Introduction - Tetra Pak · 2015-05-29 · Introduction...

UK Sustainability Report 2007

IntroductionOur promotion of post-consumer recycling, along with work to minimiseour impact on climate change saw us named Environment Company ofthe Year in the 2006 UK Packaging Awards.

As we enter into our fourth year of reportingon our performance in all economic, socialand environmental focus areas, I am pleasedto welcome you to our 2007 SustainabilityReport. I hope you’ll agree that we havea good deal to be proud of, not only indemonstrating our commitment tosustainable development and delivering onour promises, but also in highlighting areaswhere we can continue to improve.We havesought to report honestly and openly on both.

Sustainable development is fundamental toour business, our industry and our customers.From the very beginning, we have includedsustainability thinking in all aspects of ourvalue chain, from the sourcing of rawmaterials to the consumer’s desire torecycle. In fact, more than 50 years ago ourfounder Dr. Ruben Rausing coined the tenet“A package should save more than it costs”.This principle still guides our strategicdirection. Indeed, it’s not only our productsthat protect what’s good, but also our actionsand our attitudes.

As we go to press, we have four NationalRecycling Officers who are creating a step-change in the number of local authoritieswhich have carton collection facilities, nowboosted to over 175.We have committed toachieving national carton collection during2008. These achievements haven’t goneunnoticed. I’m proud to announce that ourpromotion of post-consumer recycling, alongwith work to minimise our impact on climatechange saw us named Environment Companyof the Year in the 2006 UK PackagingAwards. This follows our success in the 2005Wales Environment Awards where we werethe overall winner.

In September 2006, we merged ouroperations with Tetra Pak Ireland to formthe new UK and Ireland Market Area. As webegin to integrate our structures, so too willwe begin to integrate our data. In this report,our data refers to our performance in 2006in the UK market, with a promise to expandboth our approach and our figures to ourIrish operations next year.

We are committed to working with all ourstakeholders to improve our sustainabilityperformance, from retailers to NGOs tosuppliers to employees, and hope youwill learn a little more about the steps wecontinue to take to be efficient, profitableand sustainable.

Peter KnutssonManaging DirectorTetra Pak UK & Ireland

HighlightsOver the year we have invested a significant amountin post-consumer recycling as we have continued tohelp build the UK’s infrastructure for carton recycling,but 2006 was about more than just recycling.

2007 Priorities

Integrate both UK and Irish market data into a single report.Launch an FSC certified package on to the UK market.Continue to drive down carbon emissions.Develop a programme of Life Cycle Analysis to fullyunderstand cartons’ environmental impact.Consolidate and build on our relationship with WWF-UK.Continue to roll out our Leadership Excellence andPerformance (LEAP) training across the entire company.Fully engage employees through our Table Talk programme.Improve our performance for filling machine installationprojects.Achieve 70% coverage of the UK with some form ofcarton collection.Launch a new post-consumer recycling website withinteractive map.

ContentsOur World 02Our Materials 06Our Operations 11Our People 14Our Customers 18

We re-joined WWF-UK’s Forest & Trade Network, re-assertingour commitment to responsible forestry management and 29%of our paperboard was FSC certified.We employed a National Recycling Officer and launchedthe £1.2 million National Recycling Fund through ACE UK.We helped increase the number of local authority areas wherecartons could be recycled from 30 to 82.We launched our World Class Manufacturing EnvironmentPillar, helping us to further increase efficiencies.We have reduced our carbon emissions by 22.7% overthe last five years, continue to be carbon neutral and 60%of our offsets will be Gold Standard certified.84% of our employees said that they were proud ofthe work they do.We paid 95% of our suppliers’ invoices within 30 days.We launched our UK Diversity Network.

UK Sustainability Report 2007 Tetra Pak01 Our Materials

UK Sustainability Report 2007 Tetra Pak02 Our World

Our WorldType ‘climate change’ into Google and you’ll be floodedwith 105,000,000 results.

2006 has been a busy year for sustainabilityhere in the UK. Type ‘climate change’ intoGoogle and you’ll be flooded with105,000,000 entries. The environmentbecame a key political battleground, andthe prospect of a General Election will fuelthe debate further. This political and mediaclimate has of course impacted thepackaging market, whether from a greaterenvironmental focus from retailers or Defra(Department of Environment, Food and RuralAffairs) reviewing its Waste Strategy. To helpus understand these changes, we askedForum for the Future, a leading sustainabledevelopment charity and one of our NGOpartners, for their opinion of our marketand how it is changing.

A comment fromForum for the FutureSustainable packaging: challenge and opportunityThe context in which Tetra Pak and the packaging industry operatesis shifting fast. Driven by the market, Tetra Pak’s customers and theirconsumers, there is a real push towards sustainability. Here are fourkey challenges that Tetra Pak will need to respond to – plus the relatedopportunities that could lie ahead for those that lead the way:

1. (Re)Focus on wasteThe current environmental debate is focusing on carbon and climatechange, meaning issues around waste and recycling have been fallingunder the radar. But we are yet to resolve these problems and thereis still a need to up the ante on waste reduction and recycling.Companies that lead the way in real, innovative, sustainable packagingsolutions will be well positioned to respond to a refocus on waste.

2. Retailer pushAll the major UK retailers, including Tesco, Marks & Spencer andAsda have been upping their game in terms of sustainability, withsome serious public commitments. Innovative thinking, industrycollaboration, consumer education, as well as stark sustainabilityleadership aspirations on the part of individual companies, will see,for instance, 25% year on year reductions in packaging (as with Asdaright now) become standard. Suppliers need to sit up and take notice– and there is a real opportunity for those who step up to the challengeand offer solutions.

3. …and customer pullAdd the fact that many city councils are making moves to incentiviserecycling and reduce waste, we are likely to see a step-change inefforts to reduce product packaging. Customers will start to shun over-packaged products to reduce their own business or household costs.The growing consumer base for more ethical products is likely tomake the link first.Will people want to buy organic food if it is over-packaged? Probably not.

4. Packaging and carbonGiven the current media, campaigning and now retail focus on carbonand climate change, Tetra Pak needs to have its finger on the pulse interms of making the link between packaging and the carbon footprintof a product. As marketers are all too aware, more often than notpackaging is the first contact that the customer will have with aparticular product. Crucially, even if the carbon intensity of packagingis small in whole life cycle terms, it is this interface between productand customer that brings it to the forefront of the debate.

This also could mean that packaging could play its part in helpingto educate consumers on the impacts of products – through carbonlabelling for example. The packaging industry could collaborate withretailers and designers to make this a reality.

The key for the packaging industry will be to shake off its defensivestance and get proactive and creative on sustainable packagingdesign. This needs to be driven by total systems – rather thanindividual pack – thinking that focuses on delivering functionality,benefits and results to customers and consumers.

Vicky Murray Sustainability Advisor. Forum For The Future


Our companyTetra Pak is a privately-held company,founded in 1951 by Dr. Ruben Rausing,whose goal was to develop safe, hygienicpackaging for milk that not only requireda minimum amount of materials, butminimum distribution infrastructure. His corebelief was that ‘a package should save morethan it costs’, a powerful principle foundedon both economic and environmentaldimensions. This continues to remainat the heart of our business today.

Globally, Tetra Pak is divided into 11‘clusters’ or groups of countries, operatingin 165 countries across the world.Wehave been operating in the UK since 1955.In September 2006, we announced ourintention to merge our Tetra Pak UK andTetra Pak Ireland operations into a singlemarket area. The new combined organisation– Market Area UK & Ireland – employsapproximately 300 people across two sitesand is expected to deliver a more competitiveservice to meet the increasing requirementsthroughout the value chain.

Our businessWithin a highly competitive industry, witha particular market focus on plastic bottles,neither filling machine nor pack salesequalled the sales figures of 2005, hencethe decline in our turnover for 2006.

We measure our performance within the twomain categories in which we operate: Juice,Nectars, Still Drinks (JNSD); and Liquid DairyProducts (LDP). Tetra Pak holds only a smallshare of the total JNSD and LDP markets inthe UK, despite our size within the cartonindustry. In JNSD, our share remains under20%, whilst in LDP it remains below 10%.Both categories are dominated by plasticssuch as PET (polyethylene terephthalate)and HDPE (high-density polyethylene).

The competitive pressure we face continuesto build. A key focus for Tetra Pak over thepast 12 months has been to respond toconsumer demand for convenience. As abusy, 24/7 society demands more ‘on-the-go’consumer goods, we have reacted positivelyby creating a range of highly-functional,re-closable and re-sealable containers.We are constantly striving to innovate andprovide customers with products to helpthem differentiate and meet all emergingconsumer needs.

0

40

160

120

80

Total turnover 2001–2006 (£ million)

2001

153

2002

131

2003

126

2004

131

2006

110

2005

137


Our StakeholdersPackaging designPackaging FederationRaw materialsuppliersOur employeesOur customersINCPEN

ManufacturingOur employeesWWFInternationalStandardOrganisationWrexham CountyBorough CouncilResidents andlocal communityOur customers

TransportTransport suppliersOur customers

Raw materialsRaw materialsuppliersWWF-UK Forest &Trade NetworkForest StewardshipCouncilProgramme for theEndorsement ofForest CertificationForum for the FutureOur customers

SalesOur customersRetailersConsumers

RecyclingRemade ScotlandWRAPWelsh AssemblyScottish ExecutiveLocal AuthorityRecycling AdvisoryCommitteeLocal GovernmentAssociationGreater LondonAuthorityValpakLocal authoritiesDefraGreen Alliance

RetailersConsumersChartered Institutionof WastesManagementWelsh EnvironmentTrustWaste collectorsand sorting facilitiesWaste processorsand recyclersForum for the FutureACE UK

Our MaterialsTetra Pak can make a considerable onward impactby providing its customers with sustainable packagingproducts.

UK Sustainability Report 200706 Our Materials

Cartons are predominantly made fromwood, a renewable resource. This isa positive environmental attribute for abeverage package. But while wood can bemanaged responsibly, the trade in forestproducts is not without its problems.We arepleased to be re-joining the WWF-UK Forest& Trade Network and plan to minimise ourown impact in these global forestry issues.

We do not use recycled material in ourpackages as their shorter, weaker fibreswould require greater material usage toachieve the same result – contrary to oursource reduction approach. However, thisdoes not mean that our cartons themselvescannot be recycled for other uses.

Over 20 billion cartons were recycled acrossthe world in 2006. These can be made intoan array of different products, ranging fromprinting paper, including the paper this reportis printed on, to reel cores such as those usedto help distribute packaging material to ourcustomer sites.

The residual plastic and sometimesaluminium material used in our packages canalso be used for a range of different products.These range from roof tiles and panel boardswith the plastic and aluminium mixes, toseparate raw material uses as new plasmatechnology enables the two products to berecovered for individual use.

A comment fromWWF-UK Forest & Trade NetworkAround the world, we continue to lose natural forest at analarming rate.WWF campaigns to bring a halt to this destructionand to extend the concept of responsible forest management.

The WWF-UK Forest & Trade Network provides a framework formembers to adopt a stepwise, monitored approach to sourcingfrom credibly certified forests. Tetra Pak has re-committed to thisframework and its principles, and made an undertaking to reducetheir business impact on forest resources. The challenge in this forTetra Pak is to track source materials and engage with suppliersto drive credible forest certification and responsible forestmanagement.

With a responsible purchasing policy for timber and paperproducts, Tetra Pak should be reinforcing the need forenvironmentally, economically and socially sustainable sourcesof materials in their business. They can make a considerableonward impact by providing their own customers with sustainablepackaging products.

We welcome this demonstration of commitment to environmentalresponsibility as a business issue, and look forward to working withTetra Pak to progressively source and supply products which reflectthis, helping in the fight to protect our vital natural resources.

Julia Young Manager.WWF-UK Forest & Trade Network

Our Materials (continued)


Wood-based paperboard gives cartonstheir structural integrity, while the othercomponents are crucial to the way theyprotect their contents:

Polyethylene makes the carton liquid proof.Aluminium foil serves as a barrier to light,aromas and oxygen in aseptic (long-life)packs, increasing the shelf-life of thecontents to up to a year without the needfor preservatives.

Source reductionThe quantities of polyethylene and aluminiumhave been reduced to a minimum, withoutcompromising product integrity. Thealuminium layer is now the thinnest thatcurrent technology allows at 6.35 microns –about 30% less than in 1969 – and the wide-scale rollout of Tetra Wide in 2005/06 hasreduced the amount of polyethylene in theinner liner of our cartons by up to 30%.

Like most packaging companies Tetra Pakhas an ongoing programme reviewing sourcereduction as we seek to meet the continualdemands for cost reduction from ourcustomer base.

With increasing pressures in the UK tomeet packaging weight reduction targets,Tetra Pak has the experience to understandthat whenever source reduction activitiesare executed, they must be balanced by theother demands that we place on packageperformance.

Robustness in distribution – reduction inmaterial can lead to pack damage that istypically solved by increasing secondarypackaging which removes the originallogic.Consumer performance – reductionin material can lead to flimsier packsthat are harder to grip and pour from.Product protection – reduction in materialcan lead to reduction in shelf life.Aesthetics – reduction in material can leadto ‘bulging’ on shelf.

The environmental impact of productwastage can be far greater than that of usingpackaging. Thus, it is important that Tetra Pakworks with other packaging industry sectorsto promote the importance of packaging,whilst continuing to drive resource efficiencywithin its portfolio.

Please see page 10 to read more aboutthe industry partners we work with.

Design for the EnvironmentOur Design for the Environment (DfE) approach ensures that newproducts are designed in such a way that their environmentalimpacts are understood and then minimised as part of the standarddesign process.We have developed a comprehensive DfE manualto guide development activities.We use DfE as a tool to improvethe environmental performance of new and existing packagesand machines.

This led to the development of Tetra Wide, a thinner polyethylenecarton liner, that saved 50,000 tonnes of plastic. Redesigns ofmachinery have also seen improvements, with the TetraSpiraflo© tubular heat exchange reducing its energy consumptionby 5-10%.


Our suppliersThe relationship we have with our suppliers iscritical not only in ensuring progress towardsmeeting our environmental objectives, butalso in enabling us to continue to producequality products for our customers.

We have developed the global ‘CommonAgenda’ initiative which operates acrossthe company to encourage dialogue aboutbusiness issues, including environmentalperformance, with the suppliers of allour main raw materials – paperboard,polymers, aluminium and ink. A goodexample of this is how we have workedwith our paperboard suppliers (right).

Our suppliers’ environmental performanceis also an important factor in purchasingnegotiations, contributing between 3%and 10% of their overall score. In theUK, we also monitor our suppliers’environmental performance by sendingthem an environmental questionnaireon an annual basis.

But strong relationships need to work bothways and we therefore aim to pay all invoicesaccording to the payment terms of oursuppliers, normally within 30 days. In 2006,95% of invoices being paid within 30 days.

The paperboardOur most significant raw material ispaperboard, the main component of ourcartons. This is made from a combinationof softwood, mainly spruce and pine, andhardwood, usually birch.

In the UK market, all our paperboardis supplied entirely by two companies,Korsnas and Stora Enso, who sourcetheir wood mainly from forests in NorthernEurope, particularly Sweden, but also inFinland, Russia and the Baltic States.

Tetra Pak does not purchase any rawmaterial directly from forests, nor does itown its wood supply. Instead, it purchasesfinished paperboard from a range ofspecialised suppliers around the world.Therefore, to achieve our ultimate goal wework with our paperboard suppliers and theWWF-UK Forest & Trade Network focusingon two key aspects:

TraceabilityOur suppliers must have reliable systems inplace to trace wood fibre back to the forestof origin. All unacceptable sources must beavoided. Ultimately, these systems should beindependently certified.

All the European mills from which Tetra Pak’sboard is sourced have Chain of CustodyCertificates in place to ensure traceability,demonstrating that all of our paperboardcomes from known, legal sources.

In the UK we also have a Forest StewardshipCouncil (FSC) Chain of Custody (COC)Certificate in place to verify our paperboardtraceability from onsite raw material deliveryto customer-site packaging material delivery.

Forest managementSustainable forest management meansmeeting environmental, social andeconomic standards and managing woodas a renewable resource, without depletionof natural reserves.

It is Tetra Pak’s ultimate goal that allthe wood fibre in our packages will comefrom forests independently certified asmanaged in accordance with the principlesof sustainable forest management.

To meet this aim, our suppliers need toensure that they demonstrate an increasein this on an annual basis.

Step 1: Known origin and avoidance ofunacceptable sourcesEstablishment of a verifiable systemfor tracing, monitoring and reportingthe origin of all wood fibre.Exclusion of illegal or unacceptablesources.

Step 2T: VerificationAudits carried out by supplier to verifyStep 1.Involvement of third-party inspectors.

Step 3T: Certified wood fibre tracing systemChain of custody certification for all woodfibre sources.

Step 2M: Certified sourcesCertification of fibre against one of thefollowing schemes:– FSC (Forest Stewardship Council)– PEFC (Program for the Endorsementof Forest Certification Standards)

– CSA (Canada’s National Standard forSustainable Forest Management).

Step 3M: Certified sources –preferred schemesCertification of fibre against a Tetra Pakpreferred scheme – currently FSC only.

Double staircase model

Traceability Forest management

Step 3T:

Certifiedchain of custody

Step 2T:

Verification

Step 2M:

Certified sources

Step 3M:

Certified sources– preferred

certification schemes

Step 1:

Known origin– avoidance of unacceptable

sources


Tetra Pak is committed to implementingthis policy through its own internal stepwiseprogramme. This monitors all suppliersannually, and increasingly rewards them formaking progress towards our ultimate goal.Paperboard suppliers are required tocomplete a Supplier Evaluation ForestryProfile Questionnaire. This is designed toensure that these suppliers make progresstowards increased traceability andcertification of wood sources.

Our preferred certification scheme isthe FSC. In order to assess our progressagainst the FSC’s benchmarks, Tetra Pakhired a forestry consultancy (ProForest)in 2006 to independently verify the 2005declarations made by our suppliers, andto assess risks related to the sourcingof wood-based raw materials.

This audit, repeating a process from2005, showed that 48% of our board alreadycomes from certified sources to step 2M.Of this, 29% of the board comes from FSCcertified sources to step 3M, an increase of7% since 2004.

Over 65% of our board comes from FSCor combined FSC & Programme for theEndorsement of Forest Certification (PEFC)COC certified sources. This is up by almost30% on 2004 levels. An additional 10.8%comes from PEFC COC sources.

In 2007, we aim to secure sufficient volumesof certified material to conduct a market trialwith FSC certified board. This will enable us touse the FSC logo on some of our packs – animportant step forward for ourselves, ourcustomers and retailers.

TransportCarton packaging material is delivered inreels to our customers, where it is thenformed into cartons and filled. This makestransport very efficient. One lorry transportsenough packaging material to make a millionone litre cartons, compared to more than 50lorries required to deliver a million one litreformed plastic or glass bottles.

In addition to this inherent efficiency, we alsograde our transport and travel suppliers bytheir environmental efficiency using a trafficlight system based on minimum level ofperformance against 14 criteria. Tetra Pakcurrently has three transport suppliers withgreen ratings and one with an amber rating.The latter must improve its performance.There are currently no red-rated suppliers.

The packaging industryThe environmental impact of all types of packaging – particularlypackaging waste – is arguably the biggest issue facing the industry.Tetra Pak is working with a number of industry bodies to helppromote a sustainability agenda and encourage greater collaborativeeffort to help improve recycling rates in the UK. These include:

The Industry Council for Packaging and the Environment(INCPEN): This is a research organisation whose mission is toexplain the role of packaging to society, encourage industry tominimise the environmental impact of packaging and to ensurethat policy on packaging makes a positive contribution to thesustainability agenda.

The Packaging Federation: This is the representative body ofthe UK packaging manufacturing industry. It actively promotesthe industry, its economic importance, its products, the benefitsof packaging and the industry’s approach to sustainability. It alsoliaises and co-operates with sectoral trade associations andother organisations, to ensure that the packaging industry isfairly and positively represented on pan-industry issues.

The Alliance for Beverage Cartons and the EnvironmentUK (ACE UK): Previously known as the Liquid Food CartonManufacturers Association (LFCMA), ACE UK represents theleading beverage carton packaging manufacturers in the UK.ACE UK’s mission is to primarily drive post-consumer cartoncollection across the UK and promote the wider environmentalcredentials of the carton. It also liaises with a number ofstakeholders so that cartons may be fairly represented inUK communications, policy and legislation.

Our OperationsWe will never be able to totally eliminate emissions, but since2003 we have voluntarily offset 100% of our unavoidableemissions, making Tetra Pak UK a carbon neutral company.

UK Sustainability Report 2007 Tetra Pak11 Our Operations

Tetra Pak’s commitment to constantimprovement in the environmental arenaextends across all of the business, andmanufacturing is no exception.We have beenISO 14001 accredited since 2001 and ourfocus is now on waste minimisation andenergy efficiency.

To help us meet our commitments onwaste and energy in 2006, we launchedan Environment Pillar as part of our company-wide World Class Manufacturing (WCM)initiative.WCM uses defined methods toreduce losses and maximise efficiencies.The Pillar’s activities extend across boththe manufacturing and market companies.

Carbon ManagementWe measure our greenhouse gas (GHG)emissions on a monthly basis using theGreenhouse Gas Protocol developed bythe World Business Council for SustainableDevelopment and the World ResourcesInstitute.We measure according to scopes1, 2 and 3 of the GHG Protocol, this includesemissions arising from a range of activities,from electricity consumption to the deliveryof packaging materials to customers.

Through this, we are able to target theareas with the highest climate impact forimprovement. This has seen significantresults.We cut our emissions from 14,385tonnes of CO2e in 2001 to 11,133 tonnes in2006, representing a 22.7% cut in absoluteterms and 25.3% per 1,000 standard packsproduced. This meets our target of a 25%reduction per 1,000 standard packs.

However, due to an overall productionincrease of almost 100 million packs, andan accidental release of refrigerant from ourchilled water system, our absolute carbonfootprint rose by 419 tonnes this year against2005. Action has been taken to avoid anyfurther accidental release.

Globally, Tetra Pak has committed to reducingits overall carbon footprint by 10% by 2010against a baseline year of 2005. Our aim is toalign ourselves to this target and do the samein the UK.

Carbon NeutralityWe will never be able to totally eliminateemissions, but since 2003 we havevoluntarily offset 100% of our unavoidableemissions, making Tetra Pak UK a carbonneutral company.

In 2005, all of our offsets come from acommunity-based agro-forestry project inUganda, which has generated significantsocial and economic benefits for thecommunity. The scheme has been developedfollowing the Plan Vivo, a model used forgenerating verifiable emission reductionsfrom sustainable local community projects.The project is managed by BioClimateResearch and Development (BR&D),a not-for-profit organisation.

We recognise that debate is continuingaround the robustness of offsetting throughtree planting and acknowledge that thescheme is not risk free, but we point to thebenefits of this activity. The offset project inwhich we invest offers reduced atmosphericcarbon, and offers real environmental andsocial benefits to local communitiesparticipating in the scheme.

The revenue generated through the initialsales of the carbon credits helps meet costsfor small-scale forestry activities in Uganda,thus enabling rural communities to investin sustainable resource management. Theproject also allows them to gain furtheraccess to markets for timber, fuel wood, polewood, fruit and fodder that might not havepreviously been as accessible. Additionalincome support can also be provided throughnursery establishment and the productionof seedlings. A participating farmer says:

“These trees will help to payfor my children’s school fees.”Betsi Nsigyerewo

World Class ManufacturingWCM places responsibility within a Pillar, a team of peoplededicated to reducing losses. They strive to meet and passthe Key Performance Indicator (KPI) targets of the Company.Each Pillar works closely with others, meeting regularly toshare knowledge and best practice.


Although we believe in the strength of ourforestry offsets and the Plan Vivo model,we keep our offset programme undercontinuous review.

To offset our 2006 emissions, we havecontracted to purchase around 60% ofour offsets from a Gold Standard windenergy project in India and the remainingpercentage from the Plan Vivo project.The Gold Standard is a quality standardfor carbon offsets, initiated by WWFand endorsed by 38 non-governmentalorganisations around the world. Tetra Pak’soffsets will come from the wind energyproject in India.

Energy (electricity, gas and LPG)KwH usedper 1,000

KwH standardused packs

2000 30,185,270 13.5152001 32,063,736 14.8762002 31,291,339 15.2442003 28,876,451 13.3312004 24,074,826 11.8472005 23,230,305 10.9502006 24,023,987 10.780

Material usage and wasteminimisationDifferent pack formats and sizes can have animpact on the volume and proportionof materials used per standard pack area.Larger pack sizes tend to require slightlythicker layers of material to maintain packintegrity, yet give the benefit of a decreasedproportion of packaging material to contentsthan smaller pack formats.

Thus, increased production of larger packformats can increase overall raw materialusage for a site, despite material efficiencygains across the portfolio.

This has been the case for Wrexham in2005 and 2006 in its increased productionof 2 litre aseptic package formats, forambient distribution.

PaperboardIn 2006 85% of our solid process wastewas recycled, an increase of almost 50%since 2001. The high wet-strength paperused to wrap the rolls of paperboard duringtransportation to Wrexham cannot berepulped. This continues to be used as fuelfor energy recovery, giving Tetra Pak a totalrecovery rate of 95%.

Paperboard consumption increased by 7.3%per 1,000 standard packs produced against2004 levels. This was due to the increasedproduction of our 2 litre ambient packformats.

Kg usedper 1,000

Tonnes standardused packs

2000 48,220 21.62001 47,993 22.32002 44,990 21.92003 40,945 18.92004 41,474 20.42005 44,367 20.92006 50,086 22.4

PolyethyleneIncreases in laminator efficiencies havemeant an overall reduction of 23.4%polyethylene consumption against 2001levels. As fewer extruders are used in theproduction of the increasingly popular 2 litreaseptic pack format, and through materialefficiency gains that have been achieved viaWCM, polyethylene waste has been reducedby over 71.5% per 1,000 standard packsproduced against 2001 levels.

Kg wasteKg used polyethylene

per 1,000 Tonnes per 1,000Tonnes standard of waste standardused packs polyethylene packs

2000 12,929 5.8 872 0.392001 12,350 5.7 881 0.412002 11,904 5.8 901 0.442003 12,112 5.6 823 0.382004 11,086 5.5 576 0.282005 12,341 5.8 459 0.222006 9,751 4.4 261 0.12

Wind energy project in IndiaDhule District is a remote area of Maharashtra, western India,made up of a central valley surrounded by the Sahyadra andSatpuda ranges of hills. Largely agricultural, key industries inDhule include forestry, bamboo, flowers and fruit. Tetra Pak hascontracted to purchase offsets from two small-scale wind energyprojects in the district, eight turbines in total capable of generation10MW of electricity. The projects will feed into the Western RegionGrid of India, providing clean energy to a growing energy hungryregion which includes Mumbai and Goa.Wind energy generationis still relatively new in India and faces financial and risk barriers.Our investment helps makes these projects viable.


AluminiumAs with paperboard, increased productionof 2 litre aseptic packages has resulted inan overall 18.5% increase in aluminium useper 1,000 standard packs produced against2001 levels. All waste aluminium continuesto be recycled.

Kg usedper 1,000

Tonnes standardused packs

2000 2,596 1.162001 2,337 1.082002 2,309 1.122003 2,397 1.112004 2,274 1.122005 2,437 1.152006 2,869 1.28

PalletsSince 2003, all our pallets have beenmade of wood from FSC certified forests.Although our pallets are mostly one-way,19.7% were refurbished and re-used byTetra Pak in 2006, compared to 15.0%in 2005. This was achieved throughpromoting the free collection serviceprovided by our pallet supplier.

Unitsper 1,000

Total standardunits packs

2000 68,808 0.0312001 66,764 0.0312002 66,051 0.0322003 64,578 0.02982004 56,352 0.02772005 65,438 0.03082006 72,481 0.0324

Inks and solventsCombined ink usage has been decreased by26.4% per 1,000 standard packs producedsince 2001. Overall ink usage between 2005and 2006 did however increase by 6.7% dueto the larger surface area for printing offeredby the increased pack production of 2 litreaseptic formats.

Combined inks used –solvent and waterbased

Kg usedper 1,000standard

Kg packs

2000 522,211 0.232001 536,330 0.252002 468,111 0.232003 403,360 0.192004 379,867 0.192005 384,442 0.182006 410,011 0.18

Significant savings of 37.5% in combinedinks wastage are attributable to WCM drivingmachine and print-order efficiency, thusreducing the need for machine wash-downs.

Combined ink waste –solvent and waterbased

Kg usedper 1,000standard

Kg packs

2000 484,820 0.222001 511,980 0.242002 333,580 0.162003 342,280 0.162004 400,510 0.202005 323,520 0.152006 367,740 0.17

The introduction of ink bucket liners hasreduced ink bucket waste by an impressive58.3% between 2001 and 2005. The inkbucket liners did however make the factoryfloor look less tidy, resulting in the re-introduction of the standard plastic bucketsused previously, causing an absolute 29.6%increase in 2006 against 2005 levels.

Used ink bucket wasteKg used

per 1,000Total standardkg packs

2000 29,040 0.0132001 26,020 0.0122002 25,740 0.0132003 24,320 0.0112004 18,160 0.0092005 10,800 0.0052006 14,000 0.006

We are now investigating the use of steelbuckets. These will increase the quantityof waste but will be recyclable. The plasticalternative proved to be difficult to recycle.

WaterIn 2006 water consumption was reduced by13.3% per 1,000 standard packs producedagainst 2001 levels. There were no significantspills from our site and no improvementnotices were served.

There was one minor ink spill. The cause ofthis was identified by the WCM EnvironmentPillar and action has been taken to ensurethat this does not happen again.

m3 usedper 1,000

m3 standardused packs

2000 15,863 0.0072001 19,311 0.0092002 19,800 0.0102003 23,484 0.0112004 16,783 0.0082005 17,063 0.0082006 17,522 0.008

Our People92% of our employees feel that their work contributes tothe success of the company and 84% feel proud of thework they do.

UK Sustainability Report 2007 Tetra Pak14 Our People

We are committed to being a good employerand aim to manage our relationships basedupon mutual trust and confidence. Inparticular we are committed to engaging andempowering our people so that they mayachieve their full potential.We feel thatlistening to and acting on their feedback isessential for this.

Employee engagementIn 2005 our annual employee satisfactionsurvey raised concerns over careeradvancement and performance management.We have made efforts to address thesethrough:

Improving communications on careeropportunities within the organisation.Increasing our training budget and startinga company-wide roll-out of Leadership,Excellence and Performance (LEAP)Training.Offering training to all employees onthe objectives-setting process andassociated tools.

People have reacted positively, with surveyresponse rates increasing from 71% to 86%between 2004 and 2006.

2006 Employee Satisfaction Survey highlightsinclude:

90% of our employees agreed thatthey know how their work affectsthe customer.92% felt that their work contributesto the success of the company.84% of our employees felt proudof the work they do.

Our staff turnover rate decreased again in2006 to 7% against 11% the year before.

We historically consulted employees throughthe Joint Consultative Committee (JCC). Itwas felt that this format could be improved,to encourage more open communication. Asa result, in 2006, a group of employees andmanagers experienced a new format, entitledthe ‘World Café’.

World Café is designed to enable a rangeof individuals from across the companyto contribute their opinions on a range ofmatters by encouraging open, honest andtopical discussions in small groups.

The pilot ‘World Café’ was so successful weplan to continue to roll this out across thecompany in 2007 and with its own uniqueidentity as ‘Table Talk’.

Training and developmentWe operate a WCM Education and TrainingPillar which aims to create a LearningOrganisation.

As a result of training gaps identifiedby the Pillar and concerns highlighted byour employees, 2006 saw the wide-scaleroll-out of the Leadership Excellence andPerformance (LEAP) across the entirecompany. This programme focuses on thedevelopment of communication and teamfacilitation skills. LEAP provides a stimulatingand challenging environment that willencourage participants to act differentlyand approach challenges with a fresh andcreative manner.

Tetra Pak is committed to involving as manypeople as possible, and from 2007 LEAPcourses will include employees from acrossthe UK and Ireland.

“It’s been great fun.We are getting a lot outof being together and trying out new ideasin a safe environment.” Alec Glennie,Printing Process Kaizen Engineer.


After carrying out a gap analysis withinour Technical Division all managers and fieldservice engineers have undertaken eitheran IOSH (Institute of Occupational Safety andHealth) Managing Safety, or Contractor Safetypassport course respectively.

WellbeingAt Tetra Pak, we recognise the importanceof our employees’ wellbeing. Not only dowe strive to promote wellbeing at work, butwe support employees towards their ownhealth goals. Employees who are exposedto hazardous substances receive annualhealth screenings, the results of which areconfidential. Our Occupational Health servicecontinues to provide detailed information ona number of health issues, monthly meetingsto identify absence trends and a dedicatedinformation portal on our intranet site toprovide factsheets, newsletters, healthyeating advice and details of lunchtimewalking routes.

To further support these activities, a completerefurbishment of our on-site gym facilitieswas commissioned at the end of 2006.

Health and safetyThe health and safety of our employees is atop priority and we have a dedicated WCMSafety Pillar within our production factory.It is supported by a computer-based systemto help us identify reasons and possiblesolutions for any accidents that occur withinthe factory.

As a result, significant progress has beenmade in 2006, with an 11% reduction inthe near misses against 2005 and a 16%reduction in the total number of accidents.The number of serious accidents resultingin days lost remained stable at four.We haveidentified the reasons for these injuries andhave implemented improved operationalprocedures and training to minimise the riskof further accidents. Our target is to reachzero accidents in Wrexham and, through ourWCM Safety Pillar, we will continue to drivetowards this.

DiversityWe recognise the importance oforganisational diversity. Not only doesthis provide a wider spectrum of skillsand knowledge available, but it enablesour employees to operate successfullywithin a global company containing a widerange of nationalities and ethnic backgrounds.

Out of a total 273 employees in Tetra Pak UKin 2006, 16% were women, up from 14% in2005. The number of female managers withdirect reports has increased by one since2005, giving a total of seven out of 40.

Our recruitment policy requires that allstaff be afforded equal opportunities ofemployment and promotion, which isdetermined only by personal merit. Selectionis based solely on matching of individualcompetences and experience against criteriarelated to the duties of each particularposition. No applicant or member of staff istreated less favourably than another becauseof his or her gender, marital status, sexualorientation, religion, nationality, ethnic groupor disability.

0

20

80

60

40

Total number of accidents

2001 2002 2003 2004 20062005

70 69

37

20 19

12


2006 marked the launch of our UKDiversity Network. The Network aimsto maximise the talents of people fromdifferent backgrounds, experiences andperspectives as a means of improving theworkplace environment and productivity.Diversity within Tetra Pak can be one of itsgreatest assets. It drives innovative thoughtand business process. It also gives anopportunity to contribute to the localcommunity, while building bridges betweendifferent areas of the business, throughvolunteering opportunities for staff.

Action days are planned to take placein 2007, with groups of ten or morestaff working a full day on a gardening orrefurbishment project for a local charity,school or hospital, making the most ofpeople’s experiences and skills.

Charity and communityWe are committed to supporting employees’involvement in charitable fundraising andmatching the amount raised by employeesfor their chosen charities. Here are someof our employees’ initiatives from 2006:

During the summer, a number of employeesparticipated in the Great Manchester Run forMS Society, the Llangollen Jubilee Walk forlocal Nightingale House Hospice, and Race 4Life for Cancer Research UK. One of ouremployees completed a bike trip fromWrexham to Madrid and back in aid ofWales Air Ambulance. A group of Tetra Pakemployees won the Charity Penalty ShootoutTournament arranged by the Wrexham AFCSupporters Association held in aid of the localNightingale House Hospice. October 2006marked a very successful Breast CancerAwareness campaign in the Tetra Pak offices.

As well as handing out Pink Ribbons and abreast cancer fact sheet, the company hosteda Wear it Pink Fundraising Day in aid ofBreast Cancer Research.

Sharing our knowledgeTo help students gain practical experience,Tetra Pak accepts a number of Year 10students every year to work on a placementbasis within the company. To help structuretheir learning, all students are expectedto prepare a project on one of the belowsubjects: The environmental benefits ofcartons. The benefits of aseptic packaging.The link between products packed inTetra Pak cartons and nutritional content.

Students are encouraged to keep a workplacement diary and take their experience ofworking in Tetra Pak back to the classroom.

Building on common interest from studentsinto website management, in 2006 wecreated a specific Work Experience page onour intranet site and each student publishedtheir research on our company and itsproducts as well as extracts from theirdiaries for staff and other students to read.

A comment fromBusiness in the CommunityTetra Pak has been working with Business in the Community (BITC)for the last two years.

Having become a member of BITC’s Cares programme – the mainbusiness-led volunteering programme in the UK. Tetra Pak activelysupports the Easter Egg and Pocketful of Presents campaigns –where employees buy Easter Eggs and Christmas presents for illand disadvantaged local children.

Tetra Pak has also signed up to undertake a team challenge atWrexham Child Health Centre to create two enclosed play areasincorporating pathways, a sensory garden and seating area. Inpreparation for the task, the 70 employees from all departmentsof the company will use their time management, budgetaryconstraint and team working skills to complete the challengein just one day.

Looking to the future, Tetra Pak could look to increase itsengagement with the local community, for instance through BITC’sprogramme on education which involves linking employees toschools to help children with their literacy and numeracy skills.

Peter Williams Director,Wales. Business in the Community

Diversity update

NationalityTotal staff UK Other European Other

273 259 12 295% 4% 2%

GenderTotal Staff Male Female

2005 273 234 (86%) 39 (14%)2006 273 230 (84%) 43 (16%)

Managers with direct reportsTotal Male Female

2005 38 32 (84%) 6 (16%)2006 40 33 (83%) 7 (17%)

Our CustomersOur customers have consistently rated Tetra Pak aboveits competitors in their top of mind environmental score.

UK Sustainability Report 2007 Tetra Pak18 Our Customers

At Tetra Pak we don’t just supply ourcustomers with packaging material to makecartons, we provide integrated services tohelp them deliver their products to marketon time and in perfect condition. In additionto supplying packaging material, we offera range of services and products to ourcustomers, including:

Packaging designProcessing, filling and distributionequipmentProject management and installationservicesTechnical service, spare parts andtechnical supportLogistics technology and distributionexpertiseProduct and market intelligenceBusiness developmentMarketing support

Customer satisfactionFeedback on our products and services,performance, as well as the partnershipwe offer our customers is critical to us.

To do this, we run an annual survey of aselection of our customers, which helpsus to understand and meet their needsin the following areas:

Customer serviceMarketing support activitiesPre-order to billing activitiesLead timeOperational efficiencyTechnical supportInnovationSystem-wide value for moneyEnvironmentStrategic alignment

Through this, we have seen environmentalissues rise increasingly to the forefront ofour customers’ minds.

Our focus on the environment has meant thatfor the past three years, our environmentscore has remained the highest of all areasmeasured. In fact, it has also shown that ourcustomers have consistently rated Tetra Pakabove its competitors in their top of mindenvironmental score.

The 2005 survey highlighted the need toimprove post-consumer carton collectionand recycling in the UK and improveour environmental communications tocustomers. The case study to the rightexplains how we have engaged ourcustomers. To find our how we have

addressed the availability of postconsumer carton recycling, see page 19.

On a strategic level, we will continue tosurvey customers each year, and workon improving the areas they highlight asimportant.We will continue to do this bymeeting with the customers that weresurveyed, working through the feedbackgiven on each area, and agreeing actionplans together. These plans will be followedup regularly by the teams serving eachcustomer, with the overall the aim ofcontinuously improving our service andperformance as a supplier. In 2006 ourcustomer ratings increased in most areas;the most important areas for furtherimprovement were Innovation and SystemPerformance, that is the reliability and costefficiency of equipment and materialssupplied.

Engaging our partnersOur customers are increasingly interested in what we are doingto help make Tetra Pak more environmentally sustainable. Toaddress this, we have introduced a communication programmeon the environment.

The programme consists of regular customer presentations,email updates and a feature looking at our environmental activitiesin every edition of our newsletter, Tetra Pak News. As well asdedicated environmental communications, we ensure that dayto day customer contact, for instance through account managers,is used to pass on the latest environmental information.

These steps have helped us improve our overall environmentscore to 3.7 out of 5. This is an increase of 11.5% against 2005and is 75% higher than the score of 2.1 given by our customersto our competitors.

Recycling and environmental communications continue to beour priority in 2007.

Meeting the need for flexibility,speed and innovationHaving enjoyed success among health-conscious UK consumerswith their World Fruits and Blends premium juices, Del Monteturned to Tetra Pak’s A3/Flex machine when it needed to takeproduction to the next level.

Capable of producing 7,000 Tetra Prisma Aseptic 1000ml cartonsan hour, the A3/Flex will enable Del Monte to keep up with growingmarket demand. At the same time, the ability of the machine toproduce 22 different kinds of pack, and counting, means that DelMonte can react to market changes and new technology quicklyand cost-effectively in the future.

Installation of the machine was completed in just two weeks.Factory manager Kevin Thompson commented that “In 25 years,I have never seen a machine installation go so smoothly andconducted so professionally.”

Working with RecrescoIn November 2006, Tetra Pak’s work to promote carton recyclingin the UK led to the launch of a new carton collection and recyclingservice, in partnership with materials recycling experts Recresco.

The new service gives local authorities across the UK the ability tolink up with Recresco to collect paper-based milk, juice and liquidfood cartons for recycling. Recresco simply picks up cartons as partof their existing plastic bottle collection service, whether based atHousehold Waste Recycling Centres, storage bays, RoRo containersor recycling banks.

This has been made possible because Tetra Pak was able to workwith Recresco to install a new automatic sorting system, whichseparates bottles from cartons. Once this is done, Tetra Pak thenensures that all cartons are recycled.

This is an ongoing roll out into 2007. You can find details andupdates on our website at www.tetrapakrecycling.co.uk


Event driven customersatisfaction surveyOur annual customer satisfaction surveyhelps us to assess our overall performance.However, it is also important to get a deeperinsight into our performance on specificactivities or projects. One example is theinstallation of machines on customer sitesthrough Order Fulfilment Capital Equipment(OFCE) operations.

To do this Event Drive Customer Satisfactionsurveys are conducted upon completion ofall new equipment installations to assess the‘overall customer installation experience’.

In 2006, our target was to achieve at least50% of responses rating us as ‘excellent’ or‘very good’.We are proud to have reachedthis target, but recognise the scope forimprovement.

In 2007 system performance will be our mainkey improvement area.

Performance validationThe performance validation phase of any newinstallation is a nervous, but exciting, time foreveryone involved in the project. This is whenwe demonstrate to the customer that the linewill perform to the targets specified in theSales Contract. The Performance Targets areissued by our global experts in Tetra Pak andare based on the type of equipment andspecific line design.

The process for reaching performancevalidation is complex. In simple terms, the lineis tested for 40 hours, split into productionruns of eight hours or more at a time. Theaverage performance of the equipment duringthis time is then used for validation purposes.

In 2006 all new equipment installed reachedperformance validation within eight weeks.This is a 100% result, and something we areproud of.

In 2007 we are striving to reduce the averagetime to achieve performance validation.

Post consumer recyclingTetra Pak is dedicated to increasing levels ofcarton recycling in the UK, whilst promotingan understanding of the environmental meritsof our cartons. Rising demand from ourcustomers, as well as retailers, consumersand local authorities, saw the companyinvest significant new resources in our post-consumer recycling 2006.

In March 2006 we appointed a NationalRecycling Officer, with a brief to help localauthorities develop the knowledge theyneeded to establish new carton recyclingprogrammes across the UK. She wasprovided with an initial £300,000 NationalRecycling Fund, to assist in the seeding ofnew projects where financial assistanceproved key.

This fund proved successful and a further£1.2 million was made available in the latterhalf of the year through our trade body ACEUK (Alliance for Beverage Cartons and theEnvironment).

We also have a number of additional facilitiesto drive carton recycling in the UK. Theseinclude the following and are outlined on ourcarton recycling route map for the UK (below):

Kerbside

Bring bank

Sorting facilitye.g. MRF

Collection hub

Paper mill


Collection and sortingMany local authorities use the samecollection companies or feed into the samewaste sorting facilities. By partnering withthese third parties, Tetra Pak is aiming tomake carton recycling available to manylocal authorities indirectly.

Already, Tetra Pak and ACE UK have partneredwith Recresco, a well-known glass and plasticcollector and Grosvenor, who operate one ofthe UK’s largest sorting facilities, so that theycan offer carton collection services to theirlocal authority customers.

Collection hubsWe have established a comprehensivenetwork of collection centres at whichmaterial can be stored and/or baled prior tobeing transported for recycling. These are notopen for public use, but can be used by localauthorities, community recycling networks,sorting facilities, retailers and our customers.

Recycling the cartonsWe guarantee that all post consumer cartonmaterial collected will be recycled as long asit meets our mill specifications.

Paper mills, which perform the actualrecycling of cartons, are integral to theprocess. The Smith Anderson mill in Fife usedto be able to recycle all cartons collected inthe UK, but it was forced to close in 2006when energy prices made its main paperrecycling business uneconomic. This issadly not uncommon in the paper industry,

particularly as recycling increasingly operatesin a global market. Many materials collected inthe UK market are exported for re-processing.

As a result we are conducting trials with anumber of UK mills and have an agreementin place with the Örebro Mill in Sweden.This mill produces plaster board liner anduses the plastic and aluminium for energyrecovery. This Sustainability Report is printedon paper made with recycled beveragecartons made at the Hurum Mill in Norway.

Until we are able to secure dedicatedUK carton reprocessing facilities, we willcontinue to recycle collected material viaour European partners, meaning we will:

Be able to ensure that the cartons arerecycled.Minimise the distance that the materialtravels.Expand carton collection across the UK,making UK reprocessing more viable inthe future.

WebsiteMany people contact us to ask whethercartons can be recycled in their local area.A new website, www.tetrapakrecycling.co.ukwas set up to communicate our progress.The website has proven to be a valuableresource for members of the public and localauthorities alike, for information about whereto recycle cartons, or as a first step towardsestablishing new schemes to collectcartons for recycling.

Since the beginning of the yeartetrapakrecycling.co.uk has had38,981 hits.

Within the past year, we have seen thevolume of people visiting our site increasingsignificantly. In 2007, we aim to develop thisinformation portal further to include moredetail on carton recycling, the agendassurrounding it and the environmentalcredentials of cartons.

Real progressOur investment has brought rapid progressin delivery of new facilities, and theenthusiasm from local authorities has beenvery encouraging.

Throughout 2006, we saw the number oflocal authorities where cartons are collectedfor recycling rise from around 30 to 82 inDecember 2006. This is projected to risefurther to cover 70% of all local authorities inthe UK by the end of 2007, with our ultimategoal of national coverage being reached bythe end of 2008.

A comment from TescoTesco and Tetra Pak are working together to increase the recyclingrates for cartons in the UK.

Our customers are becoming increasingly conscious ofenvironmental issues. They have made it clear that they want torecycle more materials than they currently can using their localauthority collection service.

The partnership with Tetra Pak means we can now offer thisservice at our new state of the art Tesco recycling units. The newrecycling units are being introduced to Tesco stores across the UK,and should reach over 100 by the end of 2007. This new machineis capable of both sorting and crushing various materials on site.

As a next step, Tetra Pak and Tesco need to continue to worktogether to utilise the communication provided on the machinesand also work with local authorities to increase awareness ofthe service provided to customers and show real leadership inencouraging the recycling of cartons.

Sion Stanfield Senior Buying Manager. Tesco

Sustainability continues to be a single threadthat runs throughout our business.

This report is printed on Norgraph Recycledpaper containing a minimum of 80% recycledbeverage cartons.

Designed and produced by FHDPhotography by Richard DaviesPrinted by the Beacon Press using their pureprintenvironment print technology. No film processingchemicals were used and 90% of the cleaning solventis recycled. The printing inks are made using vegetablebased oils. The Beacon Press is a CarbonNeutral company.

Tetra Pak UK & IrelandBedwell RoadCross LanesWrexhamLL13 0UTUK

5th Floor1 TuansgateBelgard Square EastTallaght, Dublin 24Eire

Telephone: 0870 442 6000Telefax: 0870 442 6001email: [email protected]/uk

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