Presentatie NFLI Duurzaam Verpakken 14 juni 2017

Frank Sinnige, Customer Experience & Innovation Director

Smurfit Kappa Corrugated Benelux

2 : S M U R F I T K A P P A

Hoe zeker ben jij dat jullie verpakkingen duurzaam zijn?

Smurfit Kappa – Duurzaamheid in elke vezel

3 : S M U R F I T K A P P A

Smurfit Kappa – Duurzaamheid in elke vezel

Duurzaamheid in elke vezel zit

in het DNA van onze mensen

Innovatie in

onze producten

Innovatie in

onze processen

4 : S M U R F I T K A P P A

Innovatie in onze processen vastgelegd in onze strategische prioriteiten

BOSSEN KLIMAAT

VERANDERING WATER AFVAL MENSEN

Smurfit Kappa – Duurzaamheid in elke vezel

5 : S M U R F I T K A P P A

Smurfit Kappa Supply chain

Sustainable

Raw materials Sustainable

Production

Carbon

Energy

Water

Waste

Sustainable

Recycling The customer

Smurfit Kappa – Duurzaamheid in elke vezel

Sustainability on the business agenda

7 : S M U R F I T K A P P A

Why Sustainability is on business agenda?

Source: United Nations Global Compact CEO Survey 2013

8 : S M U R F I T K A P P A

Who do consumers trust when it comes to environmental issues?

Source: “Attitudes of European citizens towards the Environment” (EU Eurobarometer 365 study, 2011)

9 : S M U R F I T K A P P A

“Retailers can make a major contribution to the achievement of more sustainable consumption and production patterns through the products they choose to stock and promote.” EU Commissioner Stavros Dimas

Retailers are seen as platform to reach consumers

10 : S M U R F I T K A P P A

Supermarkten zetten in 2016 € 3 miljard om in producten met duurzaamheidskeurmerken!

► In 2015 groeide dit segment al met 16% en in 2016 met 20%

► 3 miljard euro omzet in alle supermarkten aan producten met onafhankelijk geborgde keurmerken; ASC, MSC, Beter Leven, Biologisch, Fair Trade/Max Havelaar, Rainforest Alliance, UTZ, Label Rouge of Milieukeur

► Het aandeel binnen de totale supermarktomzet steeg in het laatste jaar van 9,4% naar 11,9%

► Consumenten kiezen meer en meer voor voeding met duurzaamheidsclaim én keurmerk.

► Ook supermarktketens en A-merken spannen zich in om het aanbod op dit punt uit te breiden en soms te vervangen.

Duurzaamheid in de lift

Monitor Keurmerken Retail van onderzoeksbureau IRI

Eco Design

12 : S M U R F I T K A P P A

Innovatie in onze producten – duurzame verpakking maakt u groen

“De meest duurzame verpakking is degene die het totale milieueffect van

een bedrijf per eenheid product aan de consument geleverd minimaliseert“

13 : S M U R F I T K A P P A

► Where does it start?

Packaging eco-design – it is daily work and approach

• Fundamental packaging role is to bundle, protect and deliver

• The most sustainable package is the one that minimizes a company’s total impact per unit of product delivered to the consumer

• Over-packing is waste of packaging material, but under-packing is waste of all resources put into the product

Incpen, Industry Council for Packaging & the Environment

14 : S M U R F I T K A P P A

► Eco-design:

• Learn from the market

• Design with power of 700 designers

• Analyse your products supply chain

• Understand how the box is made

► Create packaging which is:

• First time right: for your product in your supply chain and for your consumer

• With measured lowest impact to the environment

► Packaging end-of life:

Packaging eco-design it is daily work and approach

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Plastic packaging 24.7 26.9 28 30.3 32.2 33.2 34.3 35.5 37.3 39.6

Wooden packaging 36.5 38.4 41.3 38.4 37.7 38 37.7 38 36 38.7

Glass packaging 58.9 60.5 63.6 66.1 67.6 69.5 70.9 72.2 72.7 74

Metallic packaging 61.1 65.7 66.6 67.7 69.5 71.5 72.3 72.4 74.3 75.2

Paper and cardboard packaging 73.3 75.7 78.4 80.9 83.4 83.5 83 83.9 84.6 82.3

EU (27 countries)Recycling rates for packaging waste %

15 : S M U R F I T K A P P A

► For virgin paper it means that the raw material is sourced from well managed forests

► For recycled material it means that it comes from controlled collection points

Every fiber used in our box comes from controlled sources

16 : S M U R F I T K A P P A

Virgin or Recycled – which one is better?

Why is Kraftliner (virgin) or Testliner (recycled) paper chosen?

• Product requirement: strength of the box, humidity involved, size of product leading to size of packaging, case-count, etc

• Supply chain requirement: length and complexity of the supply chain, humidity, temperature involved, stacking of pallets, etc

• Price

• Sustainability

17 : S M U R F I T K A P P A

► Fit-for-purpose: The most sustainable paper is the one that is suited for your product in your supply chain

► Sustainable paper: It is not about virgin or recycled paper, it is about exploiting sustainable resources

► The most sustainable cycle: Virgin paper should be recycled and recycled paper can not exist without virgin

Recycled when possible, Virgin when needed

Consult the Smurfit Kappa specialists for the most sustainable solution

Demanding supply chain: Virgin

Standard supply chain: Recycled

18 : S M U R F I T K A P P A

Environmental impacts of product supply chain

19 : S M U R F I T K A P P A

► Carbon footprint calculation for each box

How does it work in practice?

Carbon footprint of a box means summing up all the activities associated with the box and translating them into Carbon emission – example of Fefco methodology:

X t CO2e/t of

corrugated

box*

400

300

200

x weight of

the box

= Carbon

Footprint of a

box CO2e/box

Packaging

Plants

Paper

Mills

Wood Chips

Recycled

Pulp

Starch

Purchased

Pulp

Chemicals

Paper to Board

(Sheet Plant)

Board to Box

(Sheet Feeder)

Waste

paper/board

Finished Box

Key:

Input

Processed

Waste

Process Step

Pulp Production

Paper

Production

Black

Liquor

Purchased

Paper

Ink,

Adhesives

Secondary

Packaging

20 : S M U R F I T K A P P A

► Sustainability credentials for each box

How does it work in practice?

Today we calculate carbon footprint:

PaperToBox – carbon footprint of a box • Smurfit Kappa number (with recycled and virgin papers differentiation)

Pack expert – carbon footprint of our customers supply chain: • Storage

• Transportation

• Handling

21 : S M U R F I T K A P P A

► Sustainability credentials for each box

How does it work in practice?

Voorbeelden van goed design

23 : S M U R F I T K A P P A

Sustainability awards 2017

Universal box

The best possible water pumps producer Biral now also has the best packaging solution for its pumps!

Product Development

Various sizes of pumps were packed in different packaging – 37 packaging items to handle in the stock and at packing process!

We looked innovatively at the process and developed 4 boxes with 2 inserts each, which cover now entire range of pumps

20% cost saving, 60% less items to handle, 40% less pallets with pumps on the stock, 16 km plastic foil and 3,500 lt foam eliminated and Smurfit Kappa got new customer!

SWITZERLAND

NEW SOLUTION

Levitating player

High quality music player is now traveling to its customer in a mono material sustainable packaging solution!

Product Development

The goal was to find an alternative for PS foam inserts which are not sustainable, have long lead time and are expensive

Our creative designers developed mono material packaging solution from corrugated with one piece insert

New packaging solution is cheaper, fully recyclable, saves 50% on transport cost, 80% CO2, and is delivered 57% faster!

CZECH REPUBLIC

The KarTent

Together with 2 students from TU Delft we have developed a corrugated five-angular tent - comfortable, affordable, fully recyclable solution, which helps to avoid huge waste left after festivals!

Product Development

Outdoor festivals are becoming more popular and 1 out of 4 tents, used for stay over, are left behind afterwards – this is ~75t/y of nylon, plastic, etc in Netherlands only!

KarTent is a corrugated tent, which people can just book for a festival and afterwards leave it for recycling

This successful product led to set up of a new company, which sold 25,000 KarTents in first year! New business and no waste!

NETHERLANDS

Saving costs by changing flutes

S flute is a winner! In this case with S flute we managed to optimise customer’s packaging supply chain significantly!

Supply Chain

Capsuled coffee “L’Or”, a brand of JDE, is produced in Lyon and packed into SRP consisting from tray (E flute) & hood (B flute)

Packaging volumes used per year are really significant, so the supply chain must be optimised to a maximum!

We offered 2 steps: change from B to S flute, and use high capacity trailers with this solution 20% of CO2 was saved and 5% cost reduced due to less manipulations at customer!

FRANCE

Currently (1000x1400x1220)

B flute – normal trailer

New palletization (1000x1200x1400)

S flute – high capacity trailer

Qty / pallet 3600 3800

Qty / truck 79200 98800

Truck / year 44 35 -20%

E-shape shims

Phasing out EPS foam is a step towards changing the packaging solutions throughout the home furnishing industry”, Peter S Larsson, Packaging Leader IKEA Sweden

Product Development

EPS foam in does not degrade in nature and is potentially harmful to humans and animals over time

In phase 1: EPS foam is one by one replaced by Honeycomb material; in phase 2 the design was changed to an E-shape shim resulting in 30% less material

As a total result we have reduced CO2 emission by 4,150t as well as eliminated 110,000km of traffic!

NETHERLANDS

- 30% Material

Grease Guard Food plus MB12

Replacing traditional plastic trays in the cinemas by solidboard Grease Guard Food black with MB12 barrier leading to zero migration, aroma protection, no grease penetration, recyclable and compostable

Product Development

A renowned German cinema operator was looking for the best packaging option for their nacho menu and our customer wanted a sustainable, innovative packaging design solution

Safe packaging, satisfied customers: zero migration, aroma protection, no grease penetration

Delivered with advertising appeal: fit for high quality printing, ca. 80% brightness, optional reverse side black

GERMANY

L-Box

Think L-shape! That makes a true sustainable difference for children car chairs!

Supply Chain

Young kids need Recaro chairs to enjoy traveling with parents in cars. And chairs need packaging to be delivered

Standard square packaging did the job, but was not most efficient and we proposed L-shaped packaging instead

Now we have 400 chairs /truck instead of 300 in the past! This solution brings 28t CO2 saving per year just from logistics!

GERMANY

1 year – is that a lot or not?

With our packaging solution customer managed to save 7,800 hours of packing – it is like one person, packing 24 hours/day for 1 year – is that a lot or not?

Supply Chain

Teltonika is provider of automotive routers which are assembled in Lithuania and exported to 126 countries globally

Company is growing and noticed the bottleneck of packing process - they called Smurfit Kappa Baltic for help

New box was developed, which replaced 10 previous boxes. This helped to save packing time, reduced transport cost by 250%, reduced CO2 by 664t and we gained new customer!

LITHUANIA

Strong but Easy

Sometimes the simple solutions are the Strongest performing and the most Easy to implement – juts like our proposal to solve this problem!

Product Development

Products stacked in trays on the pallets could only be loaded one layer in a truck and every time half truck was empty

Can we optimise customer’s supply chain in a simple but effective way? Yes, by introducing “conditioner” in current tray

This easy implemented solution on current packing line now allows pallets double stacking reducing amount of trucks and CO2 by 29%!

SPAIN

One pallet/layer delivered

CO2 produced transporting air

Double product delivered

Environmental saving

Sustainable coffee packs

Coffee segment waste at Delhaize is 90000 euro/y! Triangle of companies: Delhaize, SAS Koffie and Smurfit Kappa challenged this number to be drastically reduced!

Supply Chain

In retail coffee is packed in hard packs and wrapped in LDPE film no protection in supply chain, high costs of shelfing, etc

Very open collaboration between 3 partners resulted in new packaging solution and line with multiple benefits for everyone!

With the new box we reduce environmental impact by 48%, foods waste by 45%, time to shelf by 60%, no risk of knife injuries and improved branding and navigation on the shelf!

BELGIUM

Small change with great results

Product damage during transportation we solved by turning product orientation in a box – simple change made great effect!

Supply Chain

Our customer was experiencing product damage during transportation the box was not optimal and pallet was not efficient – a result of often last minute design of secondary box

We offered a solution with the same case count but different product orientations – pallet stability improved 16%!

Now we have 12 boxes more per pallet, 20 trucks less on a road, and due to pallet stability there is no product damage!

RUSSIA

The potato box

15% of potatoes are damaged and therefore wasted, when they are packed in traditional plastic bags - this cannot be accepted in today’s World focus on food waste reduction!

Product Development

Potatoes need protection in their supply chain and dry & dark storage at consumers place, then their expiry time is longest

Current plastic packaging does not provide that, moreover, after use, this plastic pack is not recycled in Belgium

Our developed corrugated box is recyclable, creates new appearance on a shelf at retailer, enables consumer experience at home, and minimizes potatoes waste to less than 5%!

BELGIUM

Voorbeeld uit de praktijk

37 : S M U R F I T K A P P A

38 : S M U R F I T K A P P A

► De eigenaar van De Aardappelhoeve wilde een duurzame en meer aansprekende verpakking.

In Frankrijk had hij aardappelen op het schap gezien die verpakt waren in een doosje van golfkarton.

► De opdracht was dus duidelijk; ontwerp een consumenten verpakking die onderscheidend is op het schap

Wat was de opdracht

39 : S M U R F I T K A P P A

Wat was de oplossing

40 : S M U R F I T K A P P A

Teelt

Aardappelen de hele keten

Sorteren Wassen

Transport Verpakken Retail Consument

Oogsten

Tot ziens in ons Experience Centre