2009tp environmental social report
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Environmental and Social ReportTetra Pak | 2009
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Tetra Pak is the world's leading ood processing and pack-
aging solutions company, with activities in more than 150countries worldwide. We well recognise the imperative to
balance our uture growth ambitions with our responsibility
to those with whom we do business, to our employees, to the
communities in which we operate and to the environment.
To that end, our community and environmental initiatives
are integrated into our business activities. For example, we
use raw materials rom responsibly managed orests; we
set targets to reduce environmental impacts; we advance
school eeding programmes; we drive activities ocused on
nutrition, wellness and health; we support relie eorts in
the wake o natural disasters; and much more. And in all
CONTENT02 A continuing journey
04 CEO's Message
PLANET06 Introduction
08 A holistic approach
10 Forestry
16 Renewales
17 Continuous improement
18 Climate
21 Recycling
24 Enironmental acts
PEOPLE26 Introduction
28 Customers
32 Food or deelopment
36 Employees
39 Community
43 People acts
TETRA PAK44 Introduction
46 Corporate goernance
48 What we do
50 Report Parameters
51 GRI Index
A continuing journey
o these activities, we cooperate with leading environmental
and development organisations rom across the globe.
Tetra Pak participates in the United Nations Global
Compact. Initiated by the ormer Secretary General Ko
Annan in 1999, the Compact brings together companies,
UN agencies, labour and civil society to support ten princi-
ples in the areas o human rights, labour, the environment
and anti-corruption. We are committed to supporting and
promoting the Compacts principles in our everyday busi-
ness. This is in line with our traditional way o working
and ollows Tetra Paks vision, Code o Business Conduct
and Mission Statement which reers to our belie
in responsible industry leadership, creating protable
growth in harmony with environmental sustainability
and good corporate citizenship. We are implementingthe Compacts principles through the actions set out in
this report, which also serves as our Communication on
Progress to Global Compact.
We recognise that there are still many social and environ-
mental challenges or our business and believe we can
only improve by being transparent about our activities and
by listening to our stakeholders. This report is an update
on our progress, and on our continuing journey.
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Tetra Pak Headquarters
People story in this report
Planet story in this report
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Our company was ounded 58 years ago with a
vision to make ood sae and available, everywhere.
This report provides an overview o how we oper ate
to earn that trust. It explores some o the complex
compromises we ace and describes how we take the
decisions that lead us to our vision and mission. We
know, o course, that we still have a long way to go;
and we recognise that we cannot do it alone, but only
with the guidance o our expert partners and input
rom all our stakeholders.
That is why we are passionate about continuing our
discussion with you whether you are reading it
as a customer or potential customer, an employee, a
citizen, a representative o government or member
o a non-governmental organisation or have another
interest on the issues you have told us you care about.
We have long engaged in local dialogue and intend
to continue the discussions through our website, sur-
veys and other interactions. We have communicated
our corporate environmental perormance or more
than a decade, ormally measured and re ported it or
nine years and included our broader sust ainability
commitments or ve years. Such dialogues help us
to evolve both as an enterprise and a good corporate
citizen. In conjunction with our systematic approach
to evaluating impacts they have helped us determine
key areas o ocus: customer satisaction, employee
well-being, human health and saety; acilitating
increased recycling in order to obtain value rom used
packages; the choice o materials and energy; the
total environmental ootprint let by our products.
Benefting societyOur companys ounder, Ruben Rausing, was deter-
mined to make milk sae and available across post-war
Europe and beyond, even where the distribution
inrastructure and actories were badly damaged.
He amously said that Tetra Pak packaging should
save more than it costs, meaning in social as well as
economic terms. Today, we also apply that standard
to the environment. He and his team designed aseptic
packaging to protect ood or long periods without
preservatives, even in extreme conditions. His vision
brings daily benets to households around the world
and enables us to be a useul partner in development
work. In partnership with businesses, governments,
United Nations and aid agencies, we develop prod-
ucts and packaging to bring c hildren high-quality
nutrition at school, improving their attendance and
ability to learn. One o our key challenges is to extend
these programmes by taking them to new countries
and regions, and involving a wider cross-section o
each community. We and our partners are working
vigorously to accelerate this process.
Protecting the environmentWe avour the use o renewable resources, such as
wood. This benets the entire natural environment;
responsibly managed, it guarantees inexhaustible
supplies o materials and energy. We work with,
and learn rom, leading organisations such as WWF.
We are honoured to serve on t he boards o the High
Conservation Value Resource Network (HCVRN)
and the Forest Stewardship Council (FSC), as well
CEOs MESSAGE
Finding our way together
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as working closely with our suppliers. Today FSC
certied cartons are available in stores a rst or
liquid ood packaging and we aim to systematically
increase the amount o FSC cer tied paper we pur-
chase. We are also working to increase recycling o
carton packages; while more countries are recycling,
and volume is growing, it has not yet reached the
level we hope or.
Thank you or joining us as we explore how to operate
responsibly and or helping us to nd our way. While
we are extremely proud o our past perormance, we
are looking orward to working with you to improve
urther. Naturally!
Dennis JnssonCEO, Tetra Pak
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PLANET
Good or the environmentmeans good or businessProtecting the environment is the right thing to do or society and or business. We want to ensure that our impact on
communities and the environment is taken into account in all o our day-to-day operations. We take a systematic
approach to using energy more eciently, avouring renewable materials and continuously improving the entire
supply chain, helping ourselves and our customers to be more competitive through lower costs.
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A holistic approach to doing businessOur aim is to ensure that the oerall perormance o our products rom the choice o raw materials to the manner o their disposal is continuously
improed, without compromising quality. We see no alue in optimising one part o the chain at the cost o another.
Raw materialsThe choice o materials must hae the
highest enironmental alue and lowest
enironmental cost. We aour
renewale materials, and our cartons
are mainly made rom wood res.
PaperboardWe and our suppliers are
implementing tracing systems to
ensure the wood re we use is
sourced responsily. All suppliers
actories will hae achieed the rel-
eant certication y 2015, and our
own actories will ollow y 2018.
ConvertingWe laminate paperoard to ensure that cartons allow
liquids to retain their nutritional alue while excluding
contaminants and oxidisers. Our packaging material
plants are certied to ISO 14001 standards and are
systematically decreasing CO2
emissions.
Milk & JuiceOur processing and packaging
solutions are predominantly used to
presere the nutritional alue and
quality o milk and juice products and
other liquid ood.
ProcessingWe delier processing solutions or
our customers ood products. These
ensure ood saety and high production
quality. Our systems are continuously
eing deeloped to delier lower
enironmental impact and higher
perormance, making our customers
production as ecient as possile.
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FillingOur customers use our equipment to
package their products. We continually
improe the perormance o our systems,
enaling them to improe theirs.
DistributionTransport and retail logistics are
crucial to ecient distriution,
low enironmental impacts and
high consumer alue.
Retail and ConsumersTetra Pak packages are designed
to meet our retailers needs and our
consumers demands or conenience
and protect the ood inside.
RecoveryWe work with and support our customers,
pulic authorities, NGOs, industry groups
and community associations to ensure our
packages are recoered eectiely.
Requirements and possiilities are
determined locally.
Recycled carton packagesWhen recycled, carton packages are
turned into raw materials that are
used to produce a wide range o
commercial products.
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FORESTRY
The challenges o choiceForestry can be benecial or damaging, depending entirely
on how it is practiced. Forests are huge ecosystems that
sustain not only trees, but also diverse animals, plants, ungi
and insects. Well-managed orests ensure a renewable
supply o raw materials, enhance the natural environment
and provide jobs or local communities. These benets are
continuous because only a small percentage o the orest is
harvested and re-grown every year.
The risks come when orests are not managed well.
From our point o view, such practices can create
negative perceptions about our products even w hen they
take place in orests not linked to our business. The duty is
thereore on us to work with organisations t hat encourage
acceptable orestry practices worldwide.
Guidance rom the expertsWhen dening our policies, we seek guidance rom, and
engage in, initiatives with some o the groups who most
stringently guard the worlds orest sources: WWF and the
Global Forest and Trade Network, the Forest Stewardship
Council and the High Conservation Value Resource
Network. This ensures that we and our supplier s abide by
clear and accepted high standards.
Meeting undamental requirementsOur Forestry Guideline denes our objectives and guiding
principles: to guarantee that all the wood bre we use is
traceable rom tree to store, that it comes rom responsibly
managed orests, and that our suppliers achieve traceability
and orest management certication. In 2008, 97% o the
paperboard we used was ully traceable through certication.
We evaluate suppliers each year, and reward them or
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Tetra Pak is showing leadership in the paper sector on transparency and supply chain
management or re sourcing and paper processing. Tetra Paks commitment to the
Forest Stewardship Council (FSC) and its achieement o 100 million FSC-laelled
eerage cartons is a landmark. WWF hopes that Tetra Pak will continue its amitious
eorts and make een more progress in the uture.
Rod Taylor, Director Forest Programme, WWF International.
helping us meet our goals. An independent organisation,
ProForest, also audits those o our suppliers who do not
have an independently veried traceability system every
two or three years; ProForest identies areas or improve-
ment, risks and any non-compliance. We publish the
report in our Forestry Programme brochure.
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Klabin is a orest products company in southern Brazil. Its challenge is how to
grow and harvest wood in a countr y whose orestry provokes intense debate
locally and globally. The solution is engagement with partners who help
bring sustainability to lie.
Mosaic is home to 600 speciesKlabin has set aside almost hal its holdings to be pr eserved as native orest.
To maximise biodiversity, the c ompany plants pine and eucalyptus trees in
a mosaic pattern. Animals can roam in their natural habitat without being
halted by plantations. More than 600 species o mammals, birds, amphibians
and sh have been identied in studies since 1980, among them almost 50
endangered species such as ocelots and the purple-breasted parrot. These are
now protected in Klabins orests.
Medicines and shared wealthKlabin also runs a phytotherapy programme, blending environmental
preservation and social responsibility. Since 1984 it has generated
approximately 30 medicines used in t he care o employees, their amilies and
the community in Telemaco Borba, Parana. The medicines are derived rom
indigenous plants and are authorised by the government health agency Anvisa.
Klabin promotes the growth o the woodland by oering orestr y incentive
programmes to small and medium-sized arms. The incentives are
economically viable, creating shared wealth and helping armers to stay in the
countryside while preserving nature.
Forest planted in a mosaic ensures thriing wildlie. All the
paperoard that we source rom Klain is FSC certied.
The FSC certication numer is SW-FM/COC-000038.
FORESTRY CASE STUDY
A Brazilian example o responsible orestry
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FORESTRY
Mission without boundaries
ChinaTetra Pak China and WWF supported the Yongan Forest
in achieving FSC certication in 2008 (FSC certication
number is SGS-FM/COC-004777), making it the biggest
such orest in southern China. This brings the total area o
FSC certied orest in the country to more than one million
hectares, among the largest in Asia. WWF honoured us
or our dedicated eorts in advocating and implementing
responsible orest management systems in China.
MexicoTetra Pak Mexico ran an internal environmental competition
in which volunteers organised into teams o ve competed
on reorestation and recycling projects. The winners rom
the Queretaro manuacturing site ran a reorestation
project involving schools.
SpainOur company sponsors WWF/Adena to replant elm groves
around El Campillo lake, part o Madrids south-eastern
regional park and close to our Arganda del Rey actory.
The elm groves were devastated by Dutch elm disease,
contamination and extensive arming. More than 50
employees and relatives volunteered to work with WWF/
Adena, planting some 500 saplings and other species.
The project also includes monitoring and maintenance o
the young trees.
Poland280,000 trees have been planted in cooperation with
several major Polish national parks since 2006. Tetra Pak
Poland used web-based viral marketing to educate people
about renewables and climate. Registered users planted
virtual saplings on a dedicated website. A link was sent
to contacts, encouraging them to visit the virtual orest.
Tetra Pak planted a young tree in the national parks or
each virtual tree on the site.
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WATER
The need toreport morecomprehensivelyOrganisations that choose to certiy and lael their products according to FSC
standards are the ones who understand that responsile orest management
comes rom the conergence o economical easiility, enironmental
appropriateness and social enets. And that only truly open, inclusie and
participatie multi-stakeholder dynamic processes such as FSC can achiee
such a conergence. Tetra Pak sees this clearly and is an example to other
companies worldwide
Andre de Freitas, Executie Director FSC
Products carrying the Forest Stewardship
Council (FSC) label are independently
certied to assure consumers that they
come rom orests managed to meet the
social, economic and ecological needs o
present and uture generations. FSC is an
independent, non-governmental, not-or-
prot organisation established to promote
responsible orest management. It provides standard-setting,
trademark assurance and accreditation services or companies and
organisations. For more inormation on Tetra Paks progress on FSC
product labelling see the Customer section on page 31.
FSC product certifcation
Since 1999, Tetra Pak has reported on direct water consumption.
In the past we have not published a gre at deal o detail, because
our operations are not, in relative terms, water-intensive. We
now realise, however, that this level o reporting on water use
is inadequate. Water is used throughout the supply chain, so we
intend to take a broader perspective. We will analyse the water
usage in the whole direct and indirect value chain o our business.
Our aim is to start reporting more comprehensively in the next
report in 2011.
In 2008 our packaging material plants used 65% o our total
water consumption (see Environmental acts).
1
996ForestStewardshipCouncilA.C
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RENEWAbLES
Working towards a renewable uture
Setting standards or ourselves and our suppliers
Renewable energy and renewable raw materials not only
preserve natures systems, they are a real competitive
strength or business. We use renewables ourselves
and work with our industry partners to increase the
use o responsibly managed renewables. Tetra Pak has,
together with other members o t he Alliance or Beverage
Cartons and the Environment (ACE), made a voluntary
commitment to the European Union, a rst in industry
a aluale contriution
to EU policies
related to orestry, which will ensure third-party veri-
cation o all wood sources or paperboard production
worldwide by 2015, and the ull supply chain by 2018.
EU Commissioner or the Environment Mr. Stavros Dimas
called the commitment "a valuable contribution to EU
policies to oster responsible orest management, combat
illegal logging and develop more sustainable models o
consumption and production".
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PartnershipsWWFWe have cooperated with WWF since 2006, and recently renewed the partner-
ship or another three years. Our partnership is ocused on activities in the
areas o orestry and climate change. Within the scope o both areas we have
agreed activities and commitments that aim to deliver tangible progress and
results. As a result o our eorts and global target to reduce CO2
emissions
we were invited as a partne r to WWF Climate Savers in 2006. In addition we
strengthen our global partnership with local initiatives around the world.
GFTNGlobal Forest and Trade Network is WWF's initiative to eliminate illegal logging
and improve the management o valuable and threatened orests. It acilitates
trade between companies wanting to achieve and support responsible orestry.
Tetra Pak has been a participating member since 2006. These trade links cre-
ate market conditions that help conser ve the worlds orests while providing
economic and social benets or the businesses and people that depend on
them. GFTN has over 350 members worldwide with combined annual sales o
wood and paper products o $62 billion. For more inormation on the GFTN
see www.gtn.panda.org.
HCVRNThe High Conservation Value Resource Network aims to maintain and enhance
critical social and environmental values o orests and other ecosystems world-
wide. Tetra Pak serves on the networks Steer ing Group. The main activities
in 2007/2008 included regional stakeholder events and meetings in South
Arica and Brazil, a workshop at the UN Conerence on Climate Change in
Bali, and the International Union or Conservation o Nature (IUCN) Congress
in Barcelona. The network also expanded the country pages o its website or
Bolivia, Ghana, Gabon, South Arica, Ukraine, Cambodia, Georgia, Paraguay,
Russia and Senegal.
CONTINUOUS IMPROvEMENTS
Systematically reducing
environmental impactsOur purchasing policy dictates that suppliers must meet all applicable legal
requirements including environmental and labour, and that they continuously
improve their environmental perormance. We maintain our commitment to
the United Nations Global Compact principles. We have a Common Agenda
with our suppliers, and each can see how their perormance compares to the
average. Progress is reviewed yearly to ensure continuous improvement.
inormed decisions to drie product deelopment
and innoation in a sustainale direction
We use scientic, transparent Lie Cycle Assessments (LCAs) to analyse the impact
o packaging and processes throughout the chain o supply and consumption.
They enable us to make inormed decisions to drive product development and
innovation in a sustainable direction. They also inorm discussions and negotiations
with suppliers, NGOs, governments, customers, retailers and consumers.
Our product development processes take account o the need to include
environmental criteria and our methodology Design or Environment ensures
systematic integration into development work. Projects must take acc ount o
societal and environmental demands, consumer and customer requirements
and our environmental strategy. We assign environmental targets to each
project and make regular checks that the criteria are being addressed.
Our Corporate Environmental Oce supports the development teams.
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CLIMATE
Reducing CO2 emissions as we grow
The challenges related to climate change have risen to the
top o the worlds agenda. To ensure we are acting properly,
we count on WWFs advice on how to meet societys
expectations o our sustainable practices. As a result, we
systematically audit and invest in improved energy eciency
throughout our operations. We are reducing emissions
while increasing production: today we produce ewer
CO2
emissions than in 2002, while the total production o
packaging material has increased by 32%. These are good
achievements, but we know that continuing to reduce
emissions will be challenging.
Quantiying emissionsWe report emissions in tonnes o CO
2equivalents. Figures
include direct emissions rom burning uels at our sites,
indirect emissions rom electricity generation and heating,and those rom cooling agents and solvents. Our reporting
covers Scopes 1 and 2 o the Greenhouse Gas Protocol, the
most widely used international accounting tool or govern-
ment and business leaders to understand, quantiy and
manage greenhouse gas emissions.
Climate Savers is a partnership between WWF and busi-
nesses, including Tetra Pak, aiming to deliver ambitious
reductions in CO2
emissions. Climate Savers shows how
companies can deliver solutions to climate change and
at the same time save money and drive proitability.
It also provides a platorm to demonstrate cor porate socialresponsibility activities which are also viable business
solutions. Climate Savers will have achieved a total reduc-
tion o 50 million tons by 2010 since the beginning o the
commitments.
Climate goal
Our aim is to achieve 10% reduction o CO2 emissionsin 2010 compared to 2005, in absolute ter ms while we
continue to grow. CO2
emissions are down 12% compared
to 2005. We have made investments earlier than anticipated
and we are in a good position to meet this target i we
continue to drive improvements.
Progress on climate goal(kton CO
2equialents)
Partnership
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CLIMATE
Cutting energy useEnergy use at our sites is the primary source o our green-
house gas emissions. Our major reduction measures are
increased eciency and greater use o renewable energy.
Transport and logistics also account or a signicant part
o our impacts and we work to reduce t hese in a number o
dierent ways.
Efciency measuresWe have systematically reduced the amount o energy
required to produce packaging material. Our plants
improved energy eciency by 3.5% in 2006 and 2.8% in
2007. We achieved these savings by installing improved
heating, cooling and ventilation systems, running equip-
ment more eciently and reducing waste. Forty actories
have audited their operations or energy savings and
developed action plans or urther reduction. In Kenya, or
example, the actory roo was rebuilt to increase natural
lighting and ventilation, cutting electricity use. One third
o the actories have not yet conducted audits or energy
savings.
states that environmental impact should
be considered when selecting mode o
travel. We ask our contract travel agen-
cies to report CO2
emissions associated
with travel, and the majority are able
to do so. We have also instructed the
agencies to oer travel by train as a
preerred alternative whenever pos-sible. We augment these initiatives
at local level: or example, in the
US we introduced Smart Way cer-
tied rentals cars, reducing asso-
ciated emissions by 8%. In France
we began replacing our car feet
with low-carbon models.
Haing actories and customers world-
wide requires complex logistics
Renewable energyWe are also increasing the amount o renewable energy
used. We purchase renewable energy rom companies that
are audited to bring additional renewable energy to the
grid. We also generate our own, or example, through
solar power in Brazil and Italy. A third measure is to
purchase Gold Standard Renewable Energy Certicates
(RECs) approved by WWF. RECs are tradable environmental
commodities certied as being rom an eligible renewable
energy resource.
Our actories in Moerdijk and Heerenveen (the Nether-
lands), Limburg and Berlin (Germany) and Aarhus
(Denmark) are using green power. Those in Dijon
(France), Rubiera (Italy), and Arganda del Ray (Spain)
purchase RECs. Market company oces in China, Sweden,
France, Spain and Japan also purchase renewable energy
or RECs.
Logistics and travelHaving actories and customers worldwide requires com-
plex logistics. We know the relative emissions associated
with air, road and sea transport, and run projects with our
suppliers to track and reduce emissions. Our travel policy
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carton is wood bre, which absorbs water. In a paper
recycling mill, cartons and other used paper are repulped.
The bres absorb water and work ree o plastic and
aluminium, which are easily ltered out. The bre is used
in production o new paper products and, depending
upon markets needs, the plastic and aluminium is also
recovered to make composite products such as roo tiles or
plastic pots, or to replace ossil uels or generation o heat
and electricity.
Why dont we use recycled paper?Inormed by Lie Cycle Assessments, we have learned
that there is not an obvious environmental case or using
recycled paper in our packaging. Our packages must be
durable and light, and are made rom special paperboard
with the necessary strength, stiness and other key at-
tributes. Our paperboard suppliers are based near their
raw material the orest.
RECYCLING
Making a used package useulOur goal is that the cartons we manuacture are recycled
in every country ater use. The challenge is that we do
not control recycling we can only acilitate it by working
with other partners in each country. Nevertheless, there
has been a 64% increase in recycling o our cartons in the
past six years.
In 2001, 13% o the cartons we manuactured wererecycled, and by 2008 this had risen to 18% (or 25.6 bil-
lion cartons). Our original target or 2008 was to see 25%
o our cartons recycled. We did not achieve this, and
acknowledge that it was overambitious, because we cannot
directly control recycling. But we believe it inspired engageme nt
and achievements including the expansion o recycling
to many more countries than previously. Every country
manager is measured on the recycling perormance.
We know that there is much more to do in this area and
we are committed to supporting continued increases in
recycling globally.
We are requently asked i a cartons layered material
makes recycling dicult. About three-quarters o each
a 64% increase in recycling
o our cartons in the
past six years cycles
With every recycling cycle, recycled bres loose strength,
limiting their eectiveness to between ve and eight cycles.
Consequently there will always be a need or a bre market
with a combination o virgin and recycled wood bres.
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RECYCLING
Local action contributes to a global solution
Increasing recycling depends on consumer action, industry
capability and governments enabling recycling through
regulatory rameworks. Only a concerted eort by all
stakeholders will deliver results. Tetra Pak works with
each step o the chain, as these examples show.
In China we partner with recyclers, schools, non-
governmental organizations, collection entities and local
governments to establish a sustainable value chain or
carton packaging collection and recycling. The recycling
volume in 2008 reached nearly 28,000 tonnes and the
recycling rate grew rom almost zero in 2004 to around
10% in 2008.
We partnered with NGOs, paper traders and paper mills in
Egypt to stimulate recycling. In ve years collection went
rom zero to 13% o all cartons sold.
In Japan we work with Marusan-Ai Co., a s oy milk pro-
ducer, and Yamato Transport Co. We developed Marusan-
Tetra Pak Recycle Service a collection system enabling
consumers to recycle cartons by mail or ree. The cartons
are shipped to Shin-ei Paper Mg Co, a paper manuacturer,
or recycling into sanitary paper such as tissues.
In Thailand we co-sponsored a nationwide carton collection
and recycling campaign with a popular T V programme.
More than 21 million beverage cartons were recycled into
notebooks and donated to schools along with supporting
educational material.
In the UK we collaborate with local authorities, collectors
and NGOs. We acilitate collection, provide consumer
inormation and help identiy end markets. As a result,
more than 85% o UK local authorities provide access to
beverage carton recycling.
And in the European Union car tons have been classied as
a single grade o recoverable paper, acilitating the trade
o used beverage cartons as a commodity. The recycling
rate or beverage cartons in Europe reached 32% in 2007,
and another 33% was used to generate energy.
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RECYCLING
How we do it
We built recyclinginto perormance measuresTetra Pak managers perormance is aected by the
markets recycling development against yearly targets.
This ensures that the whole company ocuses on inding
local solutions.
into our operations and those o our customersWe recycle our own manuacturing waste and we strive to
support our customers initiatives to recycle their production
waste everywhere.
and into our design processRecyclability is a core perormance measure at each stage
o innovation and product development.
We get involved intechnology developmentOur company works in collaboration with scientiic
institutions and other businesses to develop locally relevant
recycling technologies. These may be highly technical or
more simple, like small mills or recovering paper bre.
We work with end-usersPaper mills need to see the value o recycling beverage
cartons, particularly in countries with less experience o
this. Our engineers work with mills worldwide, visiting
about 45 each year to run tests.
The valueCarton bres are o high quality because they are strong
and airly clean rom inks. This makes recycled cartons
well suited to a number o uses, mainly in the areas o
secondary packaging and tissue papers.
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Environmental actsCO
2emissions Global Warming Potential (GWP) Greenhouse gas emissions (GWP) by operation, 2008Greenhouse gas emissions by source (GWP), 2008
Energy use and production growth in carton packaging
material production
Energy efciency in Packaging material production
Energy use by operation 2008
Energy use
Support serices
Market companies
Processing equipment and packa-ging machines production
Closures, straws andlm production
Market companies
Support serices
Preocessing equipment andpackaging machines production
Closures, straws, strips andlm production
Carton packagingmaterial production
Rerigerants
District heating
Organic solertsLPG
Natural gas
Electricity
2005 19%
2006 21%
2007 25%
2008 33%
2005 77%
2006 76%
2007 80%
2008 97%
Chain-o-Custody certifed paperboard supply (FSC and equal level)FSC certifed wood fbres in paperboard supply
Carton packagingmaterial production
Greenhouse gas Emissions:
Forestry:
Energy use:
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Ozone Depleting Substances emissions
Cartons in Recycled tonnesRecycling cartons
Water consumption Water consumption sources
Volitile Organic Compounds emissions in packaging material production Volitile Organic Compounds emissions in packaging material production
Market companies
Support serices
Closures, straws,strips and lm production
Preocessing equipmentand packaging machines
production
Carton packagingmaterial production
Recycling o used cartons:
VOC and ODP emissions:
Water:
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PEOPLE
An engaging approachWe are proud o our strong values, which we have codied and in which we train our sta. Our emphasis
is on the long-term which means we care about our actions in the context o building enduring relationships.
We believe our value will only increase i we add value to others. This is why we are active in development,
support relief efforts, further education and health programmes and invest substantially in our employees.
We aim to be a preerred business partner, a preerred employer, a preerred social par tner, and a
riend in the community.
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CUSTOMERS
Increasing our value as a supplierWe continually ocus on understanding and meeting
customer needs. Tetra Pak provides packaging innovation
to attract consumers, and innovations in equipment and
automation to increase eciency and decrease operating
costs. We also oer service programmes to maximise oper-
ating eciency and initiatives to enhance the value o our
customers brands. We address water use, energy demands
and greenhouse gas emissions and assess progress both or
new lines and or customer lines in operation.
Reducing operating costsWe work to help cut customers operating costs throughmodiying existing machines and developing more ecient
equipment. We have run a number o Operational Cost
Reduction (OCR) projects where we help customers make
signicant savings. Newer, more automated machines use
less energy and water. For example, we are introducing ully
integrated packaging lines that reduce energy and water
consumption by up to 50% (Tetra Pak A3/Speed iLine).
Our aseptic dairy production line has the lowest product
losses in the dair y industry, saving milk and reducing
efuent. One o our customers, Farag Amer, CEO and
Chairman o Faragalla Group in Egypt, comments: Tetra
Lactenso Aseptic has had a huge impact on reducing
operating costs in my plant. It increase d availability to
95% through more ecient technology and reduced CIP
(Cleaning in Place) detergent use by 20%. It has also,
minimised energy consumption due to a high degree o
energy recovery and reduced product losses.
Tetra Pak Processing Systems was a key partner in the
development o a state-o-the-art greeneld dairy or
Luxlait Association Agricole at Roost in Luxembourg.
Industrial Director Gerard Reslinger says: The impact o
environmental values on costs is becoming ever greater,
because the cost o energy is increasing, as is the price tag
on waste processing and disposal. It is absolutely neces-
sary to take this into account when calculating the cost of
our products.
Customer satisaction surveysFeedback rom our customers helps drive continuous
improvement. Surveys are an important tool in helping us
to understand how to deliver what our customers need.
Our aseptic dairy production line
has the lowest product losses in
the dairy industry
A robust process addresses issues that cross organisational
boundaries and solves them to the customers satisaction.
Constant customer serviceChange in personnel and handovers can be challenging.
We store inormation online so that new personnel can
ollow through seamlessly. A survey by Sc holl Consulting,
an independent US company, cited the system as best
practice in business relevance and IT maturity.
We reward employees on the basis o team as well asindividual perormance. Key Account and Technical
Service teams are linked to meet customers operational
and strategic needs. Coca-Colas supply chain consultant,
Jim Goldman, says: You get the inormation you need in
a hurry, and most importantly, you can trust what they
say. You know the guys at Tetra Pak arent ever going to
sell you something you dont need. We know we can go
to either o them [Key Account or Technical Service] and
together well be able to work out a solution. Its a pretty
seamless operation.
We are raising the prole o customer service by giving
an award to the team that demonstrates the greatest
customer ocus.
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CUSTOMERS
Protecting customers brands
Quality Assurance Management (QAM)Our QAM standards are built on our microbiologists and
ood technologists knowledge and an understanding o our
customer operations that takes years acquire. Members o
our team solve problems at our customers plants. As ood
saety is so critical or our customers, we str ive or the
highest possible QAM standards and our team members
perormance is independently certied. Certication com-
prises written tests and assessments o perormance. A QAM
assessor carries out the procedure and covers every aspect
o production as well as service products. The target is or all
QAM members to be certied by 2010. Today a majority o
our clusters have initiated the certication process.
Shredding to protectA strict policy to shred all waste packaging material beore
re-sale ensures that any customer branding appearing on,
or example, the ends o rolls is protected. Such waste is
oten recycled and used in the manuacture o other products.
In all cases, the waste material is either shredded or
recycled in such a way that the customer brand cannot be
misused. This process is closely monitored and audited by
a third party to ensure compliance.
Environmental communicationsCommunicating transparently about the eects o our
business on the environment contributes to building and
enhancing both our reputation and that o our customers.
Feedback rom customers shows that they are increasingly
satised with our actions in this area.
Some examples o our activities include:
Tetra Pak Belgium ran a comprehensive series o work-
shops on perormance and lie cycle analysis or custom-
ers, and is in the process o creating an exhibit showing
the environmental benets o cartons in a new actory
opened by one customer, Luxlait. Environmental training
workshops or customers in Greece and Cyprus created acommon language or joint communications campaigns.
In Italy we ran an environmental campaign calling upon
consumers to recycle cartons. We organise training world-
wide with sales, marketing and purchasing proessionals
and management. A wide range o topics includes recy-
cling, the Forest Stewardship Council (FSC) certication
process, how to market products in line with our Green
Claims Guidelines and international norms and how to
ensure launches are well thought through, credible and
eective. The Green Claims Guidelines are available to all
employees on our intranet and are actively communicated
to all marketing and communications people.
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Enhancing our customers' value to their consumers
CASE STUDY
Joint environmentcommunication with retailerDuring EU Sustainable Energy Week (EUSEW) 2009, Tetra Pak and leading retailer Carreour
launched an environmental awareness campaign in 600 o the companys hypermarkets across France,
Belgium, Italy and Spain, with the suppor t o the EU Commission. This was a practical example o the
role o packaging in raising consumers awareness o ways to tackle climate c hange, such as saving
energy and using renewable resources.
FSC certifcation on cartonsThe FSC Mixed Sources label printed on each carton
provides assurance to consumers that the packaging
material comes rom responsibly managed orests
and other controlled sources.. The worlds rst FSC
labelled ood and liquid carton was launched in 2007
and we are rapidly expanding this initiative. In 20 08,
we delivered more than 200 million FSC certied
packages. All Tetra Recart packages and Brazilian
packages are today FSC certied and can, i our
customers choose, be labelled.
Eco Leatrademark in JapanTogether with the customer
Nisshin Kyorin Seiyaku, we
launched the rst carton
package to carry the
Japanese Governments Eco
Lea mark. Eco Lea denotes
that the manuacturer
discloses environmental
impact data rom raw materials to disposal in line
with the requirements o the Japan Environmental
Management Association or Industry (JEMAI). The
mark guarantees traceability and allows consumers
to access the data associated with the package at a
dedicated website.
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PEOPLE
Food or DevelopmentOur history in sustainable development goes back to the
1960s when Ruben Rausing began to ocus on the lac k oprotein-rich nutrition in the third world ater spending time
in Pakistan and observing surplus ood being destroyed in
the developed world. He was aware o the importance o
protein and amino acids or the development o the brain
in oetuses and in children up to the age o eight, and that
malnourished children may not develop their ull intellec-
tual potential. His solution: to pack sterile milk in aseptic
packages while stimulating the development o dairy
processing in developing countries, in parallel to growing
local milk production.
Some o the rst school milk programmes started in the
1960s in countries such as Mexico and Japan. Today Tetra
Pak is involved in school eeding in more than 50 countries
beneting 50 million children, o which 29 million are in
developing economies.
The Tetra Pak value chain modelIn 2000 we set up the Food or Development Oce (FDO)
to make available Tetra Paks experience and provide
active and practical support to implement school eedingand nutrition programmes linked to agricultural and dairy
development. We work in partnership with governments,
UN agencies, national development agencies, NGOs and
our local customers, to initiate, develop and support
sustainable agricultural development, school milk and
other nutrition initiatives. This builds markets or our
processing and packaging products, while g rowing local
industries and supporting communities.
These partnerships include eeding initiatives throughout
the world (Bangladesh, China, Colombia, the Dominican
Republic, Egypt, Guatemala, Haiti, India, Iran, Japan,
Kazakhstan, Kenya, Mexico, Thailand, the US and
Vietnam, and others).
The goal is that these projects are long-term and sustainable;
they are ocused on the value chain, where the needs and
requirements o each sector along the chain are addressed,
rom armers to processors, retailers, distributors and
consumers.
Strong public-private partnershipsTetra Pak believes that the most powerul tool or
economic development is an integrated public-private
partnership. Our role is to support local entrepreneurs as
they start ood processing businesses and to work with the
public sector in developing agriculture, local markets and
programmes to eed school-children. Strong partnerships
between the private and the public sector can help buildsustainable economic development. Our long experience
and large network allows us to work with partners to
speed up and enhance integrated projects.
Base or sustainable business
Our activities include training armers in proper eeding, milk
handling and cooling, training processors in high quality
procedures, and ensuring regular testing and quality
control. We stimulate demand and support distribution,
provide retailers and sellers with educational material on
health and ood saety and communicate with schools and
consumers about ood security, nutrition and sae handling
o the products. We provide assessments o ongoing and
new school eeding programmes so that best practices and
knowledge can be shared.
By strengthening the link between milk armers and dairy
processors, by helping to develop markets, communicating
with consumers about ood security and supporting school
milk programmes, we help create a base or sustainable
economic and social development.
New productsWe work with partners on t he development o nutritious
drinks based on locally abundant crops and designed to
meet nutritional needs o local children. In the uture
we intend to work with partners to develop products or
severely malnourished children.
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CASE STUDY
Food or Development inCentral America and Haiti
Low weight at birth, anemia and
micronutrient deciency are
signicant problems aced by a
large number o Latin American
children, according to UNICEF
and regional Ministries o Health.
We have partnered with the
INCAP (Nutrition Institute o
Central America & Panama ) anddeveloped a ready-to-drink ver-
sion o their Incaparina nutritional cereal beverage that
is comprised o maize and soy protein ortied with iron,
vitamins, and minerals. The INCAP is a co-operation
between regional organisations including Ministries o
Health and PHO, the regional oce o the World Health
Organisation. Incaparina was originally developed in
powder orm. The ready-to-drink version, produced
by our local customer, oers a sae, easily distributed
alternative or rural areas with sub-standard hygiene and
lack o potable water, and ensures children consume the
recommended quantity o nutrients. It comes in several
favours that children enjoy. The product has now been
launched commercially in Guatemala targeting children,
lactating mothers, and the elderly.
In Haiti, we are partner s in two school milk programmes
or school children in poor urban and rural areas in Cite
Soleil, Bel Air and Plateau Central. The largest programme
is unded by the World Banks Education or All Fast Track
Initiative and managed by Catholic Relie Services and
Bureau de Nutrition et Dveloppement. The UHT ortied
favoured milk is produced and delivered by our local
dairy customer. The programmes have grown to cover
50,000 children.
Example o continuing growth inschool eedingIn the past year sc hool milk pilot programmes began
in Morocco and Kenya in partnership wit h local NGOs,
governments and customers. The Moroccan initiative
targets nearly 4,000 students in 37 primary schools in two
regions with ortied milk. An expanding p rogramme
currently covers more than 125,000 children in Mumbai,
India, under the management o the local government.
Programmes are expanding in China, Iran and Russia.
In China a consistent source o sae and healthy milk has
been established. Iran now has one o the largest school
milk programmes in the world. And in Russia, government
commitment has resulted in a Moscow plant dedicated to
producing school milk.
In Colomia we hae een inoled in a school milk programme or oer1.3 million pre school children. New ortied solutions or primary schoolchildren are under deelopment.
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Partnerships
GCNFWe are represented on the board o the Global Child Nutrition Foundation,
the sister organisation to the School Nutrition Association (SNA), whose
activities began in 1946. Building on the long experience o the SNA, the
GCNF was created in 2006 with a mission to expand opportunities or the
world's children to receive adequate nutrition or lear ning and achieving
their potential. It promotes child nutrition inter nationally through sustain-
able school and community-based eeding programmes.
GAINGlobal Alliance or Improved Nutrition works to improve the nutritional
status o one billion people to save lives and reduce disease, improve well
being, enjoyment and productivity, and reduce poverty and stimulate eco-
nomic growth. It ocuses on reducing micronutrient deciencies among target
groups by increasing regular consumption o ortied oods.
PIBFThe Palestine International Business Forum is a Swedish-Palestinian-Israeli
initiative set up in 2001. It engages in dialogue and cooperation in Isr ael and
Palestine, aiming to acilitate mutually benecial business models and meas-ures to help the Palestinian private sector create jobs, transer eexpertise and
increase trade. A special ocus is on Palestinian agriculture, in particular the
dairy sectors ability to ull local needs. We are a ounding member o PIBF
and partners in a dairy development and school milk initiative in the region.
There is a strong commitment rom the goernment o Egypt to proidemilk to pre and primary school children.
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EMPLOYEES
Shared ExpectationsTetra Pak was ounded on the business idea that the value
o a package shall exceed its costs. Our people idea is t hat:
the value of peoples commitment and competence shall
exceed their costs, and
the value of working for Tetra Pak shall exceed the
investment each person makes in the company.
This means that Tetra Pak is a demanding and rewarding
company to work or. We expect every employee to:
add value to the company
take responsibility for the development of their own
competence, supported by their manager
work in partnership with colleagues in all parts of thecompany
be accountable for their actions.
A Tetra Pak employee can expect to:
receive fair and honest feedback on performance and
potential
develop competences to secure the companys long-term
competitiveness and their own versatility
have a working environment in which he/she is motivated,
engaged and actively contributing to the achievement o
business and individual objectives.
We use a Balanced Score Card (BSC) to link our strategic
priorities to each managers goals, review and remuneration.
Our Capability Council is responsible or creating and
implementing processes or developing and managing people,
including training. Using eedback rom customers and
sta, we have identied our key capabilities to ensure
success in the strategy implementation: Customer
Understanding; Total Quality; Leadership; and Project
Management. Each area has a governance orum including
at least one member o t he Capability Council.
We estimate that we provide more than 100,000 days o
training a year to sta, and average o appr oximately ve
days or each employee. Target areas range rom technical
service to leadership, covering elements as diverse as
environment, nance, project management, innovation
and marketing. The Tetra Pak Academy, ocusing on stra-
tegic leadership training, has now been in operation or 10years, and has trained 1,475 people in 203 programmes
which led to 88 business projects. Most attendees have
undertaken more than our programmes.
Employee engagementEvery year we survey all employees on their experience o
working with the company including the extent to which
they live the core values, leadership, and motivation. In
2008 we began a partnership with the international pro-
vider o employee surveys, Towers Perrin, which enables
us to benchmark survey ndings with other companies
in the manuacturing sector and thus understand our
strengths as well as ar eas or improvements. This required
us to change many o the questions we use d to ask in order
to make results comparable with other companies. We
gained comparability externally but lost comparability
with our own past scores.
In 2008, 87% o Tetra Pak employees responded to the
survey. We outperormed the benchmark o 81% positive
responses among global manuacturing companies with a
90% score.
Career Development and Customer Orientation were rated
the highest categories. Perormance Management and
Team Working scored just above the benchmark and we
will work on improving these areas in 2009.
The importance o engagement surveys is in the dialogue
that the process stimulates between managers and em-
ployees and the improvements that ollow. We discoveredthat people would like more eedback on their perorm-
ance, resulting in a pilot project or a mid-year review,
integrated into our e-HR system to maintain transparency.
I the pilot is successul it will be rolled out throughout the
company in 2010.
Labour management relationshipsSome 30% o our employees are covered by collective bar-
gaining agreements. Most are represe nted on works coun-
cils and health, saety and environmental committees at our
operating sites. We also have a European Inormation and
Consultation Council (Tetra Pak European Committee),
in line with the European Directive 92/45/EC. TPEC
meets yearly, and ocuses on the business issues acing the
company.
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EMPLOYEES
The task ahead: zero workplace injuries and illnesses
Our goal is to eliminate all workplace-related injuries and
illnesses and to ensure the long-term wellbeing of employees
(see People acts). We have incorporated health and saety
into our Corporate Governance policies.
Local companies are also responsible or providing a sae
and healthy working environment. Each one has the
fexibility to take local regulation into account. We have
identied musculoskeletal damage, noise exposure, dustexposure, ergonomics, liting and stress as the main oc-
cupational health issues.
Diversity makes us a better companyOur ambition is to recruit, employ and promote people
purely on qualications and abilities. We know that there
are strong cultural elements in play when we seek to dene
and recognise abilities. We are managing this through a
clear policy that there should be no discrimination based
on religion, social standing, ethnic origin, gender, physical
abilities, sexual orientation, age or political belie.
We believe that diversity brings us a better understanding
o our customers and consumers needs and enriches our
problem-solving capabilities. We have a zero tolerance
policy on discrimination and harassment at work.
Accident and IncidentManagementWe have a solid process or managing
accidents. Each unit has a trained A&I
ocer who is alerted as soon as an
event occurs. The incident is logged,
classied and reported to a core team
who identiy the cause and develop
relevant communications. The process
applies to equipment, which may lead
to an event at a customer s ite, or pack-
aging and ood, where consumer saety
is involved.
Events are classied as incidents,
emergencies or crisis. Representatives
o packaging and processing systems are involved, as are
Legal, Communications and Food Saety. The lessons are
captured and used to inorm our development and engi-neering work. A complete guide to process and responsi-
bilities is available to all employees on our intranet.
Acting against child labourWe clearly state that we do not engage, or support the use
o, child labour. We check our operations against these
standards on a regular basis in our internal audit programmes
(set out under Corporate Governance). We have had noincidents o using child labour and our suppliers must
veriy that they do not use child labour.
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COMMUNITY
Investing in our business and communitiesOur owners share the enlightened view o the ounder, their
grandather, that business is also a driver or social progress.
Our business activities are designed to deliver value not only
to this company, but also to stakeholders along the chain
o supply and consumption. As a result, during the course
o conducting our business we attempt to help alleviate
malnutrition and its eects on childrens development;
we promote economic development in markets where our
products are sold: and we provide health education.
We also invest strongly in our business, as shown by the
examples below rom 2007/2008:
30 million was invested in leading-edge printing and
laminating technologies at our packaging materials p lant
in Monte Mor, Brazil, to meet growing demand in the
dairy and beverage industry.
60 million in a state-o-the-art packaging material man-
uacturing plant in Hohhot, China, to support the countrys
growing dairy and beverage industry. We signed a Letter
o Intent with the local authorities in Inner Mongolia to
purchase energy generated by wind power. This represents
a reduction o more than 19,000 tonnes o CO2.
We made a 26 million investment in new printing and
laminating technologies in our packaging materials plant
in Rubiera, Italy. A urther 15 million went to our Modena
research and development, test and assembly acility.
We began building a technically advanced packaging
material actory in Pakistan with an expected investment
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o 90 million.
We constructed a new converting plant near Moscow,
Russia, an investment o 100 million, to support growth
in Russia and Eastern Europe.
Factory closureIn 2007 we closed a actor y in Yoju, South Korea, as it
was economically unsustainable. In line with our commit-
ment to treating our people and their amilies with the
utmost respect, we oered aected employees a signi-
cantly more generous redundancy package than required
under South Korean employment law. Eighty-eight o the
ninety-six permanent employees accepted our oer, which
included remuneration according to length o service,
our months o outplacement services and counselling.
The union sought to have the plant reopene d, and sent
a delegation to meet top management in Europe. It later
agreed to the closure and terms, but eight workers reused
to accept the agreement.
Strategic economic developmentIn India, Pakistan, Egypt and Slovenia, among other coun-
tries, milk in open containers has been identied as a pub-
lic health hazard. Tetra Pak is working on integrating the
milk supply chain in order to help overcome issues such as
unsuitable environments that acilitate disease, dilution
and the addition o sometimes dangerous preservatives. In
Pakistan and Egypt, we are piloting a dair y hub concept.
The hub, owned by the dairy processor, helps organise
smallholders into producer groups and contracts to buy
their surplus milk. Loyalty to the dairy hub is created
through regular bonus payments, education and agri-
services such as veterinarian support and eed. This helps
smallholdings grow, improves the quality and quantity o
milk and helps ormalise the dair y industry. We will evalu-
ate the success o these pilots during the next ew years.
Social responsibility in ItalyIn Italy we have been awarded the SA8000 cer ticate or
social accountability rom Det Norske Veritas. This is an
international standard or social responsibility involving
the whole value chain. We have been particularly proactive
in supporting womens proessional development; envi-
ronmental monitoring and improvement; and rolling out
programmes or school education and emergencies.
Philanthropy in line with our businessOur Corporate Mission states that We believe in respon-
sible industry leadership, creating proitable growth in
harmony with environmental sustainability and good
corporate citizenship, so it makes sense that our phil-
anthropic activities complement this. As a result, we have
been involved in a number o relie eorts. Below are some
examples rom the past two years:
We worked with the International Organization on
Migration in Zimbabwe to run a cholera awareness and
prevention programme, donating 50,000 litres o water.
Each package carried recommendations or preventing
the diseases spread.
Following the Sichuan earthquake, we donated milk,
other beverages, tents and raincoats, reaching 550,000
people (read more on page 42).
Our Board created a und to support people aected by
the Sichuan eart hquake and Cyclone Nargis in Myanmar.
The und was used in cooperation with local authorities
and international aid organisations.
In Haiti we donated 36,000 packages o favoured milk to
charities that organised relie eorts ater tropical storms
devastated the island.
We worked with the Brazilian artist Romero Britto and
ONE, a global advocacy organisation ghting extreme pov-
erty and preventable disease, and the Brazil Foundation
to raise unds or clean water in Brazil. We launched a
limited edition coconut water drink in Britto-designed
cartons. The packs were sold in the US and a portion o
revenue supported projects to bring clean drinking water
to 1,200 people in the semi-arid states o Pernambuco
and Paraiba.
We donated a truckload o milk to the Red Cross Ukraine
ater foods destroyed 40,000 houses and 700 kilometres
o road in the west o t he country.
Education to improve healthWe actively educate children, parents and media in health,
ood saety and environmental practices. In Thailand
we teamed up with the Thai Osteoporosis Foundation to
increase awareness about osteoporosis. The disease is the
usiness is a drier
or social progress
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sixth leading cause o deat h among women in Thailand.
We provided prevention inormation including recipes,
exercise demonstrations and ree bone mass density
checks, as well as recommendations on sel-care to those
already diagnosed. Studies in Germany demonstrated that
ewer than 50% o young people consumed t heir recom-
mended intake o milk and dairy products and were grow-
ing up with an increased risk o osteoporosis. Our German
company runs a three-pronged programme sponsor-
ing a competition, an annual Run against Osteoporosis
in partnership with the National Initiative against
Osteoporosis, and a school milk programme entitled Joe
Clever.
The Food and Agriculture Organisation o the United
Nations (FAO) estimates that economic losses in the dair y
sector in East Arica and the Near East due to spoilage
and waste could be US$90 million per year. We work with
FAO, local producers and government agencies to reduce
losses during production, transport and sales by training
business partners throughout the dairy value chain.To build awareness o environmental issues in Egypt,
our local company launched the Green Media Awards
together with the Ministr y o Environment and USAID, the
American government humanitarian agency.
increase awareness
aout osteoporosis
We partnered with Indonesias
Department o Health and local
nutritionists to provide seminars
or mothers and children at com-
munity health centers.
Our work hasbeen recognisedTetra Pak China received the
China Charity Award 2008 or
the Most Charitable Foreign-
Invested Enterprises; won ve
environmental awards rom
WWF, Peoples Daily Newspaper;
and three business journals;
Tetra Pak Poland has receivedrewards in a consumer and
customer awards programme,
the Consumer Lauren 2008 ; and Tetra Pak Vietnam has
or the third time been selected or the Saigon Times
Top 40 awards ocusing particularly on corporate social
responsibility.
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CASE STUDY
Disaster Relie Programs in China
When the earthquake struck the Sichuan province in
China last year, the solidarity, courage and determination
o Chinese people was evident. Given the scope o the
disaster and that our business is to support the well-being
o people all over the world we wanted to contr ibute our
part to the relie and reconstruction eorts. We believe
that ghting against natural disasters should be a shared
responsibility o global citizens everywhere.
Within days o the earthquake our Board created o a special
Disaster Relie und o USD 15 million (or RMB 102.8
million) to assist emergency relie and post-quake recon-
struction in the S ichuan province. We have ocused both
on specic needs o individual groups o people aected,
as well as the long-term assistance that our contribution
can provide.
We worked with the Jet Li One Foundation o Red Cross
China to purchase RMB 20 million worth o emergency
oods, including milk products, or local people in 39
townships and villages, covering 80% o the earthquake-
stricken areas and more than 550,000 people; and to pur-
chase RMB 6 million worth o emergency living materials
including tents and rain coats.
Our long term commitment means that the program is
urther expanded in 2009; including sponsoring 10,000
high school students to continue their high school studies,
supporting to set up 100 village clinics to help restore rural
medical systems, supporting training and redeployment
programs or disabled people, up-grading pastures or local
armers to resume dairy arming and supporting panda
habitat recovery.
Personal engagementThere was also engagement on a very individual level.
Immediately ater eart hquake Tetra Pak China employees
rom dierent oces across the country started to make
cash donation and individual donation commitments to
support the emergency relie eorts. Within 4 days, the
total donation rom Tetra Pak employees reached RMB
360,000.
Focus on childrens needsIn September 2008, RMB 8 million was allocated and
we worked with the China Children and Teenagers
Foundation (CCTF) to open 120 Care Islands in primary
schools and kindergartens as recreational space or children.
Designed to help the kids grow in a healthy and happy
environment, the Care Islands are equipped with books,
recreational and sports acilities, where psychologists regularly
oer psychological therapies or children.
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Food or Development
2004 2006 2008 Growth 2004-2008
Numbers o servings - Global 4874 5142 5668 +16%
Numbers o servings - Developing Countries 1770 1886 2762 +56%
Number o children - Global 37,6 43,1 50 +33%
Number o children - Developing Countries 13,4 17 29 +216%
People acts
Accidents in converting 2008Total
Minor accidents* 144
Serious accidents** 80
Extraord inary accid ents *** 0
Total 224
* Minor Accidents: Injuries that require medical adice/attention utlead to less than 1 working day o lost time
** Serious Accidents: Injuries that require medical adice/treatmentthat lead to temporary disaility with more than 1 day lost time.
*** Extraordinarie Accidents: Any injury causing death, loss o odypart or permanent disaility.
Customer Satisaction survey
2005 2006 2007 2008
Truly Loyal 67% 77% 82% 82%
Target 78% 81%
(1413 respondents in 42 markets.The surey is done at least eery two years thereore in any gien yearthere may e more or ewer countries and respondents.)
(All gures in millions)
Employee Age Distribution
School Feeding Programmes
Employee Distribution
Case study
Employee AccidentsCustomers
Living the Policies
Tetra Pak has implemented a programme to coer all employees
gloally - LivE Tetra Pak that aims to ensure eeryone understands
and has opportunities to discuss our ision, Core values and usiness
strategy, as well as how they aect and direct our daily work.
Manager distribution
Non EU and non European managers do we have at Tetra Pak? Total
Non EU Managers 1583 (55,6%)
Non European Managers 1358 (47,7%)
Number o middle & top managers with non
Nordic/EU/European nationality? Total
Non Swedish middle & top managers 1041 (64,7%)
Non Nordic middle & top managers 994 (61,8%)
Non EU middle & top managers 562 (35%)
Non European middle & top managers 514 (32%)
Number o non EU/European top managers Total
Non Swedish top managers 89 (67,4%)
Non EU top managers 40(30,3%)
Non European top managers 31 (23,5%)
Female top managers 11 (8,3%)
Employee EngagementSurvey Results(in partnership with Towers Perrin 2008)
Total numer o respondents 18,143
Oerall Satisaction Score 90 (enchmark target was 81)
Work lie alance score* 69 compared to enchmark o 64
* Question: My work schedule allows sucient fexiility to meet my
personal/amily needs.
Areas o highest score compared to benchmark
Customer Orientat ion 84 compared to enchmark 81
Q ua li ty / E ci en cy 8 4 c om pa re d t o en ch ma rk 82
Career Deelopment 73 compared to enchmark 72
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TETRA PAK
Who we areWe are a amily-owned company established in 1951 with more than 20,000 employees
worldwide. We are privately held and report our operating costs, retained earnings, and
other nancial gures to our Board. While we are particularly known or our milk and
juice packaging, we are a provider o ood processing, distribution and packaging material
and equipment or products as diverse as cooked vegetables, cheese and dry oods. We
also oer services ranging rom actory planning, control and monitoring sotware, to
training, design, cost-optimisation and marketing assistance.
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TETRA PAK
Corporate GovernanceTetra Paks Corporate Governance Framework denes how
the company and its employees must behave and conduct
business in all our operations. The Framework is undamentalto both protecting and creating value or a sustainable and
successul business.
The Framework is developed and mandated by t he Board
and Tetra Paks Global Leadership Team (GLT) and consists
o our Core Values, Code o Business Conduct, Policies,
Procedures and Guidelines. It is designed to meet the prin-
ciples in the Combined Code o Corporate Governance
(the European/British version o Sarbanes-Oxley) and
our internally dened requirements. While Policies and
Procedures are mandatory, Guidelines are to be ollowed
unless there is an explicit reason to the contrary. Each
Policy and Procedure is owned by a member o the GLT.
Changes or updates to any Cor porate Governance
Framework matters, policies or procedures are decided
by a Corporate Governance Council and supported by a
Corporate Governance Oce.
The documents and supporting inormation within the
Corporate Governance Framework are published on our
intranet and are available to all employees.
Our Core Values dene our companys characteristics and
guide how people work with each other as well as how
we conduct business and behave towards our customers,
suppliers and stakeholders. In 2008 our Core Values were
rereshed to mirror a ast-changing business reality and
world. Employee research has shown that our Core Values
are well known, appreciated and underpin all our activities
throughout the company.
Internal controls and trainingThe Board assures conormance to the Corporate
Governance Framework through a yearly signed
Management Declaration rom our CEO and the GLT.
They in turn veriy conormance through signed Corporate
Governance Conrmations and an annual Control Sel
Assessment (CSA), submitted by the head o each market
and business area. The CSA covers the entire Corporate
Governance Framework, includes detailed questions
and allows or comments and suggestions. In addition,
Tetra Lavals internal audit team veries adherence to t he
Corporate Governance Framework, its policies and proce-
dures, as well as the accuracy o the CSAs.
Market company and operating unit employees are
also trained and supported in making Core Values and
Corporate Governance part o our strategy and daily
operations. Employees may provide input and eedback to
the Corporate Governance Oce via e-mail or telephone
available on the intranet.
Developments in 2007/2008The Whistle Blowing procedure was ully implemented.
This procedure encourages employees to report any
inormation on a breach o the Corporate Governance
Framework, or any other serious inappropriate behaviour,
to their line manager, the Head o Corporate Governance,
or to the Head o Internal Audit. The Whistle Blowing
procedure also explicitly stipulates that no disciplinary
action may be taken against an individual or an act o
whistle blowing made in good aith. Compliance with and
implementation o this procedure is restricted to countries
where applicable laws do not prohibit or limit Whistle
Blowing.
A new Food Saety Policy was approved and a ood saety
orum is currently working on dening and implementing
the associated ramework o controls.
The Recruitment Policy has been revised and strengthened
to, or example, promote and reinorce diversity and reit-
erate non-discrimination in line with our Code o Conduct.
Corporate Governance Framework
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VisionWe commit to making ood sae and available,
everywhere.
MissionWe work or and with our customers to provide pre-
erred processing and packaging s olutions or ood.
We apply our commitment to innovation, our under-
standing o consumer needs and our relationships
with suppliers to deliver these solutions, wherever
and whenever ood is
consumed.
We believe in
responsible in-
dustry leadership,
creating protable
growth in harmony
with environmen-
tal sustainability
and good corporate
citizenship.
Core Values
Customer ocus and Long-term viewWe ensure that we add value and inspire our customers because we
recognise that they c ome to us by choice. We dare to lead wit h a ocus
beyond tomorrow and take opportunities to learn and grow.
Quality and InnovationWe do not compromise on quality. We relentlessly drive or better, t-
or-purpose solutions and breakthrough innovations.
Partnership and FunWe respect and rely on one another and all our stakeholders or
exceptional results. We enjoy working together and celebrating our
achievements.
Freedom and ResponsibilityWe have the reedom to take initiative and act
decisively in the best interests o Tetra Pak
and our customers. We t ake responsibility
or our actions and contribute to the
communities in which we operate.
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TETRA PAK
What we doTetra Pak is today the only international company able to
provide integrated processing, packaging, and distribution
solutions or ood. Our customers are dairy, ruit juice and
other drinks companies, as well as an increasing number
o ood manuacturers.
Market leadership in processingOur Processing Systems divisions production solutions
and services enable ood manuacturers to achieve superior
production. We aim to become the preerred provider o
production solutions and services to our customers, and
ocus on ve ood categories; dairy, cheese, beverage,
prepared ood and ice cream.
We guarantee perormance and oer support throughout
the lietime o our processing equipment. Our deep under-
standing o our customers business needs, our technical
capability and our strong local presence has taken us to
market leadership.
Tetra Pak participates in projects large and small, all over
the world, through every stage rom conceptual design
to start-up and service. This includes integrated plant
automation systems with product-tracing eatures, as well
as complete plant engineering services that ensure ood
saety.
Most ood processes require custom-designed equipment
or specic tasks. Tetra Pak has a unique knowledge base
that allows us to design and manuacture key equipment,
such as homogenisers, mixing and standardisation units,
heat exchangers, system and plant components.
Intelligent packagingWhile it is easy to t hink o Tetra Pak as a beverage carton
company, this underestimates the subtlety o keeping a
diverse set o oods sae and available in myriad condi-
tions. We oer eleven basic packaging types in numer-
ous variations. One example is packages that keep acidic
products - which usually degrade materials rapidly - resh
without preservatives. But what is good or tomato sauce
or wine may not suit a delicate milk product. And a prod-
uct designed or a North American distribution system
large trucks covering long distances with pallets stacked
high may not meet the needs o distribution by motor-
cycle in rural south-east Asia. We design each product to
meet the demands o particular consumers and customers,
in specic circumstances.
Packaging linesWe manuacture and sell 17 purpose-built lines that orm,
ll and seal packaging. We also manuacture or provide
the caps, straws and other accessory units. Finally, we
provide the distribution equipment to ensure our custom-
ers have complete, ecient production lines.
a unique knowledge ase
that allows us to design and
manuacture
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Packaging machines in operation 2009 9 115
Packaging machines deliered in 2008 503
Processing units in operation 2009 46 249
Processing units deliered in 2008 1 838
Distruution equipment in operation 2009 16 105
Distruution equipment deliered in 2008 1 372
Factories or machine assemly 10
Production plants or packaging material and closures 43
Numer o countries coered more than 150
Market companies 41
Sales oces 74
Numer o employees 21 640
Techincal serice centres 41
Technical training centres 16
R&D units 12
Numer o litres o products sold in Tetra Pak packages in 2008 (million) 70 538
Numer o Tetra Pak packages in 2008 (million) 141 379
Net sales in 2008 in MEUR 8 825
Figures as of January 2009
Tetra Pak in numbers
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Report parameters
AimTo communicate our perormance, challenges and
progress, in order to oster dialogue with our stakeholders.
ScopeTetra Pak, its manuacturing plants, oces, supply and dis-
tribution chains, and interaction with its communities and
the environment. The report covers all our sites and opera-
tions, and in important areas such as orestry considers
the impacts o our supply chain as well. We report ully
within this scope using the indicators set out by the Global
Reporting Initiative (GRI) and our specic requirements.
Key stakeholdersThe main stakeholders who infuence Tetra Paks perormance
and goals, or are infuenced by the company, are:
our Board
Consumers
Customers
Educational institutions (research partnerships,
educational partnerships)
Employees Environmental non-governmental organisations
Government and governmental organisations at
local, national, regional and global levels
Health and nutrition organisations
Suppliers
Trade associations
We have not counted the number o stakeholders this
represents. As a guide we have oces in 43 countries,
covering more than 150 countries, and interact with most
o the above stakeholder groups in each country.
In terms o governmental and non-governmental organisa-
tions, we identiy key stakeholders by seeking out those
who have long experience and who are actively engaged
in the community. Our involvement is based on common
agreements, and reviewed yearly both internally and in
conjunction with our partners.
We publish our Environmental & Social Report every two
years. The previous report was published in the rst hal
o 2007 and the current one covers 2007/2008. Tetra Pak
has been publishing its Environmental Perormance since
1999. We expanded our reporting based on discussion
with stakeholders and eedback on our website or rom
published reports. Having identiied our key areas o
impact, we have steadily increased our engagement with
civil society through organisations such as those mentioned
in this report.
Determining what we should report onWe report on our eorts in our core impact areas, including:
community involvement, employee engagement, customer
ocus, orest sources, activities to reduce climate impact
and increase product recycling. While these may seem
distinct, we h