Australian Packaging Covenant

Australian Packaging Covenant

Action Plan for 2011 - 2013

Singtel Optus

February 2011

AUSTRALIAN PACKAGING COVENANT

ACTION PLAN FOR 2011-2013

Prepared for:

Singtel Optus

Prepared By:

KMH Environmental

Level 12, South Tower, Chatswood Central

1-5 Railway Street,

PO Box 5487

NSW 1515

Phone: (02) 9468 9300

Fax: (02) 8008 1600

Document Control Log

© KMH Environmental 2011

The information contained in this document produced by KMH Environmental is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared and KMH Environmental undertakes no duty to or accepts any responsibility to any third party who may rely upon this document.

All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without the written permission of KMH Environmental.

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Australian Packaging Covenant Action Plan

Singtel Optus Pty Ltd

TABLE OF CONTENTS

Executive summary

1.Introduction

1.1.Name of Organisation

1.2.Nature of the Organisation

1.3.Brands Owned

1.4.Packaging Materials and Formats Used

1.5.Period Covered by the Plan

1.6.Contact Details for Person Responsible for Implementing the Plan

2.Specific Actions and Baseline Data

3.Formal Commitment by CEO to Implement the Action Plan

Executive summary

The following document sets out the proposed Action Plan for Singtel Optus for a three year period commencing April 2011.

In 2007 Singtel Optus Pty Ltd (Optus) became a signatory to the National Packaging Covenant (NPC) on behalf of Optus and Virgin Mobile (a wholly owned subsidiary.) Optus have complied with all of the necessary requirements of the Covenant since becoming a signatory including the lodgement of a three year action plan and reports annually to demonstrate progress against the action plan.

Optus is an Australian leader in integrated communications - serving more than seven million customers each day.The company specialises in a broad range of communications services including mobile, local, national and long distance telephony,business network services, internet and satellite services and subscription television.

The packaging materials used by Optus include:

• Cardboard
• Cellophane Wrap
• Styrofoam
• PET Blister packs
• Rigid plastic DVD style cases
• Rigid plastic to house SIM cards

Optus has addressed each of the Covenant’s specific goals and associated key performance indicators by devising specific actions to be undertaken. Details of these actions are provided in the body of this document.

The contact officer responsible for overseeing the implementation of this plan is:

Brent Gerstle

Manager Environmental Affairs, Risk Management

SingTel Optus

1 Lyonpark Rd, Macquarie Park, NSW, 2113

0412 679 742 / 02 8082 7977

1.Introduction

In 2007 Singtel Optus Pty Ltd (Optus) became a signatory to the National Packaging Covenant (NPC) on behalf of Optus and Virgin Mobile (a wholly owned subsidiary.) Optus have complied with all of the necessary requirements of the Covenant since becoming a signatory including the lodgement of a three year action plan and reports annually to demonstrate progress against the action plan.

With the endorsement of the new Australian Packaging Covenant (APC) which commenced on the 1stJuly 2010, Optus is expected to prepare an action plan that addresses the Covenant’s three goals of:

• Design
• Recycling
• Product Stewardship

In addition, the Action Plan must demonstrate how Optus intends to demonstrate activities undertaken to address the Covenant’s specific key performance indicators.

1.1Name of Organisation

The following Action Plan relates to Singtel Optus Pty Ltd and covers the activities performed by Optus and Virgin Mobile (a wholly owned subsidiary).

1.2 Nature of the Organisation

Optus is an Australian leader in integrated communications - serving more than seven million customers each day.The company specialises in a broad range of communications services including mobile, local, national and long distance telephony,business network services, internet and satellite services and subscription television.In 2001, SingTel became the parent company ofOptus.

Optus is comprised of four major business areas:

• Optus Consumer–who provide in mobile voice, data and wi-fi services. It also offers a range of services andproducts to Australian consumers includingOptus Television,long distance and local telephonyandhigh-speed internetanddial-upaccess.
• Optus Business–who provide alternative access services and providing a new level of communications flexibility to corporate and government clients.
• Optus SMB–who focus on the telecommunications needs of small and medium businesses in Australia.
• Optus Wholesale & Satellite–who provide services and capacity to other telecommunications and communications companies as well as leading the Australian satellite industry.

1.3 Brands Owned

The company primarily trades under the ‘yes’ Optus brand, while maintaining several wholly owned subsidiary brands, such as Virgin Mobile Australia and Boost Mobile in the mobile telephony market, Uecomm in the network services market and Alphawest in the ICT services sector. There are no packaging materials however associated with Uecomm and Alphawest.

1.4 Packaging Materials and Formats Used

The packaging materials used by Optus include:

• Cardboard
• Cellophane Wrap
• Styrofoam
• PET Blister packs
• Rigid plastic DVD style cases
• Rigid plastic to house SIM cards

1.5 Period Covered by the Plan

This action plan is for the period of three (3) years commencing April 2011.

1.6 Contact Details for Person Responsible for Implementing the Plan

The contact officer responsible for overseeing the implementation of this plan is:

Brent Gerstle

Manager Environmental Affairs, Risk Management

SingTel Optus

1 Lyonpark Rd, Macquarie Park, NSW, 2113

0412 679 742 / 02 8082 7977

2Specific Actions and Baseline Data

Optus’ proposed actions to respond to the requirements of the Covenant are addressed for each goal and KPI in the following section.

2.2.1Using Sustainable Packaging Guidelines for the design and procurement of all new packaging.

1. Design - optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety.

1. Proportion of signatories in the supply chain implementing the Sustainable Packaging Guidelines for design or procurement of packaging.

• Demonstrate how the Sustainable Packaging Guidelines will be used for the design or procurement of all new packaging.
• Provide a timetable for reviewing existing packaging.

• To ensure the Sustainable Packaging Guidelines for design and procurement are considered for all new packaging, Optus intends to conduct a series of interactive workshops for relevant personnel.
• The workshops will provide detail on the Guidelines’ four key principles (fit-for-purpose, resource efficiency, low-impact materials, resource recovery) and associated strategies. These sessions will also address how best to adopt and implement the guidelines and provide an overview of each of 10 steps for packaging review and introduce the reporting template for assessing new materials. These workshops will also aim to identify specific targets against the Guideline principles.

• Commence in 2011.
• Timetable included in this Action Plan.

• Optus has established a Supplier Code of Practice. In March 2010, the Code of Practice was incorporated into a broader Supply Chain Strategy as a way of ensuring the procurement process is mindful of Corporate Responsibility and ethical ordering of goods and services. This includes the consideration of Buy Recycled where practical.

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Australian Packaging Covenant Action Plan

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2.2.2Provide a timetable for reviewing existing packaging.

The following table provides a proposed timetable for reviewing existing packaging materials. Due to the diverse and complex nature of product and packaging material types, Optus has chosen to conduct the packaging review by product classes rather than material type. A reporting template for each material type is included in Appendix A.

2.2.2.1Baseline Data For Existing Packaging Materials[1]

The following table provides a summary of baseline data for existing packaging materials.

2.2.2.2Review of New Packaging Materials

Singtel Optus’ product development team will be made aware of the requirements of the Sustainable Packaging Guidelines and a procedure implemented to duly consider the 12 design strategies as a part of the packaging material choice and design for new product classes. A reporting template will be completed to document the decision making process and provided as an Appendix to the annual report to the Australian Packaging Covenant.

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Australian Packaging Covenant Action Plan

Singtel Optus Pty Ltd

2.2.3Indicate whether there is a recovery system in place.

Optus will provide details of the resource recovery system currently in operation at its Macquarie Park facility. These details will be included in the Annual Report.

2.2.4Conduct a qualitative review of Optus’ on site recycling facilities.

1. Recycling - The efficient collection and recycling of packaging

1. Proportion of signatories with on-site recovery systems for recycling used packaging

• Indicate whether there is a recovery system in place.
• Conduct a review of Optus’ on site recycling facilities.
• Collate the necessary data from Optus to report on how the system is performing.
• Include the quantities of materials sent for reprocessing.

• Optus will conduct an independent review of the performance of the on-site recycling facilities to analyse participation and acceptance by Optus personnel and ensure the system adequately caters for materials being generated on site. This review will also consider the waste management practices of retail/restaurant tenants onsite.
• In conjunction with the qualitative review Optus will seek data from its current waste service provider, on tonnages of material collected from the Macquarie Park site, along with resource recovery and materials diversion rates to ensure optimum resource recovery is being achieved through the Advanced Waste Treatment process currently being used to treat the waste. This information will also form a part of the 2011 APC Annual Report.
• Optus will conduct a review of its distribution facility to ensure onsite practices optimise resource recovery opportunities.
• As a part of the implementation of the Supply Chain Strategy, Optus will identify opportunities to review packaging materials generated onsite, to ensure maximum use of recyclable materials.

• Prior to preparing 2011 Annual Report

• Tonnage of consumer packaging sent (a) for recycling = 579000kg
• Tonnage sent to landfill = 4900kg
• Non-recyclable packaging sold:
• Plastic Type 4 (LDPE – plastic bags) = 3175kg
• Plastic Type 6 (PS) = 2368kg
• Plastic Type 7 (Other) = 60065kg
• TOTAL = 65608kg

2.2.5Optus’ approach to a Buy- Recycled Purchasing Policy.

• Draft an overview that provides information on existing environmental policies and activities within Optus.
• Demonstrate the way in which these policies encourage the procurement of recycled goods where economically appropriate.

• 2011 Annual Report

• Tonnes of locally sourced packaging = 353.24T
• Tonnes of packaged product sold = 1298.69T
• Report ratio of packaging to product by weight = 0.28

2.2.6Draft an overview that provides information on existing environmental policies and activities within Optus.

• Prepare a summary of Optus’ Corporate Responsibility Supply Chain Strategy, to demonstrate commitment to improving packaging design and increase the recycling of used packaging.
• Provide examples of achievements made as a result of this strategy.

• Optus has a number of existing policies and initiatives in place that demonstrate its commitment to sustainability. As a part of the Annual Reporting process Optus will prepare a summary document that provides information on these policies and initiatives and demonstrates the way in which these policies encourage the procurement of recycled goods, where appropriate.
• Optus will also review its existing supplier list against APC signatories. Where suppliers are identified as existing signatories, Optus will seek product stewardship information and identify opportunities to cooperatively improve design and recycling of packaging.

• 2011 Annual Report

• The Optus Supply Chain policy (still under development) will seek to specify the steps the Procurement department, and any other Optus personnel involved in supplier selection, will follow and to clearly set out company standards and expectations to deliver on these requirements.
• Aspects of the complex and diverse supply chain are required to be assessed to provide Optus visibility of existing or potential areas of impact in the following identified areas;
• Product Stewardship
• Labour Sourcing
• Environmental Management
• Supplier partnerships

2.2.7Prepare a summary of Optus’ Corporate Responsibility Supply Chain Strategy and other Environmental Initiatives

In order to demonstrate our commitment to Product Stewardship, Optus will provide a summary of the Corporate Responsibility Supply Chain Strategy. This strategy has been developed in order to outline the procurement processes that Optus undertakes to do business with responsible suppliers to deliver on our commitment to our staff, customer and community needs, and expectations on Corporate Responsibility and ethical procuring of goods and/or services.

The Optus Supply Chain policy seeks to specify the steps the Procurement department, and any other Optus personnel involved in supplier selection, will follow, and to clearly set out company standards and expectations to deliver on these requirements. With the implementation of this strategy, Optus intends to assess aspects of the supply chain with regard to:

• Product Stewardship
• Labour Sourcing
• Environmental Management
• Supplier Partnerships

This information will also provide examples of sustainability achievements made as a result of this strategy.

Optus will continue to make available to the Packaging Covenant Council detailed information on other relevant environmental initiatives currently in place. This includes the following key projects:

• Mobile Muster – handset recycling program
• Toner recycling on site
• Computer Hardware Recycling
• Industrial Battery Recycling

More detailed information about the breadth of Optus environmental activities and initiatives can be found in our public Corporate Responsibility Report produced annually. The most recent report is available on the Optus website at

3Formal Commitment by CEO to Implement the Action Plan

Mr Paul O’Sullivan, Optus Chief Executive is committed to the Australian Packaging Covenant and ensuring the organisation continues to comply with specific requirements. Mr O’Sullivan has been briefed on the requirements of the Covenant and has instructed the appropriate management personnel to undertake the necessary actions to ensure ongoing compliance and adoption of the Sustainable Packaging Guidelines.

Appendix A

Reporting Templates for Product Classes

• Rigid Plastic (eg: SIM card packaging)
• Cardboard
• Collateral Information (paper and CD)
• LDPE Plastic Bags
• Cellophane wrap
• Polypropylene

• Rigid Plastic (eg: SIM card packaging)

• Rigid Plastic (eg: SIM card packaging)
• Cardboard Box
• Collateral Information (paper and CD)
• Cellophane wrap

• Paper
• Foam Insert
• DVD Plastic Case
• Wire Ties

• Rigid Plastic (eg: SIM card packaging)
• Cardboard Box
• Collateral Information (paper and CD)

• PET Blister Packs
• Cardboard Box
• Paper

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