Australian Packaging Covenant Action Plan for 2011 - 2013 Singtel Optus February 2011 AUSTRALIAN PACKAGING COVENANT ACTION PLAN FOR 2011-2013 Prepared for: Singtel Optus Prepared By: KMH Environmental Level 12, South Tower, Chatswood Central 1-5 Railway Street, PO Box 5487 NSW 1515 Phone: (02) 9468 9300 Fax: (02) 8008 1600 Document Control Log Revision No. Rev 0 Amendment Date Prepared By 20/7/10 TJ 1 28/07/10 TJ 2 17/1/11 TJ 3 10/2/11 TJ Checked By Approved By RMc RMc © KMH Environmental 2011 The information contained in this document produced by KMH Environmental is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared and KMH Environmental undertakes no duty to or accepts any responsibility to any third party who may rely upon this document. All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without the written permission of KMH Environmental. Page ii Page iii Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd TABLE OF CONTENTS Executive summary ................................................................................................................................5 1. Introduction................................................................................................................................6 1.1. Name of Organisation .....................................................................................................6 1.2. Nature of the Organisation..............................................................................................6 1.3. Brands Owned ................................................................................................................6 1.4. Packaging Materials and Formats Used.........................................................................7 1.5. Period Covered by the Plan ............................................................................................7 1.6. Contact Details for Person Responsible for Implementing the Plan ..............................7 2. Specific Actions and Baseline Data ........................................................................................8 3. Formal Commitment by CEO to Implement the Action Plan ............................................. 16 KMH Environmental Page 4 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Executive summary The following document sets out the proposed Action Plan for Singtel Optus for a three year period commencing April 2011. In 2007 Singtel Optus Pty Ltd (Optus) became a signatory to the National Packaging Covenant (NPC) on behalf of Optus and Virgin Mobile (a wholly owned subsidiary.) Optus have complied with all of the necessary requirements of the Covenant since becoming a signatory including the lodgement of a three year action plan and reports annually to demonstrate progress against the action plan. Optus is an Australian leader in integrated communications - serving more than seven million customers each day. The company specialises in a broad range of communications services including mobile, local, national and long distance telephony, business network services, internet and satellite services and subscription television. The packaging materials used by Optus include: Cardboard Cellophane Wrap Styrofoam PET Blister packs Rigid plastic DVD style cases Rigid plastic to house SIM cards Optus has addressed each of the Covenant’s specific goals and associated key performance indicators by devising specific actions to be undertaken. Details of these actions are provided in the body of this document. The contact officer responsible for overseeing the implementation of this plan is: Brent Gerstle Manager Environmental Affairs, Risk Management SingTel Optus 1 Lyonpark Rd, Macquarie Park, NSW, 2113 0412 679 742 / 02 8082 7977 KMH Environmental Page 5 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 1. Introduction In 2007 Singtel Optus Pty Ltd (Optus) became a signatory to the National Packaging Covenant (NPC) on behalf of Optus and Virgin Mobile (a wholly owned subsidiary.) Optus have complied with all of the necessary requirements of the Covenant since becoming a signatory including the lodgement of a three year action plan and reports annually to demonstrate progress against the action plan. With the endorsement of the new Australian Packaging Covenant (APC) which commenced on the 1st July 2010, Optus is expected to prepare an action plan that addresses the Covenant’s three goals of: Design Recycling Product Stewardship In addition, the Action Plan must demonstrate how Optus intends to demonstrate activities undertaken to address the Covenant’s specific key performance indicators. 1.1 Name of Organisation The following Action Plan relates to Singtel Optus Pty Ltd and covers the activities performed by Optus and Virgin Mobile (a wholly owned subsidiary). 1.2 Nature of the Organisation Optus is an Australian leader in integrated communications - serving more than seven million customers each day. The company specialises in a broad range of communications services including mobile, local, national and long distance telephony, business network services, internet and satellite services and subscription television. In 2001, SingTel became the parent company of Optus. Optus is comprised of four major business areas: Optus Consumer – who provide in mobile voice, data and wi-fi services. It also offers a range of services and products to Australian consumers including Optus Television, long distance and local telephony and high-speed internet and dial-up access. Optus Business – who provide alternative access services and providing a new level of communications flexibility to corporate and government clients. Optus SMB – who focus on the telecommunications needs of small and medium businesses in Australia. Optus Wholesale & Satellite – who provide services and capacity to other telecommunications and communications companies as well as leading the Australian satellite industry. 1.3 Brands Owned The company primarily trades under the ‘yes’ Optus brand, while maintaining several wholly owned subsidiary brands, such as Virgin Mobile Australia and Boost Mobile in the mobile telephony market, Uecomm in the network services market and Alphawest in the ICT services sector. There are no packaging materials however associated with Uecomm and Alphawest. KMH Environmental Page 6 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 1.4 Packaging Materials and Formats Used The packaging materials used by Optus include: 1.5 Cardboard Cellophane Wrap Styrofoam PET Blister packs Rigid plastic DVD style cases Rigid plastic to house SIM cards Period Covered by the Plan This action plan is for the period of three (3) years commencing April 2011. 1.6 Contact Details for Person Responsible for Implementing the Plan The contact officer responsible for overseeing the implementation of this plan is: Brent Gerstle Manager Environmental Affairs, Risk Management SingTel Optus 1 Lyonpark Rd, Macquarie Park, NSW, 2113 0412 679 742 / 02 8082 7977 KMH Environmental Page 7 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 2 Specific Actions and Baseline Data Optus’ proposed actions to respond to the requirements of the Covenant are addressed for each goal and KPI in the following section. 2.2.1 Using Sustainable Packaging Guidelines procurement of all new packaging. for the design and Performance Goal 1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety. Key performance indicators 1. Proportion of signatories in the supply chain implementing the Sustainable Packaging Guidelines for design or procurement of packaging. To ensure the Sustainable Packaging Guidelines for design and procurement are considered for all new packaging, Optus intends to conduct a series of interactive workshops for relevant personnel. Specific Actions Demonstrate how the Sustainable Packaging Guidelines will be used for the design or procurement of all new packaging. The workshops will provide detail on the Guidelines’ four key principles (fit-for-purpose, resource efficiency, low-impact materials, resource recovery) and associated strategies. These sessions will also address how best to adopt and implement the guidelines and provide an overview of each of 10 steps for packaging review and introduce the reporting template for assessing new materials. These workshops will also aim to identify specific targets against the Guideline principles. Commence in 2011. Timetable included in this Action Plan. Optus has established a Supplier Code of Practice. In March 2010, the Code of Practice was incorporated into a broader Supply Chain Strategy as a way of ensuring the procurement process is mindful of Corporate Responsibility and ethical ordering of goods and services. This includes the consideration of Buy Recycled where practical. Provide a timetable for reviewing existing packaging. Timeframe Baseline Data KMH Environmental Page 8 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 2.2.2 Provide a timetable for reviewing existing packaging. The following table provides a proposed timetable for reviewing existing packaging materials. Due to the diverse and complex nature of product and packaging material types, Optus has chosen to conduct the packaging review by product classes rather than material type. A reporting template for each material type is included in Appendix A. Product Classes Packaging Materials Broadband Modems Satellite Pre Paid Mobiles Broadband Dongles Starter Packs and SIM cards Accessories Rigid Plastic (eg: SIM card packaging) Rigid Plastic (eg: SIM card packaging) Rigid Plastic (eg: SIM card packaging) Paper Rigid Plastic (eg: SIM card packaging) PET Blister packs Cardboard Box Cardboard Box Foam Insert Cardboard Cardboard Collateral Information (paper and CD) Collateral Information (paper and CD) DVD Plastic Case Collateral Information (paper and CD) Paper LDPE Plastic Bags Cellophane wrap Wire Ties 2012 2012 2013 2013 Cellophane wrap Polypropylene Timeframe for Review KMH Environmental 2011 2011 Page 9 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 2.2.2.1 Baseline Data For Existing Packaging Materials1 The following table provides a summary of baseline data for existing packaging materials. Packaging Material Quantity of Materials currently sold into the Australian market place. (kg) 2.2.2.2 Rigid Plastic (eg: SIM card packaging) Rigid plastic DVD style cases Plastic Wrap Cellophane 60065 kg of non recyclable plastic Paper Cardboard Styrofoam PET Blister packs 11264 173672 2368 1318 Review of New Packaging Materials Singtel Optus’ product development team will be made aware of the requirements of the Sustainable Packaging Guidelines and a procedure implemented to duly consider the 12 design strategies as a part of the packaging material choice and design for new product classes. A reporting template will be completed to document the decision making process and provided as an Appendix to the annual report to the Australian Packaging Covenant. 1 Data Assumptions - The baseline data provided in the above table is based on the following assumption - Prepaid mobile handsets vary in model types and sizes. The total sales figures have been split between representative samples and averages used to calculate relevant packaging data. Only Optus branded packaging was included in the packaging weight calculations. KMH Environmental Page 10 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 2.2.3 Indicate whether there is a recovery system in place. Optus will provide details of the resource recovery system currently in operation at its Macquarie Park facility. These details will be included in the Annual Report. 2.2.4 Conduct a qualitative review of Optus’ on site recycling facilities. Performance Goal 2. Recycling - The efficient collection and recycling of packaging Key performance indicators 3. Proportion of signatories with on-site recovery systems for recycling used packaging Optus will conduct an independent review of the performance of the on-site recycling facilities to analyse participation and acceptance by Optus personnel and ensure the system adequately caters for materials being generated on site. This review will also consider the waste management practices of retail/restaurant tenants onsite. Specific Actions Indicate whether there is a recovery system in place. Conduct a review of Optus’ on site recycling facilities. Collate the necessary data from Optus to report on how the system is performing. Include the quantities of materials sent for reprocessing. KMH Environmental In conjunction with the qualitative review Optus will seek data from its current waste service provider, on tonnages of material collected from the Macquarie Park site, along with resource recovery and materials diversion rates to ensure optimum resource recovery is being achieved through the Advanced Waste Treatment process currently being used to treat the waste. This information will also form a part of the 2011 APC Annual Report. Optus will conduct a review of its distribution facility to ensure onsite practices optimise resource recovery opportunities. As a part of the implementation of the Supply Chain Strategy, Optus will identify opportunities to review packaging materials generated onsite, to ensure maximum use of recyclable materials. Page 11 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Timeframe Prior to preparing 2011 Annual Report Baseline Data Tonnage of consumer packaging sent (a) for recycling = 579000kg Tonnage sent to landfill = 4900kg Non-recyclable packaging sold: Plastic Type 4 (LDPE – plastic bags) = 3175kg Plastic Type 6 (PS) = 2368kg Plastic Type 7 (Other) = 60065kg TOTAL = 65608kg 6B. “Non- recyclable packaging as a % of total packaging sold= 18.57% Optus has established a Supplier Code of Practice. In March 2010, the Code of Practice was incorporated into a broader Supply Chain Strategy as a way of ensuring the procurement process is mindful of Corporate Responsibility and ethical ordering of goods and services. This includes the consideration of Buy Recycled where practical. KMH Environmental Page 12 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 2.2.5 Optus’ approach to a Buy- Recycled Purchasing Policy. Performance Goal 2. Recycling - The efficient collection and recycling of packaging Key performance indicators 4. Proportion of signatories with a policy to buy products made from recycled packaging. Specific Actions Draft an overview that provides information on existing environmental policies and activities within Optus. Demonstrate the way in which these policies encourage the procurement of recycled goods where economically appropriate. Timeframe 2011 Annual Report Baseline Data Tonnes of locally sourced packaging = 353.24T Tonnes of packaged product sold = 1298.69T Report ratio of packaging to product by weight = 0.28 2.2.6 Draft an overview that provides information on existing environmental policies and activities within Optus. Performance Goal Key performance indicators KMH Environmental 3. Product Stewardship - a demonstrated commitment to product stewardship by the supply chain and other signatories 6. Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging. Page 13 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Specific Actions Prepare a summary of Optus’ Corporate Responsibility Supply Chain Strategy, to demonstrate commitment to improving packaging design and increase the recycling of used packaging. 7. Proportion of signatories demonstrating other product stewardship outcomes Optus has a number of existing policies and initiatives in place that demonstrate its commitment to sustainability. As a part of the Annual Reporting process Optus will prepare a summary document that provides information on these policies and initiatives and demonstrates the way in which these policies encourage the procurement of recycled goods, where appropriate. Optus will also review its existing supplier list against APC signatories. Where suppliers are identified as existing signatories, Optus will seek product stewardship information and identify opportunities to cooperatively improve design and recycling of packaging. Timeframe 2011 Annual Report Baseline Data The Optus Supply Chain policy (still under development) will seek to specify the steps the Procurement department, and any other Optus personnel involved in supplier selection, will follow and to clearly set out company standards and expectations to deliver on these requirements. Aspects of the complex and diverse supply chain are required to be assessed to provide Optus visibility of existing or potential areas of impact in the following identified areas; Provide examples of achievements made as a result of this strategy. Product Stewardship Labour Sourcing Environmental Management Supplier partnerships 2.2.7 Prepare a summary of Optus’ Corporate Responsibility Supply Chain KMH Environmental Strategy and other Environmental Initiatives Page 14 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd In order to demonstrate our commitment to Product Stewardship, Optus will provide a summary of the Corporate Responsibility Supply Chain Strategy. This strategy has been developed in order to outline the procurement processes that Optus undertakes to do business with responsible suppliers to deliver on our commitment to our staff, customer and community needs, and expectations on Corporate Responsibility and ethical procuring of goods and/or services. The Optus Supply Chain policy seeks to specify the steps the Procurement department, and any other Optus personnel involved in supplier selection, will follow, and to clearly set out company standards and expectations to deliver on these requirements. With the implementation of this strategy, Optus intends to assess aspects of the supply chain with regard to: o Product Stewardship o Labour Sourcing o Environmental Management o Supplier Partnerships This information will also provide examples of sustainability achievements made as a result of this strategy. Optus will continue to make available to the Packaging Covenant Council detailed information on other relevant environmental initiatives currently in place. This includes the following key projects: Mobile Muster – handset recycling program Toner recycling on site Computer Hardware Recycling Industrial Battery Recycling More detailed information about the breadth of Optus environmental activities and initiatives can be found in our public Corporate Responsibility Report produced annually. The most recent report is available on the Optus website at www.optus.com.au KMH Environmental Page 15 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd 3 Formal Commitment by CEO to Implement the Action Plan Mr Paul O’Sullivan, Optus Chief Executive is committed to the Australian Packaging Covenant and ensuring the organisation continues to comply with specific requirements. Mr O’Sullivan has been briefed on the requirements of the Covenant and has instructed the appropriate management personnel to undertake the necessary actions to ensure ongoing compliance and adoption of the Sustainable Packaging Guidelines. KMH Environmental Page 16 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Appendix A Reporting Templates for Product Classes Review Reference Rigid Plastic (eg: SIM card packaging) Cardboard Collateral Information (paper and CD) LDPE Plastic Bags Cellophane wrap Polypropylene Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) Date: : Broadband Modems materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials KMH Environmental Page 17 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Design for transport Maximise efficiency water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials Use materials suppliers or recyclable from responsible Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: KMH Environmental Page 18 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 19 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Review Reference: Rigid Plastic (eg: SIM card packaging) Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) Date: Satellite materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials Design for transport Maximise efficiency water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials KMH Environmental or recyclable Page 20 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Use materials suppliers from responsible Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 21 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Review Reference: Rigid Plastic (eg: SIM card packaging) Cardboard Box Collateral Information (paper and CD) Cellophane wrap Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) Date: Pre Paid Mobiles materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials Design for transport Maximise efficiency water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials Use materials KMH Environmental or recyclable from responsible Page 22 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd suppliers Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 23 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Review Reference: Paper Foam Insert DVD Plastic Case Wire Ties Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) Date: Broadband Dongles materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials Design for transport Maximise efficiency water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials Use materials KMH Environmental or recyclable from responsible Page 24 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd suppliers Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 25 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Review Reference: Starter Packs and SIM Cards Rigid Plastic (eg: SIM card packaging) Cardboard Box Collateral Information (paper and CD) Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials Design for transport Maximise efficiency Date: water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials Use materials suppliers KMH Environmental or recyclable from responsible Page 26 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 27 Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Review Reference: PET Blister Packs Cardboard Box Paper Contact: Contact Details: Design strategy How the strategy was considered / answers to key questions Minimise reduction) Date: Accessories materials If the answers to the design strategy questions are ‘no’, what alternatives have been investigated? (source Use recycled materials Design for transport Maximise efficiency water and energy Minimise risks associated with potentially toxic and hazardous materials Use renewable materials KMH Environmental or recyclable Page 28 Documentary evidence available for auditors? If the answers are no, what alternatives have been investigated? Australian Packaging Covenant Action Plan Singtel Optus Pty Ltd Use materials suppliers from responsible Design for reuse Design for recovery Design for litter reduction Design for consumer accessibility Consumer Information Summary Considerations: Activities to undertake to improve sustainability of packaging format/category Examples: Environmental benefits of review: Examples: Environmental Constraints: Examples: KMH Environmental Page 29