meeting the sustainability objectives of brand owners ... · retailers like walmart and asda have...

Meeting the Sustainability Objectives of Brand Owners Without

Compromising Performance Co-Authors: Weijia Zhang and Dante Ferrari

The importance of sustainability is very clear. From consumer demands to brand owner needs, from

retailer requirements to public policy, sustainability is being approached from many different directions at once. Numerous studies are being conducted to understand how a consumer perceives sustainability and how important it is to them. Striking, but not surprising, one study found American consumers are among the least concerned with the amount of packaging and whether it is sustainable. Another study found that 57% of consumers claim to be willing to pay more for a “green” product.

Retailers like Walmart and Asda have set up metrics and indicators to determine how sustainable

their products and their suppliers are. The Sustainability Product Index measures not only material, energy and water usage, but product safety, social compliance and community development. From there on, brand owners have taken on the challenge by setting their own objectives. Though there are many metrics and indicators, such as those set out by the Sustainable Packaging Coalition, a common goal amongst brand owners is to achieve a company‐wide reduction in the amount of material used, energy used and CO2 emissions produced.

As converters, we need to understand how to help brand owners achieve these goals. Converters

across the industry are setting their own goals and initiatives in their attempt to be sustainable. In addition, tracking greenhouse gas emissions, waste, water and energy usage is moving from being just an internal measurement to being a legislated and administered requirement.

In this paper, Celplast looks at our own expertise ‐ barrier packaging structures ‐ and compares them on a relative scale with respect to the three metrics mentioned above.

Downgauging metallized PET from 48 gauge to 40 gauge allows for a 17% reduction in material

without change to barrier properties. Improved metallization techniques allows for less aluminium to be applied and for boats to be run with less power. A decrease from 2.3 OD to 2.0 OD is possible without change in barrier properties. Layer elimination is possible by combining performance properties of a sealant layer and a metallized layer into a single metallized sealant layer. Not only are there material savings, but process energy and CO2 emissions reductions as well. In solvent based laminations, energy savings of 30.8% and CO2 emissions savings of 33.5% can be achieved.

Alternatively, from an operational standpoint, installing higher efficiency lighting can results in

significant energy and cost savings. Switching from T12 to T5 lightbulbs increased brightness at the plant floor level while saving 241,857 kW‐hr per year. Motion sensors to keep unnecessary lights off add an additional 122,107 kW‐hr of to that number per year. Additional energy savings initiatives have allowed for a total energy savings of 766,816 kW‐hr each year. In Ontario, this is equivalent to saving 551 MT of CO2 from being released!

The importance of sustainability is very clear. So are the requirements set out by brand owners,

retailers and consumers. There are many tools available at our disposal to meet these objectives and create a more financially, socially and environmentally sustainable flexible packaging industry. Because after all, less is more.

Sustainable PackagingMeeting Brand Owner Objectives Without

Compromising PerformancePresented by:Weijia ZhangBusiness Development EngineerCelplast Metallised Products

OUTLINEOUTLINESustainable Packaging Driving Forces

Down the Value Chain: From Consumers to ConvertersHow Flexible Packaging FaresKey Metrics for Brand Owners

What Converters Can DoMaterial Usage & Landfill DiversionEnergy UsageCO2 Emissions

Conclusions

SUSTAINABLE PACKAGING DRIVING

FORCES

DRIVING FORCE #1: CONSUMERSDRIVING FORCE #1: CONSUMERS

April 2009 Opinion Research Corp. study57% of consumers claim to be willing to pay more for a “green”product

2009 Shelton Group study of occasional “green” buyers59% of “green” consumers listed economy as top concern, 8% chose environmentHome energy reduction is mainly motivated by bill/cost reduction (73%), while environmental impact is only 26%

DRIVING FORCE #1: CONSUMERSDRIVING FORCE #1: CONSUMERS

2009 DataMonitor study across 15 countriesAmerican consumers are among the least concerned with amount of packaging and whether it is “sustainable”In a recession, consumers are forced to buy less and prefer more cost-effective packaging

2009 Sage Group survey of US consumersSustainable packaging = recycled packaging“Hard packaging” and over-packaging are negatively viewedGen Xers more environmentally conscious than Millenials or Boomers

DRIVING FORCE #2: LEGISLATORSDRIVING FORCE #2: LEGISLATORS

Under the Western Climate Initiative, 7 US states and 4 Canadian provinces will require converters to start tracking greenhouse gas emissions as of Jan. 1, 2010, and start official reporting by 2011, as part of a regional cap-and-trade programActivist government

In Britain the Local Government Association (representing over 350 town councils) has demanded retailers make more information available regarding amount of packaging they produceAttempts to implement plastic bag bans or punitive taxes have failed in many North American jurisdictions, but consumer consciousness has been raised

DRIVING FORCE #2: LEGISLATORSDRIVING FORCE #2: LEGISLATORS

Like consumers, legislators want to avoid “greenwashing” by brand ownersWant green claims to be substantive and verifiable

In California, Bill AB1972 passed in 2008: Truthful Environmental Advertising for PlasticsRequires plastic bags and containers to meet specific ASTM specification standards in order to label packaging as “biodegradable”, “degradable” or “compostable”Eg. “Compostable” products must meet ASTM D6400 standard

DRIVING FORCE #3: RETAILERSDRIVING FORCE #3: RETAILERS

Wal-Mart: The Packaging Scorecard15% based on greenhouse gas emissions per ton production15% based on material value15% based on product:package ratio15% based on cube utilization10% based on transportation10% based on recycled content10% based on recovery value5% based on renewable energy5% based on innovation

DRIVING FORCE #3: RETAILERSDRIVING FORCE #3: RETAILERS

Wal-Mart: The Sustainable Product Index (SPI)On July 16, 2009 introduced plans to produce a global SPI, based on supplier input and independent material LCAThis will provide a sustainability score for all the products itsellsScore will be displayed on products as a number, color code or some other simple formCited objectives: raise quality, reduce costs and provide consumers with sustainability informationItems #1-4: greenhouse gas emissionsItems #5-8: plant waste & plant water usageItems #9-10: product safety, environmental complianceItems #11-15: social compliance, community development

DRIVING FORCE #4: BRAND OWNERSDRIVING FORCE #4: BRAND OWNERS

KraftIn April issued report listing sustainability goals, with targets for 2011 using 2005 as a baselineReducing CO2 emissions and plant energy usage by 25%Reduce water consumption and plant waste by 15%Eliminate 150 million lbs of packaging – Met by end of 2009

Frito LayCommitted to Sun Chips product line in a fully compostable 100% PLA bag by Earth Day 2010Using solar power to run Modesto, CA plant

Grupo Bimbo, NatrelUsing oxo-biodegradable additives in plastic packaging


Proctor & GambleUsing 2002 as a baseline, achieve 40% reduction in environmental footprint of its operations globally by 2012

Sara LeeNo specific targets, but as a member of Sustainable Packaging Coalition are committed to the 5R’s (Remove, Reduce, Reusable, Recyclable, Renewable), and cite examples such as eliminating secondary packaging for transport & downgaugingPhasing out PVC in its household & beauty care products

UnileverCommitted to the 5R’s, minimizing use of PVCFocus on creating sachets that use less material or material with less environmental impact


The Consumer Goods ForumLed by Roger Zellner (Kraft Foods) and Sonia Raja (Tesco)Collection of 650 retailers, manufacturers/brand owners and service providers globallyMet in January to establish a ‘common language’ for packaging and sustainability

To agree on principles for packaging and sustainabilityTo agree on a set of metrics and indicators, adapted from those recently released by the Sustainable Packaging Coalition (Dec. 09)

PACKAGING FORMAT COMPARISONPACKAGING FORMAT COMPARISON

DRIVING FORCE #5: CONVERTERSDRIVING FORCE #5: CONVERTERS

What do converters want?Whatever brand owners & retailers want!Individually and through associations like FPA and SPC, converters are touting the sustainable value proposition of flexible packagingMany converters are starting to track GHG emissions, plant waste, water usage, and asking this of their suppliers as wellAll major converters have an articulated Sustainability strategy or commitment on their website, focusing on driving waste out of operations and creating innovative sustainable packaging

DRIVING FORCE #5: CONVERTERSDRIVING FORCE #5: CONVERTERS

Examples of individual converter initiativesSonoco: targeting 15% voluntary reduction in GHG emissions from their 121 manufacturing sites in Canada and the US within next 5 yearsCurwood: touts forming films, shrink bags & cheese films that offer 10 – 25% material reduction vs. traditional materialsAmcor: using 2006 as baseline, targeting GHG emission reduction of 10% by 2011, 60% by 2030, 100% long-term goalCoating Excellence: purchases renewable energy through the Wisconsin Public Service NatureWise program, and will be carbon-neutral by year-end 2009

DRIVING FORCES: SUMMARYDRIVING FORCES: SUMMARY

Legislators want to be green without increasing taxes: consumers & producers will foot the billConsumers don’t know what they wantWal-Mart will tell us what we wantThe Packaging Scorecard has become more clearly defined, but it is not clear what Wal-Mart will do with itAs there is no clear weighting or prioritizing of metrics with the new Sustainable Product Index, all items need to be treated equally

DRIVING FORCES: SUMMARYDRIVING FORCES: SUMMARY

Brand owners taking different approaches, but a few common themes:

Focus on reducing the amount of packaging used & landfilledFocus on reducing plant waste (energy, water, etc.)Focus on reducing CO2 emissions

For converters, this means driving waste out of operations (energy, material, GHG emissions), and innovating with an eye to the Sustainable Product Index and the Packaging Scorecard

REDUCING MATERIAL USAGE, IMPROVED

LANDFILL DIVERSION

REDUCING MATERIAL USE: REDUCING MATERIAL USE: DOWNGAUGING PETDOWNGAUGING PET

REDUCING MATERIAL USE:REDUCING MATERIAL USE:DOWNGAUGING PETDOWNGAUGING PET

Moving from 48 g PET to 40 g PET17% material reduction in layerFor a 3-ply PET/m-PET/LLDPE laminate, impact on feel of package is generally negligibleIf overall structure is 2.6 mil, this gives a total material reduction of 3% on the finished package40 g PET area cost is generally better than 48 g PET

REDUCING MATERIAL USE:REDUCING MATERIAL USE:LAYER ELIMINATIONLAYER ELIMINATION

Consolidate the metallized & sealant layers in a 3-ply structure, use a 2-ply instead

Layer DescriptionMaterial Weight

(g/msi) Layer DescriptionMaterial Weight

(g/msi)

Reverse printed 48 g PET 11.7Adhesive lamination 0.8

48 g metallized PET barrier layer 10.9 Reverse printed web 11.7Adhesive lamination 0.8 Adhesive lamination 0.8

1.5 mil sealant web 22.8 1.5 mil metallized sealant 22.8

Total Material Weight (g/msi) 47.0 Total Material Weight (g/msi) 35.3

Savings with metallized sealant 24.9%

LANDFILL DIVERSION:LANDFILL DIVERSION:BIODEGRADABLE FILMSBIODEGRADABLE FILMS

PLA films are still the only commercially viable ASTM D6400 certified compostable films on the marketNumber of municipal compost facilities is growing, but still relatively smallOther products such as oxo-biodegradable and omni-biodegradable meet ASTM biodegradation guidelines, but it is still uncertain how these claims will be accepted at a state levelCompostable copolyester films are being looked at more closely todayPHA is on the horizon

REDUCING ENERGY USAGE

HIGH EFFICIENCY METALLIZING PROCESSHIGH EFFICIENCY METALLIZING PROCESS

HIGH EFFICIENCY METALLIZING PROCESSHIGH EFFICIENCY METALLIZING PROCESS

High efficiency metallizing processApply less aluminum to PET film without compromising barrier performanceRun boats coolerDraw fewer amps over boat lifeNo visual difference in metallized film appearanceEnergy savings = 359,271 kW-hr per year

METALLIZED SEALANTMETALLIZED SEALANTTransport and

Processing Energy Usage1

(MJ/Ream)

CO2 Equivalent2

(Kg/Ream)

Solvent-less 37 2.02

Water Based 122 6.67

Solvent Based 203 11.1

8.5lbs LDPE (15um) 162 8.86

11lbs LDPE (20um) 215 11.76

17lbs LDPE (30um) 306 16.73

Metallizing 50 2.731Life Cycle Inventories for Flexible Packaging Lamination, Rick DiMenna, Rohm & Haas.2Ontario power carbon footprint of 0.5447 kg CO2 eq./MJ, How it Works: Electricity Generation,

OPG, 2009.

REDUCING ENERGY WITH AREDUCING ENERGY WITH AMETALLIZED SEALANTMETALLIZED SEALANT

Consider a solvent-based print + 2-pass solvent-less lamination

Layer DescriptionEnergy Usage

(MJ/ream) Layer DescriptionEnergy Usage

(MJ/ream)

Reverse printed 48 g PET 203Adhesive lamination 37

48 g metallized PET barrier layer 50 Reverse printed web 203Adhesive lamination 37 Adhesive lamination 37

1.5 mil sealant web - 1.5 mil metallized sealant 50

Total Processing Energy (MJ/ream) 327 Total Processing Energy (MJ/ream) 290


REDUCING ENERGY WITH AREDUCING ENERGY WITH AMETALLIZED SEALANTMETALLIZED SEALANT

Consider a solvent-based print + 2-pass solvent-based lamination

Layer DescriptionEnergy Usage

(MJ/ream) Layer DescriptionEnergy Usage

(MJ/ream)

Reverse printed 48 g PET 203Adhesive lamination 203

48 g metallized PET barrier layer 50 Reverse printed web 203Adhesive lamination 203 Adhesive lamination 203

1.5 mil sealant web - 1.5 mil metallized sealant 50

Total Processing Energy (MJ/ream) 659 Total Processing Energy (MJ/ream) 456


CELPLASTCELPLAST’’S OPERATIONAL ENERGY S OPERATIONAL ENERGY REDUCTION INITIATIVESREDUCTION INITIATIVES

High efficiency lightingSwitch from T12’s to T5’s throughout plantDouble brightness as measured in foot-candles at plant floorImproved quality, improved cleanlinessEnergy savings = 241,857 kW-hr per year

Motion sensors on lightsOnly have lights turn on when needed in offices, warehouse and some production areas30’ activation radius in tow motor area, 3 minute on-timeEnergy savings = 122,107 kW-hr per year

CELPLASTCELPLAST’’S OPERATIONAL ENERGY S OPERATIONAL ENERGY REDUCTION INITIATIVESREDUCTION INITIATIVES

Centralized chiller systemRelocate five chiller systems to a centralized area, feeding into a single glycol tankAll metallizers and auxiliary heat exchangers fed with glycol from central tankHoneywell controller runs each chiller on demand, so only the chillers & pumps required are turned onEnergy savings = 43,581 kW-hr per year

High efficiency metallizing processRun boats cooler, draw fewer amps over boat lifeEnergy savings = 359,271 kW-hr per year

CELPLASTCELPLAST’’S TOTAL ENERGY REDUCTION S TOTAL ENERGY REDUCTION INITIATIVESINITIATIVES

Energy savings summaryHigh efficiency lighting = 241,857 kW-hr per yearMotion sensors = 122,107 kW-hr per yearCentral chiller = 43,581 kW-hr per yearHigh efficiency metallizing = 359,271 kW-hr per year

Total savings = 766,816 kW-hr per year

REDUCING CO2EMISSIONS

GREENHOUSE GAS EMISSIONSGREENHOUSE GAS EMISSIONS

PET CPP HDPE LDPE

Cradle to Gate Resin Non Renewable Energy (GJ/t)

69.1 63.4 68.9 74.0

Cradle to Gate Film GHG Emission (kg CO2 equivalent/kg)

4.43 1.62 1.77 1.78

REDUCING COREDUCING CO22 EMISSIONS WITH A EMISSIONS WITH A METALLIZED SEALANTMETALLIZED SEALANT

Consider a solvent-based print + 2-pass solvent-less lamination

Layer DescriptionCO2 Equivalent

(kg/ream) Layer DescriptionCO2 Equivalent

(kg/ream)




Total CO2 Equivalent (kg/ream) 77 Total CO2 Equivalent (kg/ream) 54


REDUCING COREDUCING CO22 EMISSIONS WITH A EMISSIONS WITH A METALLIZED SEALANTMETALLIZED SEALANT

Consider a solvent-based print + 2-pass solvent-based lamination

Layer DescriptionCO2 Equivalent

(kg/ream) Layer DescriptionCO2 Equivalent

(kg/ream)




Total CO2 Equivalent (kg/ream) 95 Total CO2 Equivalent (kg/ream) 63


TOTAL COTOTAL CO22 REDUCTION INITIATIVESREDUCTION INITIATIVES

Total operational energy savings = 766,816 kW-hrOperational CO2 reduction = 551 MTCO2 reduction from film yield improvements = 182 MTTotal CO2 reduction = 733 MT

Equivalencies (based on US EPA website)134 passenger vehicles66 homes total energy used166 acres of pine forest carbon sequestration1,704 barrels of oil3.9 railcars of coal

CONCLUSIONSCONCLUSIONS

With consumers not leading the way, retailers and brand owners are developing their own sustainability strategiesConverters have generally done a good job establishing and communicating sustainability strategies as wellConverters have many opportunities to give the brand owner what they want:

Innovative products = reduced material usage, reduced converting energy usage, more landfill diversionOperational excellence = less waste, lower CO2 emissions

Please remember to turn in your evaluation sheet...

Thank you

PRESENTED BY

Weijia ZhangBusiness Development EngineerCelplast Metallised [email protected]

mailto:[email protected]

meeting the sustainability objectives of brand owners ... · retailers like walmart and asda have...

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