abbott sustainable packaging program - astm …given the material challenges of packaging for health...

© 2010 Abbott

Abbott Sustainable Packaging Program

Vance Lambert – Abbott Diagnostics

Project Engineer, Package Engineering

October 12,2010

Presentation TitleDate

Company Confidential© 2007 Abbott

GDS_70000_Title_v1 2 © 2010 Abbott

Agenda

• Abbott at a Glance• What is Sustainable Packaging at Abbott?• Abbott Sustainable Packaging Initiative• Accomplishments and Goals

Pharmaceuticals

Nutrition

Diagnostics

• Discussion• Q & A and Panel Discussion

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Abbott at a Glance

• Chairman and CEO: Miles D. White

• Corporate Headquarters: N. suburban Chicago, Illinois, USA

• Number of Employees Worldwide: 83,000

• 2009 Sales: $30.7 billion

• R&D Investment: $2.7 billion

• Facilities: More than 100 worldwide

• Countries Where Products are Sold: More than 130

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Abbott at a Glance

Major Plant and Sales & Marketing Locations

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Abbott at a Glance

Market-leadingpharmaceuticals

Advancedmedical products

Trusted infant, child and adultnutritional products

Biaxin

Xience V

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Abbott at a Glance

OUR AREAS OF EXPERTISE

Advanced• medical products

Trusted infant and adult• nutritional products

Market-leading• pharmaceuticals

Anesthesia Animal Health Anti-Infectives Cardiovascular Diabetes Care Diagnostics Hematology Immunology Medical Optics Metabolics

Molecular Neuroscience Nutrition Oncology Pain Care Point of Care Renal Care Respiratory Vascular Virology

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What is Sustainable Packaging to Abbott?

Finding packaging solutions that are economically, socially, and ecologically positive

Enhances environmental, economic, & social impact

Is a design feature of packaging, materials & systems

Considers complete lifecycle impacts on energy use, emissions & solid waste

A means to assess inevitable trade-offs

Not an end point

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Abbott Sustainable Packaging Program: Vision & Mission

• VisionAbbott will be a leader in developing and executing sustainable

packaging innovations that contribute to a Promise for Life.

• MissionAbbott will collaboratively improve the social, environmental and

economic benefits of its brands by employing sustainable packaging principles.

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Abbott Sustainable Packaging Program: Organization Chart

Program SponsorGlobal Engineering

Divisional Vice President

Engineering Executive Council(Divisional Engineering Leaders)

EHS Initiatives

Steering Committee(Divisional Engineering Directors)

Medical, Pharmaceutical, Nutritional

Corporate EHS Representative

Functional Team(Divisional Packaging Managers

and Engineers)Medical, Pharmaceutical,

NutritionalCorporate EHS Representative

Corporate Purchasing Representative

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Abbott Sustainable Packaging Program: LRP Strategies & Goals

Strategies

Deliver Material Reduction Opportunities

Promote Innovative Use of Renewable/Certified Packaging Resources

Pursue Recyclability and Reuse of Packaging Materials

Enhance Sustainable Packaging Communications, Including Objectives and Progress Reporting

Maintain and Implement Abbott Sustainable Design Guidelines

Goals

Significantly reduce key product packaging by 2013

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Abbott Sustainable Packaging Program: Design Guidelines

Guidelines were developed in 2008 to:

Ensure sustainable packaging elements are considered when developing new or changing existing packaging

Set strategic direction and standardization across all Abbott business units

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Accomplishments & Goals: Commitment to Global Citizenship

Total philanthropic investment in 2009 – $580 million

No. 2 in 2010 for social responsibility by Fortune Magazine in our industry

Named to the Dow Jones Sustainability Index for sixth consecutive year

Improved internal/external communication– Global Citizenship Report

Commitment and active participation in Sustainable Packaging Coalition

1 of 4 founding members of MSU Center of Packaging Innovation & Sustainability

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http://www.sustainability-index.com/default.html




Accomplishments & Goals: Commitment to Innovation

• Sponsorship of the newly created Michigan State University's (MSU) Center for Packaging Innovation and Sustainability

Provides a forum to bridge academic research with Abbott's real- world application expertise

Builds partnership:– Addressing issues associated with sustainability– Developing measurements, tools and strategies for quantifying and

reducing environmental impact throughout the supply chain– Building leadership capacity to address packaging sustainability

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Accomplishments & Goals: Pharmaceuticals

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Reduce/Recycle – Corrugate Initiatives

Lighter and standardized board weight of 62 commodities

Annual reduction >100,000 lbs paper

Annual cost savings - $82m

100% recycled paperboard corrugates for corporate site distribution annually saves approximately

17,000 trees

3 MM KWh power

4.5 MM gallons water

995 tons CO2

2,090 cubic yards of landfill space





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Reduce– Product Sample Optimization

Environmental Impact for Carton and Corrugate Optimization:

42% paperboard reduction (41.1 tons): ~1,000 trees saved

1.6 Billion BTU energy reduction: 18 houses

230,000 lbs greenhouse gas reduction: 21 cars

90,200 lbs of solid waste avoided

92% increase in pallet efficiency:





Returning and reusing “Green Box” thermal container for Humira Crohn’s Physician Samples

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Smaller, made of reusable, recyclable and 100 percent organic-based materials

Can be used more than 100 times

Reuse- Humira Greenbox Thermal Package





Reusable Transport Packaging

Proposal: Establish partnership with suppliers to implement reusable transport packaging

Replace wood pallets with reusable plastic pallets for shipments to Abbott

Replace corrugate containers with reusable plastic totes/containers

Local suppliers make multiple shipments per day to Abbott Lake County

Example: Abbott receives thousands of pallets and more than 200,000 corrugate cases from one local supplier annually in Lake County

Benefits

Significant amount of trees saved with reusable transport packaging

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Accomplishments & Goals: Nutrition

PVC Elimination

Corrugated Board Reduction

Pedialyte Powder Packs

UltraSeal End for Powder Cans

2010 Continuing Efforts

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Label & neckband commodities changed

Replacement is oriented polystyrene (OPS)

PVC removed as alternate label material on plastic bottles

PVC Elimination- Progress

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http://www.abbottstore.com/pedialyte+reg/pedialyte-grape-1-l-bottle-case-of-8/invt/00240/&bklist=icat,5,colone,,childnutr,pedialyte

http://www.abbottstore.com/eas+reg-daily-nutrition/eas-100-whey-protein-vanilla-30-servings/invt/59176e/&bklist=icat,3,,perf/





Example: Reduced the weight of 32 oz. Ready-to- feed bottles shipping corrugates

– Corrugate changed from 40 ECT to 32 ECT, which resulted in less paper used per corrugated box

"Our sustainable packaging commitment is the latest example of Abbott's legacy of doing its part to safeguard the environment" - Donald Patton, Jr., senior vice president, U.S. Nutrition, Abbott

Corrugated Board Reduction

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1 Liter RTS Powder 4-Pack

Pedialyte Powder Packs offer a new and significantly more sustainable product form for pediatric electrolyte replacement

Consumer adds water to powder vs. pre-mixed 1 liter Ready To Serve (RTS)

Avoids negative environmental impacts of packaging & shipping water in RTS bottles

Improves package efficiency by approximately 70%

Pedialyte Powder Packs

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EZO end: steel panel with aluminum pull tab UltraSeal end: aluminum foil membraneLess packaging per case of product

401 x 408 can = 7.14% less

401 x 411 can = 4.98% less

Over 1.2MM lbs. annual reduction

EZO & UltraSeal Ends

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Accomplishments & Goals: Diagnostics

Product Reagent Kit Redesigns

Recyclability/Reusability Efforts

EPS & Gel Pack Reuse/Return Program

2010 Continuing Efforts

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Product Reagent Kit Redesign

New Design: Overall 27% Reduction of Outer Box Material

Reduction in Inserts

Bottles/Caps Orientation Corrected

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2010 Recyclability/Reusability Continuing Efforts

Cap Liners- PVC Elimination

Foam Inserts/Thermal Shippers

Evaluation of bio-based technologies

Corrugate

Evaluation of 100% recycled board

Palletization

Optimization of Platform Accessories

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Reuse/Return program for Expanded Polystyrene (EPS) Shippers and Gel Packs – Actively engaged with highest volume customers– Preprinted return labels included in shipments– EPS containers returned to Abbott (Abbott absorbs cost)– Abbott inspects shippers and replaces exterior corrugate– EPS container re-used

"Given the material challenges of packaging for health care products, it is impressive to see that they [Abbott] have put systems in place in recent years that have resulted in tangible results. We look forward to continuing our collaboration with them and other industry leaders to develop packaging systems that promote economic and environmental health." - Anne Johnson, Director, Sustainable Packaging Coalition

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In Summary…• Abbott is committed to Sustainability – achieving social, economic and

environmental success

• Sustainable packaging initiative is a key contributor to Abbott’s pursuit in becoming an industry leader in sustainability

• Since 2007, Abbott has eliminated an estimated 8.1 million pounds of packaging on an annualized basis through reduction initiatives on a few select products

• Abbott will continue to drive packaging innovation internally and through partnerships with SPC, MSU and others in order to make significant contributions towards environmental and social improvements

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Q & A

QQuestions?

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abbott sustainable packaging program - astm …given the material challenges of packaging for health...

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