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PACKAGING COUNCIL OF NEW ZEALAND ANNUAL REPORT 2017 | 1
S T R O N G E R T O G E T H E R
P A C K A G I N G C O U N C I L O F N E W Z E A L A N D A N N U A L R E P O R T 2 0 1 7
PACKAGING COUNCIL OF NEW ZEALAND ANNUAL REPORT 2017 | 01
W E O P E R A T E I N A T I M E O F A C C E L E R A T I N G C H A N G E
A N D D I S R U P T I O N . T H E G L O B A L C O N S U M E R I S D E M A N D I N G
M O R E A C C O U N T A B I L I T Y F R O M I N S T I T U T I O N S S P U R R E D O N B Y M E D I A O F T E N C H A R A C T E R I S E D
B Y S E N S A T I O N A L I S M A N D M I S I N F O R M A T I O N . T H I S
C O N S T A N T F L U X C R E A T E S A M B I G U I T Y A N D V O L A T I L I T Y
F O R T H E P A C K A G I N G I N D U S T R Y . M O R E T H A N E V E R W E M U S T R E S E T T H E D I A L O G U E A N D
R E O R I E N T A T E P E O P L E ’ S P E R S P E C T I V E O N P A C K A G I N G – I T S V A L U E A N D C O N T R I B U T I O N
T O A N E W Z E A L A N D E X P O R T - L E D E C O N O M Y .
B U T T O B E H E A R D A S A N I N D U S T R Y , W E M U S T E N G A G E
A S A N I N D U S T R Y . W E A R E S T R O N G E R T O G E T H E R .
02 President’s Report 04 Executive Director’s Report 06 Activity Report 10 Annual General Meeting 2016/2017 12 Independent Auditor’s Report 14 Financial Statements 20 Executive Committee 2016/2017 21 Member Companies
C O N T E N T S
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P R E S I D E N T ’ S R E P O R T
I have reflected on the messages that I shared with our membership at the last AGM. Interestingly, for me they remain our current reality.
“This volatile, uncertain, complex and ambiguous environment requires us to have a clarity, understanding, empathy, and agility. For us to be relevant and successful, we need to communicate clearly, be open to fresh perspectives, work collaboratively, listen well and think divergently.”
I, along with many of you, am involved in leading our companies and organisations to embrace accelerating change, disruption and the evolving expectations of globally connected consumers. Though this journey can leave you breathless at times, the ability to interpret this space will be critical to member companies future sustainability – in all the senses of that last word!
The Packaging Council Executive have been clear of its purpose: that is to advocate and promote packaging. Put simply, the role of packaging to deliver intact and hygienic products to customers and consumers, remains as critical as it has ever been. KPMG’s infographic has allowed us to be articulate around these attributions. Packaging’s contribution to New Zealand’s export growth agenda, food security, traceability and marketing will continue to underpin that success. We have shared that perspective with our membership and others that we believe are our critical friends in this journey. We have encouraged everyone to share it further.
However, that message alone will not engage the hearts and minds of our consumers. We are all facing the reality that our consumers require us to retain society’s ‘licence to operate’.
Worldwide prosperity is being driven by rural countries rapidly growing, societies modernising, increased life expectancy and growing economies. For example polyethylene demand is outpacing GDP growth despite
the consumers desire for reduced packaging. This ‘cognitive dissonance’ will continue to shape markets, our businesses and customers.
So what does the Packaging Council wish to recalibrate so that we can demonstrate “the goodness” of packaging? How do we ensure and communicate that the packaging and the product it contains embody the best overall aspirations of the communities that produce and consume the products?
It is my view that the Council will need to think about the following:
• Touch the conversations, which are already occurring, that assist in framing those messages1
• Provide some narrow and deep opportunities to demonstrate these messages2
• Engage politically, with government agencies and our critical friends to reflect these messages
• Provide feedback to our membership so our collective message is better heard and understood by consumers and those who would influence them.
As I think about these opportunities in front of us, I am grateful to those members who continue to support the Packaging Council of New Zealand. I wish to thank the commitment of those on the Executive. I have appreciated your individual contribution to our shared journey. I wish to particularly thank Sharon Humphreys for her singular hard work. Her passion and commitment has been critical to where we are today.
Harry Burkhardt President
1. http://www.packagingdigest.com/sustainable-packaging/why-the-2030-sustainable-development-goals-matter-to-packaging-professionals1512 2. https://www.unglobalcompact.org/library/3111
F O R U S T O B E R E L E V A N T A N D S U C C E S S F U L , W E N E E D T O
C O M M U N I C A T E C L E A R L Y, B E O P E N T O F R E S H
P E R S P E C T I V E S, W O R K C O L L A B O R A T I V E L Y, L I S T E N W E L L A N D
T H I N K D I V E R G E N T L Y.
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PAC.NZ has a proud history of supporting its members across the packaging value chain; businesses that employ New Zealanders and represent real GDP; businesses that have stood the test of time weathering regulatory fashion. Through the two Packaging Accords, a shared responsibility for measuring and mitigating the impact of packaging in New Zealand was established. This collaborative effort, involving central government, local government, and the packaging and recovery industries, led the way in defining packaging issues and providing a platform for shared solutions that were commercially and environmentally sustainable.
The introduction of the Waste Minimisation Act in 2008 changed the landscape completely.
Under the new regime commercial recycling operations have been compromised as waste streams have been diced and sliced into ‘schemes’ introducing artificial economic conditions which operate outside of commercial realities. Programmes have come and gone with questionable success demonstrated by a lack of longevity. And a new industry of ‘product stewardship’ has emerged. There has been a narrowing of focus by the regulatory community as waste minimisation has come to be seen as a specialist discipline managed in isolation of the integrity of the product being delivered and the expectations of the consumer.
It has also become a crowded space, no longer with a shared purpose, but dominated by entrenched positions, uncompromising dialogue and vested financial interests. Calls for regulatory intervention are louder than ever, ostensibly motivated by a claimed perceived lack of ‘progress’ with scant regard for defining the problem or understanding the shape of the outcome.
Arguably today, there has never been a more important time for PAC.NZ.
Our focus is firmly set on resetting the dialogue; recognising the value of packaging as a key sector in the New Zealand economy, one that improves the utility and safety of products and underpins producers and manufacturers efforts to ‘add value’ in an export- dependent economy. One that does not lose sight of the primary purpose of packaging to deliver goods in a form acceptable to the consumer, hygienic, undamaged and at reasonable cost. We are reframing the conversation to celebrate the innovation and success of New Zealand businesses and elevating the messages amongst stakeholders to break through linear, simplistic thinking which is at odds with the complex world we operate in and the growing calls for circular thinking. We want to continue forming partnerships with those organisations who, like us, see the value in jointly and collaboratively navigating the complexities of balancing people, planet and profit.
My message to you for the coming year is that PAC.NZ’s vision is clear and our commitment is strong.
Finally, my thanks to each and every one of you for your ongoing support of our journey. In particular my thanks go to the Executive Board under the leadership of Harry Burkhardt and Murray Parrish; they continue to provide direction which is clear, pragmatic and reflects the realities they face every day in their own businesses.
Sharon Humphreys Executive Director
E X E C U T I V E D I R E C T O R ’ S
R E P O R T Dear Members
As PAC.NZ celebrates 25 years of history there is much to reflect on.
The primary purpose of packaging: containment, protection and communication was our world in 1992. Set up originally at the behest of the New Zealand Government to minimise packaging waste, end-of-life recovery solutions for packaging materials were progressively met by established recycling infrastructure and commercially viable operations.
Fast-forward 25 years. The very fabric of