Agenda - Corrugated Packaging Council

MEMO
To:
From:
CC:
Mike Adams – Georgia Pacific, Charles Feghali – Interstate
Resources, Tom Hassfurther – Packaging Corporation of
America, Glen Landau– International Paper, Mark Mathes –
Vanguard Packaging, Andrew Pierson – Mid-Atlantic
Packaging, Jim Porter – Rock-Tenn, Steve Strickland – Smurfit
Stone, Raymond Tennison – Simpson, Ron Zimbelman –
Temple-Inland
Dwight Schmidt
Jack Cooper – Foley & Lardner, Cathy Foley – AF&PA, Rachel
Kenyon - FBA, Brian O’Banion – FBA, Cheryl Young – Cypress,
Steve Young - AICC
Date: March 12, 2009
Re:
CPA April 1, 2009 Meeting Agenda
Washington, DC
The Willard Hotel
10am – 1pm
1. WELCOME AND INTRODUCTIONS – Tom Hassfurther, Co-Chair
2. ANTITRUST STATEMENT – Jack Cooper
3. APPROVAL 10- 7-08 MEETING MINUTES (see Attachment A)
4. ACTION ITEMS REVIEW (from attached minutes)
5. FINANCIAL UPDATE (see Attachment B)
• Adoption of revised budget (see Attachment C)
• Approval of LCA payment plan and split*
*There are fewer mills and less data points and issues connected with the
paperboard LCA. Staff had originally budgeted for and recommends a 60%
corrugated, 40% paperboard split of the charges. This was not previously formally
disclosed. This can be accomplished within our current reduced budget.
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MEMO
6. PROGESS REPORT ON DELIVERABLES
• LCA
o Draft Report – John Heckman of Five Winds
• Critical Reviewer’s Comments
• Executive Summary Content
o LCA Model hosting & use proposal (see Attachment D)*
*It is recommended that the attached proposal from NCASI be approved.
o Recommendation on Breaking out 100% recycled data*
*The technical sub-committee of the Sustainability committee has
reviewed this issue and recommends against furnishing this information
on an industry aggregated basis at this time due to the inability to break
out the energy and climate burdens for recycled containerboard made at
mixed mills. Once the LCI data is released, individual members who
wish to explore the differences can substitute their disaggregated data to
arrive at their own comparison.
o Goal Setting for the future*
*One of the stated goals of the LCA was to “identify areas where focused
improvements will yield the maximum results.” In light of this we are
already being asked by the Critical Review Panel to make some
comment on our plans to communicate the results of this study to all
industry members, identify areas in the mill and converting operations
where focused efforts will have maximum impact, and set industry goals
for reductions that will be measured in future LCAs. A recommendation
has been made by the reviewers that once the major impact areas are
defined for these unit processes a cross-function team of production,
purchasing and environmental/quality personnel be tasked to identify
both measures for improvement and goals for the industry to adopt and
communicate.
o Corrugated Carbon Calculator
o 2008 Data Collection Plan*
*This is the first LCA the industry has conducted and as such represents
only one data-point. Our contract with the LCA provider required the
completion of a model for future use by the industry and/or individual
members. In an effort to develop trend information and monitor progress
against goals it is recommend that the industry continue to update the
model on a biennial basis in even numbered years.
• Changes to AF&PA EH&S data request*
*To improve the consistency and accuracy of the data for the 2008
study the review panel recommends we revise the NCASI to allow
all needed information to be sourced directly from the mill itself
rather than some from NCASI and some from third-party sources
like the Fisher database.
• Changes to FBA Boxplant data request
• Messaging – Mark Williams of Bader-Rudder
o Tag Line and Copy development
o Testing with primary audience
o Collateral Material recommendations
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MEMO
• 2009 Communications Plan – Cheryl Young & Rachel Kenyon
o PR, Exhibits, Presentation, Articles
o Web Page redesign - Cheryl
o Our Planet Update – Rachel Kenyon
7. WAL-MART UPDATE (Brian O’Banion)
8. CURRENT MARKETPLACE REALITY (Dwight Schmidt)
• Field Updates
o Competing Materials
• Produce
• Case Ready Meat
o Wax Replacement
o RFID
o Sustainability
• Recommendations
9. REVIEW OF 2009 PLAN DELIVERABLES AND BUDGET
10. DISPOSITION OF EXISTING COLLATERAL MATERIAL (see
Attachment E)
11. REVIEW OF NEW ACTION ITEMS
12. NEXT MEETING DATE
13. ADJOURN
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Attachment A
MEMO
To:
From:
CC:
Mike Adams – Georgia Pacific, Charles Feghali – Interstate
Resources, Bill Hoel – International Paper, Mark Mathes –
Vanguard Packaging, Andrew Pierson – Mid-Atlantic
Packaging, Jim Porter – Rock-Tenn, Steve Strickland – Smurfit
Stone, Raymond Tennison – Simpson, Tom Walton –
Packaging Corporation of America, Ron Zimbelman – Temple-
Inland
Dwight Schmidt
Bart Doney – Temple-Inland, Jack Cooper – Foley & Lardner,
Cathy Foley – AF&PA, Rachel Kenyon - FBA, Brian O’Banion –
FBA, Tom Hassfurther – Packaging Corporation of America,
Cheryl Young – Cypress, Steve Young - AICC
Date: December 31, 2008
Re:
CPA October 7, 2008 Meeting Minutes
Washington, DC
AF&PA Offices
8am-11:30am
1. WELCOME AND INTRODUCTIONS – Co-Chair Mike Adams welcomed
all committee members and numerous guests from the AF&PA
Containerboard and Kraft sector committee who also attended the
meeting.
2. ANTITRUST STATEMENT – A statement incorporating both AF&PA
and FBA’s antitrust guidelines was given by Jack Cooper of Foley &
Lardner, CPA’s Counsel.
3. APPROVAL OF March 26, 2008 MEETING MINUTES (see Appendix
A). The minutes were approved as submitted.
4. ACTION ITEMS REVIEW (from attached minutes)
• Issue joint press release announcing AICC joining CPA. (Completed)
• Focus on OCC recovery improvement for communications (Ongoing)
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Attachment A
MEMO
• Coordinate our Wal-Mart communications / status; make the
information accessible. (Several updates have been issued to the
committee.)
• Develop technical articles regarding wax replacement to promote its
use. (Awaiting FBA study of wax alternative implementation.)
5. FINANCIAL UPDATE (see Appendix B)
For the period ended August 31 st our fund balance stood at $226,412.
However, this did not reflect FBA and AICC’s 2008 contributions that
were billed in September. Overall, we project we have committed all of
our $600,000 budget even though actual payments by year-end may not
reflect this total due to lateness of LCA work and the communication
program that cannot get underway until we receive the report.
6. PROGESS REPORT ON DELIVERABLES
• LCA Report – John Heckman of Five Winds gave an update on the
current status. The report has been delayed due to the inability to
address environmental discharges of mixed product mills which
make up over 40% of the total containerboard output. It has been
discovered recently that if we included like products (unbleached
kraft) we could get to slightly over 80% which Five Winds felt was a
high enough percentage to meet the approval of the expert review
panel. The committee agreed that work should move ahead on this
basis.
o Key mill trend analysis – Since the LCA will represent only one
point in time, and preliminary results show the bulk of
environmental impact is at the mill level, Reid Miner of NCASI
has investigated developing trend lines using 2002, 2004 and
2006 data. All of the major trend emission and energy trend
lines were positive and will be used to tell our story. Water
usage and effluent were steady to slightly up and the group
challenged us to look further back with these items since the
90’s saw major focus on improving these areas.
o Carbon Footprint Calculator – A carbon footprint calculator
based on the industry average LCA result was approved and
will be designed and made available to all industry members
through the corrugated.org website.
o LCA Model hosting & use – We specified one of the LCA
deliverables would be a model that individual industry
members could use to forego the expense of retaining an
outside provider to conduct their company specific LCA. As
long as they are part of our original dataset they will be able to
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Attachment A
MEMO
disaggregate their data and develop a result that can compare
their company to the industry average. NCASI has the
familiarity and capability to host the model and there may be
others. Staff will develop parameters, ascertain costs and
bring the plan back to the committee before moving ahead.
o Policy on External Data release – One of our stated goals was
to use the LCA information to populate external databases
EPA, USLCI to show transparency and to remove older, less
accurate information. The committee voted to move ahead
with the release aggregated data including reference flows as
soon as the study is complete.
o Policy on Breaking out Recycled info – We have been
requested to provide 100% virgin and 100% recycled
information to populate the EPA WARM model. The concern
is they will continue to use old information if we don’t provide
new data from our study. While to committee agreed in
principle that it is better to be in control the information by
providing it, there was considerable concern over how it could
be used to drive decisions based on incomplete information.
Staff was asked to put the question in front of the technical
sub-committee of the FBA Sustainability Committee for a
recommendation as to how this could be handled. This
committee would then consider their recommendation and
make a decision prior to any information release.
• Sustainability Messaging – Jon Dewitt of Artemis gave a
presentation of the final messaging platform they had developed in
conjunction with the marketing sub-committee of the Sustainability
Committee. There was consensus that the reputation of our industry
is about both doing and telling in a compelling way to adjust attitudes
and behavior. Staff is to move ahead with these strategic message
points, add data and proof points and use it as a foundation for our
long-term Sustainability Communications plan.
• Communications Plan for 2008 – Cheryl Young provided an update
on communications activities completed in 2008:
o Collateral Material - Sustainability Facts brochures were
developed in 2008 based on available data, pending
completion of the LCA study. Statistics were derived from
AF&PA's EH&S report, recovery and recycling statistics,
NCASI data and from FBA statistics.
o Exhibits - Sustainability messages centering on renewability,
recycling and reuse were promoted with exhibits and speaking
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Attachment A
MEMO
platforms at several industry venues and trade shows in 2008
including:
• FMI - Sustainability Committee*
• Sustainable Packaging Coalition - Spring Meeting*
• IoPP - Packaging Summit*
• Packaging Strategies - Sustainable Packaging Forum
• TAPPI - SuperCorrExpo
• PMMI - Pack Expo
o Tag Line and Copy development -- Message strategy
research was completed in 2008 with Artemis Strategy Group,
and a RFP was issued for creative resources to help formulate
clear, concise, powerful messages for communications to be
launched in 2009 and beyond. Creative will be developed
along with a communications plan based on the LCA and
NCASI's additional data, as well as the message strategy
research conducted by Artemis.
o Proof Point Development and testing -- Proof points
supporting the industry message platform were developed and
a draft list was distributed among committees for review. The
LCA, when completed and NCASI will help fill in gaps. Final
"proof points" list will provide supporting documentation for
messages to be used according to audience needs. These
proof points demonstrate transparency of the LCA and
strengthens industry positioning. Their credibility and
relevance will be tested with developed message concepts to
be sure that our communications are believable and resonate
with our target audiences.
7. UPDATES
• Sustainability – Brian O’Banion reported on the Wal-Mart
sustainability activity as follows:
o Work remains to correct scorecard and its underlying data.
o The Extra Credit section of the scorecard has been revised.
o FBA will submit updated data to EPA and GreenBlue for
eventual incorporation into the WMT scorecard.
o WMT is discussing scorecard phase II – country of origin;
recycle content (with 100% recycle as separate material);
recovery (separate value for selling and transport; also by
package type (bottle vs. clamshell)).
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Attachment A
MEMO
o WMT is considering migrating supplier packaging data to third
party database (GDSN) so other retailers could access for
their own scorecard methodologies.
o WMT is creating a Sustainability Index – by supplier; by
product and package – as a broader tool. It will incorporate
the packaging scorecard.
• Competing Materials – Dwight Schmidt reported on the two areas
he has been monitoring
o Case Ready Meat – There has been no new developments in
additional retail movement beyond Kroger to RPCs.
o Produce – There are four new developments:
• RPCs are very active in market areas (like the NW fruit
area) that they had previously abandoned. They are
using Wal-Mart as a lever, but checks with Wal-Mart
confirm it is not a mandate and growers have to make
sure it represents a viable economic alternative as the
RPC poolers are requesting long-term contracts.
Weyerhaeuser (now IP) has been working this area
hard with Harry Turvey and Full Disclosure analysis
that shows corrugated remains the most economically
viable solution.
• New tags have been developed that would allow asset
as well as content tracking. RPCs are reportedly close
to implementing this long-life RFID solution as soon as
the price allows.
• No new retailer RPC interest has been identified since
the Kroger wet room item trial moved to full
implementation. Further checks have substantiated
that this roll-out will continue to other large SKU’s that
can be easily implemented. Of course, this gives RPC
poolers more critical mass to increase turns and reduce
costs which, combined with our recent price increases
could trigger a different economic result.
• The Reusable Pallet and Container Coalition is
changing its name to the Reusable Packaging
Association in a move to gain additional members
beside traditional RPC produce poolers.
• RFID – Brian O’Banion reported to the committee on the current
status of RFID as follows:
o There is continued activity in RFID, although much of the focus
has shifted to areas beyond retail: identification, payment,
reusable / returnable assets and real-time location.
25 Northwest Point Blvd. • Suite 510 • Elk Grove Village, Illinois 60007 USA
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Attachment A
MEMO
o Failure of RFID application today is most likely due to financial
challenges, not technical.
o Many retailers are looking to RFID for niche applications with
strong return:
• usually at item level for fast-moving , higher margin
items (like DVDs & video games)
• Promotional items and displays to verify promotion is
where it should be, when it should be
• Case and pallet level tagging is not primary focus for
retailers except Sam’s Club
o Sam’s Club has announced a timetable to rollout RFID at the
pallet, case and item level in all DC’s by November 1, 2010, with
penalties for non-compliance. This is a different approach than
last attempt; they hope to generate critical mass to achieve
measurable benefits for RFID implementation.
• Short term – major suppliers will focus on compliance;
probably “slap-and-ship”
• Mid-term – suppliers to examine more strategic tagging
solutions, perhaps third-party re-packers and contract
packagers
• Longer-term – most suppliers will migrate to managing
the tagging process entirely in-house or outsource it
entirely to logistics firms or re-packers. If sufficient
volume is achieved, manual tagging will be replaced by
other methods, including “source-tagging” (pre-enabled
packaging).
• Wax Replacement - Dwight Schmidt gave an update:
o We now have 14 certifications, 2 of them by generic
marketplace suppliers
o A concern was registered by one of the generic wax
alternative suppliers that retailers would feel better if the
certification number was printed next to the symbol as a
control. The FBA Executive Committee turned down request
for labeling the certification number on box due to the
complexity of administration vs. the implied value.
o So we have evidence to show retailers we are making
progress the FBA has approved a second survey of wax and
wax alternative for comparison to the original conducted in
2003. It will be undertaken in the first quarter of 2009.
o In an effort to keep this implementation moving we plan on
publishing an update article to industry in the first quarter
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Attachment A
MEMO
followed by wax reduction progress report in the second
quarter.
8. AICC/CPA INDUSTRY-WIDE SUSTAINABILITY MEETING
• October 23 & 24 in Chicago (see Appendix C) – Steve Young
reported on the jointly sponsored seminar that is the second in a
series initiated by AICC. The CPA will provide speakers and content
for the first day while AICC will coordinate the overall conference as
well as the program for the second day. All committee members
were encouraged to attend and invite others.
9. REVIEW OF 2009 PLAN DELIVERABLES AND BUDGET (see
Appendix D)
The 2009 CPA budget of $600,000 was presented and approved with
the following major deliverables:
• Our Planet Update – Rachel Kenyon noted that all arrangements had
been made with the producers and that the script writing and then
shooting at industry facilities in the Chicago area are awaiting
completion of the LCA. Any companies with “B” roll scenes of mill
and boxplant production are encouraged to let her know as we will
not be able to accomplish all shots in the one day of filming allocated.
• 2009 Communications Plan – Cheryl Young & Rachel Kenyon
discussed development of a communications plan to educate target
audiences about LCA results and corrugated sustainability
positioning. This plan will be created upon completion of the LCA
report and reviewed by FBA's communications committee for
implementation in 2009-2010.
• A new Willard Bishop Study to update retail, foodservice and grower
attitudes toward RPC implementation. The last study was completed
in early 2005.
• Web Page redesign - Cheryl explained that the "public" corrugated
website, www.corrugated.org, will be enhanced and redesigned in
2009 to accommodate new LCA information and sustainability
positioning for the corrugated industry. This site is used as an
information resource for target audiences outside of the corrugated
industry, including retailers, end users, supply chain members,
students, NGOs and activists, and general consumers.
10. REVIEW OF NEW ACTION ITEMS
• Complete LCA using like products mill data approach.
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Attachment A
MEMO
• Move ahead with NCASI energy and emissions graphs to tell
improvement story but look expand water and effluent graphs as
major gains were made in the 90’s.
• Move ahead with Carbon Footprint calculator
• Develop parameters, ascertain costs and bring recommendation for
LCA hosting back to the committee.
• Ask the technical sub-committee of the FBA Sustainability Committee
for a recommendation as to how to provide the EPA with data for
their WARM model and bring to committee.
11. NEXT MEETING DATE
The next CPA meeting will be held in conjunction with the FBA Annual
meeting, the AF&PA Containerboard and Kraft Sector meeting and the
AICC Spring meeting at 10:00am on April 1 st at the J.W. Marriott in
Washington, DC.
Respectfully submitted,
Dwight C. Schmidt
President
These minutes have been reviewed and approved by the CPA Co-Chairman and FBA
Legal Counsel.
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Attachment B
American Forest & Paper Association
Statement of Revenue and Expense
964 - SA, CRATE
Period Ended February 28, 2009
Draft
964 - SA, CRATE
000000
Current Month YTD YTD YTD Original Year-End Annual
Actual Actual Budget Difference Budget Projection Difference
Revenue
Member Dues 18,720 19,696 - 19,696 - - -
Total Revenue $ 18,720 $ 19,696 $ - $ 19,696 $ - $ - $
-
Direct Expense
Meetings - - 2,166 2,166 13,000 - 13,000
Meals, Travel & Entertainment 1,374 1,374 1,334 (40) 8,000 - 8,000
Dues & Subscriptions - - 666 666 4,000 - 4,000
Postage & Freight 18 21 - (21) - - -
Outsourced Work 7,200 7,200 70,834 63,634 425,000 - 425,000
Communications Development - - 20,000 20,000 120,000 - 120,000
Paid Media - - 5,000 5,000 30,000 - 30,000
Reproduction 3 8 - (8) - - -
Total Direct Expense $ 8,596 $ 8,604 $ 100,000 $ 91,396 $ 600,000 $ - $ 600,000
Total Expense $ 8,596 $ 8,604 $ 100,000 $ 91,396 $ 600,000 $ - $ 600,000
Change in Net Assets $ 10,124 $ 11,092 $ (100,000) $ 111,092 $ (600,000) $ - $ 600,000
$ 239,102 Carryover Fund Balance
$ 250,194 Current Fund Balance
FALSE Control Total 18,720 19,696 - - -
Control Total 8,596 8,604 100,000 600,000 -
- Check - - - - -
964.xls, 1. Issue 1 of 1

AF&PA BUDGET AND PLANNING WORKSHEET
2009 LINE ITEM DETAIL BUDGET
Attachment C
ISSUE NAME - Corrugated Packaging Alliance
ISSUE # - 964
ISSUE MANAGER - Dwight Schmidt
TOTAL
ACTION/PROJECT/VENDOR Dues & Outsourced Commun Paid Other DIRECT EXPECTED
Meetings MT&E Subs Coalitions Legal Work Development Media (specify) EXPENSES REVENUE
Comparative and 'what if'
scenarios, EPA coordination, etc
- Five Winds Intl.as well as LCI
management 45,000 $ 45,000
SPC Compass Comparative
work 15,000 $ 15,000
"Our Planet" Video 15,000 30,000 5,000 $ 50,000
Update look and content of
corrugated.org web page 20,000 25,000 $ 45,000
Conduct retailer, foodservice,
grower/shipper and member
study of RPC usage 3,000 85,000 5,000 $ 93,000
Investigate various forms of
"green" labels and monitor the
FTC Green Guide development,
Manage the W-M phase two
scorecard development, and
other sustainability programs 125,000
Implement the Industry
Sustainability messaging
strategy 75,000 175,000 $ 250,000
Monitor the current reality of all
CPA Charter areas 10,000 8,000 4,000 20,000 $ 42,000
$ -
SUBTOTALS $ 13,000 $ 8,000 $ 4,000 $ - $ - $ 290,000 $ 120,000 $ 30,000 $ 200,000 $ 540,000
0
ADD: ADMIN. ITEMS (from Acctg.):
Office Supplies
Postage
Telephone
Reproduction
TOTAL ADMIN. ITEMS $ -
TOTAL DIRECT EXPENSES $ 13,000 $ 8,000 $ 4,000 $ - $ - $ 290,000 $ 120,000 $ 30,000 $ 200,000 $ 540,000
0
PRIOR YEAR BUDGETED/PROJECTED DIRECT EXPEN
% INCREASE OR (DECREASE) FROM PRIOR YEAR =
#DIV/0!
COMMENT: _________________________________________________________________________________________

ncasi
Attachment D
NATIONAL COUNCIL FOR AIR AND STREAM IMPROVEMENT, INC.
P.O. Box 13318, Research Triangle Park, NC 27709-3318
Phone (919) 941-6400 Fax (919) 941-6401 Reid A. Miner
Vice President -
Sustainable Manufacturing
Phone (919) 941-6407
Fax (919) 941-6401
e-mail RMiner@ncasi.org
November 5, 2008
TO:
CC:
FROM:
SUBJECT:
Cathy Foley, AF&PA
Dwight Schmidt, FBA
Brian O’Banion, FBA
Ron Yeske, Al Lucier, Jay Unwin, Caroline Gaudreault – NCASI
Reid Miner
Proposal for NCASI’s housing the containerboard and average corrugated container life cycle
model
As you requested, we have discussed with our Operating Committee the proposal for NCASI to house the
containerboard and average corrugated container life cycle assessment model and use it for the industry’s benefit
within defined parameters. The Operating Committee agrees that this is an appropriate role for NCASI and
suggests the following arrangement.
• NCASI agrees to house, and keep in working order for 10 years, the containerboard and average
corrugated container LCA model. There would be no charge for this. The period could be extended by
mutual agreement.
• NCASI agrees to use the model to assist AF&PA and FBA in addressing issues that arise at the
association level. There would normally be no funding needed for this, although NCASI would like to
reserve the right to ask for funding in extraordinary cases where a substantial amount of effort is required.
• NCASI agrees to work with AF&PA and FBA to update the model as needed based on decisions at
AF&PA and FBA. NCASI would likely ask for funding to cover the staff time associated with such
updates.
• NCASI agrees to work with individual AF&PA, FBA and NCASI member companies that produce
containerboard to develop LCA results from the model that incorporate company-specific data. NCASI
will charge companies for this service an amount adequate to cover the NCASI staff time needed to
develop these results. Note that we feel we should include NCASI member companies (which are, for the
most part, the same companies as belong to AF&PA) in this arrangement because they have contributed
to the cost of the study via the effort expended by NCASI in performing the containerboard study.
We look forward to hearing your reaction to this proposed arrangement. If you agree that it is adequate, we would
appreciate having your written concurrence for our records.
Best Regards
Reid Miner
Environmental research for the forest products industry

Attachment E
CPA Material Inventory
Name of Materials Quantity FBA 800 #
Sensitivity Factors Fact Sheet 1,349
CCF Implementation Fact Sheet 1,649
Wax Alternative Fact Sheet 3,152 50
Corrugated Common Footprint Standard 149 yes
Corrugated Packaging for Produce 809 65 yes
Corrugated Common Footprint Research
7,016 24 yes
Results
Apple Case Study 1,715 93
CPA Folders 2,605 yes
Corrugated Grapes Case Study 349 60
Corrugated Citrus Case Study 349 20
Case Ready Meat Brochure 10,809 120
Corrugated Case Ready Meat Technical
150 yes
Specification
Corrugated Common Footprint Stand Technical
400
Specification
RFID in the Perishables Supply-Chain
Corrugated RFID in the Perishables Supply-
37
Chain Corrugated Pkg. Supplies Have
Wax Standards Poster/Package of 50 322 10
Wax Standard Brochure/Package of 50 350
Wax Standard Poster/Individual 2,849
Wax Standard Brochure/Individual 849
Corrugated Broccoli Case Study/ Package of 25 146 119 each