An example of an assessment performed for a client that sought to understand the environmental, social and economic context for a set of packaging systems. All client-specific information has been removed due to confidentiality.

1. {
Sustainability Assessment for -
(Client Omitted)
Over wrap Evaluation: Environmental, Economic
and Social Performance January 2014

2. Purpose

3. Purpose
• The sustainability assessment summarized in this
report seeks to understand the performance of
three over wrap options being pursued by (client
omitted):
• Polypropylene, 2.2 g
• NatureFlex, 4.4 g
• Paper, 8.3 g
• All three sustainability metrics were evaluated within
this assessment. The environmental metrics capture the
entire packaging system, whereas the social and
economic metrics focus on the over wrap variables.
• The Packaging Impact Quick Evaluation Tool (PIQET,
link) was used for the environmental assessments, the
Social Hotspots Database (link) provided the resource
for social assessments, and the Industry Intelligence Inc.
i2dashboard (link) facilitated the economic projections in
this report.

4. Environmental

5. Environmental
PIQET was developed and is distributed by the Sustainable
Packaging Alliance
• Pack2Sustain is a Channel Partner with SPA, supporting the
expansion of PIQET in North America
• PIQET is customized specifically for packaging applications, and
can assess impacts associated with design features
across relevant material supply chains
• LCI datasets from multiple global regions are available, and are
regularly updated

6. Environmental

7. Environmental
Advantage: Polypropylene, across all LCA
environmental indicators except Minerals & Fuel*
*A measure of the additional resources required to extract non-renewables as these
resources become increasingly scarce

8. Environmental
Minerals & Fuels Comparison
Individual
Packs
Over Wrap

9. Environmental
Marketing Perspective - Disposal Options
Over Wrap Material EU Disposal Options
Polypropylene Energy Recovery (3%)
Paper Recycling (73%)
Incineration with Energy Recovery (9%)
NatureFlex Energy Recovery (2%)
Compost (0.04%)

10. Economic

11. Economic
The Industry Intelligence, Inc. i2dashboard service makes
possible rapid, real-time and targeted research through:
• Customizable enhanced daily reports organized by user-
defined industry, sector and topic
• Expanded & descriptive content headlines that optimize
daily report review
• “Monitor” feature that explores the intersection of user
search criteria with the bigger picture:
o Economy
o Sustainability
o Mergers & Acquisitions
o Capacity & Output
o More…

12. Economic: Polypropylene
Source: Platts Global Polypropylene Index (link), via Industry Intelligence
After a 13% price increase year over year, polypropylene
pricing may have peaked

13. Economic: Polypropylene
Source: Platts Global Petrochemical Index (link), via Industry Intelligence
Pricing Drivers
• September pricing: €1,264 / metric ton, up 2% since August
2012
• European contract prices for polypropylene rose by €110 / mt
in Q3 2013, due to:
• Strong demand
• Planned & unscheduled plant outages
• Persistently strong naphta pricing
• Pricing movement was in line with equity markets over the
same period (August ‘12 to September ‘13)
• Dow Jones Industrial Average: +2%
• London Stock Exchange Index: +0.3%
• Nikkei: +8%

14. Economic: Polypropylene
*Source: Innovia Films Ltd., via Industry Intelligence
Innovia BOPP Capacity Investment
• ₤20 million capital investment is underway to install 10%
incremental BOPP film capacity + ‘state of the art’ gas turbine
at Innovia’s UK site*
• Work commenced in August & is scheduled to be complete
in 2015*
• The gas turbine will effectively reduce the carbon footprint
associated with products produced at the Wigton, UK
facility by 20%, including NatureFlexTM films*
• Addition of capacity is generally in line with industry
predictions of peaked PP pricing

15. Economic: Polypropylene
Source: Industry Intelligence
Additional Capacity Expansions

16. Economic: Paper / NatureFlexTM
Source: Deutsche Bank & Industry Intelligence
Risk to containerboard prices remains on the downside ($20 -
$30 / ton) over the next several months

17. Economic: Paper / NatureFlexTM
Pricing Drivers
• Weak October box volumes
• Increasing capacity
• Decline in OCC & input costs
• Spot pricing discounts
The NatureFlexTM pricing assessment is grouped with
paper due to common sourcing, but may move independent
of these drivers
Source: Deutsche Bank & Industry Intelligence

18. Economic: Paper
Source: Industry Intelligence
Industry Capacity Expansions

19. Social

20. Social
Social Hotspots Database Mission
“Foster greater collaboration in improving social conditions
worldwide by providing the data and tools necessary for
improved visibility of social hotspots in product supply chains”
Social Hotspots Database Tool Outputs
• Single Issue Risk Maps: Visualize global sector risks on a map for a specified social
issue
• Multiple Issue Bar Charts: Analyze risks for multiple issues in a supply chain for
selected country-specific-sectors (CSS)
• Multiple Issue Data Table: View a table of multiple issues for selected CSS and the
indicator data used to characterize risk
• Risk Treemaps: Visualize all risks for a CSS compared to other CSS in a treemap
• Social Hotspot Index: Compare the Social Hotspot Indexes for country-specific
sectors and identify the major contributing themes within a category

21. Social
Social Hotspot Index Categories
Community Infrastructure
• Access to hospital beds
• Access to improved drinking water
• Access to improved sanitation
• Children out of school
• Smallholder v. commercial farms
Governance
• Corruption
• Legal system

22. Social
Social Hotspot Index Categories, cont’d
Health & Safety
• Occupational injuries & deaths
• Occupational toxics & hazards
Human Rights
• Gender equality
• High conflict zones
• Human health – communicable diseases
• Human health – non communicable diseases & other health risks
• Indigenous rights

23. Social
Social Hotspot Index Categories, cont’d
Labor Rights & Decent Work
• Child labor
• Forced labor
• Freedom of association, collective bargaining & right to strike
• Labor laws
• Migrant workers
• Poverty
• Unemployment
• Wage assessment
• Working time

24. Social
NatureFlex
Polypropylene
Paper
Paper
Polypropylene
NatureFlex
Smaller bar = less risk

25. Conclusions

26. Conclusions
Environmental
• Advantage: Polypropylene
Economic
• Future pricing decreases indicated for all
three materials
o Paper packaging shows stronger and more
substantiated downward trend
o NatureFlex™ pricing trends are inferred
based on paper packaging data
Social
• Advantage: Paper

27. Contact
jay.edwards@pack2sustain.com
http://www.pack2sustain.com/
Skype: pack2sustain