lees - product stewardship at tetra pak
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©John Lees / infraharmonic LLC 1October 25, 2011
Product Stewardship
at Tetra Pak
©
A global packaging producer’s strategies and tools
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Tetra Pak A global producer…
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Tetra Pak A global producer…
… of carton packaging for food and beverage.
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Markets, and Products Packed Global, and Eurocentric Dairy-dominated
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Vision
Mission
“…We believe in responsible industry leadership, creating profitable growth in harmony with environmental sustainability and good corporate citizenship.”
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“A package should save more than it costs.”
“We make food safe and available everywhere.”
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Product Strategy
Value proposition:The ability to sell almost-fresh milk anywhere
High technology materials and machines Minimal packaging – maximum efficiency Absolute lowest system cost Environmentally preferred over plastic bottles
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Environmental Strategy
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Eco-efficiency goes hand-in-hand with basic product strategy
Target: 100% renewable materials
Engage: with EPR and voluntary stewardship
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LCA – A Critical Stewardship Tool
Life Cycle Assessment – Estimation of the cumulative environmental impact of all
activities associated with a product over its lifecycle
Critical for identifying the main causes of impacts, and prioritizing stewardship efforts
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Using LCA to put phases in perspective
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Using LCA to put lifecycle phases in perspective Where are the hot spots? Improvement opportunities?
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Using LCA to put lifecycle phases in perspective
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Raw Material Sourcing
Engaging with suppliers– Sustainable forestry guidelines– Source certification: FSC
Engaging with NGOs– Accountability and credibility:
Long-term strategy: renewable biopolymer substitutes for polyethylene and aluminum foil
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End of Life
Complexity– Multiple materials– Multiple technologies– Multiple players– Multiple regulations– Consumer behavior
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No two cities the same.
Ouch! Diversity
– Geography– Infrastructure– Policy– Economy
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End of Life: It’s Hard
To set targets To prioritize and budget actions To know what partnerships to seek
… what technologies to back… which policies to advocate
Need good strategies and tools!
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End of Life Stewardship Management Strategy
Local autonomy and accountability: Market Companies– Engage local authorities and waste-management
industry– Responsible for action plans and results– Self-funded
Central coordination: Global Environment team– Cascade goals, aggregate results– Share best practices, coordinate messaging– Provide technical support: LCA, recycling technology
evaluation
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Recycling Strategy
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Stewardship models
Legislated EPR Voluntary stewardship
Tetra Pak lives with both. What can we learn from comparing them?
How would we compare them?
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Spain: Legislated EPR
46M people 5B cartons, 140k tonnes Legal target: 62% (recycling + waste-to-
energy) Industry-operated stewardship NPO
– Invests in infrastructure– Contracts with WMOs for collection and sorting– Owns collected material and sells to recyclers
“Yellow Bin” stream: beverage cartons, plastic bottles and aluminum cans
Producers pay material-specific feeOctober 25, 2011
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Beverage Carton End of Life: Spain
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Industry Network Economic-Environmental Analysis
“Secondary collection”
“Secondary collection”
Cheaper than yellow-bin
stream
Profitable recycler
EPR fees to WMOs
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Beverage Carton End of Life: Spain
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Industry Network Economic-Environmental Analysis
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Brazil: Voluntary Stewardship
São Paolo Area: 30M population 84k tonnes No legal recycling requirement Tetra Pak’s voluntary stewardship activities:
– Recruiting paper mills and other recyclers– Giving technical assistance– Recycled-product development
Single-stream recyclables collection
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Beverage Carton End of Life: Brazil
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Private brokers
control most material
Profitable, non-
competing paper mills
PolyAl recyclers profit as
alternative to landfill
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Beverage Carton End of Life: Brazil
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Comparing Spain and Brazil
Spain Brazil Recycling+W2E rate 50% 31%
Recycling rate 34% 31% Recycled products/consumption18% 29% CO2 footprint 0.99 0.88
Recycled-product tonnage / €M infrastructure475 744
Net economic value added -€25.5M€4.8M
(Value of recycled products – all costs)
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Here in the US
Tetra Pak joins with competitors in the Carton Council
To communicate the value of beverage carton recycling to– Municipalities– MRFs– Recycling paper mills– Consumers
To motivate and support infrastructure investment
And grow recycling access and rates
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Strategy Success Factors
Anchor stewardship strategy in company strategy
Collaborate locally, continentally, and globally– With suppliers, customers and competitors– With the public sector and waste-management
industry– With credible, independent NGOs and certification
organizations Take the lead and earn freedom
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Tool Reflections
LCA is a critical starting point
Some key decisions are difficult without considering how economics affect environmental impacts
Visualizing and quantifying system relationships helps make collaboration effective
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Questions?
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infraharmonic
Thank you!