Sustainability Report Par-Pak Ltd April 2009

Par-Pak and the Environment We, at Par-Pak, understand that sustainability is one of the most important issues that we face today. Our goal is to offer our customers products that are economical, functional and environmentally friendly. We are committed to working towards sustainability.

Par-Pak and the Environment Sustainability is a mutual partnership between our customers and our vendors. We are working with them to offer options that will help us in our journey to becoming a more environmentally friendly company. Our Environmental Policy, is the foundation of our organization’s responsibility to protect the environment.Environmental Policy Our Environmental Purchasing Policy, establishes our partnership with our vendorsEnvironmental Purchasing Policy We have outlined initiatives that will help us achieve our goals.

Product Development With all plastic packaging, the three cornerstones of minimizing environmental impact are REDUCE, REUSE, and RECYCLE. Par-Pak containers meet all criteria New products are developed to function with the thinnest gauge possible, while still meeting our customers ’ objectives. Existing items can be reengineered in an effort to reduce the impact on the waste stream while maintaining the functionality of the product

Product Development (cont ’ d) Our containers can be reused with simple hand washing and drying and are perfect for home use, including storing leftovers Par-Pak manufactures thermoplastic containers in two different materials – Oriented Polystyrene (OPS) and Polyethylene Terephthalate (PETE). Both types of plastics lend themselves to recycling. Internally, all material waste is ground up and re- extruded into new material.

Product Development (cont ’ d) Both plastics are also recycled post-consumer through curbside collection where facilities are in place to sort and segregate Par-Pak is active in the plastics industry to work with government and waste management groups to develop more plastics recycling across North America.

Education Par-Pak believes that it’s important to educate our customers as well as our employees about the life cycle of our products. We believe that this information will empower them to make educated choices with respects to packaging and waste reduction. We offer information on: - Material options – functionality and affordability - Par-Pak has taken the initiative to remind our employees about Energy Conservation & Waste Reduction through monthly updates – See Example Click HereSee Example Click Here

Memberships & Associations In an effort to promote and develop the recycling of thermoformed plastics, Par-Pak Ltd is an active member of the following associations: EPIC – The Environment and Plastics Industry Council An industry initiative committed to the responsible use and recovery of plastic resources. EPIC is a standing committee of the Canadian Plastics Industry Association (CPIA).

Memberships & Associations (cont ’ d) NAPCOR – The National Association for PET Container Resources A trade association for the PET plastic industry in the United States and Canada founded in NAPCOR ’ s Vision Statement - “ To be the credible voice and champion of the PET packaging industry; facilitate solutions to the introduction and use of PET packaging; and to provide education on the benefits of PET packaging. ”

Memberships & Associations (cont ’ d) APR – The Association of Postconsumer Plastic Recyclers A national trade association representing companies who acquire, reprocess and sell the output of more than 90 percent of the post-consumer plastic processing capacity in North America. APR promotes development of the plastics recycling industry by providing leadership for long-term industry growth and vitality.

Community and Social Responsibility Par-Pak has been a fixture in the Brampton community for almost 20 years. Par-Pak is committed to give back to the community and is involved with many community-building programs & charities as well as our own employee programs.

Community and Social Responsibility (cont ’ d) Brampton Business Board of Trade – an active member in the building of the business community of Brampton, ON. William Osler Health Centre Foundation – A combined donation of $150,000 by Par-Pak and its employees, towards the building of the new Brampton Civic Hospital.

Community and Social Responsibility (cont ’ d) Domenico DiDimizio Scholarship Award – dedicated to the memory of one our associates, Par-Pak annually awards employee family members with academic scholarships to pursue their goal for post- secondary education. Suggestion Award Program – Par-Pak encourages ‘ new thinking ’ and rewards employees that suggest cost-saving ideas

Energy Conservation & Waste Reduction Par-Pak is actively pursuing several Energy Conservation & Waste Reduction solutions throughout the organization The ‘ Greener Side of Par-Pak ’ lists several projects that are completed or in-process at Par-Pak

The Greener Side of Par-Pak

Introduction The Greener Side of Par-Pak presents the improvements in the technology here at Par-Pak Ltd. that will help in furthering our environmental initiatives. These include new technologies that help us conserve energy, conserve water, reduce carbon emissions and divert waste from the landfill. The following are specific examples of the projects undertaken.

Terms Extrusion/Distribution Centre – 26 Victoria Cr. Thermoforming Plant 1 – 391 Orenda Rd. Thermoforming Plant 2 – 376 Orenda Rd. Tool and Die – 387 Orenda Rd. Distribution Centre – 200 Summerlea Rd.

Energy Management Incorporated various energy management tools to analyze the current state of energy consumption at Par-Pak Ltd. and to provide future goals and targets that will help in reduce the consumption of energy CPIA – Energy Assessment SMART – Energy Audit CME – Energy Benchmark Study

Lighting High efficiency T5 lighting installed at the two thermoforming plants in the summer of 2007 It saved approx. 228,000 kWh* of electricity at the Thermoforming Plant 2 in 2008 or 55% of the energy required to light the conventional metal halides Savings of 610,000 kWh* (assuming 50% usage) per year are expected after the installation at the warehouse T5 1 min. sensor lighting in Extrusion further saved approx. 185,000 kWh* (assuming 50% usage) of electricity in 2008 The increase in the quality of light provides a safer working environment and thus improving the overall productivity (*see Appendix for calculation)

Heating High efficiency tube heaters warm up the plant during the winter months at Thermoforming Plant 2 and the warehouse After the recent installation at Thermoforming Plant 2 in 2008, an estimated 161,000 m 3 in natural gas savings* per year are expected That ’ s one-third of the amount required for the old, less efficient, heating systems Greater quality of heat from the infrared energy is produced uniformly throughout the tube At the Distribution Centre 3 tube heaters were placed in the summer of 2008 and 1 tube heater January 2009 (*see Appendix for calculation)

Fluid Cooling System A new fluid cooling system at Thermoforming Plant 2 operates by reusing water, thereby reducing the consumption of water The previously operating fluid cooling system lost a considerable amount of water to evaporation and had a capacity of 116 tons The new energy saving fluid cooling system loses no water, except when changing molds where 5-10 gallons of water is lost, depending on the machine The closed-loop concept is also adopted for the cooling system at Thermoforming Plant 1 where water consumption is reduced by 50%

Fluid Cooling System(cont.) The new cooling system has the capacity of 140 tons and reaches all the machines in the plant requiring cooled water, unlike the old chiller system Its 300 hp motor is highly efficient The system was operating from January 2009

Fluid Cooling System(cont.) The energy saving cooler, a major part of the cooling system at Thermoforming Plant 2 The new fluid cooling system at Thermoforming Plant 2

Compressor A new high efficiency compressor with high efficiency motor installed at Thermoforming Plant 1 The heat recovered from the compressor is a major contributor to the heating provided in the plant 10,437,350,400 Btu per year* in energy savings The old 300 hp compressors were water-cooled and consumed 26 m 3 of water per day in summer and 18 m 3 of water in winter Water leaks were evident in the old system

Compressor (cont.) The new system in the whole process uses 5m 3, but the compressor itself does not consume any water The quality of air that reached the machines was free of oil-mist or any other contaminations System installed November 2008 *(see Appendix for calculation)

Compressor (cont.) The newly installed compressor at Thermoforming Plant 1

Dock Area Insulation R-10 insulation added to the inner docking area at Thermoforming Plant 1 accomplishes in giving a 30°C greater indoor temperature compared to the outdoor – R- value is a measure of thermal resistance and the greater the value, the greater the resistance to the warm air escaping – To make certain that the heat produced from the existing 130,000 Btu/hr heater did not escape, a roll-in door was put in so the insulated portion of the dock remained 30°C greater – Installation: Fall 2008

Dock Area Insulation (cont.) Insulation of R-10 insulation at the inner portion of the dock at Thermoforming Plant 1

Transportation We are reviewing ways to reduce carbon emissions by reducing the number of trucks on the road: Resin Delivery – Shipping of resin pellets to the Extrusion Plant from our suppliers Inter-Company Delivery – Shipping of post- industrial trim between our Thermoforming Plants and Extrusion Plant

Transportation – Resin Delivery Par-Pak used to take delivery of resin by tanker truck In our new distribution centre, we are now able to take delivery of resin by rail, thus reducing truck travel by 74% Reduces carbon footprint by an estimated 50 tonnes per year

Transportation – Resin Delivery Stationary railcar at the distribution Centre

Transportation – Inter-Company Trim scrap was shipped to be ground up in Extrusion Plant Installation of grinders at our Thermoforming Plants reduced the number truck shipments by 80% Carbon Reduction estimate of 1.5 tonnes per year Use of tankers will further reduce truck shipments by 95% (Thermoforming Plant 2) Carbon Reduction estimate of 0.5 tonnes per year

Transportation – Inter-Company The in-line grinder at Thermoforming Plant 2

Recycling 5 tons of cardboard gets recycled every month (total of all locations) Frequency of cardboard pick up is three times per week from all locations The amount of material, including cardboard, packaging material, and metal pipes, recycled in 2008 was 319 tons and 300 tons in 2007

Recycling (cont.) The cardboard packaging collected for recycling

Other New Rolls Size Extrusion is producing larger material rolls (42 ” OD) for thermoforming purposes which reduces truck travel by 50%

Other (cont.) Cleaning Products The cleaning products used are environmentally preferred They promote the safety of the personnel using it, all employees effected and the natural environment Biodegradable, free of carcinogens and teratogens as well as phosphates and fragrances GreenSeal and/or Environmental Choice Certified Approved by U.S. EPA Designed for the Environment Program

Appendix - Sample Calculations Lighting Calculation: # Of fixtures: 121 # Of fixtures before (assumption): 121 Load for T5: 240 W Load for Metal Halides (MH): 455 W # hours of operation (assumption)/year: 8760 h (365 days) Before: Energy consumed = (# of fixtures x # hours of operation x Load MH)  1000 = (121 x 8760 x 455)  1000 = kWh After: Energy consumed = (# of fixtures x # hours of operation x Load MH)  1000 = (121 x 8760 x 240)  1000 = kWh Difference: Energy Consumed Before – Energy Consumed After = – = kWh

Appendix - Sample Calculations Tube Heating calculation: Assumptions: Conversion data: Heating runs (5 months/year-3650 hrs)- full capacity at 10% BTU  kWh: 3,412.3BTU/kWh - half capacity at 50% kWh  m 3 : kWh/m 3 (Natural gas) - zero capacity at 40% Total time running: (3650 x 0.1) + (0.5 x 3650)(0.5) + (0 x 3650) = 1,277.5 hrs Full capacity of Air-O-Mix systems (2): 6,875,000 BTU/hr Full capacity of Tube heaters (20): 2,215,514 BTU/hr Initial heating system: Gas usage = Total capacity ÷ 3,412.3BTU/kWh x total time running ÷ kWh/m 3 = (6,875,000) ÷ 3,412.3 x (1,277.5) ÷ = 237,661 m 3 Tube Heating: Gas usage = Total capacity ÷ 3,412.3BTU/kWh x total time running ÷ kWh/m 3 = (2,215,514) ÷ 3,412.3 x (1,277.5) ÷ = 76, m 3 Difference: Old Heating System – Tube Heating = 237,661 – 76, = 161,073.2 m 3

Appendix – Sample Calculations Compressor Calculation 1: Recoverable heat as a percentage of the unit ’ s output: 80% = 0.80 Compressor bhp: 600 bhp Conversion factor: 2,545 Btu/bhp-hour Hours of operation: 3 shifts/365 days = (365-9) x 24 = 8,544 hours Energy Savings = 0.80 x compressor bhp x conversion factor x hours of operation = 0.80 x (600) x (2,545) x (8,544) = 10,437,350,400 Btu per year

Appendix - Sample Calculations Compressor Calculation 2: Efficiency of waste heat displacing heat produced by natural gas: 85% = 0.85 Energy savings: 10,437,350,400 Btu per year Btu/unit of fuel: 100,000 Btu/therm $/unit fuel: $0.40/therm Cost Savings = Energy savings ÷ Btu/unit fuel x $/unit fuel ÷ % efficiency = (10,437,350,400) ÷ (100,000) x (0.40) ÷ 0.85 = $49,116.94