Packaging and Legislation Päivi Harju-Eloranta Stora Enso

1. Packaging and LegislationPäivi Harju-ElorantaStora Enso Presenter name

2. Packaging in a sustainable society • Environment: • Save more resources than used Packaging • Society: • Meet consumers’ expectations in all aspects of • Product protection • Safety • Handling • Information • Economy: • Save costs in distribution and merchandising of goods Source Incpen

3. Packaging and environmental sustainability

4. Packaging business operates in a challenging matrix EU Policies Green procurement codes National legislation Brand owner NGOs- WWF, Greenpeace Retailer Producer of packaging Consumer Material supplier

5. Consumption and sustainability Presenter name

6. What is an Ecological Footprint? Today: • Carbon Footprint • kg CO2 eqv./ton board • Water Footprint • m3 fresh water consumed/ton board • etc. Original meaning: • Land (and sea) area needed to support a certain activity, product, life style etc. When the Ecological Footprint is estimated we can easily related to over consumption and pollution. 6

7. WWF: One planet living 7

8. One planet living Do we afford living and consuming as usual? WWF: If everyone in the world lived like an average European we would need 3 planets to live on… If everyone in the world lived like an average North American we would need 5 planets to live on… Earth Overshoot day was on September 27, indicating an over use of the resources Earth can generate this year by 135% 8

9. EU Agendas Presenter name

10. Threats to Human Health Threats to Biodiversity Climate Change Degradation air, water, soil… Depletion Resources Green House Gasses Unsustainable Production & Consumption Population growth Economic growth Spending power Prices do not reflect costs Market distortions Fixed consumerbehaviour Biased information

11. Reaching EU 2020 targets3 pillars & 7 roadmaps http://ec.europa.eu/europe2020/tools/flagship-initiatives/index_en.htm 11

12. Resource efficient Europe Objectives This roadmap aims to create a framework for policies to support the shift towards a resource-efficient and low-carbon economy which will help us to: boost economic performance while reducing resource use; identify and create new opportunities for economic growth and greater innovation and boost the EU's competitiveness; ensure security of supply of essential resources; fight against climate change and limit the environmental impacts of resource use. The roadmap sets objectives and actions, identifies areas for further research, and suggests a range of indicators and policy tools. 12

13. Resource efficient Europe Key resources and sectors Key resources Key sectors Saving and protecting water resources Safeguarding clean air Maintaining and enhancing ecosystem services Using land and preserving soils Protecting marine resources Addressing food Improving buildings Ensuring efficient mobility 13

14. Resource efficient Europe e.g. Saving and protecting water resources • By 2020, water is of good quality, efficiently used and is available in sufficient quantity. The impacts of droughts and floods are minimised. Since 2012 all WFD River Basin Management Plans (RBMPs) have been implemented and good status of waters is attained in all EU river basins in 2015. By 2020 water abstraction stays, as a rule, below 20% of available renewable water resources • The Commission will assess and propose in 2012: • Indicative water efficiency targets • Improved water efficiency measures (e.g. smart metering, mandatory requirements on water using devices; guidelines for water re-use, reduction of leakage in water infrastructure, water saving in irrigation, etc.); • Better demand management through economic instruments (pricing, water allocation) and use of labelling and certification schemes measuring life-cycle impact and virtual water content of products; • Measures such as green infrastructures to improve natural water retention, flood protection and water purification and availability. • an innovation partnership on water • Member States should: • Set water efficiency targets for 2020 at River Basin level, based on a common EU methodology that takes into account the variety of situations across economic sectors and geographic areas. 14

15. The 5 key consumption challenges in Europe Leveraging Innovation: stimulating the development and commercialisation of low carbon, energy and resource efficient technologies, products and services Better Products: creating a dynamic internal market for better performing products Leaner and Cleaner Production: increasing the efficiency of EU production Smarter Consumption: changing behaviours Global markets: exploiting first mover advantages and levelling the playing field for industry worldwide

16. EU Environmental priorities Resource and material efficiency Biodiversity – responsible sourcing of raw materials Forest protection – responsible sourcing of raw materials Water – regional limited access to water & scarcity of water Climate change – carbon footprint, low carbon economy Soil Framework – erosion problem Waste and bio-waste Zero waste No bio-waste to landfill Re-usability criteria Higher recycling targets Producer responsibility

17. Climate change not the only environmental concern The sustainability Efforts and Environmental Concerns Around the World Survey carried out in March and April 2011 Polled more that 25 000 online consumers in 51 countries; Europe, Asia Pacific, Latin America, Middle East, Africa and North America Main concerns were Air and water pollution Water shortage Packaging waste The use of pesticides

18. Increasing consumer concern about ecological matters means that the role of packaging is getting more and more important The role and image of packaging is more important than before Packaging brings the message on the content and the brand Brand owners and retailers want to differentiate their business and build the competitive edge - sustainability arguments are frequently used The role of packaging is important - it protects the valuable goods People want to contribute and save the globe, climate and nature when making the purchasing decision

19. Sustainability and retailers Presenter name

20. The Consumer Goods Forum has over 650 retailers, manufacturers, service providers and other stakeholders across 70 countries. • Companies worked together with experts in packaging and sustainability to define the metrics and run pilot implementations to test their usefulness. • The Protocol was designed collectively by a diverse group of retailers and manufacturers aided by packaging material suppliers and packaging manufacturers and led by a steering team that included representatives from retailers Wal-Mart, Target and Tesco, and manufacturers Kraft Foods, Procter & Gamble, Nestlé and Unilever. • It is based on earlier packagingsustainability guidelines developed by the European Organization for Packaging and the Environment (EUROPEN) with ECR Europe and similar work on metrics for packaging developed by Green Blue’s Sustainable Packaging Coalition (SPC) in the United States. 20

21. Check list on Environmental – Attribute indicators Packaging Weight and Optimization Packaging to Product Weight Ratio Material Waste Recycled Content Renewable Content Chain of Custody Assessment and Minimization of Substances Hazardous to the Environment Production Sites Located in Areas with Conditions of Water Stress or Scarcity Packaging Reuse Rate Packaging Recovery Rate Cube Utilization 21

22. Environmental – Life Cycle Indicators • Impact of Climate • Global Warming Potential • Ozone Depletion • Impact on Human Health • Toxicity, Cancer • Toxicity, Non-Cancer • Particulate Respiratory Effects • Ionizing Radiation • Photochemical Ozone Creation Potential (POCP) • Impact on Ecosphere • Acidification Potential • Aquatic Eutrophication • Freshwater Ecotoxicity Potential • Impact on Resource Base • Non-Renewable Resource Depletion • Indicators from Inventory Data • Cumulative Energy Demand (CED) • Freshwater Consumption • Land Use 22

23. Economic – Indicators / Metrics Social – Indicators / Metrics Total Cost of Packaging Packaged Product Wastage Packaged Product Shelf Life Community Investment 23

24. Pros Cons Potential harmonization of various customer questionnaires Agreed by major players in the packaging value chain, incl. brand owners and retailers Still many indicators (29) Will it be used?! 24

25. To learn more www.footprintnetwork.org www.waterfootprint.org www.oneplanetliving.org http://wwf.panda.org/what_we_do/how_we_work/conservation/one_planet_living/ http://ec.europa.eu/europe2020/tools/flagship-initiatives/index_en.htm http://globalpackaging.mycgforum.com/ www.environdec.com www.ace.be 25

26. Responsibility in the supply chain Presenter name

27. Sustainability in Packaging Supply Chain Responsible raw material sourcing Use of responsibly managed resources Origin of raw materials Effective production More packs from less material, minimal energy use and less environmental impact Packaging material manufacture and conversion Minimise the costs Incorporation of recycled materials Run length for maximum effectiveness Compliance with food safety requirements Flexibility to meet promotional needs

28. Packaging - a part of the supply chain Packaged goods manufacture Balance between primary, secondary and tertiary packaging Improved line efficiency and waste reduction Easy identification Distribution Optimisation of vehicle loading, ensure full loads -> optimum packaging size and shape Efficient picking and packing of mixed loads

29. Package - a selling item Wholesales and storages Stability of handling systems Easy storing Packaging should be strong and safe Retailing Ensure decreasing environmental impact Efficient stocking and display of attractive products to draw in the customers Executing promotional activities Package is a part of the consumption pattern Retailers decide what they offer to consumers

30. Does the political agenda meet the reality? Sustainable production Sustainable consumption

31. Recycling – closing the loop Presenter name

32. Recycling – closing the loop

33. Recycling a Part of Sustainable Packaging Chain When used package is really recycled, you can claim that it’s sustainable

34. EU Waste Framework Directive On the 17 th of June 2008, the European Parliament adopted the agreement reached with Council to revise the Waste Framework Directive Entered into force on 12 December 2008. Transposition by Member States into their national law by 12 December 2010. Waste prevention plans by 2013. Set up a separate collection scheme for paper, metal, plastics and glass by 2015 Reach 50% re-use and recycling level by 2020.  Implementation and enforcement is key

35. EU Waste Hierarchy The directive adopts a flexible approach to the waste hierarchy, which consists of the following 5 steps: Prevention Reuse Recycling Energy recovery Disposal The flexible deviation clause, based on life cycle thinking, enables economic operators to choose from a range of defined waste treatment options the most appropriate method to reducing environmental impact on a cost-effective basis

36. Landfill Directive 99/31/EC – no waste to landfill in future Landfill Directive sets demanding targets to reduce biodegradable municipal waste landfilled By 2010 to 75% of that produced in 1995 By 2013 to 50% of that produced in 1995 By 2020 to 35% of that produced in 1995 Biodegradable Waste Directive First draft in 2000 to harmonize national measures of biowaste management EC decision to abandon indipendent directive on biowaste in 2005 National biowaste strategies

37. Packaging and Packaging Waste Directive (PPWD) 94/62/EC – how to recover and prevent waste Packaging and Packaging Waste Directive 94/62/EEC defines requirements for packaging to minimise the impact of packaging and packaging waste on the environment Packaging weight and volume should be minimised to the amount needed for safety and acceptance of the packed product Noxious and other hazardous constituents of packaging should have minimum impact on the environment at the end of life Every packaging should be suitable for material recycling, energy recovery or composting, or of reuse is reuse is intended

38. Current EU recycling and recovery targets of different packaging materials 60% by weight minimum overall recovery 55% minimum to 80% maximum by weight overall recycling 60% recycling by weight for glass 60% recycling by weight for paper 50% recycling by weight for metals 22,5% recycling by weight for plastics 15% recycling by weight for wood

39. Implementation of PPWD Each EU member state has implemented the directive to national legislation (Finnish information on www.pyr.fi website) Progress of PPWD implementation and recovery rates are reported to Commission Basic requirements of PPWD will be fulfilled if packaging is in compliance with standards related to PPDW The Packaging and Packaging Waste Directive makes Member States (rather than producers) responsible for ensuring that collection and recovery systems are established for packaging waste. In practice, however, almost all EU Member States have transferred responsibility to producers in their national legislation.

40. Packaging standards - tools to implement the demands of PPWD EN 13193: Packaging and the environment terminology EN 13427; Requirements for the use of European Standards in the field of packaging and packaging waste EN 13428; Requirements specific to manufacturing and composition. Prevention by source reduction EN 13429; Reuse EN 13430; Requirements for packaging recoverable by material recycling EN 13431; Requirements for packaging recoverable in the form of energy recovery, minimum interior calorific value EN 13432; Requirements for packaging recoverable through composting and biodegradation

41. Recycling, according PPWD, EN 13430 Definition according Packaging and Packaging Waste Directive ”Packaging must be manufactured in such a way as to enable the recycling of a certain percentage by weight of the materials used into the manufacture of marketable products, in compliance with current standards in the Community. The establishment of this percentage may vary, depending on the type of material of which the packaging is composed”

42. Packaging manufacturers have the responsibility The CEN Standard on material recycling (EN 13430) requires packaging manufacturers to take a series of steps to assess recyclability: Identify intended collection, sorting and recycling process(es) Assess the suitability of the package for the intended collection, sorting and recycling process(es) against ten criteria listed in the standard Declare the percentage by weight of the package available for recycling

43. Recycled fibre based packages are raw material Used fibre based packages are suitable for new products Efficiency of recycling depends on the infrastructure of national collection schemes and recovery systems If no recovery options are available or utilized, paper has high energy value and could be combusted, after when fibres have lost their properties Packaging waste is harmless at landfill Packaging materials produced by Stora Enso fulfill the requirements of European Packaging and Packaging Waste Directive

44. Paper can’t be recycled for ever • Fibres have potential to be recycled 4-6 times, before they are source for bioenergy

45. Packaging boards have good environmental performance Fibre based packages are not waste, they provide material for new fibre based materials/packages Suitable for all waste management options recycling for other paper products fiber component is biodegradable as any natural material combustion for energy harmless in landfill

46. Current challenges of fibre based packages Presenter name

47. Challenges for fibre based packaging materials Fibre based packages are one-way packages Used package waste or raw material Continuous threat of waste/environmental tax Threat of deposit schemes to enhance recycling Competition with biopolymers National initiatives on CO2 tax EU regulatory threat - Mandatory recycled content -> favourable to plastic business Competition with plastic packages Availability of wood – competition with bio-energy from wood

48. Product safety Presenter name

49. Food safety of packaging material means consumer safety Food and consumer safety is regulated by different EU and national regulations Responsible producer acknowledges consumers’ and authorities’ demands There is a increasing demand of guaranteed hygiene & product safety practices in the supply chain of foodstuffs Increasing demands from Customers Authorities Public

50. Customer Pressure Customer of food industry, especially big brand owners want to ensure their supply chain General expectation is that suppliers have certified hygiene management systems Each operator wants to eliminate possible food safety and reputational risks Customer demands can be fulfilled by using safe and food contact approved chemical additives in manufacturing of food contact and sensitive packaging materials (e.g. toy and cigarette packaging materials)