AUSTRALIAN

PACKAGING COVANENT

ACTION PLAN

Pro-Pac Packaging Limited (Aust) Pty Ltd - PPG

Subsidiaries and Assigns

Period of Cover: 1st August 2013 – 1st August 2018

Objectives and Outline …………………………………………………………………………………………………………………… 3

PPG Commitment to the APC …………………………………………………………………………………………………………. 4

Who is PPG …………………………………………………………………………………………………………………………………….. 5-6

Assessment Schedule …………………………………………………………………………………………………………………. 7

PPG Action Plan & KPI’s …………………………………………………………………………………………………………………. 8-12

PPG Contacts for APC ……………………………………………………………………………………………………………………... 13

Becoming a signatory to the APC was another step towards PPG’s commitment to ensure we minimise our footprint on the environment and contribute to the sustainability of our future. At PPG we ensure the entire product life cycle is taken into account when looking at designing new product, or refining existing product lines. At PPG we believe very strongly in the conservation of our environment, its resources and the recycling of as much product as possible. We believe in living the practice of "reduce", "reuse", "recover" and "recycle". These four practices are at the centre of our commitment to a better environment. PPG’s objectives over this five year plan are to continuously improve our processes so that all our packaging products are designed to maximise our recovery materials and minimise the environmental impact we create. This five year action plan encapsulates what PPG is doing to achieve our goals as an organisation by ensuring we have a suite of measurable KPI’s to benchmark ourselves against to ensure we are on track to achieving the outcomes we desire. Wherever possible we endeavour to provide environmentally friendly solutions to our customers, whether these are in the form of biodegradable Voidfill, plastics alternatives and formulas and/or an effort to reduce the amount or type of packaging a customer requires. We recognise that protecting the environment is the responsibility of us all. Our environment is dependent on the businesses of today to take the lead to preserve natural resources for a healthy future. Through initiatives such as the APC, PPG is dedicated to helping make this happen. As we say at PPG “Think Green - Think PPG” Brandon Penn CEO and Executive Director Pro-Pac Packaging Aust Pty Ltd

Mark Saus

Company Secretary and Chief Financial Officer

“As a publicly listed company we are totally committed to the activities outlined in our 5 year action plan to the APC. Our commitment to the APC starts at

board level and filters down via our National and State Managers that continue to lead the way in environmental sustainability for our group of companies”

Stephen Dance

National Compliance Manager & Group Risk Chairperson

“Becoming a signatory to the APC was a natural step towards best practice initiatives that the PPG group has embarked upon. Since the formation of the PPG

Group Risk Committee several years ago, PPG has continued to show a strong commitment to ensure the footprint we leave on society is as minimal as

possible and have embarked upon programs to ensure we source and will continue to offer more ‘green’ products to our customers”

Pro-Pac Packaging Aust “PPG Group” is a 'one stop shop' for all customers packaging, safety and hygiene needs. This is based on the range of products we source and supply across our Industrial and Rigid packaging divisions. The annual turnover of the group is approximately $240mill p.a. and employees over 500+ staff nationally across 5 states. The organisation is made up of many subsidiary companies including; Pro-Pac Packaging, PB Packaging, Creative Packaging, Start Food Tech, PPG Food Service, Source & Sell, ASM, Goodman Packaging, Heron Industrial Products, Fastway Industrial Products, Quick Brown Box, Australian Bottle Manufactures, SP&D, Blowcon, Bevcap, C-Tech, Medirite, Hills Industrial Packaging, Stronghold, Ruscon Plastics, Preferred Packaging and Metro Cartons. Our commitment to the APC is supported by a wide range of quality products, a network of vertically-integrated resources and most importantly, employees who are dedicated to our customers and the environment. We are a strong brand owner within the packaging industry, with multiple manufacturing sites across Australia in our Rigid plastics division, as well as our own dedicated corrugated carton division. We are also the only Biodegradable Voidfill manufacturer that offers bulk system solutions to our end users. Our procurement team continues to source and will continue to offer more ‘green’ products so that our customers can better respond to their customer’s requirements. We are committed to constantly developing and expanding our product line of environmentally-friendly products in order to be able to offer our customers a complete line of alternative “green friendly” products. We will source green friendly products that have as many of the following characteristics as possible:

Products that are certified environmentally preferable by an independent third party

Be less polluting & minimize waste

Maximize the use of bio-based or recycled materials

Conserve energy and water & are made from renewable materials

Are compostable, or biodegradable

PPG will ensure that we meet these targets by building into our APC action plan steps such as;

designing packaging that is more resource efficient and more recyclable

increasing the recovery and recycling of used packaging from households and away-from-home sources; and,

Taking action to reduce the incidence and impacts of litter. To facilitate the implementation and actions of our APC plan, PPG has formed a cross functional diverse team made up from all of our packaging sectors across the country. The team includes members from divisions including;

Product Managers – Industrial and Rigid

Quality Management Staff

National Compliance and Procurement Managers

Operations Managers and State Mangers

State Sales Mangers

Marketing Managers

WHS Managers

Insurance partners from the Risk Committee Customer and Supplier Engagement As part of our commitment to the APC, PPG has ensured that our customers’ requirements and expectations are central to our actions. Where ever possible we have and will continue to engage our customers to better understand how our APC action plan supports the requirements of our customers and societies expectations. PPG will constantly review our assessment process to suit the needs of our key customers. Supplier engagement in the process is key to the success of the PPG action plan. As such our cross functional team lead by the National Procurement Manager is continuing to work with ALL key suppliers and stakeholders to our supply chain, to ensure they meet the requirements set out by PPG in our action plan to ensure we hit our key targets and set key milestone dates.

GROUP Products covered in group Assessment time frames

Industrial Packaging

Biodegradable Void Fill, Corrugated Cartons, PE Stretch, Shrink film, Pallet covers, Packaging and Speciality tapes, Labels, Flexible packaging, Protective cushioning and wrapping, PET & Poly strapping, and Poly Bags

4th Quarter 2014

Rigid Packaging

Plastic bottles, Caps, Dispensing Closures, Metal & Plastic drums & Pails, Glass & plastic jars, Sprays Pumps & Triggers, plastic crates, and Rubber Stoppers

2nd Quarter 2015

Industrial Safety & PPE Disposable Protective apparel, Latex and Vinyl Gloves, Hand and Arm protectors

4th Quarter 2015

Food Service

Disposable cups, cutlery, films and foil rolls, foam disposable products, Napkins, Paper & Plastic bags, Sandwich bags, Food & Vegetable Trays, and Punnet containers

4th Quarter 2014

Washroom Supplies

Toilet tissue, paper hand towels, Sanitisers, Liquid Soaps, Cleaning Chemicals, Wipes, Facial Tissues, and Bin Liners

2nd Quarter 2015

Performance Goals & KPI’s Actions Baseline Data [current Statues]

Target Milestones

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact KPI 1 – Proportion of signatories in the supply chain implementing the SPGs for design or procurement of packaging Target: 70% of Covenant signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent Target: 70% of Covenant signatories assessing 100% of new packaging and 50% of existing packaging against the guidelines

1.1 Develop, document and train key staff on policies and procedures surrounding new product design and or current product re-design, and incorporate the Sustainable Packaging Guidelines

Several procedures are in draft form but require further work to standardise and incorporate the SPG

Full set of design policies and procedures in place nationally tied into the ISO program that incorporate the SPG

November 2014

1.2 Provide all product managers and procurement staff with a copy of the SPG design guide and mark off as read and understood

Selected staff set up for distribution of the guide and given access to the intranet where it will be stored

All selected staff to have full access to the SPG and have a clear understanding as to the requirements of the design phase

July 2014

1.3 Review existing packaging materials and benchmark against the criteria set out in the SPG

Use existing data on product range to benchmark improvements

Have all existing product reviewed by end of 4

th Qtr

2013

December 2014

1.4 Complete a gap analysis of sites compliance with the above policies and procedures

To be developed

Understanding of site compliance and have 100% rating

December 2014

1.5 Develop an integrated reporting process to capture and report upon design wins from the optimised new process following the SPG

Current team established (Risk Committee) to review such actions, only the reporting process itself to be developed

Reporting # of designs assessed to SPG quarterly by automated process

December 2014

1.6 Set up internal forums via web hook up for product managers and designers to share ideas on sustainability information and options

Set up video conferencing (currently in HO site) to be set up in 4 other states.

All Product Managers and Designers sharing information and knowledge across the group

November 2014

Performance Goals & KPI’s Actions Baseline Data [current Statues]

Target Milestones

2. Recycling - the efficient collection and recycling of packaging KPI 3 – Proportion of signatories with on-site recovery systems for recycling used packaging 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

2.1 Build on improving on site recovery systems to maximise the amount of waste material that can be segregated and recycled, including office waste. Establish a waste recovery policy Nationally

Some areas of waste have been started i.e. cardboard and paper, but more can be done across the board

Minimum standards to be met on all sites as defined in our waste recycling policy

November 2014

2.2 Develop a policy for suppliers to integrate our ACP plan in the supply and procurement of recyclable friendly materials and product made from recycled materials

To be developed

All suppliers in-line with PPG’s APC action plan targets and in-line with defined policy

October 2014

2.3 Improve our own staffs knowledge on the APC and recycling initiatives via the PPG intranet

Currently the intranet is established, a section for this needs to be created

All PPG staff have access to the intranet and are trained in the use of how to navigate and access this data and information

October 2014

2.4 Develop a pallet return and recycling program to maximise the reuse and recycling of wooden and plastic pallets. National Policy and procedure TBD

To be developed, no baseline data

100% of standard pallets to be returned and recycled as part of meeting the PPG policy and procedure

November 2014

2.5 Work with the APC and attend benchmarking seminars with fellow APC signatories to better learn how we can recycle our materials

Regular meetings and seminars are in place, find out dates and lock in visits to network

Attend a minimum of 3 meetings p.a. to network with fellow signatories

July 2014

Performance Goals & KPI’s Actions Baseline Data [current Statues]

Target Milestones

3. Product Stewardship - demonstrated commitment to product stewardship 70% of signatories that have formal processes for working with others to improve design and recycling of packaging Proportion of signatories demonstrating other product stewardship outcomes

3.1 Continue to work with Customers on improving the design and packaging of customer specific products

No formal documentation at present

PPG oversight team to review documents and procedure, baseline data to collect, look to reduce material usage

December 2014

3.2 Continue to investigate, sourcing and trialling of alternate raw materials using more recycled content

Current products using recycled materials e.g. Corrugated board products, and plastic films

Develop baseline data, establish KPI, and then monitor for improvement in recyclable content usage. Cost and availability of raw materials effects this goal

Ongoing, baseline data by August 2014

3.3 Set an annual review date for the action plan to account for customer and supplier expectations and APC requirements. Build into our ISO system for annual review

Existing action plan and ISO9001:2008 plan

Key customers and key suppliers

Review annually

3.4 Review our supplier assessment process to ensure any high risk suppliers are captured and a plan put in place for alternative options

Supplier review process Nationally

Major suppliers reviewed and provided with PPG’s code of supplier conduct, to be signed and returned

November 2014

3.5 Continue to look for further product certification opportunities to promote the APC action plan, i.e. FSC Recycled paper

To be developed

Identify min 1 opportunity p.a to be reviewed and considered

October 2014

3.6 Reward and recognise employee efforts to improve packaging and contribute to the PPG APC action plan

To be developed

Establish employee reward program and have quarterly rewards program established nationally

October 2014

Performance Goals & KPI’s Actions Baseline Data [current Statues]

Target Milestones

3. Product Stewardship - demonstrated commitment to product stewardship (continued) Reduction in the number of packaging items in litter

3.7 Establish key reporting programs and scorecards to better track progress and objectives

To be developed

Established APC key scorecards on set initiatives

September 2014

3.8 Educate staff nationally on key strategies to minimise waste

To be developed

Develop and run a waste program, run a competition to devise a name for it

November 2014

3.9 Improve on our customers knowledge of recycling through our Marketing department and education systems

Current newsletter to incorporate a section for reporting and education on the SPG guide, and recycling information and tips

To have a story in each Quarterly edition of the magazine

August 2014

3.10 Encourage staff to participate in community programs designed to assist the community in environmental awareness and initiatives (such as clean up Australia Day)

Formal program to be developed

Have 10% of staff participate in a community project within 12 months of the launch of the program

December 2014

3.11 Reduce site litter and waste

To be developed

A reduction by 5-10% of site litter and waste to general fill

2

nd Qtr 2015

APC Contacts Officer For more information on PPG see: www.ppgaust.com.au

Stephen Dance

National Compliance Manager | Group Risk Chairperson

Ph | 02-8781 0500 m | 0400 557 768 e | stephen.dance@ppgaust.com.au