“The Environment Agency hit out this week at big business for its lax attitude to the environment. For the second year in a row major retailers are among the bad boys named and shamed. Although the fines levied on polluters have been “small change for big business”*, what does environmental lethargy cost in terms of corporate public image?
“In an independent survey** commissioned by Symphony Environmental, more than a third of those questioned thought supermarkets were poor at introducing environmentally beneficial ideas ñ yet nearly 90 per cent said it was important to them that the supermarket they used was concerned about the effect it had on the environment.
“This intelligence really throws down the gauntlet to food manufacturers, who rely on innovative ideas as a point of difference for retail customers. We have already seen several environmentally friendly alternatives for the standard polythene carrier bag, and supermarkets are now actively pursuing applications for degradable packaging. Pallet wrapping, bread bags and freezer packaging are the obvious first steps, but these are just three examples that would provide consumers with more environmentally sound choices.
“The Somerfield supermarket chain is a good example of where small changes have had a big impact. It was the first supermarket chain to nationally launch degradable carrier bags and, since their introduction in November 2002, in excess of 274 million carrier bags and more than 98,000 rolls of black bags have already been supplied, with more initiatives to come.
“With 15.7 billion grocery carriers used in the UK each year ñ which is enough to carpet the planet every six months ñ despite the adoption of degradability by the retail carrier bag market, this is just the tip of the iceberg in terms of the environmental benefits of this type of technology.
“Recent amendments in the EU Packaging Waste Directive, which now includes organic recycling of bio-degradable plastics in the definition of recycling, will eliminate the costs associated with compliance for degradable plastics, in due course avoiding the need for retailers to purchase PRNs. This should lead to the net cost of using degradable plastics within the supply-chain possibly being less than the cost of using conventional plastics. The EU's Environment Committee has also, for example, called on member states to specify the use of biodegradable materials for banana growing in African, Caribbean and Pacific countries that benefit from EU Framework Assistance grants. This is further evidence that the legislative encouragement for degradable technology is gathering pace and must be expected to increase in its scope.
“Degradable packaging has now reached a level of sophistication where any practical barriers to their widespread adoption have been comprehensively overcome. For the leading degradable technology, d2w® from Symphony Environmental, product performance, print quality and fast line speeds essential in the manufacture of FMCG goods are not affected at all ñ in other words degradable plastics of all sorts now have precisely the same characteristics as their non-degradable counterparts and, in many cases, there is very little, if any, price premium involved.
“The technology has been independently tested and proven to be environmentally safe, leaving no toxic substances at the end of the degradation process, and has been tested as safe for direct food contact under EU standards.
“Looking at the wider retail environment it is clear that the interest in degradable plastics has never been higher, and not just because of legislation. In the last couple of years in particular, environmental issues have moved steadily up the agenda in the food industry, with the large retailers all responding to significant consumer interest in the GM debate and in marked increases in the sales of organic and fair trade foods. The increasing focus being placed on Corporate Social Responsibility is causing companies in all sectors to look at the impacts that they make on the wider world and at where they can make improvements right through the supply chain ñ who knows, they might not just reap the social benefits of becoming more environmentally aware, but the marketing benefits of it as well.
* “Anti Pollution agency dishes more dirt on big business” ñ Financial Times 31.7.03.
** survey carried out by TNS Phonebus.
COMPACT AND SAVE
Steve Burnett of waste processing equipment supplier Compact & Bale Ltd was an exhibitor at Fruit Focus two weeks ago as he continues to develop his fresh produce business. He says: “We aim to help all businesses and organisations reduce their waste disposal costs and improve their operation through waste compaction and recycling. We analyse the types and volumes of waste and the disposal needs of each client, and decide what cost streams can be taken out of the process. We can cover any waste disposal needs and like to build and develop on-going relationships with our customers.”
It is not simply machine sales that drive Burnett, but the next stage ñ putting the waste to further use. The costs of landfill are reaching prohibitive levels, forcing the country's wholesalers and producers down the recycling route. C&B provides the baling and compacting equipment and currently collects up to 300 tonnes of waste materials for recycling a month from its UK client network. This is taken to various re-processors, taking landfill out of the equation.
“Typically, around 30-40 per cent of the waste generated by a produce company is made up of recyclable packaging materials,” says Burnett. “The produce industry has caught on in the last few years that there are big cost savings to be made through efficient waste disposal and that such waste can often be worth money. One of our bigger clients generates 40-50t of cardboard waste alone each week so our baling and collection service has been a huge benefit to them, allowing them to make significant cost savings. We also recycle their plastic and polythene waste and are now looking at their options for recycling fruit and vegetable waste. If this can be achieved, we will have helped them reduce their overall waste levels by 70-80 per cent, and remember that this was all originally sent to landfill.”
Other problem wastes to the produce industry include plastic corner posts that are already made from recycled material and are an awkward size and not particularly suited to economic disposal. “Few people have a need for this type of waste,” says Burnett, “but we are currently running a trial with a re-processor which if successful will enable us to offer a recycling collection service for them. We are in an exciting business at an exciting time. As technology and recycling processes move forward, we aim to be at the forefront helping produce companies turn costs into profit.
“It is not necessarily the costs of the waste, but the logistics spend. A baler and a compactor significantly reduce the amount of transport required to move waste. They also keep places of work clean and tidy, reduce site traffic, help to meet health and safety requirements and generally create a safer and easier working environment. All of that adds up to greater efficiency and less expense.”
C&B has clients of all sizes and services retailers, garden centres, hospitals and even entire shopping centres. “On the whole, the fresh produce industry is extremely responsible on waste management issues,” says Burnett, “but then the bigger companies have to be. They might be looking at repacking 200 or more pallets of produce a day from cardboard trays. Accordingly, this generates 200 or more pallets of waste cardboard trays each day and the question is ëhow do you get rid of that without a baler or a compactor?'. Even the smaller companies are pretty clued up and the cardboard issue is being driven through into other areas of waste as a natural progression. Of course there is new and existing legislation on recycling, but that is not the way to sell it. The potential to make cost savings will always be the bottom line.
“It is a common sense thing. It costs roughly £350 to send 6t of mixed waste to landfill in a 35 cubic yard compactor bin. If half of this is cardboard, then the use of a baler will immediately cut disposal costs in half. If like many companies you're sending out three or more bins a week that's £500 a week saved. With a C&B baler everything is collected and waste is paid for at market rates. The baler will pay for itself time and time again.”
The wholesale markets are in a difficult situation, he adds, with so many companies on site competing against each other on tight margins. “Waste management is not going to be top of their priority list as individual companies, and for a market landlord to get everyone to deal with their waste is an uphill battle. It is the same fight with hospitals and shopping centres, as there are so many different people that dispose of waste and staff turnover is huge. At one shopping centre only last week we emptied a clearly marked cardboard only bin and found 12-15 black bin liners of general rubbish in there but as with any project, if a strong management team take recycling by the horns it will bring both cost savings and operational benefits. However it has to be done right and the benefits to the tenants have to be obvious and delivered against the service charge.”
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