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Product Stewardship in Canada and the Role of The Grocery Retail Sector Allen Langdon Canadian Council of Grocery Distributors June 2 nd, 2009.

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Presentation on theme: "Product Stewardship in Canada and the Role of The Grocery Retail Sector Allen Langdon Canadian Council of Grocery Distributors June 2 nd, 2009."— Presentation transcript:

1 Product Stewardship in Canada and the Role of The Grocery Retail Sector Allen Langdon Canadian Council of Grocery Distributors June 2 nd, 2009

2 What is CCGD? National industry association representing grocery retailers, grocery wholesalers and foodservice distribution. Focus on issues impacting food and grocery products: –National government relations –Regional government relations –Industry issues: Food safety Environment Labeling and Nutrition Supply chain, standards & technology CCGD members have supported environmental programs and initiatives in Canada, as they are seen to be an essential part of corporate social responsibility and good business practice.

3 What are the Industry Priorities? Top of Priorities for Industry CEOs: 1.Economy & Consumer Demand 2.Food Safety 3.Corporate Responsibility 4.The Competitive Landscape 5.Retailer / Supplier Relations Top Five Issues for Retailers 1.Corporate Responsibility 2.Food Safety 3.Consumer Health & Nutrition 4.Economy & Consumer Demand 5.Technology & Supply Chain Source: CIES Top of Mind CEO Study

4 CCGD’s Environmental Initiatives Plastic Bags Agreements in four provinces to reduce distribution of plastic bags by 50% over five years Concentrate the Future Industry initiative to concentrate liquid laundry detergent Carbon footprint In the second year of a grocery industry initiative to calculate our baseline carbon footprint National sustainability strategy Initial focus on packaging

5 Overview of the Green Shopper (They’re not Convinced) Fifty-four (54%) percent of shoppers consider sustainability to be one of their decision making factors The highest demographic concentration of green shoppers is older baby boomers; Younger shoppers place a high degree of importance on green issues, but have not incorporated it into their shopping Approximately twenty-two (22%) percent of shoppers actually purchased a green product during their last shopping trip Source: Finding the Green in Today’s Shoppers – GMA/Deloitte

6 Overview of the Green Shopper (They’re not Convinced) Shoppers do not always understand the social and environmental benefits of products and are often confused by the messages in the media Many shoppers are unaware of what makes a product sustainable versus merely “good for you” A large number of shoppers remain unsure of what is green and some are still unsure of the whole green movement Source: Finding the Green in Today’s Shoppers – GMA/Deloitte

7 Educating the Consumer Complex and shifting media landscape Mixed messages in the marketplace Lack of reliable life-cycle analyses upon which to base purchasing or production decisions Lack of involvement or support from any level of government In many cases, there may not be a clear winner in terms of product choice

8 History of Product Stewardship in Canada Product stewardship was first established to support the deposit- return systems for beverage containers First Extended Producer Responsibility (EPR) Program in 1994 – BC Paint program Expansion of product specific programs (tires, used oil) continued in the 1990s to early 2000s Electronic Product Stewardship Canada Ontario Multi-Material Program in 2004 quickly followed by Quebec in 2005

9 The Current Situation Over 50 product stewardship programs operating in Canada –Products include tires, pharmaceuticals, paint, used oil, beverage containers, household hazardous waste, newspapers, printed paper Programs each operate under separate provincial legislation Collection mechanisms include return-to-retail, municipal recycling facilities, privately run depots and municipal blue box systems Funded through either visible consumer fees or producer levies, except in Ontario and Quebec where municipalities pay 50% of the cost

10 Ontario and the Shared Responsibility Model Launched in 2004 Multi-material program for printed paper, packaging, glass and plastics Industry and municipalities each pay 50% of provincial blue box costs Multi-stakeholder board oversees program with representation from industry, municipalities and other stakeholders Fees are fractions per unit in most cases making it impossible to use visible fees

11 The Role of Retail in Product Stewardship Brand Owner –Private label First Importers –Identified as responsible parties under legislation –Must reach voluntary agreement with manufacturers Fee Collection –Charged by producers and passed on to consumers –Charged directly to consumers and remitted to stewardship agency Material Collection –Return-to-retail/closed loop

12 The Problem(s) with Packaging Packaging is the number one priority for our members Excess or “over” packaging concerns have become flashpoints for consumers and politicians Lack of reliable life-cycle analyses makes fact-based decisions difficult Regulatory burden and cost is increasing exponentially: Potential cost of industry funding within the next three years– at least $500 to $650 million (CCGD members - $75 to $90 million)

13 The Current Battlegrounds Shared Responsibility Model vs. 100% Industry Funded Visible Fees vs. Design for the Environment Industry Boards vs. Multi-Stakeholder Boards Harmonization between Provinces Energy from Waste

14 CCGD Principles for Stewardship Stewardship programs must not require mandatory return to store for waste or end of life materials. Stewardship programs must not make program policy and regulatory decisions in isolation, as the grocery industry is subject to other higher value regulations, such as food safety. Stewardship programs must support the lowest cost solution/models that responsibly meet aspirational goals of zero waste. Packaging for food is non-negotiable in food safety.

15 CCGD Principles for Stewardship Stewardship programs will include a method for continuous improvement for processes to drive the most efficient cost of the entire system. Stewardship programs must hold all stakeholders, including municipalities, accountable, including standards of service, consistency of data collection, and reporting and consistency of material collection. Stewardship programs should not support in-kind contributions or de- minimus provisions. Stewardship models must be easy to administer and easy for consumers to access.

16 CCGD Principles for Stewardship Stewardship programs should be harmonized across jurisdiction, administration, and material definitions to generate predictable and replicable practices. Industry must be allowed to choose the method of cost recovery of stewardship fees, including whether or not the fee is visible, to ensure transparency and accountability. Energy from waste is a viable and responsible waste management tool, so governments must include energy from waste in a provincial integrated waste management system.

17 The Future of Product Stewardship in Canada Source Reduction for Packaging Organic Waste – Drive to expand composting capabilities nation wide Common standards for materials collected through the Blue Box Consolidation of Producer Responsibility Organizations (PROs) Increased acceptance of energy from waste Greater dialogue and cooperation between industry and government

18 The Future

19 Contact CCGD Allen Langdon Vice-President, Western Canada & the Environment


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