• Nando’s Australia


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    • Abstract: Nando’s AustraliaNational Packaging Covenant:Annual Report- 2008This report was developed by Executive SummaryNando’s Australia signed up to the National Packaging Covenant (NPC) in 2007 and submitted an

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Nando’s Australia
National Packaging Covenant:
Annual Report- 2008
This report was developed by
Executive Summary
Nando’s Australia signed up to the National Packaging Covenant (NPC) in 2007 and submitted an
Action Plan. The 2008 Annual Report presents baseline data for Nando’s Australia’s packaging
and products sold to the public, and provides an overview of current national packaging
sustainability initiatives against NPC’s Key Performance Indicators.
Nando’s Australia and parent company Nando’s International strongly support sustainability and
environmental responsibility in Australian and global business operations. Substantial progress
has been made in understanding the recyclability of packaging materials sold to the Australian
public and these insights have inspired thinking about directions for improvement.
Annual packaging distribution data have been collected from Nando’s Australia’s distributors
and databases are being refined to streamline the process in future years. Nando’s Australia
continues to work with both international and local suppliers to understand and improve
current packaging systems, and to green the supply chain. Nando’s Australia is currently
considering local alternatives to imported product lines, while ensuring that most packaging sold
to the Australian public contains recycled material. Protocols for recycling in-store packaging
are under development and approaches for educating customers about responsible disposal of
packaging are under consideration.
Page 1
CONTENTS
Executive Summary ........................................................................................................................................1
Contents ............................................................................................................................................................2
1 Introduction ..................................................................................................................................................4
1.1 Company Background ...........................................................................................................................4
1.2 Environmental Background ..................................................................................................................4
1.3 Where is Nando’s Australia in the packaging chain? ............................................................................5
1.4 Contacts ................................................................................................................................................ 5
1.5 Restaurant Locations ............................................................................................................................5
1.6 Office Address Details...........................................................................................................................6
2 The 2008 Annual Report ...............................................................................................................................7
2.1 Top Level Support .................................................................................................................................7
2.2 Data Collection .....................................................................................................................................7
2.3 A Cross Functional Team and Supplier Involvement ............................................................................7
2.4 Product Stewardship ............................................................................................................................8
3 Other Aspects of Nando’s Australian Operations .......................................................................................10
3.1 Corporate ............................................................................................................................................10
3.2 Packaging and Paper Supply ...............................................................................................................10
3.3 Waste Reduction ................................................................................................................................10
3.4 Litter Reduction ..................................................................................................................................10
3.5 Awareness ..........................................................................................................................................10
4 Key Performance Indicators .......................................................................................................................11
4.1 KPI 1 ....................................................................................................................................................11
4.2 KPI 3 ....................................................................................................................................................12
4.3 KPI 4 ....................................................................................................................................................14
4.4 KPI 6 ....................................................................................................................................................15
4.5 KPI 16 .................................................................................................................................................. 16
4.6 KPI 21 .................................................................................................................................................. 18
4.7 KPI 22 .................................................................................................................................................. 19
4.8 KPI 26 .................................................................................................................................................20
4.9 KPI 27 .................................................................................................................................................. 21
4.10 KPI 28 .................................................................................................................................................. 22
Page 2
4.11 KPI 29 .................................................................................................................................................. 23
5 Insights and Recommendations .................................................................................................................24
5.1 How recyclable is “recyclable” packaging? .........................................................................................24
5.2 Aluminium packaging .........................................................................................................................25
5.3 Glass Packaging...................................................................................................................................26
5.4 Imported Packaging ............................................................................................................................26
5.5 Litter and source reduction ................................................................................................................27
5.6 Getting the message (across) .............................................................................................................27
5.7 Conclusion ..........................................................................................................................................27
Appendix A- Packaging Audit Methodology .......................................................................................................29
Page 3
1 Introduction
1.1 Company Background
Nando’s is an international company founded in 1987, with restaurants today in five
continents. Nando's has operated in Australia since 1990, following establishment of its
first restaurant in Tuart Hill, WA. Nando's Australia has since opened restaurants in all
mainland states and territories, as well as in Tasmania. The majority of Nando’s
Australia’s restaurants are franchised, however a small number in various states are
company-owned and used for franchisee and staff training.
Nando’s Australia is primarily a retailer of food products through its restaurants, which
provide both dine-in and take-away food. The Nando’s range of branded products
includes cooked chicken, chips, salads, desserts and an assortment of cooking and
seasoning sauces. Nando’s-branded bottled sauces are available for purchase in
Nando’s Australia’s restaurants and other retail outlets, including supermarkets.
Nando’s Australia currently sources most of its packaging and products for sale to the
Australian public from Australian companies, but four types of packaging items and a
range of bottled sauces are directly imported.
Nando’s Australia’s head office is in Melbourne, Victoria. Other offices are located in
Bentleigh (Victoria) and New South Wales. Currently Nando’s Australia has two major
distribution networks; Eastern state distribution is co-ordinated by 5 Ways (Victoria) and
Western Australian distribution is handled by Kailis Bothers.
1.2 Environmental Background
Nando’s Australia became a signatory of the National Packaging Covenant in 2007 and
makes an annual contribution to the Covenant Transitional Funding arrangements via
the National Packaging Covenant Industry Association (NPCIA).
Nando’s Australia is committed to the objectives of the National Packaging Covenant
and continues to work cooperatively with other sectors in the packaging supply chain,
some of whom are themselves NPC signatories. As demonstrated in this Annual Report,
Nando’s Australia is implementing a series of measurable actions in the coming two-year
period to make improvements in the effective lifecycle management of its packaged
products.
Page 4
1.3 Where is Nando’s Australia in the packaging chain?
Nando’s Australia is predominantly a Brand Owner in terms of the NPC classification
scheme, but also fits into the Packaging Supply Chain classification due to sales of
branded products in non-restaurant retail outlets.
1.4 Contacts
Ms Samantha O’Brien Mr Lindsay Sacks
Grocery Business Manager QA and Product Development Manager
453 Lygon Street 730A Centre Road
East Brunswick VIC 3057 East Bentleigh VIC 3165
Ph: +61 3 9385 0777 Ph: +61 3 9385 0753
Fax: +61 3 9384 0888 Fax: +61 3 9579 3203
Email: [email protected] Email: [email protected]
1.5 Restaurant Locations
Nando’s Australian restaurant and office locations are detailed in the following table.
Nando’s
Nando’s Franchised Total
Owned
Offices Restaurants Restaurants
Restaurants
NSW 4 1 24 28
Western
1 22 23
Australia
Victoria 2 69 69
Queensland 2 31 33
South
4 3 7
Australia
ACT 1 1
Tasmania 2 2
NT 1 1
TOTAL
11 3 153 164
AUSTRALIA
Page 5
1.6 Office Address Details
Nando’s Australian office addresses are detailed in the following table.
Victoria Head Office Other Office
453 Lygon Street 730A Centre Road
East Brunswick East Bentleigh
VIC 3057 VIC 3165
Ph: +61 3 9385 0777 Ph: +61 3 9384 0777
Fax:+61 3 9384 0888 Fax:+61 3 9579 3203
New South Wales Office
64a Clark Road
Neutral Bay
NSW 2089
Ph: +61 2 8920 0005
Fax:+61 2 8920 0007
Page 6
2 The 2008 Annual Report
2.1 Top Level Support
Nando’s Australia’s environmental sustainability initiatives including activities under
NPC guidelines are enthusiastically supported by parent company Nando’s International.
The company is embracing change and is proactively driving development of systems
worldwide for sustainability in Nando’s operations. The current report has been
reviewed and endorsed by Mr Lester Sacks (Director, Nando’s Australia).
2.2 Data Collection
Nando’s International has, on behalf of Nando’s Australia, engaged the services of Dr
Barry Manor (Global Carbon Exchange) to produce the 2008 NPC Annual Report. Dr
Manor coordinated collection of the data and information as per reporting guidelines.
Data for Nando’s Australia point of sale food products are managed by Mr Lester Sacks.
Packaging distribution data were collected by Dr Manor from Nando’s Australian
distributors - 5 Ways (all mainland states and territories plus Tasmania, excluding
Western Australia) and Kailis Brothers (Western Australia). Parties supplying data for
NPC annual reporting are streamlining and simplifying procedures for providing future
datasets in a timeframe consistent with NPC reporting deadlines.
All Nando’s Australia’s food and packaging products sold to the public were assessed for
weight and volume of sales in the baseline year, defined as 1 July 2007 – 30 June, 2008.
Detailed methodology is presented in Appendix A.
All required data were entered into IDAS via the interactive online portal.
2.3 A Cross Functional Team and Supplier Involvement
Members of the Nando’s Australia’s NPC Reporting Team include Ms Sam O’Brien and
Mr Lindsay Sacks and external consultant Dr Barry Manor (Global Carbon Exchange). Ms
Kim Hayes and Ms Rochelle Schaetzl of Nando’s International have provided invaluable
support. The project was managed by Ohad Shachar of Global Carbon Exchange.
Detpak, a subsidiary of Detmold Australia Pty Ltd, is the main supplier of Nando’s
Australia’s packaging. As an NPC signatory, Detmold’s influence on Detpak products is
reflected in recycled pulp content and resource-saving design in many Detpak paper and
paperboard products.
Page 7
2.4 Product Stewardship
2.4.1 DESIGN
Nando’s International has a team dedicated to the supply of product packaging. In
Australia, products are purchased from specialist packaging suppliers “off-the-shelf” or
with minor modification. Nando’s Australia prefers to deal with local packaging
suppliers who are themselves signatories of the NPC, with the expectation that these
suppliers embrace aspects of packaging design that minimise environmental impacts.
Nando’s Australia continuously endeavours to move toward sustainability in packaging
and uphold the objectives of the ECoPP.
2.4.2 PRODUCTION
Nando’s Australia is working with both international and local suppliers to understand
and improve current packaging systems. The aim will be to reduce unnecessary use of
materials, energy and water in the production and usage of materials. Nando’s Australia
will request that suppliers report annually on agreed aspects of environmental
performance including packaging volume, recycled content, source reduction and
environmental management initiatives in line with the objectives of the NPC.
2.4.3 DISTRIBUTION
Nando’s Australia supports “greening” of the supply chain. Nando’s Australia
consolidates packaging and shelf stable product at Distribution Centres in each state.
Nando’s Australia is currently considering alternatives to imported product lines, with a
preference for local sourcing of packaging and products. This reduces the number of
deliveries to restaurants and corresponding impacts of freight and carbon emissions.
2.4.4 DISPOSAL
Almost all packaging sourced by Nando’s Australia contains recyclable material.
Protocols are currently being developed for recycling in-store packaging. Approaches
are also being considered for educating customers about responsible disposal of
packaging that leaves the restaurants, to reduce litter1 and improve recycling rates.
Nando’s Australia is currently considering an integrated waste management / recycling
proposal from Wanless Enviro Services.
2.4.5 RESEARCH
Nando’s Australia works with both local and overseas suppliers to ensure continued
research and development that targets a reduction in the impact of packaging on the
environment. Nando’s Australia sustainability consultant Dr Barry Manor uses “life
cycle” thinking to research optimal packaging solutions. Dr Manor monitors
1
The negative impact of litter can often be greater than that of packaging disposal in landfill, because litter is
dangerous to wildlife and impairs visual amenity in terrestrial and marine environments.
Page 8
developments in the packaging sector and continues to share ideas with Nando’s
Australia.
2.4.6 MARKET DEVELOPMENT
Nando’s Australia actively supports the development of markets within the recycling
sector by sourcing packaging with recycled content.
2.4.7 EDUCATION
Nando’s Australia is currently developing material on key areas of sustainability (e.g.
recycling policy) for inclusion in Australian franchisee training materials in 2009. Waste
management proposals currently under consideration for Nando’s Australia restaurants
will present potential opportunities for educating the public about the goals of the NPC.
2.4.8 LABELLING
Nando’s Australia understands that there is significant confusion in the public about
recyclability and appropriate disposal of packaging. While printed disposal instructions
on packaging can help allay this confusion, there is a trade-off between detail and
likelihood of compliance. Nando’s Australia is considering modifying disposal
suggestions printed on paper packaging from “Nando’s supports a clean environment”
to “Nando’s supports environmental sustainability- Please Recycle clean paper (if it’s
dirty, bin it!)”.
Page 9
3 Other Aspects of Nando’s Australian Operations
3.1 Corporate
A concerted effort is being made to replace virgin office paper with recycled paper in all
Nando’s Australia offices nationwide. Some offices already have paper recycling
services it is planned to close the paper recycling loop within the coming year.
3.2 Packaging and Paper Supply
Commercial operations at Nando’s Australia involve a significant quantity of packaging
beyond that sold to the public. Nando’s Australia is constantly seeking more
environmentally-friendly alternatives to bulk packaging and to improve recycling rates
for cardboard boxes and plastic bottles.
One area identified for action is paper napkins. These are provided at Nando’s
Australian restaurants for customer use, and their consumption is far in excess of any
other item. Nando’s Australia is considering strategies for reducing the quantity of
napkins dispensed in restaurants.
3.3 Waste Reduction
A policy of refilling glass dispenser bottles from bulk sauce packages in Nando’s
restaurants has significantly curtailed the volume of glass bottles in the waste stream.
Nando’s Australia is constantly vigilant for such opportunities.
3.4 Litter Reduction
Nando’s Australia is fostering a culture that values environmental responsibility and
promotes good practice. All in-house meals are served with washable crockery and
cutlery. While this does impact upon water consumption in the restaurants, it virtually
eliminates in-store packaging waste.
3.5 Awareness
Nando’s Australia believes that cultural change is most effectively driven from the
higher levels of management. Nando’s Australia corporate staff continues to be briefed
on responsibilities associated with environmental performance and sustainability, with
the aim of propagating awareness throughout the organisation.
Page 10
4 Key Performance Indicators
The KPIs relevant to Nando’s Australia as a brand owner are: 1, 3, 4, 6, 16, 21, 22 and 26-
29. These KPIs are addressed on the following pages. For each KPI, two types of tables are
presented. Blue-themed tables show progress in the context of actions, measures and
timeline targets detailed in the 2007 NPC Action Plan. Dark red-themed tables present data
entered into IDAS. For some KPIs, relevant notes follow the tables.
4.1 KPI 1
Total weight of consumer packaging (domestic & imported) sold per annum into the
Australian market and the total weight of products packaged.
Action Measure Target Progress
Report on tonnes of Baseline data compiled for period 1 July
Marketing strategy
packaging sold to public, 07 to 30 June 08. The next Annual
to decrease “take- Jun 08
by material type & source Report, due Oct 09, will report progress
out” meals
(local & imported) against this baseline
KPI 1C
Ratio of Product to
Packaging (by 7.0
Weight)
• Packaging weights were derived by multiplying national distribution data for the
baseline year by weight data for each packaging and product type (see Appendix A).
Page 11
4.2 KPI 3
Improvements in design, manufacture, marketing and distribution to minimise the
environmental impacts of packaging.
Action Measure Target Progress
a. Improve Review current packaging Dec 08 Several items substituted for better
consumer packaging and develop a plan to designs, some discontinued (see notes
design improve below)
b. Review of all Report where Dec 08 Review of marketing materials currently
marketing materials improvements can be underway, progress to be reported Oct
used made to current usage of 09
packaging and marketing
communication to reduce
impact on environment
c. Improve Report where Dec 08 Master paper reduction strategies for
communication improvements can be Australia offices and restaurants currently
methods to made to current usage of under development
franchisees to packaging and marketing
reduce paper usage communication to reduce
impact on environment
d. Improve Review current outer Dec 08 Nando’s Australia is reviewing secondary
palletisation & packaging usage and and tertiary packaging, no conclusions
outer packaging of highlight key areas for reached yet, progress to be reported in
finished grocery improvement Oct 09
product
• Nando’s Australia has in the past year switched a number of paper carry bags from
custom to standard sizes. The standard sizes, optimised for strength, design and
recycled content, are sourced from a local supplier (Detpak) whose parent company is
also an NPC signatory.
• A paper packaging item (Tortilla Pocket Wrap Holder) was phased out of use by all
Nando’s restaurants nationwide after a packaging review deemed it superfluous.
• Potential improvements in supply logistics will continue to be explored in the coming
year.
Page 12
o Locally sourced alternatives are actively being sought for packaging (burger and
noodle boxes) that is currently imported.
o Local manufacturing and bottling alternatives are being considered for glass-
packaged sauces that are currently imported. Local sourcing of these goods is
important due to their particularly low product / packaging weight ratios (glass
is a heavy material). Local bottling would help to close the glass-recycling loop
in Australia.
Page 13
4.3 KPI 4
Changes to protection, safety, hygiene, shelf-life or supply chain considerations
affecting amount and type of packaging used.
Action Measure Target Progress
a. Increase local Report on possibility to Jun 09 Local sources being evaluated for burger
sourcing of engage Detpak or boxes and noodle boxes that are
packaging alternative local supplier currently imported; Negotiations in
to produce all local advanced stages
packaging
b. Local Report on possibility of Dec 08 This is a complex business issue; Nando’s
manufacture of utilising local suppliers to Australia is continuing to explore local
grocery products begin manufacturing of manufacturers / bottlers; business case
grocery range for source switch under evaluation
• Nando’s Australia is continually seeking to reduce negative environmental impacts
associated with packaging use. Currently, changes are being made to packaging for bulk
sauces for use within restaurants. The shift from a milk bottle-style container to a
sealed plastic film pouch is expected to enhance the shelf stability of the product.
• A strategy to “green” the supply chain is under development. It is envisaged that such a
strategy could achieve beneficial changes in bulk distribution packaging, both by
reducing plastic bag counts and shifting toward materials with better recyclability.
Page 14
4.4 KPI 6
Total weight, by type, of “non-recyclable” consumer packaging sold per annum into
the Australian market.
Action Measure Target Progress
a. Identify non- Audit of all materials used Dec 08 Figures for non-recyclable packaging sold
recyclable materials and initiate action plan to to consumers look good, around 34.5% –
used in supply chain reduce amount of non- 44.2% (see below); non-recyclables have
recyclable materials used been identified and alternatives are
b. Review and identify alternative currently being explored
alternatives to non- sources
recyclable materials
KPI 6B
Total non-recyclable
packaging relative to 34.5%
total packaging sold
• The Australian Council of Recyclers (ACOR) has indicated that its member companies are
often unwilling to accept contaminated paper food packaging, because oily food
residues present a risk of damage to recycling mills.
• The online IDAS calculator considers all paper recyclable unless it is of the type “waxed”
or “high wet strength”. No allowance is made for contaminated paper that may be
rejected by recycling mills (e.g. contaminated paper food packaging).
• In the present Nando’s Australia packaging audit, 79 tonnes of paper were classified as
“non-recyclable” due to potential contamination with food residues. Inclusion of this
quantity in the non-recyclable material total shifts the proportion of non-recyclable
packaging sold to the public from 34.5% (as calculated by IDAS) to 44.2%.
Page 15
4.5 KPI 16
Percentage of signatories providing recycling collection facilities for post-consumer
packaging generated on-site.
Action Measure Target Progress
Ensure customers Audit of in-store bin Jun 09 Currently no on-site collection for
are reminded to placement and customers, very little packaging disposed
dispose of waste communication to ensure of by customer s in-house; focus is now
appropriately greater compliance from on-site collection for secondary and
before leaving the customers. distribution packaging, disposed of by
restaurant staff
KPI 16A
On-site collection for
Yes*
recycling facilities?
* Restaurant managers have in a number of cases taken their own initiative
to separate cardboard from the waste stream
KPI 16B
Types of on-site
Cardboard only
recycling facilities
• Nando’s Australia did not have an integrated policy for provision of recycling collection
facilities at restaurants in 2008, however anecdotal evidence suggests that staff
separate cardboard from the general waste stream in a significant proportion of
Nando’s Australia restaurants.
• The ultimate fate of cardboard separated from the general waste stream is currently not
clearly defined. It is understood that a number of pathways are used for delivery of
cardboard to recyclers, including private transport to waste transfer stations and
contract collection.
• Quantitative details and measures of effectiveness will become available following the
nationwide Nando’s Australia Restaurant Waste Audit in 2009.
• Trials of stream separation and recycling collection facilities are planned for selected
restaurants in 2009, with potential nationwide rollout to follow.
Page 16
• Paper recycling bins are increasingly in use in Nando’s Australia offices. A nationwide
Nando’s Australia Office Waste Audit is proposed for 2009.
• Negotiations are currently underway with a major waste management company for
provision of recycling and other waste services in all Nando’s Australia operations.
Page 17
4.6 KPI 21
Estimated tonnage of consumer packaging sent a) for recycling and b) to landfill from
on-site collection facilities.
Action Measure Target Progress
It is estimated that Report on actual amount Jun 09 Onsite packaging waste from customers
70% of all product in tonnes of packaging is minimal in Nando’s Australia
purchased at consumed in the restaurants, because meals consumed in-
Nando’s is restaurant and recycled house are served using washable
consumed in the compared with packaging crockery and cutlery. The principle
restaurant and 30% used for take-out which exceptions are third-party drink products,
is take-out. It can be inevitably ends up as packaged in glass or plastic bottles that
assumed that all landfill are often left on-site
take-out packaging
ends up as landfill Data for on-site secondary and
distribution packaging waste volumes in
2008 are incomplete (see notes below)
• The Nando’s Australia packaging consultant (Dr Barry Manor of Global Carbon Exchange)
considered several options for estimating secondary and distribution packaging waste
volumes from indirect indices, but each proposed method was deemed to have an
unacceptably high margin of uncertainty. It was thus decided, in fairness to the
accuracy of the IDAS database, not to present data for KPI 21 in the 2008 Annual Report.
• A detailed audit of in-store packaging use and waste streams will be undertaken in 2009,
in conjunction with trials of recycling stream management in selected restaurants. The
focus of these initiatives is packaging and waste disposed of by staff rather than
customers. It is anticipated that successful trial outcomes will provide an impetus for
adoption of waste stream management in Nando’s Australia restaurants nationwide.
• Onsite packaging waste from customers is minimal in Nando’s Australia restaurants,
because meals consumed in-house are served using washable crockery and cutlery. The
principle exceptions are third-party drink products, packaged in glass or plastic bottles
that are often left on-site. These will be accounted for in waste stream management
strategies.
Page 18
4.7 KPI 22
Number of signatories who have formally adopted the ECoPP and developed systems
for its implementation.
Action Measure Target Progress
Discuss with parent Report on opportunity to Dec 08 Nando’s International supports adoption
company, suppliers implement formal of EcoPP by Nando’s Australia;
and franchisees adoption of ECoPP franchisees and suppliers in Australia will
with regards to be consulted as EcoPP-compliant policies
formal adoption of continue to be developed in 2009
ECoPP
KPI 22A
Has the ECoPP been
Yes
formally adopted?
• Nando’s Australia management understands the aims of the ECoPP in terms of
protecting goods and delivering them efficiently to the public while minimising
environmental impacts. Nando’s Australia packaging selection is guided by efficient use
of materials, energy and water.
• Nando’s Australia strives for a reduction in the amount of waste generated by packaging
through encouragement of recycling where possible and educating the public about
responsible disposal of packaging after use. Packaging with recycled content is actively
sourced.
• Littering is discouraged by using packaging that does not easily separate into small parts
and by printing informative messages on packaging items.
• In 2009 it is intended to develop quality documentation that addresses environmental
concerns in product development. Processes for packaging and packaged products are
continually under review, in consultation with other stakeholders.
Page 19
4.8 KPI 26
Implementation of buy recycled purchasing policy or practices.
Action Measure Target Progress
Discuss the Report on opportunity to Dec 08 The “buy recycled” focus has raised the
potential to buy implement a buy recycled proportion of packaging with recycled
recycled with policy at Nando’s Australia content sold to the public to nearly 60%;
current suppliers this is encouraging and Nando’s Australia
will continue emphasising this criterion in
packaging purchases
KPI 26A
“Buy Recycled”
purchasing policy and Yes
practices adopted?
KPI 26B Example of Success of “Buy Recycled” Policy
Proportion of
packaging with recycled
60.6%
content relative to total
packaging sold
• Th


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