro and the Roundtable on Sustainable Palm Oil (RSPO). Similar to that of forest management, those certifications must balance the need for biomass production with the need to produce other materials, as well as respecting workers and local communities’ rights, and protecting local ecosystems and biodiversity. Bonsucro, a relatively new certification scheme, sets a global metric standard for sugarcane and is dedicated to reducing the environmental and social impacts of sugar cane production. Forest Stewardship CouncilTM (FSC) in an international non- profit membership organization that was founded in 1994 by environmental and social organizations and companies to develop a market-based approach that would improve forestry practices worldwide. The three chambers of FSC—economic, environmental, and social—have equal representation and weight in the decision making process of the organization, including developing the principles, criteria, and standards for responsible forest management and chain of custody certification. FSC requirements are comprehensive, and include identifying high conservation values and maintaining or enhancing them, expanding the protection of water bodies and wetlands, ensuring compliance with international and domestic laws, upholding the legal and customary rights of indigenous peoples, and restricting pesticide use. Today FSC is operating in more than 80 countries across the globe.
  • 16. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 17 As the global population continues to grow - with its increasing demand for convenience food and beverage products - the importance of sustainable packaging also continues to grow. First and foremost, sustainable packaging needs to protect the product within. Once this is achieved, the next question is how can businesses design and/or adopt packaging that can further contribute to a circular economy, without compromising performance. There is a tangible way to measure the environmental performance of a package, using a methodology called Life Cycle Analysis (LCA). Life cycle thinking helps gain a broad and comprehensive perspective of our products’ footprints by measuring environmental performance at all life stages, and gaining visibility on the variables with the highest impact. An increasing number of companies are adopting Life Cycle Analysis (LCA) to understand the impact of their products and packages in each stage. By revealing the big picture, a life cycle approach ensures that a company doesn’t create improvement in one area at the expense of another.18 LCAs show that using renewable materials in packaging can provide a step change for positive results. If the package is designed using the minimum amount of materials possible without compromising product protection, and the materials used are renewable, the impact throughout the life cycle will be improved. Chart 1 shows that when 75% of a package’s weight is from renewable paperboard, that element of the package only contributes 20% of the total carbon impact throughout the package life cycle. 19 Chart 1: Co2 Impact of Paperboard MEASURING THE IMPACT OF RENEWABILITY IN PACKAGING
  • 17. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 18 The right start when developing packaging is to use the minimum amount of materials possible to begin with, and renewable materials wherever possible – all without compromising product performance. These actions will result in improved carbon impact throughout the life cycle of the package. After beginning in the right way, the benefits from an efficient renewable package can flow throughout the life cycle. Designing an efficient package made from renewable resources – without compromising product performance – is a strong way for companies to improve carbon performance. “We appreciate the environmental performance of cartons and feel they are an appropriate complement to our lines of high quality and organic soups, broths and non- dairy beverages. When we evaluate the entire packaging environmental footprint, we recognize the benefits of using cartons that are made primarily of renewable resources, including paper sourced from sustainably managed forests.” – Rory Schmick, Director of Sustainability and Environmental Affairs, Pacific Natural Foods
  • 18. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 19 WHY RENEWABILITY IS GOOD FOR BUSINESS Many businesses are looking for ways to maximize the future sustainability of packaging. For some companies, using renewable resources in packaging is a value statement that reinforces their commitment to preserving the planet for future generations. For others, the use of renewable resources is driven by a business need to create sustainable supply chains for fulfilling current needs and guaranteeing future growth. For many, it is about both. “Right livelihood is the ethos on which we built the NextFoods company. Good for the customer, the consumer and everything we touch in the value chain. In that light, cartons made mainly of renewable materials are an obvious choice for NextFoods, as renewable resources fit in the center of what we are all about. We want to make sure that those resources are available today and tomorrow. Our customers appreciate that, and this preference for renewable-based packaging makes not only sense for the planet but also for the business.” - Alan Murray CEO, GoodBelly/NextFoods
  • 19. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 20 abundant cheap resources is coming to an end, because finding and extracting new sources of supply is becoming increasingly difficult and expensive. For example, oil companies have had to look further and drill deeper to find smaller reserves of oil, which has doubled the cost of a well in the past 10 years.23 And it’s not just physical reserves that control supply, as a PricewaterhouseCoopers report on minerals scarcity explains, but three factors working together: physical, economic, and geopolitical.24 Physical scarcity is linked to the availability of resources, economic scarcity is about pricing of resources and functioning of markets, and geopolitical relates to policy including trade barriers, export disruption, and national and international conflicts.25 Continuing climate change can also be added to the mix – which could further reduce resource availability and commodity production due to global policy on usage of fossil fuels. Decreasing physical availability, economic scarcity, and geopolitical issues all contribute to the supply of nonrenewable resources being tenuous, at best. Using renewable resources in packaging isn’t just about managing costs. As a BBC News business article on resource depletion states, “Imagine a world of spiraling food prices, water shortages and soaring energy costs. For many living in the world today, this nightmare scenario is already a reality. Even for the well-off living in developed economies, it is becoming all too familiar. And on current projections, it’s going to get a whole lot worse. Short-term fluctuations in supply and demand aside, a global population explosion combined with finite resources means the planet cannot sustain ever-increasing levels of consumption using current models of production.” 20 Over the past century, commodity prices halved despite a fourfold increase in the world’s population and a massive expansion in the global economy.21 How? Due to the discovery of new sources of cheap materials paired with new technologies. However, in the past 10 years, global commodity price increases have wiped out all the price declines in the previous century.22 The era of “If you can save the planet and help your bottom line, then everyone should be up for it. ” – Michael Okoroafor, VP of Global Packaging Innovation and Execution at Heinz Bottling Plant
  • 20. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 21 “Permanent factors underpinning prices will work to keep them at higher average levels than in the past. In this environment, supply chain optimization and resilience will be necessary to respond to shocks arising from discontinuous material supplies. Businesses must be able to change inputs to production and find new ways to secure supply.” - Global Business Policy Council 26 Renewable resources for packaging are readily available in a physical sense, which is important for any business, but particularly for businesses seeking growth opportunities. Adopting renewable resources in packaging also means less price volatility and a more reliable supply chain in the medium to long term, since economic and geopolitical factors do not play as prominent a role in the supply of these resources. Using the smallest amount of resources possible to adequately protect the product, and then using renewable resources wherever possible, will contribute to future business sustainability and growth opportunities. Renewability in packaging is an important part of the solution to our future business and resource challenges. 70% to 100%
  • 21. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 22 HOW BUSINESSES CAN HELP FOSTER RENEWABILITY Embracing and promoting renewability in packaging is a differentiating strategy for businesses, and can help ensure their future business health. If companies adopt renewable resources in packaging today, they will be on the cutting edge of a movement that will grow over time. For the early adopters, using renewable packaging today will provide a brand differentiator. When the functional and emotional benefits of renewable packaging are realized, and consumers feel good about a package that can do its job and help the environment, renewable packaging can become part of the essence of a brand. The opportunity to create a differentiator and increase brand equity by using renewable packaging is only available to companies who act now. In ten years, everyone else will be following. What can businesses do today to make this a reality? The first step businesses can take is to look closely at their own operations for renewable packaging opportunities. This strategy will build brand equity and help ensure long-term business stability by not having to gamble with external factors related to nonrenewable resources. “Sustainability can provide a different lens for thinking, helping companies to approach situations differently – for example, thinking about supply chains through the lens of reducing suppliers’ environmental impacts.” - GreenBiz, How Sustainability Leadership Drives Innovation 27
  • 22. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 23 Also, businesses have the opportunity to take a leadership role in the industry and with consumers, to educate on the importance of renewability and help drive consistent environmental standards to assess the impact of packaging. Some companies, such as Coca-Cola, have started to take this position. “When a company of Coca- Cola’s stature embraces 100% renewable packaging as it is doing, it’s a statement to others: get on board, or you will get left behind.” - Greg Keenan, Vice President of Business Development and Engineering, Virent 28 ‘Green’ consumers are becoming more environmentally educated, and in many cases, are even prepared to pay more for environmentally friendly products29 – although this is not yet specific to renewability. As green consumers better understand the concept of renewability, they will embrace it and begin to put pressure on businesses to offer renewable packaging. Once these green, early adopters’ understanding of renewable packaging disseminates into the mass market of consumers, businesses will face even more significant pressure to offer renewable packaging. A similar example is recycling, which has not always been at the forefront of consumers’ minds. Yet, with decades of promotion and educational investment, recycling has now become a “must have” for most consumers with regards to packaging. With business and industry leadership and education, the same will happen with renewability. Renewability and recycling are each key elements of the circular economy and they both need to be understood and adopted for it to work. Businesses and industry can differentiate themselves and create brand equity today by adopting renewability in their own packaging, looking for renewability opportunities throughout their supply chains as part of a circular economy, and taking a leadership role in the industry and with consumers. Companies that embrace and lead on renewability today will be ahead of the game. Soon savvy green consumers will start to understand the issues around resource scarcity, then this knowledge will extend to the mass market, and finally all consumers will collectively increase the pressure on business and industry. By acting now, business and industry can stay ahead of those consumers’ demands for solutions. Working together, the decisions that businesses and consumers make now can help shape a brighter future for our economic wellbeing, our global communities, and our planet.
  • 23. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 24 JOIN US IN LEADING A NEW MOVEMENT – TO THE FRONT Tetra Pak has been a global packaging industry leader in recycling from the start. Today, recycling has become a mainstream business practice – table stakes in the eyes of increasingly environmentally conscious customers. Because, we know recycling isn’t enough – and soon our customers and consumers will expect more too. There are finite physical materials and natural resources available to produce our products. We understand and are always reliant upon these ecosystems for our business success. Any company considering packaging options needs to ensure the stability and sustainability of these natural resources in order to manage costs, hedge against price volatility, limit trade barriers, promote unfettered access to supply chains and more. Therefore, without losing an inch of ground around our current commitments, we must now turn our attention to the front end of the lifecycle and how materials are sourced. We The fact that recycling has gone beyond accepted to expected invites us to address another linked and lingering business and environmental concern that is a key part of the circular economy.
  • 24. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 25 must establish a new industry commitment to renewability – protecting natural resources and rewarding best practices and innovations that focus on the front end that keep our industry strong and viable in an increasingly volatile economy. While recycling will continue to be key part of a restorative circular economy, it is not the only component. Tetra Pak is doing just that and we invite our industry partners to do the same. With this white paper as a starting point, we are launching a campaign – Moving To The Front – that will: We invite you to join us in this movement and to help define how our industry achieves these important goals. Please join us in the renewability conversation and take part in this important dialogue. We invite you learn more about Moving To The Front at http:www.doingwhatsgood.us/moving-to-the-front/, follow us on Twitter @Tetrapak _NA_Eco, and visit our website at www.tetrapakusa.com. Thank you for caring about renewability in packaging. ■ Advocate for broad acceptance of renewability practices that ensure the security of our industry and the sustainability of natural resources that we – and everyone in the world – must protect for future generations. ■ Educate our industry, customers, and consumers around the importance of renewability ■ Challenge everyone to deploy and/or help develop a new order of best practices and standards that is worthy of industry leaders in the renewability space.
  • 25. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 26 A MESSAGE FROM WORLD WILDLIFE FUND World Wildlife Fund (WWF) supports the use of systems thinking to minimize environmental impacts across the lifecycle of any product. To improve the environmental performance of a package, the net impacts of the entire system must be addressed. WWF supports the use of renewable materials from responsibly managed sources as part of a holistic solution to improve the environmental performance of packaging. A MESSAGE FROM TETRA PAK Tetra Pak is committed to environmental and sustainable business practices across its operations, products, and value chain. The company’s 2020 ambition is to maintain carbon emissions at 2010 levels, double the recycling rate of cartons, and increase the renewable materials used in cartons from 70% to 100%, which will continue to drive sustainable management of our renewable resources. This paper is a reflection of Tetra Pak’s knowledge, which comes from the work the company has been doing since its foundation around resource management and use of renewable resources.
  • 26. WHAT IS RENEWABILITY IN PACKAGING, AND WHY SHOULD WE CARE? 27 1 http://www.bbc.com/future/story/20120618-global-resources-stock-check 2 “Towards the Circular Economy, Volume 2: Opportunities for the Consumer Goods Sector,” Executive Summary, p.2 3 LCA data provided by Tetra Pak 4 “Resource Depletion: Opportunity or Looming Catastrophe?” BBC Business News, June 11, 2012 5 http://www.bbc.com/future/story/20120618-global-resources-stock-check 6 Ibid. 7 From World Bank Data: http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTURBANDEVELOPMENT/0,,content MDK:23172887~pagePK:210058~piPK:210062~theSitePK:337178,00.html 8 http://science.howstuffworks.com/environmental/energy/run-out-of-oil.htm, a Discovery company 9 “How Resource Scarcity is Driving the Third Industrial Revolution,” McKinsey 10 http://science.howstuffworks.com/environmental/energy/run-out-of-oil.htm 11 “Towards the Circular Economy, Volume 2: Opportunities for the Consumer Goods Sector,” Executive Summary, p.2 12 http://www.ellenmacarthurfoundation.org/circular-economy/circular-economy/the-circular-model-an-overview 13 Ibid. 14 http://worldwildlife.org/habitats/forests 15 http://wwf.panda.org/about_our_earth/about_forests/ 16 http://wwf.panda.org/about_our_earth/about_forests/importance/foresthabitat 17 http://worldwildlife.org/habitats/forests 18 “The Benefits of Life Cycle Analysis,” Environmental Leader, by Elisabeth Comere, March 21, 2012 19 LCA data provided by Tetra Pak 20 “Resource Depletion: Opportunity or Looming Catastrophe?” BBC Business News, June 11, 2012 21 Ibid. 22 Ibid 23 Ibid. 24 Minerals and Metals Scarcity in Manufacturing: The Ticking Time Bomb,” p. 4, PwC, December 2011 25 Ibid. 26 “Depleting Natural Resources,” Global Business Policy Council 27 Green Biz, How Sustainability Leadership Drives Innovation 28 “Making Sense of Sustainability in Packaging,” Smithers Pira White Paper, p.7 29 “How Much Will Consumers Pay to Go Green?” McKinsey Quarterly, by Mehdi Miremadi, October 2012