COLGATE-PALMOLIVE
2013 - 2014
for
The Australian Packaging Covenant
Australian Packaging Covenant Action Plan
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Contents
Executive Summary ........................................................................... 3
Statement of Company Purpose & Commitment ................................ 4
Colgate’s Sustainability Journey ......................................................... 6
Global Sustainability Strategy............................................................. 7
Product Integrity ................................................................................. 8
Improving Sustainability ..................................................................... 8
Focus on Packaging ........................................................................... 9
Reducing Energy Use and Greenhouse Gas Emissions..................... 9
Moving Products to Consumers ....................................................... 10
Reducing Waste ............................................................................... 10
Supplier Responsible Sourcing Assessments .................................. 11
Engaging Suppliers on Climate and the Environment ....................... 11
Responsible Sourcing of Forest Commodities .................................. 12
Paper and Board .............................................................................. 12
Company APC Historical Timetable ................................................. 13
2013 - 2014 Action Plan ................................................................... 14
Appendix 1 ....................................................................................... 17
Australian Packaging Covenant Action Plan
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Executive Summary
Colgate-Palmolive (Australia) was a signatory to the National Packaging Covenant
MK I, and subsequently MK II, from the year 2000. The company also became a
signatory to its successor, the ‘Australian Packaging Covenant’, in 2011.
The Australian Packaging Covenant is a commitment by industry and government to
the sustainable design, use and recovery of packaging.
managing the impacts of packaging.
It is Australia’s way of
Action Plans and the implementation of
Sustainable Packaging Guidelines are important undertakings by Australian
Packaging Covenant signatories.
As required under the provisions of the Australian Packaging Covenant, ColgatePalmolive (Australia) is pleased to prepare and submit this Action Plan. This action
plan outlines the activities to be completed and target goals to be achieved for the
period 1 January 2013 to 31 December 2014.
This Action Plan reiterates our commitment to the guiding principles of Product
Stewardship and roles and undertakings of the Covenant. The specific initiatives in
this Action Plan have due regard to the expectations of the ‘Sustainable Packaging
Guidelines’ (Australian Packaging Covenant, 2010).
In the packaging supply chain, Colgate-Palmolive (Australia) is classified as a
“packaging user”.
This action plan incorporates a matrix of specific actions and
initiatives that we will undertake as a ‘packaging user’, in order to meet the relevant
goals of the covenant.
Australian Packaging Covenant Action Plan
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Statement of Company Purpose & Commitment
Colgate-Palmolive (Australia), having established its operations in 1921, exists to
support the parent company in becoming the leading and best truly global consumer
products company.
Our name and brands are trusted in over 200 countries where we specialise in oral
health care, personal care, household and fabric care products. Our internationally
recognised brands include Colgate, Palmolive, Ajax, Dynamo, Cold Power and
Fab.
In Australia, Colgate-Palmolive (Australia) has manufacturing sites at Villawood,
NSW and Labrador, Queensland and a head office in Sydney.
With over 480 employees Australia wide, our local mission is to work together as one
team, accelerating profitable growth through innovation, speed and excellence in
everything we do.
By living our universal values – Caring, Global Teamwork and Continuous
Improvement – we have built a reputation as a company with the highest ethical
standards. We all share the responsibility to preserve and enhance this reputation,
abiding by the uppermost principles of integrity, honour and concern for one another.
The protection of our environment and the health and safety of our customers, our
people and the communities in which we live and operate is an integral part of
Colgate-Palmolive’s mission to become the best truly global consumer products
company. It is our worldwide policy to manufacture and market our products and
operate our facilities so that we comply with or exceed applicable quality,
environmental, health and safety rules and regulations.
We have established a set of responsible packaging principles that guide all our
decisions concerning products and packaging.
Colgate-Palmolive (Australia)
became a signatory to the National Packaging Covenant in the year 2000 and it
supports the guiding principles of shared responsibility for reducing the environmental
impacts of consumer packaging.
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As a signatory to the Australian Packaging Covenant, Colgate-Palmolive (Australia)
acknowledges its commitment to the Product Stewardship, and roles and
undertakings of the Covenant, as relevant to the practical scope of its commercial
operations.
Chris Pedersen
Managing Director,
Colgate-Palmolive (Australia)
Australian Packaging Covenant Action Plan
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Colgate’s Sustainability Journey
Colgate-Palmolive Company (“Colgate”) has long focused on the principles of
sustainability. We’ve always been dedicated to providing quality products that delight
consumers, and we’ve had programs in place to promote oral health in communities
and to reduce our energy use and increase efficiency for years.
Colgate’s values of Caring, Global Teamwork and Continuous Improvement go handin-hand with the idea of sustaining both our business and the planet for generations
to come.
In 2008, we organized our sustainability efforts under the three pillars of People,
Performance and Planet. A global Sustainability Council and a network of
Sustainability Sponsors and Champions worked with others to implement the goals
under each pillar.
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In 2010, a global team of Sustainability Leaders representing each functional unit at
Colgate helped develop a 2011 to 2015 Sustainability Strategy with focused
measurable goals that align with our business objectives. Our commitments reflect
the global challenges and opportunities that are material to both Colgate and our
stakeholders.
Colgate’s 2011 to 2015 strategy maintains its emphasis on People, Performance and
Planet, with focused, measurable goals that align with the Company’s business
objectives.
Global Sustainability Strategy
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Product Integrity
Colgate’s internal business integrity extends to the integrity of our products – their
safety, efficacy, quality and sustainability. We are committed to finding ways to
improve the sustainability profile of our product portfolio. We’re also committed to
bringing products to consumers that meet their needs and expectations, and are
continuously working to develop products that have a reduced impact on the planet.
Product integrity also includes a commitment to providing affordable products to
consumers at lower income levels, and linking our products to bettering communities,
through programs such as our “Bright Smiles, Bright Futures” oral health education
initiative and our global hand washing education programs.
Improving Sustainability
As part of our 2011 to 2015 Sustainability Strategy, we’ve committed to increase the
sustainability profile in all new products we produce and in the balance of our
portfolio.1
We have also committed to reduce the environmental impact of our
products and packages by 20 percent, by increasing the use of sustainable materials
and recycled content.
In 2012, Colgate began evaluating new products using a Product Sustainability
Scorecard to drive improvement across the product life cycle. The scorecard rates
products with 35 parameters across eight focus areas: responsible sourcing,
materials, energy and greenhouse gases, waste, water, ingredient profile, packaging
and social impact. So far, we have improved the sustainability profile in 24 percent of
our products.2
1
2
A 10% or better improvement in at least one of the following: Ingredient Profile, Responsible Sourcing, Packaging, Waste, Water,
Energy and Greenhouse Gases.
Results are based on a sample of representative new and existing products
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Focus on Packaging
Colgate’s goal by 2015 is to increase the amount of recycled content in our
packaging by 5 percent per year, including post-consumer materials, materials from
renewable resources and recyclable materials. Additionally, we are committed to
responsible package design and are researching and testing bio-plastic options
made from renewable resources.
Approximately 35 percent of our packaging materials globally are from recycled
sources, and we’re working to expand the use in all Colgate regions by identifying
new technologies and sources of supply.
Reducing Energy Use and Greenhouse Gas
Emissions
We believe businesses have a vital role to play in the global issue of climate change,
and we’re committed to continuously improving our greenhouse gas governance and
performance around this challenge.
Our 2015 goal is to reduce the energy consumption and carbon emissions per unit of
production associated with the manufacture1 and distribution2 of our products by 20
percent. We are on track for this reduction, with a 15 percent reduction in energy, and
a 14 percent reduction in carbon emissions per unit of production in 2012 vs. 2005.3
1
2
3
vs.2005
vs.2008 for Europe and Hill’s delivery; 2010 for U.S., Hill’s Replenishment; 2011 for Greater Asia; 2013 for South Pacific and Africa.
Subject to certification by third-party auditor.
Australian Packaging Covenant Action Plan
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Moving Products to Consumers
In 2012, Colgate undertook an aggressive initiative to increase the reporting and
analysis of CO2 associated with the distribution of our products (logistics). We now
calculate the carbon impact for over 80 percent of our global production volume. In
both the U.S. and Europe, we have reduced our logistics CO2 emissions by over 20
percent per ton of finished goods moved.
We’re also working to increase the amount of intermodal transportation — in which
goods are shipped in an intermodal container or vehicle that can move through
different modes of transportation, such as by sea and rail. When compared with using
trucks and aircraft, intermodal transportation reduces greenhouse gas emissions and
saves cost.
Reducing Waste
Colgate’s 2011 to 2015 goal is to reduce waste sent to landfills per unit of production
from our operations by 15 percent. So far, we’ve reduced waste by 10 percent in the
past two years.
Our sites have been working on this initiative for many years, but in 2012 Colgate
formalized our approach to driving reduction. We are piloting a simplification program
aimed at reducing the number and complexity associated with our waste vendors,
bringing both cost reductions and improved alternatives to landfill disposal. We are
also developing standardized Waste Scorecards to help increase the visibility and
understanding of our waste reduction opportunities.
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Supplier Responsible Sourcing Assessments
Managing responsibility across the supply chain for all of our suppliers and products
is a complex process. In 2012, we launched a number of new programs and tools to
help increase certainty that our suppliers are operating responsibly. Colgate’s
Supplier Responsible Sourcing Assessment Program is one important new initiative.
We use an industry-standard self-assessment questionnaire focused on labour
practices, health and safety, environmental management and business practices to
assess suppliers. When suppliers are assessed as high risk, we perform third party
audits of their facilities.
Engaging Suppliers on Climate and the
Environment
In addition to our efforts to decrease greenhouse gas emissions associated with our
own operations, we have also participated in Carbon Disclosure Project’s Supply
Chain Leadership Collaboration Project since its inception in 2008, increasing the
scope of suppliers each year. By working with this program, Colgate gathers data to
obtain a better understanding of our overall environmental footprint.
•
•
•
In 2012, 85 percent of our largest suppliers (based on total direct material spend)
reported through the CDP Supply Chain survey.
Over 40 percent of our suppliers responding through the CDP Supply Chain
survey have set an energy reduction target.
We also have a continuous improvement program involving suppliers around the
world called “Supplier Enhancement Program.” With this program, we review
continuous improvement opportunities that help suppliers improve their overall
competitiveness.
Australian Packaging Covenant Action Plan
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Responsible Sourcing of Forest Commodities
Many consumer products contain ingredients or packaging that can be labelled as
forest commodities because they come from trees – as in paper and packaging – or
from agricultural cultivation on land that has been deforested. Deforestation leads to
biodiversity loss and accounts for approximately 15 percent of the world’s
greenhouse gas emissions, the equivalent of the entire transportation sector.
According to CDP, the main driver of deforestation globally is land use change for
agriculture.
Colgate has strategies to govern the responsible sourcing of these forest
commodities, and we are seeking opportunities for continual improvement. We
responded to the Forest Footprint Disclosure for the first time in 2012, and will do so
again as part of CDP Forests in 2013.
Paper and Board
Much of Colgate’s packaging material is derived from wood-derived or paper-based
products. Colgate strives to purchase paper packaging from well-managed forests or
from recycled material when available. We understand the priority of purchasing
certified wood-derived products in order to prevent illegal logging, deforestation and
conversion of old-growth forests to monoculture plantations.
Our procurement teams are now asking companies that sell paper products a series
of sustainability questions. In 2011, we undertook an internal mapping to understand
how much of our purchases come from suppliers that had been certified by reputable
organizations: approximately 70 percent of our spend came from suppliers certified
by groups such as the Forest Stewardship Council (FSC), the Programme for
Endorsement of Forest Certification Schemes (PEFC) and the Sustainable Forestry
Initiative (SFI).
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We also have a goal to increase the recycled content in our packaging by 20 percent
by 2015, and thus avoid the use of new paper and board. Today, approximately 35
percent of our packaging materials globally come from recycled sources (includes
both paper and other recycled materials).
Company APC Historical Timetable
Colgate-Palmolive (Australia) has been submitting Action Plans and Performance
Reports on an annual basis over the life of the National Packaging Covenant MKI &
II. The Company will continue its commitment to the requirements of the Australian
Packaging Covenant.
It addresses the commitments undertaken by Colgate-Palmolive (Australia) only.
Action
Covenant Mark I made effective (1999)
Indicative Action Plan (2005 - 2010)
Colgate-Palmolive (Australia) signed Covenant
First Annual Report (2006)
MK I (2000)
Year 1 Action Plan (2001)
Revised Action Plan (2005 - 2010)
Year 2 Action Plan (2002)
2006 Annual Report (2007)
Year 1 Report (2002)
2007 Annual Report (2008)
Year 3 Action Plan (2003)
2008 Annual Report (2009)
Year 2 Report (2003)
Final MK II Annual Report (2010)
Year 4 Action Plan (2004)
APC Action Plan (2011-2012)
Year 3 Report (2004)
2011 Annual Report (2012)
MK I Final Report (2005)
2012 Annual Report (2013)
Covenant MK II effective (2005)
APC Action Plan (2013-2014)
Colgate-Palmolive (Australia) signed Covenant
MK II (2005)
Australian Packaging Covenant Action Plan
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2013 – 2014 Action Plan
Covenant performance goals and KPIs
1. Design – optimise packaging to
achieve resource efficiency and reduce
environmental impact without
compromising product quality and
safety.
Actions
Responsibility
Baseline data
Target
Timeline
or
Or
performance
goal
milestones
(MM/YY)
[KPI 1] Broaden engagement on APC
principles and goals within ColgatePalmolive (Australia), by establishing a
cross functional team to monitor progress
and support packaging sustainability
initiatives. Have team in place by end 2013.
Team will report progress to senior
management quarterly.
B. Naidu
N/A
Team
established
12/13
Target: 70% of Covenant signatories with
documented policies and procedures for
evaluating and procuring packaging using
the SPG or equivalent
[KPI 1] Embed Colgate’s Global ‘Product
Sustainability Scorecard’ process, targeting
80% of new products assessed by end
2014.
B. Naidu
31% of new
products
assessed in
2012
>80%
12/14
Target: 70% of Covenant signatories
assessing 100% of new packaging and 50%
of existing packaging against the guidelines
[KPI 1] Support ongoing application of
‘Sustainable Packaging Guidelines’
assessment to all new products made in
Australia. Periodically audit to ensure
continued compliance.
B. Naidu
N/A
100% of
Australian made
products
assessed
12/14
KPI 1 Proportion of signatories in the supply
chain implementing the SPG for design or
procurement of packaging
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Covenant performance goals and KPIs
2. Recycling – the efficient collection and
recycling of packaging
KPI 3 Proportion of signatories with on-site
recovery systems for recycling used
packaging
KPI 4 Proportion of signatories with a policy
to buy products made from recycled
packaging
All Covenant signatories will have a formal,
documented policy of buying recycled
products or materials
Actions
[KPI 3] Reduction of all Australian factory
material losses to <1% by end 2014.
[KPI 3] Audit current recyclable materials
collection systems for effectiveness and
opportunities for improvement, for all
Colgate-Palmolive ( Australia) sites.
[KPI 4] Increase the amount of recycled
content for South Pacific packaging, in line
with the corporate product sustainability
goals.
Responsibility
Target
Timeline
or
Or
performance
goal
milestones
1.2% (2012FY)
<1%
12/14
N. Mitrevski
N/A
Current system
effectiveness
12/13
B. Naidu
39% (end 2012)
>44%
12/13
>49%
12/14
M. Hodge
Baseline data
(MM/YY)
D. Marsden
Australian Packaging Covenant Action Plan
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Covenant performance goals and KPIs
3. Product stewardship – a demonstrated
commitment to product stewardship by
the supply chain and other signatories
KPI 6 Proportion of signatories that have
formal processes for working with others to
improve design and recycling of packaging
Target: 70% of Covenant signatories are
implementing formal policies and
procedures in working with others to
improve design, procurement and recovery
of packaging.
KPI 7 Proportion of signatories
demonstrating other product stewardship
outcomes
KPI 8 Reduction in the number of packaging
items in the litter stream.
Target: Continuous reduction in the number
of packaging items in litter
Actions
Responsibility
Baseline data
Timeline
or
Or
performance
goal
milestones
1 review
12/13
2 reviews
12/14
(MM/YY)
[KPI 6] Through the Colgate global ‘Supplier
Enhancement Program’, aim to conduct key
supplier partnership reviews to identify
opportunities to improve packaging design
and recycling.
S. Petrillo
[KPI 7] Work with ‘Terracycle’ Australia to
identify opportunities to reduce landfill by
providing consumers a mechanism to
recycle used Colgate packaging.
R. Wilson
N/A
Opportunities
assessed
12/13
[KPI 7] Roll-out Colgate global ‘Working
Towards Zero Waste’ program, targeting a
reduction in Colgate-Palmolive (Australia)
landfill waste by 2.5% each year.
N. Mitrevski
Program initiated
2013.
2.5% annual
reduction
12/14
J. Azouli
N/A
Regular
leadership team
discussions
12/14
[KPI 7 & KPI 8] Identify opportunities to
improve sustainability of each manufacturing
location, by adding ‘Sustainability’ to regular
site management forums. This will include
reviews of site waste management, litter
reduction, and consideration of participation
in local community litter reduction
campaigns.
M. Lonorgan
1 review in 2012
Target
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Appendix 1
Colgate-Palmolive (Australia) Site Locations
Colgate-Palmolive (Australia) manufactures and markets fast moving consumer
goods in Oral Care, Personal Care, Fabric Care and Surface Care categories. In
terms of the packaging chain, Colgate-Palmolive (Australia) is classed as a
“packaging user”.
The Colgate-Palmolive Company is listed on the New York Stock Exchange and
has annual worldwide sales of over US$17 billion. Colgate-Palmolive (Australia)
supplies products predominantly to the South Pacific region.
Head Office:

345 George St, Sydney, NSW
Chief executive
Colgate-Palmolive’s business operations in South-Pacific region and in
Australia are headed by
Mr Chris Pedersen,
Vice-President – South Pacific Region
Executive Chairman & Managing Director – Australia.
Manufacturing Executive
Colgate-Palmolive’s South Pacific manufacturing operations are led by
Mr Paul Rubenach
Director – Manufacturing (South Pacific)
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Manufacturing Facilities

50 Marple Avenue, Villawood, NSW 2163

Captain Cook Drive, Labrador, Qld 4215
These facilities manufacture fast moving consumer goods for the South
Pacific region markets in the following product categories:
 Fabric Care
 Home Care
APC Contact
The project leader and contact person for the Australian Packaging Covenant
compliance activities is:
Peter Woodward
Network Operations Manager
50 Marple Avenue,
Villawood, NSW, 2163
Ph: (02) 9794 5115
Fax: (02) 9794 5003
E-mail: peter_woodward@colpal.com
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