Australian Paper

Media Release – Monday, 19 July 2010

Australian Paper today announced it will continue to be at the forefront of action on climate change by joining the Federal Government’s new carbon neutral program, the National Carbon Offset Standard (NCOS).

NCOS came into effect on 1 July 2010 when the Greenhouse Friendly^TM (GHF) initiative came to an end. The new carbon neutral program is the evolution of GHF as the voluntary complement for the proposed Carbon Pollution Reduction Scheme (CPRS).

NCOS will be administered by Australian Carbon Trust, an entity set up by the Australian Government to promote energy efficiency and to help all Australians tackle climate change. Whilst Government oversight will continue through the Department of Climate Change and Energy Efficiency (DCCEE), Australian Carbon Trust will take over responsibility for certifying businesses, products and services under the evolved carbon neutral program.

For existing end users, the major change they will see is the introduction of the new NCOS consumer logo which will be phased in over the next six months to replace the GHF logo. Everything else, including logo access and approvals, will remain the same.

Commenting on the new NCOS carbon neutral program, Australian Paper’s General Manager, Marketing, Paul Allen said,

“Australian Paper is pleased to be joining other leading Australian businesses in voluntary action against climate change, including Australia Post, ANZ, Fosters, Jetstar, National Australia Bank, Qantas and Virgin Blue Airlines.

Australian Paper has led the way in developing carbon neutral papers to support like-minded organisations in their action against climate change and will continue to be at the forefront of initiatives that genuinely reduce greenhouse gas emissions.

NCOS certification means that organisations that purchase carbon neutral papers made by Australian Paper are making a genuine, incremental contribution to reducing Australia’s overall carbon footprint.”

The transition to NCOS will be virtually seamless for organisations already using carbon neutral papers. Shortly, Australians will see the new NCOS carbon neutral consumer logo replace the GHF consumer logo on printed material as end users extend their commitment to the fight against climate change through their use of NCOS certified carbon neutral paper.

For information on Australian Paper’s range of carbon neutral papers, including Reflex Carbon Neutral Ultra White, visit www.australianpaper.com.au  and ask for a “Sustainable Paper Guide.”

For information on the National Carbon Offset Standard program and Australian Carbon Trust visit: www.climatechange.gov.au/government/initiatives/australian-carbon-trust.aspx

Reducing carbon emissions is one of the pillars of sustainable business, but it is difficult to action and can be confusing to understand. Almost all businesses have a carbon footprint, even those operating online. Consider where your business can reduce its carbon footprint, and work with clients and suppliers to achieve this. Then look into the variety of ways you can choose to offset your remaining emissions.

www.climatechange.gov.au

www.co2neutralconferencing.com

www.andmine.com

www.boomerangbooks.com.au

www.carbonconscious.com.au

www.1degree.com.au

The ‘Drink responsibly’ tag has been taken to new levels at Foster’s, with the 2008 launch of its Cascade Green bottled beer. With 130% volume growth in its first year, the completely carbon-neutral beer has since been released in draught form. To achieve Greenhouse Friendly certification, both tap and bottle varieties underwent separate lifestyle analysis, according to Foster’s Group’s sustainability manager Scott Delzoppo.

The ‘cradle-to-grave’ greenhouse gas emissions were measured and independently verified by ACCC-endorsed assessors DMV and SMEC, from picking the hops, to transport, packaging, merchandise and a percentage of consumers’ refrigeration. Naturally, bottle manufacturing was considered, which lead to more lightweight glass being used, says Delzoppo. It also led to the draught option.

“We wanted to remove the bottle altogether and make it available on tap, but we found the impact on the environment was quite even when you considered refrigeration [required at the tap],” says Delzoppo.

In either event, greenhouse gas emissions are offset (through landfill methane reduction and avoided deforestation carbon offsets), meaning the net impact of emissions is zero with the offset costs absorbed by Foster’s – not the consumer.

Sensis produces 20 million copies of its White and Yellow Pages directories. In late 2008 it undertook an assessment of the impact of its print and online directories. “Not just emissions,” says Jillian Riseley, group manager of sustainability at Sensis. “We were talking about toxicity, impact on land development – the entire lifecycle from cradle to grave.” As part of its commitment to the triple bottom line, Sensis has also produced a free directory for small businesses designed to spread the sustainability word further.

Why did you decide to go carbon neutral?

All our stakeholders are concerned about climate change and they want to see action. It’s now at the core of our operations. Every new product now goes through a [triple bottom line] checklist: environmental and social impacts of a product, change or initiative, as opposed to just an economic perspective.

How long did the carbon neutrality report take?

URS environmental consultants built a model that took nine months which was then verified by Energetics before receiving Greenhouse Friendly certification from the government.

Who sets the parameters for lifecycle assessment?

A lot of printers will be aware of ISO14001 for paper. The ISO14040 series recommends and details what’s included in environmental management and principles of life assessment. Using international standards means it’s clear what should be included. Our approach is, if something wasn’t built for use in our lifecycle, we wouldn’t include that material. For example, we include the energy used by a consumer doing an online search, but not the energy that would have gone into making their computer.

Would you consider abandoning printed directories altogether?

Forty per cent of Australians still use the printed version each week. We’re unapologetic in that we give consumers choice. If they don’t want a directory, they can opt out. Paper was part of the reason for going carbon neutral, but there are also a lot of good qualities about using paper, like its recyclability.

How much are consumers driving the push to carbon neutrality?

Australians don’t tend to take to the streets, they just stop using products. If businesses are smart they will get ahead of the curve and make sure they are as sustainable as possible.

Why did you do the Sustainable Growth book?

Ninety per cent of our advertisers are small businesses. From all the research we’d done, small business genuinely wanted to do something, they just didn’t know how. They’re time poor and they don’t have the resources to seek help from consultants.

How important is having third-party independent verification?

That’s critical. It gives credibility to the program.

What are your Scope 3 emissions and how do you look to reduce them?

As part of our [carbon neutral] claims, our supply chain is included. Our job is a lot easier because most suppliers have started doing their own lifecycle analysis and looking at ways to reduce emissions. The number of printers using waterless printing, vegetable-based inks, and working on reducing electricity, is extraordinary. But all new tenders and contracts with major suppliers have sustainability guidelines in them. It’s a triple-bottom-line approach which details how we expect them to treat their staff and how they interact in the local community. But it also details how we expect them to take responsibilty for their environmental footprint.

What sustainability expertise have your designers Studio Periscope offered for your sustainability report?

They recommended reducing pages, chemicals and glues in our binding, and making sure the amount of trim is minimised. From our directories perspective – which are designed inhouse – how we paginate can have a significant impact on the number of pages we have, [especially when you] multiply that by 20 million directories.

What are some easy first steps for the design community? 

There are lots of resources for small businesses: order a free copy of our Sustainable Growth guide (http://about.sensis.com.au/Small-%20Business/Free-Sustainable-Growth-book) or visit the Carbon Down website (www.carbondown.com.au)

Some day – and that day will come if it hasn’t already – your client will ask you about what sustainability measures your company has in place. If your answer includes the phrase ‘and we’re offsetting our excess carbon emissions’, then you probably don’t need to read on.

If, however, the question elicits some combination of nervous shuffling, uncomfortable silence or creative stalling, help is at hand.

Evidence that fossil fuel consumption contributes to global warming has lead many companies to investigate becoming carbon neutral.

Even if you recycle paper and ride a bike to work, it may not mean you are carbon neutral. To know where you stand, it’s best to get an independent assessment. This means your company’s products, operations and activities have had their greenhouse gas (GHG) emissions measured, calculated, reduced and then ‘offset’ through the purchase of carbon credits (which means, if you are emitting five tonnes of carbon per year, you then buy the equivalent amount of credits in tree planting or treating methane gas at landfills until your position becomes neutral).

To do this properly, a company’s carbon footprint can be measured through independent life-cycle assessment (LCA). This guards against the risk of losing credibility with the public and clients, who may suspect ‘greenwash’ – making claims that can’t be verified. To avoid this, a number of government approved agencies can assess and verify your company’s greenhouse credentials, particularly the carbon emissions you produce.

These independent verifiers can be found on the federal government’s Department of Climate Change website.  It’s here that you’ll also find out about the new National Carbon Offset Standard (NCOS), the updated version of the highly respected Greenhouse Friendly program.

Depending on the size of your company, ‘cradle-to-grave’ life-cycle assessments can cost a few thousand dollars. This is audited annually by the same company who first assess you (at additional, though reduced cost) to see if you are meeting the targets you set and if more carbon offsets have to be purchased.

Getting independent verification can seem like a double-up, but it’s all about providing rigour and integrity to the certification process. The ACCC’s  Green Marketing and Trade Practices Act details the rules around green claims. (Visit www.accc.gov.au and www.climatechange.gov.au/greenhouse friendly for more info). And to get an idea of the parameters involved, the ISO14040 provides the framework for conducting LCAs (www.iso.org).

The benefits to businesses are obvious. But not just in terms of reputation within the community, or a reduction in costs via improvements in the production process. As a supplier to bigger businesses, being carbon neutral may be a matter of economic survival.

Perhaps the most famous example of big business calling the sustainability shots is Walmart, the largest employer in the US. In 2009 it announced a Sustainability Index to which its 100,000 plus suppliers are accountable. The reason behind it, Walmart’s president and CEO Mike Duke explained, was that: “Customers want products that are more efficient, that last longer and perform better. And increasingly, they want information about the entire lifecycle of a product so they can feel good about buying it. They want to know that the materials in the product are safe, that it was made well and that it was produced in a responsible way. We do not see this as a trend that will fade. Higher customer expectations are a permanent part of the future.”

The reason suppliers are being asked these questions all comes back to the lifecycle assessment. Suppliers are part of a business’s lifecycle, which the widely used international accounting tool Greenhouse Gas Protocol breaks down in to three components or scopes.

Scope 1 is all direct GHG emissions. Scope 2 covers the indirect GHG emissions from consumption of purchased power. And Scope 3: other indirect emissions, such as what goes into the production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities not covered in scope 2, outsourced activities, waste disposal, etc. Design is a Scope 3 emission to a business.

But just as you can ask questions of your suppliers – such as printers – as to the sustainability of their business and practices, your clients may, if they haven’t already, ask you what you are doing.

Solutions can lead to stronger business relationships and, of course, a cleaner planet.

With clients like Qantas and Air New Zealand, design firm Buzz Products is acutely aware of the need for environmental sensitivity and the management of carbon offsets.

Among the many products the company designs, the volume of kids’ in-flight activity books can run into the hundreds of thousands. “The carbon input into manufacturing at that scale is quite large,” says Creative Director Doug Buckle. “So we work with our clients to reduce toxic levels initially, then look for sustainable materials, and then, at the end of that, also offer them the opportunity – just as you would your flights – to offset whatever remains with carbon credit.”

Since undertaking a sustainable policy four years ago and commissioning the Carbon Reduction Institute to do its internal audit, Buzz has “reduced its waste, packaging, recycling, and operational areas,” according to Tess Power, brand manager and sustainability chair at Buzz. “Then we went through and instigated a 10-step plan and continued to audit and [use] offsets from them. So we are audited each year to make sure we are reaching targets as well as becoming more sustainable.”

While Buzz don’t undertake a lifecycle assessment for each product they design, Buckle says each product undergoes “a four stage process: right size it, make it clean with no toxins, make it recyclable, and, if possible, make it re-harvestable, so there is no permanent impact on the Earth.”

Immersing themselves in new technology has proved useful as clients adopt green programs. For instance, when US giant Procter and Gamble (parent company to Buzz client L’Oreal) decreed that all its packaging would be sustainable, L’Oreal looked for solutions.

“We were all over clean ingredients and were going out and giving L’Oreal seminars,” says Buckle. “We presented a range of alternatives and showed why PVC was bad, and after a few projects they understood what they can and can’t do.”

Despite the perceived push for green products, Buckle says: “It’s often about doing it in a way that the customer would never notice. For example, with L’Oreal’s packaging it’s about keeping the premium look and feel, but taking out toxic materials which were irresponsible.”