Australian Packaging Covenant

The new Australian Packaging Covenant (APC) commenced 1 July 2010, replacing the former National Packaging Covenant.

What is the Australian Packaging Covenant?
The APC is a voluntary initiative, by Government and Industry, to reduce the environmental effects of packaging on the environment. It is designed to minimise the environmental impacts arising from the disposal of used packaging, conserve resources through better design and production processes and facilitate the re-use and recycling of used packaging materials.

The APC establishes a framework for the effective life cycle management of consumer packaging and paper products that will be delivered through a collaborative approach. It aims to achieve, with the help of all participants, a recycling target of 65% for packaging and no further increases in packaging waste disposed to landfill.

Key Undertakings
Companies, Government Agencies and Industry Associations sign the Covenant and commit to certain responsibilities which contribute to achieving the Covenant Performance Goals and KPI’s.

Organisations that become a signatory to the Covenant are required to: 

• By 31 March 2011 or otherwise within 3 months of becoming a signatory, submit an action plan that sets out how a signatory intends to implement the commitments it makes under the Covenant, and how it intends to measure and report on progress. 
• By 31 March each year (following the year in which a company becomes a signatory), submit an annual report that demonstrates progress in implementing the specific elements of its action plan, and shows the organisation’s contribution to achieving the objective, goals and targets set out in the Covenant; 
• Allow independent audits of annual reports and the implementation of action plans (including allowing access to relevant supporting information); 
• Publish the organisation’s action plan and annual reports on its web site in a prominent and readily identifiable way; 
• Make annual financial contributions to the Covenant Fund; 
• Implement design and procurement processes that drive sustainable design of packaging, consistent with the Sustainable Packaging Guidelines; 
• Implement policies or procedures to buy products made from recycled materials; 
• Establish collection and recycling programs for used packaging materials generated on-site; 
• Take action, where appropriate, to reduce litter; and 
• Assist the Covenant Council to respond to complaints from the public about the design and use of packaging materials.

Signatories have the right to withdraw from the Covenant at any time. Signatories wishing to withdraw from the Covenant must do so in writing. Further details on signatories’ planning and reporting obligations are contained in the Covenant document.

Ai Group's Australian Packaging Covenant Action Plan, April 2011- June 2012 is available here for review.

Sustainable Packaging Guidelines
The APC will focus on improved packaging design, away from home recycling, litter reduction and increased engagement across the supply chain through product stewardship. An important element of the APC is the Sustainable Packaging Guidelines (SPG) which have been developed to assist signatories to review and optimise their packaging.

Brand owners that sign and implement the requirements of the APC will not be subject to the regulatory instruments that give effect to the National Environment Protection Measure in each of the states and territories. Brand owners who do not meet the requirements of the APC will be required to comply with the law in each state and territory in which their products are distributed and sold..

Australian Packaging Covenant.

Sustainable Packaging Guidelines.

Further information on the Australian Packaging Covenant.

Contact us on 1300 733 752 or email sustainablebusiness@aigroup.asn.au to see how we can assist your business with the National Packaging Covenant.