BP AUSTRALIA GROUP PTY LTD AUSTRALIAN PACKAGING COVENANT Action Plan 2010 – 2015 (Revised November 2013) BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan FOREWORD Since first signing the National Packaging Covenant BP has progressively worked towards improving waste management across our operations. As a brand owner and retailer of packaging in Australia, we are proud of achievements delivered under previous action plans, including phasing out single-use plastic bags and expanding cardboard recycling facilities across our convenience stores to divert more than 25% of our waste from landfill. Under the joint AIP (Australia Institute of Petroleum) Action Plan we were involved in establishing a national program for the collection and recycling of plastic oil bottles. This new action plan articulates our continued support of the Covenant and its performance goals and targets. We are undoubtedly moving towards further integration of sustainable packaging considerations into our business practices, and look forward to working with our supply chain partners to contribute meaningful improvements to the lifecycle impacts of packaging in Australia. I am pleased to present our plan for packaging improvements for 2010 2015, and look forward to sharing future results of our endeavours. Andy Holmes President, BP Australasia BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan 2 1. EXECUTIVE SUMMARY 4 2. INTRODUCTION 4 3. COMPANY DESCRIPTION 4 4. BP’S PLACE IN THE SUPPLY CHAIN 5 4.1 Lubricants business 5 4.1.1 BP-branded packaging 5 4.1.2 Packaging materials and formats 5 4.2 Retail business 6 4.2.1 BP-branded packaging 6 4.2.2 Packaging materials and formats 6 4.2.3 Supplier-branded packaging 7 4.2.4 Sources of Waste 7 4.2.5 Waste Process 7 5. ACTION PLAN (2010 – 2015) 6. MONITORING AND REPORTING 12 7. CONTACT DETAILS 12 8 APPENDIX 1 – SUMMARY OF COMPLIANCE WITH COVENANT REQUIREMENTS FOR ACTION PLANS 13 APPENDIX 2 – SCHEDULE FOR BP LUBRICANTS SUSTAINABLE PACKAGING REVIEWS 14 BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan 1. EXECUTIVE SUMMARY As a signatory to the Australian Packaging Covenant (formerly the National Packaging Covenant), BP Australia Group Pty Ltd (BP) supports efforts to reduce the environmental impacts of consumer packaging across the supply chain. BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging. This action plan presents commitments against the Covenant’s goals and key performance indicators, focusing on design, recycling and product stewardship. First and foremost, BP commits to reviewing all current and future BP branded packaging against the requirements of the ‘Sustainable Packaging Guidelines’. BP will develop a formal process for conducting these reviews involving the relevant internal and external stakeholders. Through this process opportunities to improve the sustainability of BP packaging may be identified and included in subsequent amendments to this action plan. 2. INTRODUCTION This plan details the actions that BP Australia Group Pty Ltd (BP) plans to undertake in order to meet its commitments as a signatory to the Australian Packaging Covenant and to support the achievement of the Covenant’s goals and targets. BP signed on to the National Packaging Covenant in Australia in 2002 and resigned to the second round in 2005. In line with these commitments and our dedication to sustainability we are pleased to be a signatory to the Australian Packaging Covenant and to present this action plan. 3. COMPANY DESCRIPTION BP in Australia is engaged in the exploration for and production of oil, natural gas and liquefied natural gas and the refining, transportation and marketing of petroleum and lubricant products. As one of the world’s largest energy companies, BP has operated in Australia since 1920 and currently employs more than 5,000 people, a large proportion of which work in our retail business. 4 4. BP’s PLACE IN THE SUPPLY CHAIN BP undertakes a range of activities across the supply chain and is both a brand owner and a retailer of non BP-branded products and packaging. This action plan applies to two main areas of our business: (1) our lubricants business and (2) our network of convenience stores (referred to in this report as our retail business). 4.1 Lubricants business BP manufactures and distributes an extensive range of lubricants and cleaning products, covering everything from engine oils to brake fluids for passenger cars, motorcycle, marine and lawn mowers to heavy duty lubricants for trucks, earthmovers, diggers and other industrial applications. For BP’s lubricant’s business, this action plan addresses our efforts in improving the sustainability of packaging design and other product stewardship actions. BP is also taking action as a joint signatory under the Australian Institute of Petroleum (AIP) action plan. The AIP action plan addresses the management of plastic oil bottles up to 10 litres in capacity, used to package lubricating oil products for the retail and light commercial markets. The plastic used for oil bottles packaging is almost exclusively High Density Polyethylene (HDPE). The focus of joint efforts under the AIP action plan is the collection and recycling of the used plastic oil bottles, and the development of sustainable markets and end uses for the recyclate. 4.1.1 BP-branded packaging The brands owned by BP that are covered under this section of our Action Plan include Castrol, BP, and Tribol. 4.1.2 Packaging materials and formats BP’s branded product packaging types and materials in the lubricants business are summarised in the Table 1 below: Table 1. Summary of Lubricants BP-branded packaging materials and formats Formats Cartons Drums 20 L containers Bottles Cartridges Imports IBC Labels Closures Packaging material Cardboard Steel and HDPE Tin plate Plastic (HDPE) Plastic (HDPE) Plastic ( HDPE) Plastic ( HDPE) Plastic (HDPE) and Steel Paper plus laminate or varnish coating Plastic ( HDPE), tin 5 4.2 Retail business BP owns and operates more than 200 service stations around Australia, offering different convenience store experiences including BP Connect and BP 2Go. All BP Connect stores also have a Wild Bean Café where you can purchase quality coffee and food. The coffee is made by trained baristas using Italian coffee machines and 100% Fairtrade Certified coffee beans. There is also a selection of food including hot toasted wraps, Turkish breads, and a range of pastries baked fresh on site. 4.2.1 BP-branded packaging The brands owned by BP that are covered under this section of our Action Plan include Wild Bean Café, BP 2go, and Deluge bottled water. 4.2.2 Packaging materials and formats BP’s branded product packaging types and materials in the retail business are summarised in the Table 2 below: Table 2. Summary of Retail BP-branded packaging materials and formats Category Formats HOT DRINKS Coffee cups and lids COLD DRINKS Freezie, juice, frappe, smoothie Deluge bottled water SANDWICHES Sandwich wedge Croissant Wrap Toastie PIES/SAUSAGE ROLLS YOGHURTS/SALADS Pies or sausage roll bags Yoghurt container and lid Salad container and lid CAKES OTHER PACKAGING SECONDARY / TERTIARY PACKAGING Sushi packs Cookies (4pack) Muffin, cake, donut, pastry (Wild Bean) Muffin Paper carry bags Cardboard boxes Packaging material Cup: Paper (96%), PET (4%) Lid: Polystyrene (100%) PET (100%) Polypropylene (100%) Bottle: PET Lid: HDPE Paper (98%), Polyethylene (2%) LDPE (flow wrap) LDPE (flow wrap) Paper (50%), Grease-proof inner lining (50%) Glassine paper (100%) PET (100%) Container and lid: PET (100%) Sticker: paper (99.5%), Polyethylene (0.5%) PET (100%) Paper (60%) PET film (36%) PET coating (4%) Glassine paper Polypropylene Paper Cardboard 6 4.2.3 Supplier-branded packaging BP’s convenience offer includes a range of different product types with non- BP branded packaging including: - Cold drinks and milk Confectionery and snacks Tobacco products Groceries Magazines and newspapers Communications products CD's and DVD's General merchandise Car care We are encouraged that many of our suppliers are also signatories to the packaging covenant. This provides opportunity for BP to work along side these suppliers to achieve our mutual goals. 4.2.4 Sources of Waste We have identified four sources of packaging waste in our retail operations: Forecourt bins – located at all refuelling points on the forecourt and accepts waste from the consumer that may be generated inside the store or brought to site. In-store bins – general bins for in-store waste that accepts waste that is derived almost exclusively from sales within our retail facility. Back-of-house – Bins behind the counter that contain waste generated from in store and delivery of products as well as larger style skips that contain all waste generated on site. Carried off-site – this relates to packaging that is not disposed of on site. BP has responsibility for waste contracts at its company-owned and operated sites however waste generated at dealer sites is the responsibility of the independent operator. Company-owned and operated sites now have cardboard recycling onsite as a result of actions taken under BP’s first NPC action plan. 4.2.5 Waste Process The waste process identified in the diagram below outlines the packaging flow and also the opportunities for intervention in the waste cycle that will be explored in this action plan. Some of these actions can be addressed at the corporate level within the organisation and many will be reliant on the store keeping and operational activities within the stores. 7 Packaging Flow at BP Retail Sites The diagram above summarises the movement of packaging at a BP Retail Site. It has helped us identify key opportunities at each stage for minimising, managing and correctly disposing of packaging and therefore, the framework for detailed actions. 5. ACTION PLAN (2010 – 2015) This plan covers the period from July 2010 until June 2015. 8 Goal 1: Packaging optimised to achieve resource efficiency and reduced environmental impact without compromising product quality and safety. If the organisation is in the supply chain, there must be specific actions about how it intends to use the Sustainable Packaging Guidelines for design and procurement. Retail business Lubricants business Corporate or HSSE Outcomes: Packaging designed to: (a) avoid or minimise the use of materials and other resources; (b) optimise recyclability and recycled content and (c) reduce litter impacts. Covenant KPI BP Action 1. Proportion of signatories in 1.1 Review existing BP-branded packaging the supply chain against the Sustainable Packaging implementing the Sustainable Guidelines. Packaging Guidelines for design or procurement of packaging. 1.2 Investigate innovative program to generate sales of water in reusable containers to reduce plastic water bottle waste 1.3 Review Wildbean café secondary and tertiary packaging (cardboard) to identify opportunities to increase the percentage of post-consumer recycled material. 1.4 Implement process to review all new or modified BP-branded packaging against the Sustainable Packaging Guidelines. 1.5 Review marketing promotional materials packaging against the sustainable packaging guidelines. Identify opportunities for improvement and implement these where feasible. Responsibility Timeframe Food Quality & Jun 2014 Safety Manager and Regional Food Service Manager Packaging Manager Refer to timetable in Appendix 2 Cold Drinks Dec 2014 Merchandise Business Manager Baseline data No review system. Target 100% of existing packaging reviews completed by Jun 2014. Evidence Documented reviews. No review system. Documented reviews. National Operations Manager (Interfresh) Jun 2014 Secondary packaging - limited recycled content in cardboard Tertiary packaging - Virgin stretch wrap plastic used 100% of existing packaging reviews completed by Dec 2015. Documented investigation of the feasibility of a program to generate sales of water in reusable containers to reduce plastic water bottle waste Documented review of secondary and tertiary packaging opportunities Food Quality & Safety Manager Mar 2014 Existing product development process does not formally include a documented sustainable packaging review. Purchasing Manager, Asia & Pacific - Packaging Dec 2014 Existing global gated product development process. Sustainable Packaging Review procedure. Documented reviews of new / major modified packaging. Updated product development process Completed review checklists. Senior Marketing Specialist - Retail Dec 2014 No reviews have been completed to date Sustainable Packaging Review procedure in place for all new / major modified packaging 100% of new packaging being reviewed by Mar 2014. Existing global gated product development process updated to ensure 100% of new packaging is reviewed against the sustainable packaging guidelines Dec 2014. Optimised promotional materials distribution packaging. Water sold in plastic bottles BP Australia Group Pty Ltd Australian Packaging Covenant Action Plan Documented review. Documented review. Documented review. Goal 2: The efficient collection and recycling of packaging Outcomes: A contribution to improved recovery of packaging from households and away-from-home sources. Increased secondary markets for recovered packaging materials Covenant KPI 2. National recycling rate for packaging1 3. Proportion of signatories with on-site recovery systems for recycling used packaging 4. Proportion of signatories with a policy to buy products made from recycled packaging. 5. Additional tonnes of material reprocessed in primary and secondary markets as a result of Covenant-funded projects2. 1 2 BP Action 3.1 Implement back of house commingled recycling (where feasible) at all BP owned and operated retail sites in QLD/VIC where there is a Wildbean café. Review the opportunity to roll this program out nationally and to also incorporate front of house recycling. 3.2 Trial the recycling of soft plastics within BP’s company owned and operated retail network. Two options shall be trialled / investigated (1) using the existing waste contractor to collect segregated soft plastic waste (2) send segregated soft plastic waste back to BP logistics provider 3.3 Establish a waste tracking report at BP’s distribution supplier for Retail Merchandise. Establish a % waste recycling metric which will be tracked as a supplier key performance metric. 3.4 BP’s distribution supplier for retail merchandise to put in place facilities to recycle commonly recyclable wastes, including: Soft plastic (including shrink wrap and strapping) Hard plastics (all codes) Steel Aluminium Wood 3.5 For lubricants business, refer to Australian Institute of Petroleum (AIP) joint action plan. 4.1 Track purchases of stationery products with recycled content Responsibility Environmental Team Timeframe June 2015 Baseline data Back of house commingled recycling at approximately 10 company owned retail sites targeting primarily milk bottle waste. Target Increase recycling rates by on average 10% at each BP owned and operated retail site where there is a Wildbean café over 2012 baseline. Evidence Waste tracking reports. On-site recycling infrastructure. Environmental Team Dec 2014 There is currently no system in place for recycling soft plastics at BP’s owned and operated retail sites. Establish the feasibility of recycling soft waste at retail sites including an assessment of cost, labour impact and operating safety issues. Report detailing outcome of trial. Supply Chain Manager, Retail Trading Jun 2014 There is currently no waste tracking report in place Distribution supplier waste tracking report. Supply Chain Manager, Retail Trading Dec 2014 Some facilities exist for recycling however these do not cover all commonly recyclable wastes Waste tracking report in place with report regularly reviewed. % waste recycled established as a supplier key performance metric and reviewed on a regular basis. All commonly recyclable wastes diverted from landfill Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Environmental Team Aug 2012 Recycled paper and a range of ‘green’ stationery items supplied to Melbourne head-office. There is currently no report which tracks recycled content by mass. Report in place which tracks recycled content by mass. Quarterly reviews of the report. Target increasing the uptake of stationery with recycled content. Report which tracks the % recycled content by mass of all stationery purchase across BP Australia Waste tracking report Minutes of regular reviews As noted in the Australian Packaging Covenant, individual signatories are not required to report against this KPI. As noted in the Australian Packaging Covenant, individual signatories are not required to report against this KPI. 10 Goal 3: Demonstrated commitment to product stewardship. Outcomes: Signatories in the supply chain working with others to improve design and recycling of packaging. Reduction in litter. Covenant KPI 6. Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging. BP Action 6.1 Develop a formal process for the review of BP-branded packaging against SPG requirements including working with other stakeholders both internally and in the supply chain 6.2 Incorporate into procurement tender documentation BP’s APC supplier expectations. Responsibility Food Business Manager Packaging Manager Timeframe See Action 1.1 Baseline data See Action 1.1 Target See Action 1.1 Evidence See Action 1.1 See Action 1.1 See Action 1.1 See Action 1.1 See Action 1.1 Strategic Sourcing Manager, Procurement Jun 2014 BP’s APC supplier expectations not released in tender documentation. BP’s APC supplier expectations clearly and concisely communicated in tender documentation. BP procurement tender documentation containing APC expectations. 7. Proportion of signatories demonstrating other product stewardship outcomes. 7.1 Promotional materials print minimum standards shall be annually reviewed for opportunities for further improvements Senior Marketing Specialist - Retail Senior Product Manager - Lubricants Food Quality & Safety Manager and Regional Food Service Manager Environmental Advisor Annually Print minimum standards incorporated into supplier contract. Print minimum standards incorporated into supplier contract. Limited labelling on current products. Jun 2015 No APC standard in place. Review minimum standards on an annual basis for opportunities for further improvements Review minimum standards on an annual basis for opportunities for further improvements Increased awareness and education of consumers about recyclability and proper disposal of BP-branded products. APC standard in place which establishes a minimum standard across BP Australia. It may include: - Packaging material specification - Recycling - Single use plastic bags - Use disposable cutlery/cups - Stationery Print purchases Documented review of minimum print standards Documented review of minimum print standards Documented review of labelling, including any recommendations. BP Australia APC Standard. National Office Facilities Manager Jun 2014 No minimum standard for corporate print materials National Office Facilities Manager Jun 2014 No sustainable packaging reviews of catering completed to date. National Office Facilities Manager Mar 2014 No complete baseline data across all BP Australia corporate offices. See Action 7.2 See Action 7.2 Refer to AIP Action Plan Refer to AIP Action Plan 8. Reduction in the number of packaging items in litter. 7.2 Review labelling of BP-branded products to encourage recycling and prevent littering. 7.3 Establish an APC standard which establishes a minimum standard across BP Australia. It may include: - Packaging material specification - Recycling - Single use plastic bags - Use disposable cutlery/cups - Stationery - Print purchases 7.4 Apply marketing print minimum standards to corporate print materials e.g. business cards, letter heads 7.5 Review packaging of catering supplied to corporate offices against sustainable packaging guidelines for opportunities to create more sustainable packaging outcomes. 7.6 Review use of disposable cups, cutlery, plates etc. in corporate offices and at corporate functions for opportunities to minimise the use of these items by implementing reusable alternatives. 8.2 Review labelling of BP-branded products to encourage recycling and prevent littering. 8.3 For lubricants business, refer to Australian Institute of Petroleum (AIP) joint action plan Annually Jun 2014 - Marketing print minimum standards applied to corporate print materials. Documented corporate print minimum standards Sustainable packaging reviews completed into catering supplied to corporate offices against sustainable packaging guidelines. Note the Retail Sustainable packaging procedure may be used to facilitate these reviews. Use of disposable cups, cutlery, plates etc. in corporate offices and at corporate functions minimised by implementing reusable alternatives. Documented reviews using the retail sustainable packaging template. See Action 7.2 See Action 7.2 See Action 7.2 Refer to AIP Action Plan Refer to AIP Action Plan Refer to AIP Action Plan Documented review detailing opportunities and outcomes. 11 6. MONITORING AND REPORTING Responsibility for monitoring and reporting on the Australian Packaging Covenant action plan will be undertaken by BP’s Environment and Sustainability Advisor. This will be undertaken in conjunction with relevant parts of the business that have responsibility for implementation. The KPI’s BP will report on in its annual report are shown in the Action Table above and include those required under the APC. Records of data collection and actions taken will be collated and kept by BP’s Environmental Compliance and Sustainability Team. 7. CONTACT DETAILS For further information on BP Australia’s Packaging Covenant action plan please contact: Amy Ahmet Environmental Reporting Analyst BP Australia Pty Ltd Level 14 717 Bourke Street Docklands VIC 3008 Ph: (03) 9268 4617 Email: [email protected] 12 APPENDIX 1 – SUMMARY OF COMPLIANCE WITH COVENANT REQUIREMENTS FOR ACTION PLANS The following table summarises how BP Australia is satisfying Australian Packaging Covenant’s Action Plan requirements: Requirement Information provided Action Plan section reference The name of the organisation and its subsidiaries YES 2 Nature of Organisation (What it does, its size or turnover) YES 3 Brands owned by the organisation YES 4 The place of the organisation in the supply chain YES 4 Packaging materials and formats used by the organisation YES 4 The period covered by the plan YES 5 Contact details for the person responsible for implementing the plan YES 7 The specific actions for implementing the commitments under the Covenant and supporting the achievement of the Covenant’s objectives and goals. YES 5 Baseline data for all performance indicators YES 5 Formal commitment by the CEO or equivalent to implement the action plan. YES Foreword 13 APPENDIX 2 – SCHEDULE FOR BP LUBRICANTS SUSTAINABLE PACKAGING REVIEWS The following table timetables how BP will progressively review existing BP lubricants packaging against the Sustainable Packaging Guidelines. Packaging Type Plastic - HDPE Steel drums Sub-category 20L 10L 5L 4L 2.5L 1L 500ml 200ml 500gram tubs 450 gram cartridges 2.5kg pails 20kg pails 205L Complete by 2012-2013 Part 1 - assessments against sustainable packaging guidelines Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities 2012-2013 Part 1 - assessments against sustainable packaging guidelines Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities Poly ethylene drums 200L Jun 2015 tinplate 20L 2012-2013 Part 1 - assessments against sustainable packaging guidelines Jun 2015. PART2 - review of opportunities and decisions regarding implementation of opportunities IBC – 1000L standard IBC - other Closures Jun 2015 Trisure Reike Visy closures Design Moldings TC Hoffmann Dec 2015 Dec 2015 Dec 2015 Dec 2015 Dec 2015 14 Cartons – local Labels Imported products – Drums Cartons Bottles Caps Labels Visyboard AC Labels Quality label services 2014 Part 1 - assessments against sustainable packaging guidelines Jun 2015 PART2 - review of opportunities and decisions regarding implementation of opportunities Dec 2015 June 2014 – June 2015 15
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