Sustainable Business Development - Past Events

National Packaging Covenant

The National Packaging Covenant is a self-regulatory scheme to reduce packaging waste and to increase recycling.

National Packaging Covenant	Sets out a national instrument for managing Packaging waste in Australia. Self-regulatory agreement between industries in the packaging supply chain and all spheres of government	Companies can voluntarily sign the Covenant and produce an Action Plan.
National Environmental Protection Measure	NEPM on used Packaging Materials approved to ensure covenant signatories are not disadvantaged in the market place. National strategy forcing the states to implement regulations for compliance.	OR
Industry WasteReduction Plan	NSW response to the NEPM. Enacted under the Waste Minimisation and Management Act 1995. Sets out requirements for reporting to the EPA for those industries not signatories to the National Packaging Covenant.	Become subject to the conditions of the IWRP and report to the NSW EPA.

Overall Aims of the introduction of these Measures and Plans

• Encourage greater product stewardship
• Market development of markets for recyclable materials
• Minimise waste creation
• Conserve Natural resources
• Move waste management up the hierarchy towards avoidance and reuse
• Encourage an efficient and cost-effective approach to industry waste reduction
  

The general push of these measures is for industry to start to consider the issue of product stewardship and the integration of environmental goals into a companies overall strategic management plan. Where the companies are heavily involved in the packaging supply chain, such as Food production, Pharmaceutical industry and the Plastics packaging industry.

At the least companies are going to require record keeping of these requirements. Decisions are then whether the company is only going to follow compliance or to use this opportunity to implement a framework to optimise the business opportunities that arise from an environmental review of operations.

The National Packaging Covenant http://www.environment.gov.au/epg/covenant/covenant.html

What is it?
The aim of the National Packaging Covenant is to minimise the environmental impacts of consumer packaging waste throughout the entire life cycle of the packaging product by closing the loop, developing economically viable and sustainable recycling collection systems.

History
Agreed to by the Australian and New Zealand Environment and Conservation Council Members (ANZECC), Local Government and a range of industries in the supply chain.

The Covenant relies on voluntary signatories. Life span of five years. Allows companies to reach obligation in the manner they deem most beneficial.

A National Environmental Protection Measure on Used Packaging Materials has been approved to ensure the covenant signatories are not disadvantaged.

The New South Wales Government is implementing the 'recover and utilise' obligations through a non-negotiated Industry Waste Reduction Plan (IWRP) under the Waste Minimisation and Management Act.

Covenant Signatory Requirements

• Development of an Action Plan to address commitments of the signatory. The commitments required are flexible, with sectors having different covenant responsibilities in the life cycle of a packaging product.
• Information contained in the Action plan will be publicly available unless the signatory specifies that the information is confidential or commercially sensitive.
• Keep adequate records to support commitments and targets of the Action Plan
• Produce an Action Plan report annually, which should be lodged with the Covenant Council within 3 months of the end of the financial year.
• Contribution to the industry portion of the Transitional Arrangements - improvement measures aimed at the kerbside recycling system. Annual contributions are based on the organisations position on the packaging supply chain and its turnover based on packaging related sales.
• Adopt product stewardship policies and contribute to the effective environmental management of packaging through its life cycle
• Encourage greater recognition of packaging as a resource
• Seek wider recognition and implementation of the Environmental Code of Practice.
  

Non Convenant Signatories and the IWRP
Those companies not signed up to the Packaging Covenant will be subject to the conditions of the NSW Industry Waste Reduction Plan (IWRP). Enforcement commenced July 2000.

The Plan applies to

• All brand owners who are not Covenant Signatories and whose consumer packaging forms part of the waste stream in NSW
• All Brand Owners who are not Covenant signatories and whose registered offices are in NSW
• All Brand owners who are non-complying Covenant signatories
  

The plan requires the implementation of Brand owners to recover, reuse and recycle used packaging materials such as:

• Materials used for packaging products consumed on domestic premises in NSW
• Material used in NSW for packaging food and beverages intended for public consumption or commercial provision of food services to individuals in hotels and restaurants
• Household paper and cardboard
• Bulk packaging of household products
  
  Exemption
  Only if the Brand owners consumer packaging is used only within NSW and the market share for each of the consumer packaging products or in-store packaging products it sells, distributes or supplies does not exceed 1% of the notional market share in NSW.
  Material to which the Plan applies
• Paper: white office and mixed Cardboard
• Liquid paper board
• Glass (white, green and brown)
• PET
• HDPE (clear, opaque and coloured)
• PVC
• Other Plastics
• Aluminium (cans)
• Steel (cans, tins etc)
  

CONTRAVENTION OF THE PLAN
If a company fails to meet any of the requirements of the plan then the EPA will issue a notice of contravention outlining the details.
A date of not less than one month will be given in which to rectify the situation

Penalties
If the contravention is not rectified within the time allocated, penalties apply

• Corporation: up to $125,000 one off, plus up to $60,000 each day the offence continues
• Individual: up to $60,000 and up to $30,000 each day the offence continues.

FURTHER INFORMATION
The National Packaging Covenant and Action Plans
Available from http//:www.environment.gov.au/epg/covenant
Used Packaging Materials: Industry Waste Reduction Plan July 2000
Available from NSW Environment Protection Authority http://www.epa.nsw.gov.au/waste