Research Developments and Needs in Sustainable

Packaging Metrics

Claire Koelsch Sand, Ph.D.MSU Adjunct/PTIS/Ameripak

IFT Annual Meeting 2008

AgendaCurrent state of sustainable packaging metricsWhat is needed in sustainable packaging metricsResearch in sustainable packaging metrics needed to meet these needs

Agenda

Current state of sustainable packaging metricsWhat is needed in sustainable packaging metricsResearch in sustainable packaging metrics needed to meet these needs

Current state of sustainable packaging metrics

RetailersCPG specificPackaging suppliersGovernments

Overall Metrics

How and what are measured varies Recycled contentIncreased waste reductionDecreased energy useCarbon footprintBeverage and paper companies measure water

Retailer MetricsWal-Mart Scorecard:

GHG emissions, material value, product to packaging ratio, cube utilization, emissions during transportrecycled content usage, amount of renewable energy used, recovery value of the raw materials,

Focus is on cost reduction for Wal-MartFinal metric vs tool for improvement

Retailer Metrics continued

Global retailers continuedUK emmissions

SourcingCarbon footprint

“that we should all avoid the risk of the Wal-Mart

Packaging Scorecard becoming a de facto industry standard. Not only could such an eventuality disrupt the market but even worse, it risks evolving in such a way as to become an inhibitor of innovation rather than a stimulator”

EUROPEN

CPG Metrics-for consumers

CPG metrics are translated into positive consumer language-something improved vs. use of resources

Cars taken off roadNumber of trees plantedBiodiversity

Metrics used as a sales tool with increasingly low consumer confidence

Consistency is lackingFacilities varyEnergy used variesMaterial sources varies

CPG Metrics internal use

Primarily design guidesSCJ Greenlist –

Well respected8 performance parametersContinuous improvement

Amount of packaging materials (weight or volume)Product/package ratioPercent of suppliers that are sustainableReduction of emission, energy, water...Carbon footprint

CPG Metrics in wide use PIQET- Packaging Impact Quick Evaluation Tool

SPA driven, LCA based From Australia & well respected worldwideNestle is most common user

CPG Metrics in wide use continued

Rapid Assessment Tool (RAT)MERGE – Managing Environ, Resources Guidance and Evaluation COMPASS-Comparative Packaging Assessment for SPC members Fall 2008

Packaging Supplier Metrics

Metrics used as sales tools to CPGsMuch confusion

BASF eco-efficiency toolBasis in economy, environment, societyExcellent comparative assessment

Metrics used as part of CRS

BASF Eco-Efficiency tool is user friendly

1000 L water at a distance of 300 km from the bottling plant.

Packaging Design Guidelines

INCPEN Responsible Packaging Code of Practice

85% of UK industry representedSPC Design GuidelinesWRAP (Waste and Resources Action program - UK)Johnson and Johnson DfE Tool

Sustainability Indices

Dow Jones Sustainability IndexFTSE4Good

Working on sustainabilitySupply chain integrity

LOHAS Index (NMI)Global Reporting Initiative (“GRI”)Anticipated collaborative alignment of:

FASB (Financial Accounting Standards Board) SECEPA

ESI (Environmental Sustainability Index)

Governmental

Global Reporting Initiative (“GRI”)EPM (Environmental Performance Measurement)

Summary of packaging metrics

PIQETWal-Mart ScorecardMERGECOMPASS

• Eco-efficiency (BASF)

Agenda

Current state of sustainable packaging metricsWhat is needed in sustainable packaging metricsResearch in sustainable packaging metrics needed to meet these needs

What is needed in sustainable packaging metrics

Guide making the right decisions

Requirements of Metrics

whole value chain applicableaccurate & detailed

transparentquick

foster communication

Agenda

Current state of sustainable packaging metricsWhat is needed in sustainable packaging metricsResearch in sustainable packaging metrics needed to meet these needs

Research required to be applicable to the whole value chain

1) Research on translations needed at various stages of converting

2) Research on how to facilitate information transfer3) Research on how packaging metrics can open up

communication between suppliers

Research required to meet accuracy and detailed needs

Research on how to attain most accurate data Material specific

Facility specificSource specificSeason specificTechnology specific

• Research to enable automatic updating of information • Research to explore the applicability of SPC Indicators

and Metrics Project• Research on how to establish a verification process

that the correct information is used

Research required to meet transparency needs

• Research to assess what is needed for data must be believable by entire value chain and stakeholders

• Consumers• CPGs• Retailers

Research to establish verification that the correct data is always usedResearch to enable confident data collection beyond MENA, BRIC, USA, EU, North America

Research required to meet quick needs

Research that enables rapid assessment of area of most impactResearch to determine baseline LCA dataResearch to enable rapid LCA data adjustment based on:

high impact production sourcing distribution changesetc.

• Research on what is needed to motivate Supplier consortium to facilitating sharing of metrics

Research required to foster communication needs

Develop process for communicating with users within value chain

SFC designationHarmonization of metrics

Research to assess an optimal means of communicating with consumers

Critique current communication methodsDevelop protocol for communicating metrics with Consumers

• Harmonize consumer communication metric and methods

Thank you & Questions

Current state of sustainable packaging metricsWhat is needed in sustainable packaging metricsResearch in sustainable packaging metrics needed to meet these needs