MWV Managing Sustainability in a Sustainable Packaging Company The value of the Dow Jones Sustainability Index
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Agenda Who is MWV? Sustainability and MWV Responsible sourcing and manufacturing Social responsibility and messaging Carbon reduction Sustainable packaging The value of the Dow Jones Sustainability Index to MWV
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WHO IS MWV?
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Who is MWV? We’re the familiar red face of Coca-Cola.
We’re the stylish sprayer of Febreze.
We’re the luster of John Frieda Luminous Color Glaze.™
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Who is MWV? We’re the look and feel of the world’s most-admired products.
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MWV FACTS
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MWV is a global leader in packaging and packaging solutions $7 billion in revenue
22,000 employees worldwide Presence in 30 countries Growth in emerging markets
+40% sales outside North America 25% of revenue from related businesses (Specialty Chemicals, Consumer & Office Products, Land Management)
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Targeted Global Packaging Markets
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Food and Beverage
Cosmetics and Personal Care
Healthcare
Home and Garden
Media and Entertainment
Tobacco
MWV IS
HOW BRANDS TAKE SHAPE
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MWV Packaging Capabilities • • • • • • •
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Market knowledge and consumer insights Innovation and concept development Packaging materials and manufacturing expertise Design and printing services Finished products – primary and secondary packaging Automation systems and packaging machinery Customer service and support
MWV IS
INNOVATION
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MWV Innovation • Packaging solutions designed in collaboration with our customers • Center for Packaging Innovation in Raleigh, NC, with affiliate capabilities in Brazil, Europe, India and China • Four core innovation competencies: package design and development operational excellence market intelligence external alliances
• Over 4,000 patents granted worldwide
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MWV Innovation Innovative Solutions Natralock® – Safe and sustainable security packaging solution; uses 60% less plastic than clamshell packaging NoCTM – Invisible fragrance dispensing system for optimal shelf appeal
ShellPakTM – Adherence packaging solution for prescription drugs; cheaper, safer and easier than plastic pill bottles Evotherm – Warm-mix road paving technology that reduces energy usage and lessens environmental impacts
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MWV IS
SUSTAINABILITY
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MWV Sustainability We are committed to delivering sustainable commercial, social and environmental performance with a focus on:
• • • • •
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Stewardship Fiber supply Carbon reduction Social responsibility Sustainable packaging
Sustainability and MWV
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Sustainability and MWV At MWV, Sustainability represents a focused, ongoing commitment to make responsible business decisions that benefit our customers, our environment, our people and the communities in which we live.
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social environmental economic triple bottom line
MWV Sustainability Leadership Founding Member and/or Leadership Positions World Business Council for Sustainable Development Sustainable Packaging Coalition Wal-Mart Sustainable Value Network
Global Recognition Dow Jones Sustainability World Index (DJSI World)
“Best in Class” for Containers and Packaging last four years
Partnerships The Nature Conservancy – International
Duke University Climate Change Policy Partnership
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Responsible Sourcing
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Sustainable Forestry and MWV Reforestation of lands after harvesting Within 2 years if by replanting Within 5 years if by natural regeneration
Responsible sourcing MWV does not own/accept wood from old growth forests, rainforests, or forests of exceptional conservation value MWV does not accept illegally harvested or stolen wood at our mills 18 percent of MWV wood requirements are residuals from other wood-using industries
Less than 3% of our forests harvested annually
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SFI: The North American Standard SFI is a single standard covering 152.6 million acres of forest certified to it across North America. The program became a fully independent, non-profit organization at the beginning of 2007.
The non-profit organization is guided by a three chamber board with equal representation from three sectors: Conservation Social Economic
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MWV Supports PEFC/SFI
MWV certifications
Our paperboard is Chain of Custody certified to the PEFC/SFI This certification includes many of our converting facilities Our forestlands are certified to PEFC recognized programs North American forests to SFI Brazilian forests to CERFLOR
BV-SFICOC-US08000163
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PEFC / 29-31-43
SFI: Globally Recognized Endorsed by the Programme for Endorsement of Forest Certification Recognized and accepted by UK, US and Japanese governments UK government conducted an independent assessment of forest certification systems and found SFI “legal and sustainable”.
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Responsible Manufacturing
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Water Use and Quality Gal/ton 16,000
Lbs/ton 3.5 3 2.5
14,000
2002 2003 2004 2005 2006 2007
2 1.5 12,000
1 0.5 10,000 2002 2003 2004 2005 2006 2007
0 BOD
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TSS
AOX
Carbon Dioxide Emissions CO2e/tonne* (direct and indirect) 1.5
1.0
0.5
0.0 2002
2003
2004
2005
2006
* Mills only; does not capture fugitive emissions 26
2007
Air Quality Lbs/ton 7.0 6.0
2002 2003 2004 2005 2006 2007
5.0 4.0 3.0 2.0 1.0 0.0 PM
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SO2
Nox
TRS
Social Responsibility and Messaging
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Social Responsibility Responsibly source fiber for mills through a certified procurement process Ensure environmental compliance through environmental management systems Contribute positively to communities where we operate Partner with leading conservation groups Require suppliers to comply with all applicable laws and regulations
Code of Conduct for all employees
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Messaging and Reporting Environmental Report posted to our website annually Expanding data collections to all manufacturing facilities worldwide
Emissions reporting to Carbon Disclosure Project for past 3 years Includes Supply Chain Leadership Collaboration
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Carbon Reduction and Carbon Footprints
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Carbon Footprints What is a carbon footprint? The total amount of carbon dioxide and other greenhouse gases emitted over the selected cycle of a product, operation or service Carbon footprints vary widely based on selected boundaries, methodologies and data accuracy An accurate carbon footprint should represent the CO2 equivalent of a full life cycle assessment
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Carbon Footprints What is a Life Cycle Assessment (LCA)? An LCA is an assessment of the total amount of inputs and outputs emitted over the full life cycle of a product, operation or service An LCA involves all aspects of the specific life cycle phases and considers all environments (air, water and soil)
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Carbon Footprints What is a Life Cycle Assessment (LCA)? An LCA is an assessment of the total amount of inputs and outputs emitted over the full life cycle of a product, operation or service An LCA involves all aspects of the specific life cycle phases and considers all environments (air, water and soil)
Why use a Life Cycle Assessment (LCA)? Limits “cherry picking” the attributes that favor one’s product or package Provides a more common methodology than currently exists with carbon footprint calculators
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Consumer Reports’ “Carbon Conundrum” Tested carbon calculators from 10 websites based on air travel from New York to Los Angeles Carbon Calculator
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CO2 (lb.)
Terra Pass
1,924
Conservation International
3,000
Cool It
3,049
World Resources Institute/SafeClimate
3,163
National Wildlife Federation
3,465
Sustainable Travel International
3,960
Environmental Defense
4,000
Carbonfund.org
4,820
The Climate Trust/CarbonCounter.org
5,860
Bonneville Environmental Foundation
6,732
Source: Consumer Reports®, February 2008
Carbon Footprints, LCAs and MWV MWV is utilizing LCA’s to fully understand our environmental and carbon footprint MWV is supporting industry Life Cycle Assessments on corrugated and paperboard; also, supporting development of a industry carbon footprint assessment tool MWV has its own LCA on secondary beverage systems underway; the study is aligned with methodology used in industry studies Data is expected by March 2009 Next step is procurement and population of GaBi with MWV-specific data These activities will allow MWV to provide credible carbon footprint information 36
Carbon Reporting, Trading and MWV Chicago Climate Exchange (CCX) CCX is the world’s first and North America’s only GHG emissions trading system that includes all six greenhouse gases
MWV helped pioneer accounting and trading carbon sequestered in managed forests MWV has made voluntary legally-binding commitments to reduce our carbon dioxide emissions from our significant sites, which in the U. S. account for 99% of our direct carbon dioxide emissions
The reduction goal was 6 percent of absolute direct emissions from 2003 to 2010 To date, we’ve reduced close to 17 percent
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Sustainable Packaging
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Sustainable Packaging Renew All of our paperboard is made from a renewable resource – trees 85 percent of the energy used to manufacture MWV CNK sourced from renewable, carbon neutral biomass Our NatureSource™ packaging, made from corn-based polylactic acid (PLA), is another renewable material
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Sustainable Packaging Reduce MWV has a separate business unit focused on Engineered Packaging; outcomes aimed at reducing
Secondary packaging Transport packaging
Transport footprint
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Applied Design Package design consulting that can optimize sustainability benefits
+ CRB CARTON
+ CORRUGATED CASE
+ CNK® CARTON
=
CNK® CASE
BEFORE
INTERLOCKING PALLET
+
= COLUMNAR PALLET
320 Cases/Pallet 6,720 Cases/Truck
560 Cases/Pallet 11,760 Cases/Truck AFTER
THE MWV SOLUTION DELIVERS 40% SOURCE REDUCTION; 75% PALLET EFFICIENCY
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Value (per million units)
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=
• 63 fewer truck shipments • 31,500 less miles • Saving $46,620
=
• 5,977 fewer gallons of diesel • 116,090 lbs reduced CO2 emissions
=
• 22% (or less) fiber used • 17% recycled content • 100% certified fiber sources
Sustainable Packaging Recycle Recyclable paperboard cartons Security packaging with recyclable paperboard MWV recycled substrates Printkote® Eagle paperboard Starbucks PCF cupstock Purchased recycled substrates
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Dow Jones Sustainability Index
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What is the DJSI? Launched in 1999, the Dow Jones Sustainability Indexes track the financial performance of the leading sustainability-driven companies worldwide. Based on the cooperation of Dow Jones Indexes, STOXX Limited and SAM Group the indexes provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. The DJSI family currently comprises global, European, Eurozone, North American, US and Asia/Pacific benchmarks. Dow Jones Sustainability World Index The Dow Jones Sustainability World Index (DJSI World) covers the top 10% of the biggest 2,500 companies in the Dow Jones Global Total Stock Market Index in terms of economic, environmental and social criteria. This index was first published on 8 September 1999. The Dow Jones Sustainability World 80 Index (DJSI World 80) is a subset of the DJSI World which tracks the largest 80 sustainability leaders worldwide. The DJSI World 80 was launched on 26 August 2008.
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What does it Measure? Corporate Sustainability is a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. Corporate sustainability leaders harness the market's potential for sustainability products and services while at the same time successfully reducing and avoiding sustainability costs and risks. A growing number of investors perceive sustainability as a catalyst for enlightened and disciplined management, and, thus, a crucial success factor.
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How are you ranked? For each company, the input sources of information for the Corporate Sustainability Assessment consist of the responses to the online questionnaire, submitted documentation, policies and reports, publicly available information and SAM Research analyst’s direct contact with companies. Information provided in the questionnaire is verified. Verification includes crosschecking answers with documentation provided by the company, verifying a company’s track record and incidents and crisis management with media and stakeholder reports and, if necessary, direct interaction and clarification with the company.
Scores are tallied within each sector and super-sector.
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Value of DJSI Membership DJSI member label:
Receive member label for internal and external communication and marketing
Reputation and Brand:
Identification as a global sustainability leader; enhance company’s reputation in the eyes of stakeholders, financial analysts, and public at large
Benchmarking Feedback:
Free of charge benchmarking report
Sustainability Investing:
Shares of DJSI members are recommended for sustainability related investing
Sustainability Tool:
To identify sustainability criteria and communicate to internal & external stakeholders, alignment tool within our own organization
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Alignment with Customers
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Primary Categories of DJSI The DJSI Assessment Summary is comprised of 80 questions in 3 primary categories.
Supplementary documents and links to external sources are an important part of the package.
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social environmental economic triple bottom line
DJSI Assessment, Selection & Ranking DJSI World/ DJSI NA:
2500 largest companies of the DJ Global Wilshire Index Selection of top 10 % in each industry group Selection of 20 % target market cap in each industry Sustainability assessment score
MWV Ranking:
Sector Leader Sector Mover Gold Class for Containers & Packaging
MWV Score:
Overall - 82 % Economic - 86 % [avg. 67%, wt 25.6%]* Environmental - 83 % [avg. 56%, wt 36.6%]* Social - 77 % [avg. 57%, wt 37.8%]*
Competition:
Amcor Ltd in Australia Toyo Seikan Kaisha Ltd. in Japan Smurfit-Stone, PCA, Temple-Inland, Sonoco Products, Crown holdings Inc, Owens-Illinois Inc in US *
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Average score and weighting of assessed companies in the sector
Timelines Kick-off Meeting - April 15 Individual Group Meetings (Brainstorming/Task Assignments/Review) - TBD Information to Team Lead: 1st round (update from last year/outline) - May 1 2nd round (content to team leaders) - May 15 3rd round (finishing touches) - May 29 Final Submission - June 4 52
DJSI Submission Team Dimension
Sector
Responsibility
Qs
Economic
Economic Responsibility Reporting - Lead
Martha Radocy
1 - 27
Economic
Corporate Governance
John Carrara
1 - 11
Economic
Risk & Crisis Management
Robert Birkenholz
Economic
Codes of Conduct/Compliance/Corruption & Bribery
Joe Hutchison
Economic
Customer Relations Management
John Pelligrino
Environmental
Environmental Responsibility Reporting Lead
Greg Williams
Environmental
Environmental Policy/Management Systems
Greg Williams
28 - 34
Environmental
Closed Loop Business Models
Laura Rowell
35
Environmental
Sustainable Fiber & Pulp
Joe Lawson
36
Environmental
Product Stewardship
Doug Marcero
37 - 43
Environmental
Climate Strategy
Bob Fledderman
44 - 47
Environmental
Operational Eco-Efficiency
Greg Williams, Bob Fledderman, Irene Kowalczyk
48 - 53
12 - 18 19 - 24 25 - 27 28 - 53
Social
Social Responsibility Reporting - Lead
Regina Edwards
54 - 80
Social
Labor Practice Indicators
Tom Hardy
54 - 57
Social
Human Capital Development
Paula Rieck
58 - 60
Social
Talent Attraction & Retention
Paula Rieck
61 - 72
Social
Corporate Citizenship/Philanthropy
Kathy Strawn
73 - 75
Social
Standards for Suppliers
Bette Clark & Christine Smith
76 - 78
Social
Stakeholder Engagement
Alison von Puschendorf
79 - 80
All
Communications
Jennifer McMahon
1 - 80
Sustainability
Laura Rowell
1 - 80
All
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Goals Improve overall score Improve score in each section Remain Sector leader
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