Analysis: Courtauld’s second coming

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In the film world, with a few exceptions, the sequel is rarely as good as the original. And the long gestation period for Courtauld Commitment 2 (CC2) might have pointed to a similar fate for the packaging reduction scheme. But, while some brands have decided that the CC2 is not for them, the reviews have, for the most part, been cautiously positive. There was even a tagline – “the next step on the journey” – and the suggestion that a third instalment was on the cards.

The Waste and Resources Action Programme (Wrap) is, unsurprisingly, pleased with its achievement last month of getting 28 grocery brands and retailers to sign up to its three targets to reduce the carbon impact of packaging, household waste and supply chain product waste (see box). Wrap is confident that more signatories will come forward – Marks & Spencer has already committed to doing so – and the number of signatories was perhaps something of a surprise after speculation in the industry that only a handful of brands would sign up.

CC2′s overarching goal is for more sustainable resource use over the entire product life-cycle and across the supply chain. Wrap head of retail Richard Swannell says the new agreement gives the organisation a “broader ability to reduce environmental impact, as well as create cost savings for businesses and consumers”. “We’re happy with CC2 for a number of reasons including the challenging targets and the move away from weight-based goals. It’s a step on the journey towards looking at products as a whole,” he says.

Carbon not weight

The weight-based targets for packaging reduction were the industry’s particular bugbear with CC1. While there are still concerns that packaging remaining as the first target on the list continues to play into the hands of the its critics in the media, the move to a more holistic assessment has certainly been welcomed. Packaging Federation chief executive Dick Searle says that the focus on packaging alone has masked the fact that, “on average, product impact is some 10 times that of packaging”. “Recognising the strong resource efficiency credentials of packaging will help it to be seen not as a problem but at a solution,” he says

Alex Gourlay, chief executive of Alliance Boots’ health and beauty division, adds that the holistic focus will “deliver real improvements in the sustainability of consumer products”.

The move away from weight, though, calls for a more sophisticated measuring process and Wrap says it has strived to create a level playing field. “There were obviously a number of options available to use,” says Swannell. “A full life-cycle analysis for every product in a store would have been very expensive and difficult to carry out, so we have gone for a measurement that is based on an estimated carbon impact of the materials, effective recyclability and recycled content.” The 2012 targets are to be achieved based on 2009 data and information will be collected on an annual basis.

Wrap is keen to point out that the reduction targets are not for the individual signatories but for Wrap to achieve. “We are going to develop a plan that works best for the signatories,” says Swannell. “To get big changes, such as reusable packaging, you need the whole sector to change, but in other areas we will focus on individual products.”

Kellogg’s and P&G out

While CC2 has generally been well received, some of the 42 signatories of the first agreement have decided against signing up, at least so far, although broadly agree with the spirit of the agreement. Coca-Cola and Iceland say they are not yet in a position to decide whether to join the scheme, but Procter & Gamble (P&G), United Biscuits and Kellogg’s have said outright they will not be signing up. P&G says it is still “committed to sustainability and reductions in packaging” but believes CC2 is too UK-focused. “As an international company, we believe engaging at an international level will be the most effective way of making a meaningful difference and are actively involved in the Consumer Goods Forum,” says sustainability affairs manager Kirstie Hawkes.

Kellogg’s will also not be joining the scheme but welcomes the change in focus and says it will continue to remove unnecessary packaging. “Carbon reduction is a broad strategy we agree with and our approach mirrors it. Although we haven’t signed up to CC2 we have active packaging reduction programmes and carefully consider the environmental impact of our packaging,” says corporate communications manager Rachel Fellows. “We recognise the key role packaging plays in waste reduction. Without the carton, something as fragile as a Corn Flake is very easily crushed. Cutting down packaging waste but driving up food waste is hardly an environmental win.”

Courtauld part 3

Food waste is one of the three strands of CC2 and if the percentage targets are different, Wrap maintains that the overall carbon savings for all three are roughly the same at around one million tonnes each. “Our level of ambition is the same for both consumers and the supply chain and we are working to help consumers change and reduce food waste,” says Swannell. Wrap also continues to work to promote packaging recycling in the UK. Improving recycling rates and turning the materials back into new packaging is set to be key to achieving the targets over the next two years.

But as CC2 starts to take shape and more brands decide whether to join, or to go their own way on packaging and food waste reduction, talk has already begun on what might happen next. “We are going to work out how a follow-on agreement might work, but we need to be quite flexible about what it might look like,” says Swannell. From a packaging perspective, that would need to recognise further the positive role it plays in the supply chain and focus on the impact of products as a whole. “There’s quite a lot of consensus that we need to move towards products and look at the big resource hotspots like carbon,” agrees Swannell. Time will tell if the next phase, if it comes, will be the end of a trilogy.

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CC2: THE TARGETS

Courtauld Commitment 2 sets three principal targets for carbon impact reduction by 2012, based on 2009 data.

10% reduction for grocery packaging to be achieved through lightweighting, improved recycling rates and recycled content

4% reduction for household food and waste

5% reduction for product – solids and liquids – and packaging waste in the supply chain

Wrap says the carbon impact of packaging is based on “an estimate of the carbon impact of the materials, effective recyclability and recycled content”.

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INDUSTRY REACTIONS

“There are still far too many consumers who believe that packaging is one of the greatest environmental impacts and this will only be reinforced by the inevitable media focus on packaging as the first of the targets.”

Dick Searle, chief executive, Packaging Federation

“The BRC and its members welcome Courtauld 2′s more sophisticated approach in setting targets to reduce waste and the resulting carbon emissions.”

Stephen Robertson, director general, British Retail Consortium

“Most obviously missing from Courtauld 2 is any acknowledgement of the role that independently certified renewable materials have to play in a low-carbon economy. Renewable content should be considered alongside recycled content. Its omission is an opportunity missed.”

Richard Hands, chairman, Alliance for Beverage Cartons and the Environment (ACE)

“We hope CC2 will lead to real, holistic, science-based decisions in government, not decisions based on single factors such as carbon or packaging reduction.”

Jane Bickerstaffe, director, Incpen

“We are delighted with the progress made by our members in reducing pack, product and food waste within the framework of the original Courtauld Commitment. We agree with Wrap that it is time to build on this success.”

Melanie Leech, director general, Food and Drink Federation

“The Co-operative is pleased to support Wrap in its ambitions to deliver the new targets, which encompass environmental benefits beyond simple packaging weight reduction.”

Peter Marks, chief executive, Co-operative Group

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SIGNATORIES

AG Barr

Alliance Boots

Apetito

Arla Foods

Asda

Britvic

Constellation Europe

Cooperative Retail

Dairy Crest

Danone Dairies

Danone Water

Fosters EMEA

HJ Heinz

Innocent Soft Drinks

Mars (UK)

Morrisons

Müller Dairies

Musgraves

Nestlé

Northern Foods

Robert Wisemans

Sainsbury’s

Tesco

Unilever

Vimto

Waitrose

Warburtons

Weetabix

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