Sonoco Products Company · NYSE:SON
Sonoco Products — Packaging Strategies Sustainable Packaging Forum (September 2007)
28 slides from Sonoco Products's conference presentation, Sep 26, 2007
Slide 1: The Business of Sustainable Packaging Leadership
The Business of Sustainable Packaging Leadership Packaging Strategies Sustainable Packaging Forum Pittsburgh, Pennsylvania September 26, 2007
Slide 2: Packaging Sustainability: A Balanced Approach
Packaging Sustainability A Balanced Approach
Slide 3: Packaging vs. Sustainability
Packaging vs. Sustainability Consumer products Municipal Landfill Wastes generate significant waste 245 Million Tons (Before Recycling) • Packaging waste makes up 30% of the solid waste in U.S. • Only 14% of plastic water bottles are actually recycled • European regulations are forcing manufacturers
Slide 4: Consumer Implications of Sustainability
Consumer Implications of Sustainability • Heightened media coverage of sustainability No. of • Investors becoming increasingly Shareholder Proposal Topic Proposals Sustainability reporting 38 interested in socially responsible Climate change/GHG 31 corporations Human rights 12 • Consumers are becomi
Slide 5: Sonoco Sustainability: A History of Balance
Sonoco Sustainability: A History of Balance • Sonoco has been pursuing the “Triple Bottom Line” for more than a century – Engaged in recycling since the 1920s – Company is the world’s largest producer of recycled paperboard tubes and cores and paper-based composite containers – People, culture and v
Slide 6: Sonoco's Sustainability Focus
Sonoco’s Sustainability Focus Statement of Intent Sonoco will be the packaging industry leader in creating, maintaining and enhancing a sustainable future that benefits all of its stakeholders through continuous improvement in operating performance, social responsibility and environmental stewardshi
Slide 7: Sustaining the Triple Bottom Line
Sustaining the Triple Bottom Line • Sustainable packaging • Sustainable materials • Zero landfill initiative • Community-based recycling programs • Renewable energy partnerships Create Sustainable Value • Landfill reduction • Community support and • Energy reduction partnerships • Hazardous air Sust
Slide 8: Shrinking Our Environmental Footprint
Shrinking Our Environmental Footprint We will reduce the Company’s overall environmental impact by: • Further reducing landfill wastes from operations − Goal = Zero landfill wastes • Further reducing greenhouse gas and other emissions • Examining renewable fuel use in manufacturing
Slide 9: Shrinking our Environmental Footprint
Shrinking our Environmental Footprint Sonoco’s U.S. and Canada Paper Mills Total Energy Consumption Total Process Water (MMBTU) (Gallons per Ton) 13,000,000 5000 4500 12,500,000 4000 3500 12,000,000 3000 2500 11,500,000 2000 1500 11,000,000 1000 500 10,500,000 0 2002 2003 2004 2005 2006 2002 2003 20
Slide 10: Shrinking Our Environmental Footprint
Shrinking Our Environmental Footprint CO2 Emissions Sonoco’s U.S. and Canada Paper Mills (Metric Ton Equivalent) 1,000,000 950,000 900,000 850,000 800,000 750,000 700,000 650,000 600,000 2002 2003 2004 2005 2006
Slide 11: Creating Sustainable Value for Our Customers
Creating Sustainable Value for Our Customers Sonoco’s Consumer Solutions Strategy
Slide 12: Creating Sustainable Value for Our Customers
Creating Sustainable Value for Our Customers We will develop sustainable-related commercial opportunities by: • Incorporating sustainability as a required area of focus for all businesses • Implementing new product sustainability design process • Identifying and incorporating more sustainable materi
Slide 13: Creating Sustainable Value for Our Customers
Creating Sustainable Value for Our Customers Sonoco’s Sustainability Services Strategy Design Material Sourcing Converting Recovery/ Recycling Marketing/ Merchandising Retail/ Usage Distribution
Slide 14: Sustainable Packaging Defined
Sustainable Packaging Defined SPC has defined sustainable packaging: • Is beneficial, safe and healthy for individuals and communities throughout its lifecycle; • Meets market criteria for performance and cost; • Is sourced, manufactured, transported and recycled using renewable energy; • Maximizes
Slide 15: Composite Can Success Story
Composite Can Success Story • Conversion of powdered infant formula from steel cans to composites – Same performance in abuse resistance – Same performance in shelf life – Improved graphics due to elimination of reinforcement beads • Significant improvement in lifecycle assessment – 27% reduction in
Slide 16: Fiber Container Success Story
Fiber Container Success Story • Fiber containers are made with 100% recycled paperboard and contain an average of 55% recycled material by weight • Conversion from plastic pail to Sonoco Dorpak® rigid paper pail Improved comparative Wal-Mart sustainability scorecard from 4.7222 to 6.3889
Slide 17: Increased Recycling of Paper Containers
Increased Recycling of Paper Containers
Slide 18: Flexible Packaging Success Story
Flexible Packaging Success Story • Developed high-barrier non-foil retort pouch – Superior product protection, microwave safe • Improved lifecycle assessment – 97% reduction in material weight inputs – 34% reduction in energy inputs – 85% reduction in greenhouse gas emissions – 64% reduction in chem
Slide 19: Rigid Plastic Container Success Story
Rigid Plastic Container Success Story Challenged with improving design of bottle to reduce packaging waste and costs • Reduced resin by 16% (5 grams less resin in each bottle) • Curvatures throughout the bottle improve the overall strength • Received special citation at annual DuPont Award for produ
Slide 20: Merchandising Display Success Story
Merchandising Display Success Story Challenged with reducing components for Halls PDQ corrugated trays • Former tray components • Redesigned tray – Components: Nine – Components: Two – Tray – Tray – Platform – Shipper – (2) small dividers – Filler – (2) large dividers – Total square footage: 31.73 –
Slide 21: Merchandising Display Success Story
Merchandising Display Success Story Sonopop™ Pallet Display • Sonopop modular pallet display is 100% paper-based – Remove: Eliminates excess boxes, pads, fillers, plastic clips, adhesives and metal supports found on traditional pallet displays – Reduce: Double stacking reduces number of trucks used
Slide 22: Protective Packaging Success Story
Protective Packaging Success Story Featured in Wall Street Journal 7/30/07 • Sonoco’s Protective Packaging engineers designed unique corrugated corner posts and cross braces to reduce product damage rates by more than 80% for Whirlpool appliances • Sonoco’s protective packaging is not only made of 1
Slide 23: Ends and Closures Success Stories
Ends and Closures Success Stories • Sonoco has been a leader in down gauging the amount of metal (steel and aluminum) used to produce container ends – Reduced total metal by approximately 10% in recent years – Working to reduce another 10% to 15% in next five years • Water-based compounds and coatin
Slide 24: Reclaim and Recycle
Reclaim and Recycle Closing the Loop with Sonoco Recycling Supply Security • Company collects 3.5 million tons annually of paper and other materials • 1.8 million tons annually consumed by Sonoco mills • Company converts recycled paper into tubes, cores and paper-based packaging Growing Material Rec
Slide 25: Sustainability Services for Customers
Sustainability Services for Customers • Reducing landfill waste – Goal = Zero Landfill • Convert waste streams into revenue streams • Sonoco success story • Kraft success story
Slide 26: Recycling Success Stories
Recycling Success Stories • Wire and cable reels recycling • More than 1.5 million reels recovered, refurbished and reused • More than 500,000 trees saved • Saved customers cost of new reels and landfill expenses
Slide 27: The Future of Packaging Sustainability
The Future of Packaging Sustainability • The need for lifecycle packaging will continue to grow • There are real business opportunities for the packaging industry – But business models must evolve – Companies must understand the full impact of sustainability initiatives
Slide 28: Questions
The Future of Packaging Sustainability Questions
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