annual report. 08 - Eco-Emballages · Chap. II Collective and ... Since December 2008, an audit has been con - ... 8 Chap. I Chap. I / Operation, organization and missions F or the

www.ecoemballages.fr

annual report. 08

44, avenue Georges-PompidouBP 306 – 92302 Levallois-Perret Cedex

Tel: (+33) 1 40 89 99 99 – Fax: (+33) 1 40 89 99 88

Editorial by Eric Guillon, Chairman of the Board of Directors of Eco-Emballages.... 3

Interview with Éric Brac de La Perrière, CEO of Eco-Emballages ................................. 4

Chap. IServing a shared ambition ..................................................................................... 6

• Eco-Emballages relies on the commitment of all parties involved in the waste

chain: businesses, local authorities, recycling channels, waste and recycling

industry federations, citizens and even consumer and environmental protection

associations. Thanks to the commitment of all these parties, Eco-Emballages

has been serving the general interest since 1992.

Roundup in pictures ..................................................................................................................... 26

Chap. IICollective and sustainable performance ............................................. 30

• By the end of 2012, 75% of all waste should be recycled, in accordance with

the target set by the Grenelle de l’environnement. With this goal in mind,

Eco-Emballages and its partners have strengthened their ties to optimize

the efficiency of the system. Recycle more while abiding by the principles of

economic, social and environmental performance - that is the challenge they

must now take up.

The Environmental Management System ............................................................................. 44

Key figures for 2008...................................................................................................................... 45

Financial summary ......................................................................................................................... 46

contents

2

3

Eco-Emballages conducted its busi-ness in normal conditions for the first eleven months of the year: we worked alongside our partners to reduce the amount of packaging at

source, optimize selective collection and sort-ing, raise citizens’ awareness, mobilize them and increase the proportion of recycled waste. In December 2008, Eco-Emballages regret-tably experienced difficulties following a risky investment of a portion of its cash, which was frozen following the financial crisis. Provisions amounting to 48.6 million euros had to be made for financial period 2008 to offset potential losses. Although no cuts were made in aid given to local authorities, this situation revealed the need to tighten up our internal pro-cedures and led to the dismissal of the CEO. Everything has been done to avoid a similar situation in future. Since December 2008, an audit has been con-ducted by audit firm Deloitte at the request of the Board of Directors, an Audit Committee has been set up and an Executive Board made up of members of the Board of Directors has worked closely with management and myself in this dif-ficult period. I should take this opportunity to pay tribute to the sense of responsibility shown by Eco-Emballages’ directors and thank them for their commitment, which is further evidence of the attachment of companies to our collective initiative in favour of the environment. I would also like to thank all Eco-Emballages staff, who have more than ever displayed their profession-

alism and commitment alongside our partners. It’s essential, because 2008 was the year of the Grenelle de l’environnement (the French multi-partite environmental summit), which under-scored the Extended Producer Responsibility principle and asserted a commendable ambi-tion for the household packaging sector, namely recycling 75% of household packaging by 2012. From now on, this goal will be our framework for action. Volume retailers represented by associa-tions ANIA (National Association of Food Indus-tries) and ILEC (Liaison and research Institute of the consumer products industries) have already affirmed their willingness to help achieve this objective when they signed an agreement with the Ministry for Ecology, Energy, Sustain-able Development and Planning in October 2008, in particular by reinforcing their prevention and ecodesign programmes for packaging. But this goal is quite naturally a collective one, and it can only be achieved if all those concerned – respon-sible consumers, local authorities, associations, businesses and recycling and waste profession-als - step up their efforts. Éric Brac de La Perrière, who was appointed CEO on 7th April last, will be responsible for lead-ing Eco-Emballages and its partners towards the realization of this ambition, by securing the necessary support and mobilization for it to succeed. I am convinced that the pertinent eco-organization model, the principle of which was reasserted on the occasion of the Grenelle de l’environnement, will once again enable France’s aims to be achieved. §

“From shared responsibility to collective performance”

Éric GUiLLONChairman of the Board of Directors of Eco-Emballages

Edito

rial

3

4

Inte

rvie

w

Interview

“ Sorting and recycling household packaging makes a very real contribution to the sustainable development of our society.”

You were appointed CEO in April 2009: what is your vision of Eco-Emballages?Eco-Emballages and Adelphe

were set up to abide by the EPR (Extended Produ cer Responsibility) principle. 95% of the packaged products released on the market in France every year bear the Green Dot. Eco-Emballages is an eco-organization that efficiently manages the end-of-life stage of household packaging. This makes a very real contribution to the sustainable development of our society. Consumers have realized that sorting and recycling create new raw materials and reduce the ecological impact of packaging. Through Eco-Emballages, over 47,000 com-panies in France participate in a virtuous and collective process, which helps achieve envi-ronmental and societal aims of benefit to all. We should recall that 3 million tons of pack-aging material were recycled in 2008, thereby cutting CO

2 emissions by 1.8 mil-lion tons. The recycling sector has created 100,000 jobs, 28,000 of them in selective collection. To carry out this task, waste man-agement firms rely on the competence and efficiency of the local authority services. In return, Eco-Emballages aids them finan-cially by allocating over 92% of its expendi-ture to them. The results bear out the eco-nomic and ecological efficiency of the model.

How do you view the problems Eco-Emballages experienced in December 2008? This was primarily a management problem. I got involved from December 2008 along-side Eco-Emballages’ teams and its Board of Directors to resolve the difficult situation in which the company found itself. I took great pains to restore confidence, and that is still my main mission today. This requires greater openness, more cross-departmental com-munication and listening more to others. The problems have now been resolved. What is now at stake is rebuilding a new Eco-Embal-lages with our partners.

What precise ly are these new challenges? The Grenelle de l’environnement gave Eco-Emballages an ambitious target, namely achieving a recycling rate of 75% by the end of 2012. In 2008 this stood at 63%. The additional 12% is obviously hard to achieve, because that represents an additional 500,000 tons of waste to sort and recycle by 2012. Eco-Emballages and all its partners are mobi-lized and determined to achieve it. A 75% waste recycling rate presupposes mobiliz-ing the French to sort more and better, local authorities having more efficient collection

5

Eco-Emballages — 2008 Annual Report

Inte

rvie

w

Éric Brac de La PerrièreChief Executive Officer of Eco-Emballages

and sorting systems, better prevention on the part of businesses, sustainable outlets for recycled materials in a depressed eco-nomic climate and closer ties with consumer and environmental protection associations. Lastly, the process in its entirety must be backed by the authorities.

What part will Eco-Emballages play in meeting the 75% target?First and foremost, accomplishing the mis-sions we have been given, to create a climate of confidence. Then we need to be more out-ward-looking to ensure the requirements of all Eco-Emballages’ partners are met. Therefore, we are preparing an approval in a concerted and sharing spirit. This collaborative process will help us consolidate Eco-Emballages and mobilize all our forces to achieve the goals of the Grenelle de l’environnement.

6

Cha

p. I

Chap. IOperation, organization and missions

Collective commitment ........................................................... page 8

Committed stakeholders ......................................................page 10

A concerted venture .............................................................. page 12

A balanced economic model .............................................. page 14

A collective ambition .............................................................. page 16

Promoting eco-design for packaging ............................... page 18

Optimizing selective collection mechanisms ..................page 20

Developing the recycling industry ......................................page 22

Urging citizens to be eco-responsible and sort ............page 24

Chap. I


Cha

p. I

7

◗ The sorting and recycling system for household packaging depends on

the commitment of all parties concerned: companies that sell packaged goods, the local

authorities, recycling channels, citizens, consumer and environmental protection

associations. It is such commitment that has enabled Eco-Emballages to accomplish

its missions since 1992, serving local authorities and businesses: promoting

eco-design, financially aiding local authorities, optimizing collection services and

developing the recycling industry. Finally, the last essential mission of Eco-Emballages

is to inform and raise awareness among the general public. This has evidently been

a success, because 59.6 million French people can now sort their packaging.

A founding principle: Extended Producer Responsibility

Eco-Emballages and Adelphe were formed on the initiative of the authorities and businesses within the framework of the decree dated 1st April 1992, henceforth codified

in the Code de l’Environnement. What was at stake was to achieve compliance with European environmental standards policy in terms of Extended Producer Responsibility. This principle states that any company (pro-ducer, distributor or importer) marketing packaged products in France intended for consumer use must “contribute to the dis-posal of its household packaging waste or make suitable provision in that respect”. This decree has elicited a big response from companies keen on asserting their social and environmental responsibility. This conver-gence of economic and political forces gave birth to the first French eco-organization entirely dedicated to sustainable develop-ment, both in its conception and implemen-

tation. Its precise missions are to organize, maintain and enhance selective collection, sorting, recycling and reuse of household packaging nationwide. But without the involvement of other eco-nomic players concerned with the life cycle of packaging, this could not have succeeded. Gradually the system has been put in place with their involvement: responsi-ble consumers, who sort their packaging for recycling purposes; local authorities, which are operationally responsible for imple-menting selective collection, running waste treatment centres and which keep citizens informed; not forgetting the recycling indus-try, which processes waste household pack-aging to produce new materials. Eco-Emballages and Adelphe thus operate according to a principle of co-responsibility and for fifteen years have been able to count on a chain of players standing united to help create a better environment for future generations. §

8

Cha

p. I

Chap. I / Operation, organization and missions

For the French waste packaging sort-ing and recycling system to work, each partner concerned must play its part and contribute to collective

performance. Thanks to the involvement of all, Eco-Emballages and Adelphe can exceed European household packaging recycling targets.

THE FIRST LINK IN THE CHAIN: COMPANIES

The 47,000 (1) member companies that mar-ket packaged goods intended for consum-ers pay a financial contribution (about 0.6 euro-cents per item of packaging in 2008) to Eco-Emballages, which along with the resale of the collected materials finances approxi-

mately 60% of the total cost of managing household waste packaging. In parallel, the companies, with the support of Eco-Embal-lages, work to improve the design and reduce the environmental impact of their packaging. Consumers play a twofold role: purchasing products that come with less packaging or packaging that is easier to recycle, and sort-ing their waste packaging. Eco-Emballages plays an active part in raising consumer awareness, as do the consumer and envi-ronmental protection associations and local authorities.

59.6 MILLION POTENTIAL SORTERS

Once the packaging has been sorted, the role of the local authority in charge of selective collection comes into play. Thanks to the contributions paid by companies, Eco-Emballages provides 1,240 local authori-ties, (98% of French municipalities, or over 59.6 million inhabitants) with financial sup-port. It is also up to the local authorities, along with Eco-Emballages, to enhance their collection and sorting systems and make them more efficient at a lower or equivalent cost. They then sell the sorted materials to recycling contractors. Recycled packaging is then used to manufacture everyday articles with a view to avoid wasting natural resources. The united chain of stakeholders contrib-utes to making the circular economy thus created more efficient and sustainable. §

(1) Consolidated figures (Eco-Emballages and Adelphe).

Recycling packaging: a collective commitment

THe ‘GreeN dOT’, a SYMBOL Of reSPONSiBiLiTY • The Green Dot on packaging means

that the company that markets the product has

adopted and financially contributes to the waste

packaging recycling system organized by Eco-

Emballages and Adelphe. This does not necessarily

mean that the packaging should be sorted or con-

tains recycled material.

• 95 % of household packaging in France

bears the Green Dot.

• Found on over 400 billion products in

32 countries, the Green Dot is the most used

logo in the world. Use of this registered trade-

mark is subject to prior authorization.

operation


9

Cha

p. I

RESPONSIBLE CONSUMERS

LOCAL AUTHORITIES

PUBLIC OR PRIVATE-SECTOR OPERATORS

IND

UST

RIA

L SE

CTO

RS

AN

D M

ER

CH

AN

TS

COMPANIES

AS

SO

CIATIO

NS

Pro

cess

co

llect

ed

was

te m

ater

ials

pa

ckag

ing on th

e market

Pay

a fin

ancia

l contrib

ution

Relea

se household

Collect and sort

household

waste packaging

Manage waste collectio

n

and sorting

Inform residents

packaging at home

Sort their household

and raise aw

areness

Provid

e information

Infor

mation

Awar

enes

s-ra

ising

Financial aid

Support

InformationControl-recycling

Material markets

Assist in eco-design

Manage contributions

THE AUTHORITIESDefine public policy,

issue approval and regulate

10


Committed stakeholders

“France is the only European country to have united all the stakeholders”.

BerNard caSNiN,Sustainable development policy officer, CGL (1)

“We have actively participated in the running of Eco-Emballages since 1993, not only through our membership of the Approval Commission, but also because we follow and regularly assess this eco-organization’s activities. Finally, we managed to set up an Associative Committee in Eco-Emballages which, as its name suggests, brings together the members of consumer and environmental protection associations every other month. We represent the population: our presence is thus essential in an organization that includes all stakeholders in sorting and recycling. What’s more, France is the only European country to have united all the stakeholders. Naturally, other parties (industrialists, local authorities, etc.) have a lot of influence, and our interests often diverge. But we continue to work together in the general interest.” §

(1) Confédération Générale du Logement. (Housing Confederation).

“The whole philosophy behind the system that created the eco-organization is based on the principle of solidarity between all those involved.”

MicHeL GardeS,Chairman & Managing Director, Interfilière Matériaux (Association representative of the 5 material channels)

“The role of material channels, which are in charge of the industrial aspect of recycling, is historic and dates back to the formation of Eco-Emballages. It has nonetheless evolved over time, growing in importance, and not without reason: the recycling rate (quantities processed) has constantly risen year by year, now standing at 60% and soon 75%. Our involvement within Eco-Emballages, of which I am a director, is thus essential, because the whole philosophy behind the system that created the eco-organization is based on the principle of solidarity between all those involved. That is why regular committee meetings bringing together local authorities, industries, companies and associations are also very important: they enable us to exchange views, improve the system and, above all, anticipate the challenges that await us in the years to come.” §

Cha

p. I


Cha

p. I

11

“Eco-Emballages’ activities will continue to be conducted within a revised framework.”

“The French household waste management model is an intelligent model, because it is jointly conceived.”

“Our ambition is to increasingly raise consumers’ awareness, since they are our partners in protecting the environment.”

LaUreNT MicHeL,MEEDDAT (1)

“The objective set by the Grenelle de l’environnement regarding recycling is ambitious: 75% by 2012. Work is now underway with a view to approving all organizations in the packaging chain, and this should enable the target to be met. This work will also focus on other structural changes advocated by the Grenelle : managing non-household packaging, adjusting the source contribution to take better account of environmental issues, the degree to which the cost of collection, sorting and processing is covered by the producers, and the standardization of signage. MEEDDAT has reasserted its support for Extended Producer Responsibility organizations with regard to waste management. It has also stressed the need for better regulation of eco-organizations on the one hand, and the need to harmonize industrial chains on the other. Eco-Emballages’ activities will thus continue to be conducted within a revised framework”. §

JeaN-reNÉ BUiSSON, President of ANIA (2)

“Environmental protection can only be a joint and inclusive process involving both corporate partners and consumers. With regard to the issue of packaging, their responsibility is indeed equally shared, and they must constantly work closely with the stakeholders of the waste chain and local authorities. Only through the mobilization of all can the system succeed. As far as companies are concerned, it is our responsibility to continue the process initiated in the mid-1990s, by further developing eco-design. Our ambition also includes increasingly raising consumers’ awareness, since they are our partners in protecting the environment: by sorting their waste packaging, consumers reduce the ecological impact of the products they buy. All these are projects for which we can count on the advice and support of Eco-Emballages”. §

(1) MEEDDAT : Ministry for Ecology, Energy, Sustainable Development and Planning. (2) ANIA : National Association of Food Industries.

JacqUeS PÉLiSSard,President of the AMF (The French mayors association)

“Achieving the ambitious rate of 75% of recycled household packaging fixed by the Grenelle de l’environnement requires the commitment of all stakeholders in the waste chain. The French household waste management model is an intelligent model, because it is jointly conceived. In the future, the challenge will be to improve still further the results of selective collection and mobilize all parties involved, starting with the public: the entire population must consciously and responsibly commit to sorting its waste. And it is up to us, as representatives of the local authorities, to spur on this essential collective mobilization”. §

12

Cha

p. I


A concerted venture

Formed in 1992, Eco-Emballages is a public limited company under private law in which mass consumer indus-trialists have a 70% stake, recy-

cling channels a 20% stake and distribu-tors a 10% stake. Eco-Emballages is approved by the authorities, within the frame-work of an Approval Commission comprising representatives of its stakeholders (busi-nesses, the four ministries having responsibil-ity for the sector – Ministry for Ecology, Energy, Sustainable Development and Planning, Min-istry of the Interior, Overseas territories and Local Authorities, Ministry for the Economy, Industry and Employment, and the Ministry of Agriculture and Fishing – the local authori-ties, consumer and environmental protection associations, the material channels, the fed-erations of waste and recycling industries). The current approval expires on 31st Decem-ber 2010. In order to assess achievements, prepare for the next approval process and ensure it meets the expectations of all those concerned, Eco-Emballages engaged in wide-ranging consultations with its part-ners in the second half of 2008, and will continue this process in 2009, under the aegis of MEEDDAT.

DECISION-MAKING

AND CONSULTATIVE BODIES

• The Boards of Directors of Ecopar and Eco-Emballages bring together the repre-sentatives of companies, industrialists, dis-tributors and material channels. The Board of Directors of Eco-Emballages also includes a government observer. In April 2009 the Board appointed Éric Brac de La Perrière as the new CEO of Eco-Emballages. Ecopar is the parent company of Eco-Embal-

lages and includes industrialists in the mass consumer sector.

• The Audit Committee, which was set up in March 2009, prepares and clarifies the Board’s work in the following areas: preparation of the company’s financial statements, relations with auditors, the internal control and risk manage-ment system as well as internal auditing.

• The Consultative Approval Commission brings together quarterly all the representa-tives of the scheme’s seven partners. Pub-lic authority representatives also sit on it. Its remit is to control and monitor the projects and activities of approved companies like Eco-Emballages as well as vote on whether or not to renew the authorizations of eco-organizations.

• Steering committees are cooperative bod-ies that prepare action programmes relating to the collection and recycling of household waste packaging. These programmes are then submitted to the Boards of Directors of the channel concerned and of Eco-Embal-lages. Five committees (one per channel) have been set up: aluminium, steel, paper and cardboard, plastic and glass. Each commit-tee comprises six members: three from the channel and three from the packagers.

• The Associative Committee, set up when Eco-Emballages was created, comprises national representatives of consumer and environmental protection associations. Its aim: to keep associations informed about Eco-Emballages’ activities and work with them on common subjects. This consultative body convenes around four times a year.

12


13

Cha

p. I

// BOARD MEMBERS OF ECO-EMBALLAGES

Éric Brac de La Perrière CEO since April 2009 / Éric Guillon Chairman of the Board of Directors.

The Chairman organizes and oversees the work of the Board of Directors and ensures that both the Board of Directors and the General Shareholders’ Meeting run smoothly. The CEO is vested with the necessary powers to act in the company’s name in any circumstances, subject to the limitation of powers decided by the Board of Directors.

13

Name Main office/duties of the director or his representative

Jean-Pierre Bagard Chairman & Managing Director – Coca-Cola Entreprise

Patrick BARTHE Chairman – Union for the development of food-processing industries

Éric BASCLE Executive Director in charge of External Relations – Carrefour

Denis CANS Chairman – Nestlé Waters France

Philippe DELOFFRE Groupe Bel Honorary Chairman – Eco-Emballages

Bertrand DENIS de SENNEVILLE Director of Social Relations– L’Oréal

Interfilière Matériaux represented by Michel GARDES

Chairman & Managing Director

Philippe-Loïc JACOB General Secretary– Groupe Danone

Jean-Baptiste LUCAS Chairman – France Aluminium Recyclage

Georges ORTOLA Chairman of the Board of Directors – Adelphe

Georges ROBIN Chairman – Conseil National de l’Emballage

Claude SENDOWSKI Managing Director – Groupe Sodiaal and Candia

Loïc TASSEL Chairman – Procter & Gamble France

OBSERVERS (2008)

DIRECTORS (2008)

Name

Jean-René BUISSON Chairman – ANIA

Géraud DELORME CEO – Valorplast

Gérard LEBAUDY Chairman – French Biscuit Union

Noël MANGIN General Delegate – Procelpac

Francis PETIT National recycling delegate – Arcelor Mittal Packaging

Francis PETRE Chairman – Fiac

AFED Represented by Michel–Laurent Pinat, General Delegate

FCD (Distribution) Represented by Jérôme Bedier, President

ILEC Represented by Olivier Desforges, President

NET V&S France Represented by Patrice Robichon

State control Represented by Dominique Viel

Cha

p. I

14


To manage household waste pack-aging within the framework of Eco-Emballages’ system, local authorities have two main sources of funding.

– Aid paid by Eco-Emballages, which con-sists of contributions from companies. This is paid to local authorities in proportion to their recycling performance as well as the volume and quality of their sorting. – The proceeds of sales of recycled mate-rials to industrialists and merchants. In 2008, these totalled approximately 130 mil-lion euros (and 20 additional million for energy generation), with an increase, quite marked in recent years, due to the fairly sharp rise in the market prices and tonnages of resold materi-als. The economic crisis and the recent fall in the price of raw materials should bring down proceeds in 2009, but should not adversely affect the system’s finances for all that. These two sources of funding now make

up over 60% of the total cost of managing household waste packaging in France. Ulti-mately, when collection and sorting have improved in efficiency, the target set by the Grenelle de l’environnement is to fund 80% of net optimized costs. This funding system primarily relies on the aids paid by Eco-Emballages and the sale of recycled materials allows local authorities to curb tax increases and keep the public’s contribution from rising.

THE ECONOMIC BALANCE OF ECO-EMBALLAGES

The financial contribution of Eco-Emballages and Adelphe member companies is fixed when the corporate contribution scale is set and will increase by 25% on 1st January 2010.The development of sorting in France in fact increases the amount of financial support paid to local authorities. Since the scale of

A balanced economic model

Cha

p. I

• The Contribution Scale Committee com-prises representatives of companies elected by Eco-Emballages’ shareholders and rep-resentatives of the material channels. Their remit is to prepare a recommendation on corporate contribution scale for companies before submitting it for the approval of the Board of Directors.

• The Materials Information Committees, which are provided for in the approval, bring together the French Mayors Association, approved companies, the Interfilière Matéri-aux and professional federations FNADE

(the French Federation of waste management services) and FEDEREC (French Federation of recycling companies) once a year to assess sales of recycled materials.

• The Consultative Committee comprises representatives of local authorities and works with Eco-Emballages on the basis of the work of the Technical Committee, which comprises technicians from local authorities. Among other things, it gives an opinion on all aspects relating to the scale of downstream aid for local authorities to help them run selec-tive collection and sorting in their areas. §


15

Cha

p. I

enable Eco-Emballages to develop R&D and draft studies, run communication and awareness-raising campaigns and, lastly, cover its operating expenses. Financial aid varies from one local authority to another, being linked to performance. The downstream scale is thus an incentive: the more local authorities sort (in terms of quality and quantity), the more aid they receive. §

contributions has not been reviewed since 2004, when receipts and expenses no longer balanced, the corporate contribution scale and local authorities support scale need to be adjusted. 92% of Eco-Emballages’ expenditure is allocated to aid for local authorities which implement selective collection and sorting of household packaging. The remaining 8%

THe cOrPOraTe cONTriBUTiON ScaLe, a PrOceSS iNVOLViNG aLL STaKeHOLderS

• The next corporate contribution scale will apply

from 1st January 2010. It is fixed within a very strict

framework. The Contribution Scale Committee

proposes a framework for the new scale (with a

breakdown of materials, calculation basis, down-

stream expenditure funding needs for local author-

ities, etc.).

• These proposals are then submitted to the Board

of Directors for approval and presented to the Con-

sultative Approval Commission, which includes the

government authorities, consumer and environ-

mental protection associations, local authorities,

companies, material channels and professional

waste and recycling federations.

• Final stage: the authorization is signed by the four

ministries having responsibility for the sector, and

it is published in the Official Journal. A relatively long

process (the Contribution Scale Committee has

been working towards an increase since 2007, and

this will take effect in 2010), but one that ensures

that the concerns and expectations of all those

involved are taken into consideration.

92 %8 %OPERATING BUDGET

R&D – STUDIES COMMUNICATION

Members’ contributions

// PRICING SCALE (UPSTREAM SCALE)

Quantity of packaging Unit contribution

Sorted quantities Cost per metric ton

// PRICING SCALE (DOWNSTREAM SCALE)

AID PAID TO LOCAL AUTHORITIES FOR COLLECTION, SORTINGAND PUBLIC INFORMATION

16

Experts serving a collective ambition

Proximity, reactivity and efficiency: these are the major ambitions of Eco-Emballages. To achieve them, the eco-organization relies on six

central departments organized in a dense territorial network.

• The Business Services department sup-ports packagers, distributors and importers of packaged goods and industry organiza-tions. It manages contracts, keeps them informed and advises them in their prevention and eco-design processes. It has been run by Martine Varieras since December 2008.

• The Local Authorities Services depart-ment administers contracts and manages relations with the local authorities. It sup-ports them in sustaining and enhancing their collection and sorting systems as well as in providing the public with information on sort-ing. It is run by Vincent Regnouf.

• The Technical and Environment depart-ment guarantees effective recycling of mate-rials and is in charge of long-term technical and environmental planning. It has dealings with the material channels and professional federations, which undertake to ensure the traceability of recycling, essential for the security of the system. It is headed by Carlos de Los Llanos.

Chap.I / Operation, organization and missions

Cha

p. I

• The Communication department runs information and mobilization campaigns aimed at all parties in the waste-sorting and recycling chain, including the general public. It is run by Séverine Lecomte.

• The Human Resources and Training department invests in continuing vocational training for all staff. Training organization since 2003, Eco-Emballages also offers its partners specialized programmes (training courses for local authority technicians, sort-ing ambassadors, associations, etc.).

• The Finance and Management depart-ment ensures compliance with Eco-Embal-lages’ legal, tax, accounting and management rules. It manages members’ contributions and the aids paid to local authorities. §


17

ÎLe-de-fraNceJean devismeRegional Officer

Cha

p. I

3 regional delegations serving companies

A new regional breakdown was introduced in 2008 to provide better coverage of members.

8 regional delegationsserving local authorities

Eco-Emballages can claim strong institutional backing on a local level.

WeSTcatherine Le Pober Regional Officer

WeSTerN ceNTre Pascal Henaux Regional Officer

SOUTH-WeST Laure Poddevin Regional Officer

GreaT WeSTerNPascal LabbéRegional Manager

ÎLe-de-fraNce NOrTH Olivier albessardRegional Manager

GreaT eaSTerNGérard Martinod Regional Manager

NOrTHantoine Jeanneret Regional Officer

eaSTerN ceNTrerichard quemin Regional Officer

SOUTH-eaST Vincent OchierRegional Officer

eaSTchristophe NeumannRegional Officer

18

Cha

p. I


Promoting eco-design for packaging

recYcLiNG adViSOrY SerVice Eco-Emballages, together with recycling

contractors, has set up technical structures

dedicated to analyzing new packaging on

the market, defining fitness for recycling

criteria and advising member companies:

COTREP (plastic packaging recycling technical

commitee), formed in 2001 with the CSEMP

(French plastic and flexible packaging

association, now ELIPSO) and Valorplast,

and CEREC (committee for the assessment

of the fitness for recycling of paper

and cardboard packaging), formed in 2007

with REVIPAC.

mission

s Backing, supporting and furthering the reduction of the ecological footprint

of household packaging through eco-design, promoting the processing

of waste packaging as a source of new raw materials: to realize

this ecologically responsible ambition, Eco-Emballages has set itself

four key missions.

Packaging is the only type of house-hold waste that has dropped in weight over the past ten years, even though consumption has risen by 25%. This achievement

can be explained by the determination of companies which have been rethinking the packaging process to reduce the weight of packaging and make it more recyclable. To encourage companies to act very early on in the industrial process and design packaging that represents the best compromise between practicality, costs and the environment, Eco-Emballages relies on several levers.

EXTENDING THE PROCESS OF REDUCTION AT SOURCE

An incentive-based contribution scale, encouraging companies to reduce the amount and weight of packaging. Tools are put at the disposal of compa-nies to measure the impact of packaging on the environment: technical committees (see box opposite), lifecycle analyses to assess the potential impacts on the environment of a product over its entire lifecycle and, since 2008, a simplified environmental assessment

tool for packaging solutions, BEE (Environ-mental Assessment of Packaging), devised with the help of a panel of industrialists and then presented to the ADEME (French Envi-ronment and Energy Management Agency) and the material channels.

PERSONALIZED SERVICES

Personalized services complete Eco-Embal-lages’ range of support services: SMEs are therefore able to benefit, for a period of


19

144raPid diaGNOSeS cOMPLeTed aT THe eNd Of 2008

Cha

p. I

sixteen weeks, from the intervention of a student engineer from ESIEC (Engineer-ing School in Packaging) at the end of his course, with the prospect of making a saving of between 10 and 20% on packaging, depending on the material. A rapid diagnosis (two days) can be carried out by an approved expert with a view to detecting short-term levers of optimization. In addition, training ses-sions in eco-design are held for packaging engineers working in companies that have already implemented a prevention approach. To supplement this training, companies wish-ing to develop new packaging can get per-sonalized support. Launched early in 2008, this brand new service dubbed “Partnership for the Promotion of Eco-design” offers a collaborative working methodology between company departments concerned by the project. §

PacKaGiNG PerfOrMS THree fUNcTiONS ● Protection: it guarantees the quality and

safety of consumer products. ● Information : it gives consumers useful

information, specific to each brand

(composition, usage instructions, best-before/

use-by date, etc.). ● Adaptation: it evolves along with lifestyles,

with today’s trend of weekly or even monthly

shopping, the needs of single-parent

households and eating/drinking on the move

(single portions).

20


Optimizing selective collection mechanisms

For fifteen or so years, local authori-ties have been investing massively in household waste selective collection and processing systems. As a result,

the cost of all household waste – including packaging – has doubled. The targets set by the Grenelle de l’environnement (75% recy-cling by the end of 2012) encourage local authorities to perform better at a lower or equivalent cost.

A CONSTANT SEARCH

FOR IMPROVEMENT

This principle of optimization, a process of continuous improvement, relates to the performance of the overall local authority waste management system. It aims to adapt the service rendered in all its dimensions – financial, technical and communication – to cater as closely as possible to the needs of the public, for each collection and sort-ing method, and according to the type of housing.

Over 340 local authorities, representing around 50% of the French population, were engaged in this dynamic optimization proc-ess at the end of 2008. Eco-Emballages supports them with financial aids promot-ing optimization, re-use and communication. With the “Optimize more” programme, the eco-organization also offers them a compre-hensive range of advisory and consultancy services, combining technical and com-munication skills: multidisciplinary teams, sharing of good practices, training courses, methodologies. The aim is to support local authorities throughout the optimization process, in four steps: inventory, diagnosis, action plan and implementation and, finally, evaluation.

EXPERTISE SERVING OPTIMIZATIONA prerequisite for optimizing waste man-agement is knowing exactly what residents’ expectations are. With this in mind, Eco-

Cha

p. I

32,000,000iNHaBiTaNTS are aLreadY iNVOLVed iN OPTiMiZaTiON PrOceSSeS, NaMeLY aBOUT 1 OUT Of 2 freNcH PeOPLe. Nearly 340 local authorities, representing 32 million inhabitants, are already engaged in optimization processes, following the audit “Cost assessment support” offered by Eco-Emballages.


21

Cha

p. I

Emballages has implemented two comple-mentary tools: Indicom, which measures the efficiency of a communication campaign in real time, and the opinion barometer, to dis-cover inhabitants’ perception of waste man-agement. Local authorities can then compare their local survey with the national barometer, which is offered every other year. Since 2007, 60 local authorities (representing 11 million inhabitants) have conducted an opinion poll, representing 40,000 people polled. Eco-Emballages is particularly keen on pro-moting the most exemplary practices. A net-work of 13 “showcase sites” shows what works in situ and puts those local authori-ties having progressed the most in house-hold waste management in the spotlight. In the same spirit, EcoTop trophies have, since 2005, been awarded to the three local authorities that have developed the most effi-cient optimization processes. With the targets of the Grenelle de l’environ-nement in mind, Eco-Emballages has more particularly developed expertise in blocks of flats, where there is the highest poten-tial for growth with a view to achieving the 75% recycling target. Sorting in such types of housing is lower than the national average (29.5 kg per capita per annum, against 44.5), whereas nearly 40 million people live in urban or suburban areas, where blocks of flats and housing estates predominate. §

When did you start optimizing collection? In 2003. We have then resolved huge problems in terms of the quality of collection, our refusal rate falling from 50% to about 15%! And we are managing to maintain that level today. But optimization is an ongoing process that we are currently continuing.

What are your current priorities in terms of optimization?We are under great economic pressure with regard to the processing of household refuse. That being the case, our two top priorities are to raise selective collection tonnages still further (to lower incinerated tonnages) and to rationalize collection costs, because that is the only item on which we can make savings.

What have you put in place to cut costs?We totally reorganized our collection rounds in 2007 and 2008, which has had positive economic and social effects (better working conditions for collection personnel) and positive environmental effects (lower mileages, so less pollution, etc.)! In concrete terms, thanks to all these optimization initiatives, our public collection service has been awarded the QualiTri label, and our selective collection has been constantly growing for several years, with 45 kg per capita per annum of recycled packaging in 2007.

PIERRE TOURNIERDirector of waste management at Chambéry Métropole (EcoTop 2005)

A BRIEF TALK WITH…

22

115aUdiTS cONdUcTed SiNce 2006.

Developing the recycling industry


Fifteen years of cooperation with all the industrial players has resulted in a mature and dynamic market for recycled packaging materials, the sales of which totalled 130 mil-

lion euros at the end of 2008. For 2009, the impact of the economic crisis on the recy-cled materials market (a significant drop in receipts from the resale of sorted materials) confirms that the organization of stable and sustainable channels is a key issue in ensuring the future of materials originating from selective collection.

ENSURING THE TRACEABILITY OF SORTED TONNAGESIn order to control the use of these materials and ascertain that they are actually recycled, Eco-Emballages has set up a reporting system that conditions aid granted to local authorities and verifies the accuracy of their statements, namely through regular audits.

WORKING HAND IN HAND WITH INDUSTRIALISTSIn parallel, Eco-Emballages has a techni-cal mission to contribute both to develop-ing channels for recycled materials and improving the fitness for recycling of the packaging itself. The challenge is to ensure that the industrialists and merchants who recover materials from the selective collec-tion and sorting process achieve a regular C

hap.

I


23

Of GLaSS BOTTLeS are Made WiTH recYcLed GLaSS.

55%C

hap.

I

and homogeneous standard matching the changing requirements of all the industries that integrate such materials into the manu-facturing of their products. Investment in new technologies (for instance, grading by colour of glass) broadens the scope of the channels. For plastics, the integration of recycled mate-rials in food packaging is paving the way for continuous recycling.

LOCAL AUTHORITIES ARE FREE TO CHOOSE ONE OF THREE MATERIALS RECOVERY SCHEMES

Guaranteed removal, in accordance with the book of clauses signed with two profes-sional federations - FNADE (the French Fed-eration of Waste Management Services) and FEDEREC (French Federation of recycling companies): operators that are members of these two federations also guarantee recovery and recycling, and negotiate price scales directly with the local authorities. Guaranteed recovery, under the framework agreement between Eco-Emballages and the material channels. This gives local authori-ties the assurance that the materials will be removed and recycled, it also offers the same price nationwide, calculated according to national or international rates. Removal from local authorities outside any framework agreement: the purchase price and the sales clauses (removal guarantee, recycling certificate, term of contract, etc.) are negotiated on a case-by-case basis by the local authority and the purchaser. The stability of the financial aid granted by Eco-Emballages and other approved com-panies, regardless of the removal method, preserves most of the funding and ensures the sustainability of the system.

FOR RESPONSIBLE INNOVATION

The innovation process spurring on the packaging industry adds real value to the packaged product, but can sometimes cause major problems in the technical sort-ing processes. The movement is contradic-tory: for instance, marketing new generation plastic packaging (containing new resins or

mixtures) can increase recycling constraints. Faced with these changes, Eco-Emballages offers industrialists the benefit of its expertise to ensure that they continue to take these issues into account: solutions must be found to ensure that innovation does not create insurmountable restrictions on the recycling of materials. §

24


Cha

p. I

Urging citizens to be eco-responsible and sort

While the French believe in the virtues of recycling (87% state that they regu-larly recycle according to the Cofremca-Sociovison

observatory 2008), there is still a gap between words and deeds. Communicating with the public to change everyday behaviour is thus a key imperative for Eco-Emballages. The aim is threefold: urge regular ‘sorters’ to sort more and better, enable them to be more efficient by giving them all the necessary information, and promote more responsible consumer behaviour.

SUPPORT IN MANY FORMS

In this framework, Eco-Emballages uses a combined national and local awareness-raising mechanism.

– National and multi-media communica-tion systems: members of the public can find answers to their questions by viewing the various information modules at www.ecoemballages.fr. More selective campaigns provide clearer information on the environ-mental impacts of recycling and encourage regular sorters: national poster campaigns, Recyclades®, organized in 2009 during the sustainable development week, messages on packaging (see chapter 2).

– Changing the way people behave presup-poses regular communication aimed directly at inhabitants. Eco-Emballages thus supports the efforts of local authorities by

offering them a range of local communication tools. Here the emphasis is more particularly placed on verbal communication, primarily by sorting ambassadors, whose recruitment and training are financially supported by Eco-Emballages.

– To encourage the French to continue sorting outside their homes, Eco-Emballages has entered into a number of partnerships with private-sector and institutional organizations in the leisure, holi-day and transport sectors: SNCF, UNAT (French union of tour-ism associations), Pavillon Bleu, Vacances Propres, Angoulême International Comics Festival, etc. §

25


Cha

p. I

SOrTiNG aMBaSSadOrS recrUiTed aNd TraiNed WiTH THe BacKiNG Of ecO-eMBaLLaGeS.

2,300Sorting has become an instinctive reflex for many citizens. Can they do even more?Yes, of course they can! Upstream, when a responsible consumer makes a purchase, he plays an important role by supporting products that use fewer resources and, above all, generate less waste once used. Sorting is fine, but throwing away less is even better! Taxpayers complain of the cost of managing waste collection, but they also have a responsibility to actively participate and show that they are capable of producing less waste and being better consumers. Are you optimistic in this respect? Yes, people’s behaviour is changing for the better. Here’s an example: just look at the battery section in a supermarket. Only a few years ago, rechargeable batteries were in a tiny minority. Nowadays they take up a good third of the shelf space, which proves that they have been adopted by consumers! That’s just one of many positive signs. But do consumers really have a choice?Of course they do! At the supermarket, rather than buying fruit packed in an expensive punnet, they can buy it loose, not only to save money but also for the good of the environment. Similarly, it is always cheaper to buy a 1-kg, large, family-sized packet of pasta than four packets of 250 g, which are more expensive and generate more waste!

BRUNO GENTYDirector of FNE (France Nature Environnement)


26

+ 100 % The number of sorters has doubled in 15 years. Sorting and recycling top the list of things 87% of French people are prepared to do for the environment. Nowadays, 59.6 million French citizens can sort their packaging.

Rou

ndup

in p

ictu

res

27


30 million metric tons of household packaging have been recycled since 1993. With nearly 63% of packaging recycled in 2008, France has exceeded the targets of the European directive, which were set at 55% for 2008.

Rou

ndup

in p

ictu

res

28

17 million metric tons of CO2 emissions saved over the past 15 years thanks to the recycling of household packaging, which is approximately equivalent to 800,000 fewer cars on the roads every year.

Rou

ndup

in p

ictu

res

29


28,000 direct jobs created in the selective collection and recycling of household packaging. These jobs are often secure at local level and are taken up by many participants in integration programmes.

Rou

ndup

in p

ictu

res

30

Chap. II

Chap. IICollective and sustainable performance C

hap.

II

Sorting has now become a daily reflex ........................... page 32

The 75% target ........................................................................ page 34

15 years serving the environment ..................................... page 36

Optimizing industrial structures .......................................... page 38

A mature industry enjoying sustainable growth ............ page 40

Recycling more by controlling costs................................. page 42


31

Cha

p. I

I

◗ The French have assimilated sorting as a natural everyday act for fifteen years.

The efforts Eco-Emballages has made in information and communication, together

with its partners, have helped make sorting a daily reflex. But sorting one’s packaging

can and must be made even more efficient in the coming years. By the end of 2012,

75% of all waste should be recycled, in accordance with the target set by the Grenelle

de l’environnement. With this goal in mind, Eco-Emballages and its partners have

strengthened their ties to optimize the efficiency of the system. Recycle more while

abiding by the principles of economic, social and environmental performance -

that is the challenge they must now take up.

Pioneers of sustainable development

Fifteen years ago, few people would have imagined that the green revolu-tion of selective collection would take root so quickly in French society and

the economy. Since then, the widely accepted and recognised facts speak for themselves: the French are sorting their household packaging more and more; the innovative economic model on which the household packaging system is based has proved its relevance and has served as a model for

other European countries; the environment is better preserved year after year thanks to lower CO2 emissions and savings in water, energy and non-renewable resources made possible by the recycling of packaging. Through such achievements, Eco-Embal-lages and its partners have demonstrated their ability to mobilize in order to tackle the sustainable development issues faced by society, the economy and the environment. §

32

Cha

p. II

Sorting has now become a daily reflex

The French are sorting their packaging more and more. This growing sense of responsibility on the part of the population regarding environmen-

tal issues is the fruit of educational work and information provided by Eco-Emballages and its partners.

TEACHING SUSTAINABLE DEVELOPMENT

In 2008, French people on average sorted 44.5 kg of their household waste packaging, compared with a few kilos of glass in 1992. It has just taken fifteen years for this to become

a daily habit for 87% of French consumers, one which was in no way natural to start with (1). The facts speak for themselves: waste packaging is the only environmental issue that has altered the behaviour of the French so radically and quickly. In that respect, sort-ing and selective collection act as daily lessons in sustainable development, the issues of which they helped promote long before society at large took up the cause.

MORE AND BETTER INFORMATION

This achievement is the fruit of information and awareness-raising campaigns run by Eco-Emballages and all its stakeholders. From the time of its inception, the eco-organ-ization rolled out a communication campaign on this cause urging people to sort (how and why) and win over the general public. This is still a social issue today. As for other great causes (smoking, road safety, etc.), which can only progress if people’s behaviour changes, achievements can only be sustained through messages repeated at regular intervals. Local authorities are particularly concerned by this necessary repetition of information, but the commitment of compa-nies in this sense is increasing and they call on Eco-Emballages to inform their customers and raise consumer awareness. The increasing number of recycling channels also means we must ensure that citizens fully comprehend what they are being asked to do. §

(1) Coremca-Sociovision Barometer 2008.

society

100 kgOF PACKAGING ARE SORTED EVERY SECOND TO BE RECYCLED.

Chap. II / Collective and sustainable performance


33

Cha

p. II

15-33 year-oldsThis age group has become the priority communication target for Eco-Emballages, because it sorts less than the average. To reach it, Eco-Emballages mainly uses the Web, and in December 2008, it put online an interactive area that is both recreational and very contemporary in design. Concrete and practical information on sorting can easily be found. The site also offers Internet users interactive modules they can forward to their friends: an eco-calculator, a guide to sorting, the nearest waste reception centre, etc. Eco-Emballages also intends to develop a community of sorters through social networks, which are opinion leaders on the Web.

SORTING CAMPAIGNEco-Emballages and the AMF (The French mayors association) renewed their national poster campaign in 2008. Its slogan: “Trier, c’est préserver” (Sorting is preserving). To ensure maximum impact, in particular with urban populations, the campaign covered three complementary and very crowded zones: towns with populations of over 50,000 inhabitants, stations and the metro.

PACKAGING AS AN AWARENESS-RAISING MEDIUM

In conjunction with the marketing teams of member companies, Eco-Emballages increased the number of “on-pack” awareness-raising messages in 2008. The aim was to communicate directly with consumers, explain the ultimate aim of sorting and recycling as well as urge them to sort better. For instance, a partnership with the Chambre syndicale des eaux minérales (Federation of mineral water producers) enabled a powerful message to be printed on all plastic bottles in circulation in France, urging users to sort their waste.

34


The 75% target: everyone mobilized

Nowadays, when virtually all local authorities have implemented selec-tive collection, the target of recycling 75% of waste by 2012 requires us

to take this awareness-raising task even fur-ther, in order to urge sorters to sort better, and above all, convince those who do not sort their waste to do so. The latter are primarily in the 15-33 age bracket and live on housing estates in urban areas.

NEW INTERMEDIARIES, NEW NETWORKS

For group housing, and in close coopera-tion with the local authorities, Eco-Emballages issues targeted information (posters, stickers, guides, etc.), mobilizes new intermediaries (caretakers, social housing organizations, etc.) or joins existing programmes (Neighbours’ day, Solidarity amongst neighbours, etc.) to pass on the message in these blocks of flats. Messages aimed at the 15-33 age bracket are concentrated on the Web, the preferred medium for this age group, which provides both recreational and precise information thanks to interactivity (see Eco-Emballages’ public site, which went online in 2008) and addresses the increasingly marked preference of public opin-ion for recommendations issued via networks

rather than by an institution. With that in mind, for the 2009 edition of Recyclades® (a campaign run every other year by Eco-Emballages and the local authorities), the eco-organization has embarked on a new mode of communication. With the aid of social networks (Facebook, MySpace, etc.) and in over 300 local authorities, waste sorters of all ages are being mobilized en masse to recruit new ones. They thereby dem-onstrate, in their own way, how a large propor-tion of the population has adopted an individual habit, above all collective in the space of less than two decades. §

Cha

p. II

EDUCATING THE YOUNG TO GET THEM MORE INVOLVEDBecause raising awareness among children

with regard to waste sorting, as soon as their

personalities start to form, encourages it to take

root in a sustainable manner, Eco-Emballages

educates younger citizens in eco-responsibility,

a top priority of its mission. Training courses for

teachers, the creation of teaching aids

(Éco-Junior magazine, which 5,000 classes

subscribe to, Rouletaboule programme, etc.),

partnerships with environmental education

structures… these are just some of the initiatives

that, in addition to sorting, help educate

the young in sustainable development, as is

shown by the Youth Eco-Parliament®,

a programme founded by Eco-Emballages along

with the École et Nature network. This European

scheme, which was created in 2004 and rolled

out in six French regions, allows young people

to have their say and make environment-related

proposals. Its success (10,000 young people

involved pratices in Europe, 3,500 in France)

shows the leading role they want to play in this

matter, and the opportunity their commitment

represents to enduringly alter people’s behaviour.

76%OF FRENCH PEOPLE (1) ARE CONVINCED THAT WASTE SORTING HAS A POSITIVE

IMPACT ON THE ENVIRONMENT.

society

(1) Poll published by Eco-Emballages on 21/02/2008 on “The issue of waste in the 2008 municipal elections”.

Since when have you been raising awareness among your pupils regarding environmental issues, and why? I started off as a specialized teacher in environmental affairs before passing the school teacher entrance exam in 1995. I am very concerned about these issues, and I immediately wanted to make my pupils aware of them. So we play an active part in the Éco-École (Eco-Schools) project: we worked on water issues for a whole year, and more recently on waste and consumption, sorting and the reduction of packaging at source. This year we are concentrating on biodiversity.

Are your pupils concerned about environmental questions? Of course they are, and they are very enthusiastic and keen when we ask them to work on environmental issues. Thanks to them, our school has become a real teaching aid in environmental matters with a garden and a pond: here, we sort our paper, we grow fruit in an orchard... All this is tangible, and they like it!

And this isn’t detrimental to traditional school subjects?Not at all. Believe me, all these projects help my pupils find more meaning in their learning, and motive them more, whether in Maths or French. It’s just another, more interactive, teaching method.

PHILIPPE RABATELHeadmaster of the Carbes primary school (Tarn)

A BRIEF TALK WITH …


35

Cha

p. II

HERE, I SORT MY WASTE AS WELLIn 2008, under the slogan “Ici aussi, je trie” (Here, I sort my waste as well), Eco-Emballages pursued its initiatives aimed at promoting sorting outside the home. Among other things, Eco-Emballages organized selective collection systems at the summer festivals (Eurockéennes in Belfort, Brest 2008, Musilac festival, etc.) and in holiday resorts (camp sites, beaches, marinas, etc.).

electedrepresentativesinformedIn 2008, following the municipal elections, Eco-Emballages provided information to over one thousand newly elected representatives in charge of waste collection. Eco-Emballages also trains sorting ambassadors, as well as environmental protection and education associations to enable them to disseminate this knowledge, good practices and information relating to sorting and recycling in the territories.

Several thousand young Europeans and Canadians attended the 3rd edition of the Youth Eco-Parliament® in Prague in May 2008. The principle: during the school year preceding the congress, young people work together, on the basis of their local environmental concerns, to draw up a collective text intended for personalities actively involved in the environment. In 2008, these young eco-citizens drafted a report on the environment entitled “Let’s change our daily habits!”. Boosted by its international success, Eco-Emballages has deployed this scheme at national level, in partnership with the École et Nature network and teachers, with an initial

successful test in the PACA region (Provence-Alpes-Côtes d’Azur) in 2007. In the 2008-2009 school year, 3,000 young people from Ardèche, Béarn, Île-de-France, Somme and the PACA region engaged in a joint project to draft a communication plan for the environment, including an inventory of local issues and proposals to raise awareness among the residents in their region.

THE YOUTH ECO-PARLIAMENT® IS BEING DEPLOYED IN THE REGIONS

1,000

36

15 years serving the environment

CO2, water, preserving non-renewable resources..., the environmental indicators of the French selective collection and recycling system are all green.

A CONSTANTLY IMPROVING PROCESS

Since the founding decree for the selective collection process coordinated by Eco-Emballages, it has constantly performed better and better, both upstream and down-stream. Through their eco-design efforts, industrialists cut the weight of their packag-ing by 200,000 tons between 1994 and 2006, while over the same period, consumption rose by 25%. For their part, consumers, for whom sorting was an unknown habit only fifteen years ago, have sorted their waste more and more each year, reaching an aver-age total of 44.5 kg per capita per annum in 2008. The recycling rate has also followed the same trend thanks to the introduction of collection and sorting systems by local authorities, the increasing professionaliza-tion of material channels and the determi-nation of companies: since 1994, the rate of recycled packaging (63% in 2008) has increased virtually threefold while non-recovered packaging has decreased in the same proportion(1).

THE REALLY GREEN “GREEN DOT”

The result of this collective performance is very positive in environmental terms, with most packaging now engaged in a circular economy and being reused. Thanks to the

well-known Green Dot, there are 1.8 mil-lion fewer tons of CO2 emissions every year, the equivalent of 800,000 fewer cars on the roads in one year. This result includes all the impacts of the activity: emissions produced by collection and sorting (lorries, waste treatment centres), those avoided through the use of secondary raw materials substituted for new materials, and emissions avoided due to smaller quantities of waste disposed of by incineration or in landfills.

NUMEROUS ENVIRONMENTAL BENEFITS

In addition to savings in CO2 emissions, which help combat global warming, there are many other environmental benefits. By sav-ing over 30 million tons of raw materials since 1993, the system has generated water sav-ings (25 million m3, or the equivalent of the annual consumption of 469,000 inhabitants) and preserved non-renewable natural resources (oil, gas, uranium, iron, bauxite, etc.). Lastly, it has helped reduce air acidi-fication and water pollution. §

(1) Estem studies 1994, 1997, 2000, 2003 and 2006 con-ducted on behalf of ADEME and Eco-Emballages.

Cha

p. II

environ

ment


BT = FE/N x [2/3 x (1+R) + 1/3 x Cr/Cu] x distance

Extraction

matières 1èresTransport fabrication/

conditionnementTransport Distribution/

consommationFin de vie/

gestion des déchets37


A PRIORITY: AID FOR ECO-DESIGNIn 2008, Eco-Emballages created a new service aimed at companies: PPE, Partnership for the Promotion of Eco-design.

With this service, Eco-Emballages offers interested companies the intervention of an expert for one day. The expert initiates an innovation project relating to eco-design, which will then be implemented by a multidisciplinary team (marketing, purchasing, packaging, production etc.) that has been formed for the purpose in the company. 13 PPE projects were completed in 2008. The only condition is that at least one company employee must have already attended an Eco-Emballages training course in eco-design. A hundred or so people benefited from this training programme in 2008, and 10 sessions for groups of 15 are planned in 2009.

Furthermore, other eco-design aid services were expanded in 2008, such as rapid diagnosis, which is now open to large groups. The concept: Eco-Emballages sends a packaging expert to a company for a maximum of two days to draw up a comprehensive inventory of the packaging it uses, and then submit recommendations. 28 SMEs and 29 large corporations were thus diagnosed in 2008.

Lastly, the partnerships with ESIEC (engineering school in packaging), continue: ten or so trainees subsidized by Eco-Emballages were put at the disposal of SMEs to help them work on an eco-design project in 2008.

Cha

p. II

A NEW TOOL FOR MEASURING THE ENVIRONMENTAL IMPACT OF PACKAGING

In 2008, Eco-Emballages launched a new tool for companies called BEE (Environmental Assessment of Packaging). This is a simplified lifecycle analysis tool intended to be used as part of an eco-design process (downloadable from Eco-Emballages’ website). It compares the environmental impact of various types of packaging, on the basis of three key criteria: CO

2 emissions, water consumption and the

production of waste. Three hundred companies have already used this tool.

37

38

Cha

p. II

Optimizing industrial structures

This level of environmental perform-ance can only improve in coming years, due to the rising rate of recy-cling, decided upon at the Grenelle de l’environnement. To achieve the

target of 75% recycled household packaging, the downstream part of the system, initially devoted to improving the quality of the materi-als originating from selective collection, must concentrate its efforts in several directions.

IMPROVE FITNESS FOR RECYCLING

Firstly, this requires industrial players to be able to absorb growing quantities of recy-cled materials. For packaging industrialists, this involves investing in new plant and suita-ble technologies in order, for instance, to raise the proportion of cullet (1) in glass bottles. Then, thanks to the efforts in packaging eco-design of member companies, for which Eco-Emballages provides advice and support, the packaging itself must be made easier to recycle. To this very end, the corporate contribution scale will be increased from 2011 in the next upstream contribution scale with a view to penalizing “disruptive” packaging (2).

INCREASINGLY MECHANIZED SORTING

Further upstream in the process, advances will be achieved by continuing to modern-ize waste treatment centres, a process that began five years ago. Their increasing mechanization will increase their capacity to absorb the growing tonnage of waste that consumers will supply through their involve-ment in sorting. §

(1) Used glass debris added to raw materials.(2) Packaging whose fitness for recycling is curbed or made more expensive by the presence of several materials or elements that disrupt the recycling flow.

SHARED EXPERTISE In order to offer guidance to all those involved

in the process and validate its environmental

benefits, Eco-Emballages was a pioneer

in developing lifecycle analysis, which is

now widely used in many sectors. Fifteen

years ago, the eco-organization started

conducting a number of studies aimed at

determining the environmental impact (CO2

emission, energy, water, etc.) of packaging

“from the cradle to the grave”, of recycling

or sorting methods. This capital of scientific

knowledge accumulated over the years

is now put at the disposal of member

companies in the form of a simplified

computer tool (BEE) that allows them to

estimate the environmental performance

of their packaging.


environ

ment

FROM BOTTLE TO BOTTLEIn late 2007, the European Commission specified the technical approval criteria to be met to produce recycled plastic used in primary food packaging. This decision opened up new prospects for plastic recycling, that of PET in particular, which predominates in drinks packaging. The production capacity of bottles containing recycled PET should increase significantly in the coming months, since several new plants will be going into production in 2009.

Recent changes in legislation have removed the ban on using recycled plastic in the manufacture of food packaging. Are you satisfied with this decision? At Danone, we were eagerly awaiting the lifting of the remaining regulations in order to use recycled PET in our water bottles (Évian and Volvic). A few figures will make things clearer: one 1.5-litre bottle of Évian water equals 121 g/l of CO2 emissions(1) (including 91 g for the packaging!). We had already substantially reduced the weight of the bottles; recycled PET thus becomes a new and powerful lever of optimization.

What does it let you optimize? By initially integrating 25% of recycled PET into our bottles, we will cut packaging-related CO2 emissions by nearly 20% (about 15 g/l).

Why only 25% of recycled material? Simply because the availability of the material is still limited. For the circle to be entirely virtuous, the rate of bottle recycling must be increased in parallel: currently only about 50% of them are sorted for recycling purposes; this would have to be raised rapidly to 75%.

(1) The estimated carbon footprint of a 1.5-litre bottle of Évian in PET sold in France.

MICHAëL AïDANMarketing Vice-President, Danone Eaux France


39


Cha

p. II

French waste treatment centres to date (out of a total of 266) are currently equipped with e-tem, the exclusive operational tool developed by Eco-Emballages. The fruit of close collaboration with FNADE (the French Federation of Waste Management Services), this

software application apportions

the output of a sorting centre

fairly among its clients, thereby

guaranteeing better traceability.

It is based on the results of

the AFNOR (French association

for standardization) standard,

which is applied to the materials

inflow in sorting centres.

This operating tool offers time

savings and simplifies quarterly

reporting.

110

40

Cha

p. II

A mature industry enjoying sustainable growth

By offering the necessary economic conditions for the financial equi-librium of selective collection, the founding decree of 1st April 1992 also created a new modern and

efficient sector of activity, which will continue to expand in coming years thanks to the col-lective mobilization of all those involved in it.

AN INNOVATIVE ECONOMIC MODEL

Fifteen years of selective collection of house-hold packaging have created a sustainable new industry. From the collection of waste to its resale to industrialists, including waste treatment centres and the regeneration of packaging, it has also forged a whole system based on an innovative model of public/private partnership between companies and local authorities. To bear out the legiti-macy of this model, the system’s revenue has constantly grown year after year, from con-tributions of some 47,000 Eco-Emballages (1) and Adelphe member companies. In 2008, this “revenue” totalled 423 million euros.

DECISIVE FINANCIAL SUPPORT

Another element to assess the economic performance of the system: 92% of expendi-ture is allocated to local authorities. In 2008, local authorities received 130 million euros of receipts from the resale of materials, against 50 million in 2004. These two sources of fund-ing have enabled local authorities to finance 60% of the total cost of household packag-ing waste management. And even though the economic crisis has caused a sharp drop in

prices and in demand, the commitment of all those involved has ensured effective recycling of materials.

15 YEARS OF MOBILIZATION

These achievements were made possible through the work done by Eco-Emballages and other parties to the system over the last fifteen years with a view to preserving its eco-nomic balance while absorbing a growing tonnage of packaging: periodically adjust-ing upstream and downstream price scales (2), optimizing the cost of collection, professional-izing waste treatment centres, entering into agreements with industrial chains to increase the use of recycled materials, etc. §

(1) Companies who market packaged consumer goods pay an average contribution of 0.6 euro-cents per item of packaging. 2) The upstream and downstream price scales respec-tively fix the level of company contribution and the amount of financial aid for local authorities.

econ

omy



41

Cha

p. II

Optimiser +, a new serviceIn 2008, to better help local authorities identify and implement

means of optimization, Eco-Emballages offered them

the Optimiser + (Optimize more) programme, a service comprising

a comprehensive range of solutions and tools allowing them to

optimize their waste management. Optimiser + more particularly

includes a training course called “Successful optimization” aimed at

local authority engineers (to date, 151 engineers and technicians

representing 123 local authorities have been trained).

Optimiser + also offers local authorities support in eight stages,

throughout their optimization process (from the initial inventory

to the implementation plan and evaluation).

Lastly, to complete the scheme, Eco-Emballages plans to set up

a national observatory of optimization, which will bring together

all the available data in this respect and ensure it is regularly

updated. This will allow local authorities to measure their

performance against others, and compare solutions put in place

by local authorities of similar size, or even exchange views

and capitalize on experiences.

336local authorities (representing over half of the French population) have embarked on a cost analysis scheme with Eco-Emballages (via the SCC study*). Eco-Emballages supports and financially aids local authorities wishing to have a clearer idea of their waste management costs, a key milestone before moving on to the actual optimization stage. On the basis of this detailed analysis of expenditure and receipts, local authorities can identify items that could generate savings while ensuring optimal quality of service. The next logical step would be for local authorities to request an analysis to pinpoint concrete levers for optimization, still with the support and financial backing of Eco-Emballages. To date, 209 local authorities have embarked on this process. *Support for cost analysis.

42

Recycling more by controlling costs

Currently this collective and united effort must be increased tenfold to achieve the target of 75% of recycled waste in

2012 set by the Grenelle law. The stakes are twofold: bettering performance by 25% by optimizing the whole recy-cling chain, and controlling the cost of packaging management. Because, at a constant level of service with regard to sort-ing and collection, the 75% recycled packag-ing target would cost 40% more in 2012 than it does today. Hence a key objective: optimize costs by promoting the best collection, sort-ing and recycling practices.

WASTE SORTERS CAN DO EVEN BETTER

To achieve that, Eco-Emballages and its partners are intent on finding new ways of improving performance at all stages of the system. Upstream, it is first of all a matter of increasing the volume of sorted waste, in particular in group housing in large cities, where one third of the French population live and where the sorting rate is lower than the national average. Other ways of helping con-sumers sort more and better are also being studied, such as nationwide harmonization of rules, colours and other sorting instructions, or incentive-based pricing – laid down in the Grenelle law–, which aims to give sorters a sense of responsibility by rewarding virtuous behaviour according to the principle “the more I sort my waste, the less I pay”.

COLLECTION AND SORTING SYSTEMS

CAN BE OPTIMIZED

Collection is another essential step in the cost-control process. As shown by many audits and consultancy missions conducted

by Eco-Emballages with local authorities, the method of collection (containers, frequency, etc.) has a great influence on its price. Lastly, optimization also involves the rationalization and automation of waste treatment centres, which is essential in making them more pro-ductive. These are just some of the avenues for progress that will help the most fervent advo-cates demonstrate, in the near future, that the environment is indeed a lever of sustain-able growth. Today, France still has 266 waste treatment centres, many of which serve fewer than 100,000 inhabitants, whereas in Belgium or Germany, most centres cover a population five to ten times bigger. §

Cha

p. II

A JOB-CREATING SECTOR In fifteen years, the household packaging

selective collection system has created

28,000 direct jobs - collection and sorting

personnel, technicians, office staff, sorting

ambassadors and recycling industry

personnel - all of which have the advantage

of being non-relocatable, of contributing to

the economic development of the regions,

and a large number of which also enduringly

integrate under-qualified or unqualified people

into working life. This virtuous process

should continue in the coming years.

More waste collected, sorted and recycled

means that more manpower to run the system

is required; an estimated 7,000 new jobs

are forecast for the next five years.


econ

omy


43

Cha

p. II

SORTING QUALITY REWARDEDForty-three local authorities were awarded the QualiTri (or QualiPlus) label in 2008. This distinction, which was put in place by Eco-Emballages and ADEME in 2007, aims to promote the quality of collection services. QualiTri’s selection criteria are grouped into four areas: service, the economy, the environment and social affairs; the QualiPlus criteria, which are yet more demanding, include the CO2 emission reduction policy and the use of recycled materials for containers. These labels are awarded for three years.

130million euros were brought in

by the local authorities from

the resale of recycled

materials (to which 20 million

euros from energy generation

should be added).

This amount has continued

to rise these last few years,

thanks to the rise in raw

materials and in resold

tonnages. The current

economic crisis should,

however, see this trend level

off, since raw materials have

been particularly affected.

Waste treatment centres are the subject of a policy of optimization. What impact has this policy had on their employees? Between 1994 and 2008, we created 10 jobs a year, mainly "sorter" jobs. By developing vocational training, these people have gradually acquired skills in the quality function and have become veritable “recycling operators”.

Will this trend continue? Absolutely. We are all striving to professionalize the sector and to move sorters on to the more qualified position of quality controller. That is why we already have a training plan to support our employees through this professional change.

Broadly speaking, have working conditions improved in the last few years? They have indeed. The centres are now air-conditioned, less and less noisy and dusty, and there are no night shifts, barring absolute necessity. So to sum up, our workers are increasingly highly qualified and work in better conditions.

YANNICK GAUMEManager of Écotri


EMS: 7 ambitious goals for 2011

By embarking on an Environmental Management System (EMS), Eco-Emballages is pursuing a common goal shared with all its personnel:

reducing the impact of its activities on the environment. To that end, our eco-organization, which obtained ISO 14 001 certification in 2003, has formulated a three-year environmental pro-gramme with seven very concrete commit-ments, based on the goals of environmental standard ISO 14 001. For its 2009-2011 plan, Eco-Emballages thus undertakes to:

• Reduce its consumption: one of the sig-nificant actions is the target of reducing the consumption of office paper by 12% by 2011, by urging staff only to print what they really need.

• Reduce the environmental impact of its staff’s trips and commuting: this means we must all cut our CO2 emissions by 10% by 2011. How? By encouraging car pooling and teleconferencing.

• Improve the sorting of waste: for instance, by the end of 2009, we will have installed col-lection points for hazardous waste (spent bat-teries, etc.) in all Eco-Emballages’ facilities.

• Improve identification of significant envi-ronmental aspects: by September 2009, the nine environmental analyses will have been updated.

• Improve compliance with regulations and other requirements: among other things, this means assessing our compliance with appli-cable requirements and updating our frame of reference by the end of 2009.

• Improve the performance measurement of our Environmental Management Sys-tem (EMS): by making our quantitative indi-cators more accurate and adding qualitative indicators by the end of 2009.

• Improve appropriation of the EMS and its issues, and stepping up external com-munication on the ISO 14 001 process: for the former point, a staff awareness-raising module will be worked out by mid-2010.

Eco-Emballages’ daily acts are thus part of a concrete process of sustainable devel-opment. And the same goes for the eco-organization’s communication campaigns. A Charter of responsible communication has been drafted, requiring Eco-Emballages staff to undertake to: – encourage all members of the public it deals with to adopt responsible behaviour; – honestly use the confidential data on end customers in marketing and sales; – engage in an internal process of having all communication material (for internal use and intended for stakeholders) approved before it is circulated; – integrate environmental impact amongst the criteria used for selecting communica-tion media. In this respect, the bus shelter poster campaign “Sorting is preserving” was printed on recycled paper. §

44

Environmental Management System

44

EMS

Key figures 2008All figures are consolidated and concern Eco-Emballages and Adelphe.

182 staff.

• Sources of funds

423 million euros.

47,000 companies under 22,487 contracts

and pay an average of 0.6 euro-cents per item

of packaging.

• Expenditure

92.1% of expenditure of Eco-Emballages and

Adelphe is allocated to local authorities.

• Recycling performance

1,240 local authorities, that is to say

98% of French municipalities, are under

contract with Eco-Emballages.

The bed of contributing household packaging

amounts to 4.7 million tons.

Recycling rate: 62.6% of the bed i.e.

2.9 million tons.

• Recycling performances per type of material(as a % of the contributing bed).

Steel: 110% – Aluminium: 31% – Glass: 79% –

Paper/cardboard: 54% – Plastic: 21%

• Waste sorters ( Selective collection performance excluding newspapers

and magazines. Sources: 2007 price performances).

59.6 million French people can sort their packaging.

On average, the French sort 44.5 kg of household waste packaging per annum.

Their performance varies according to the type of housing: • 58.8 kg per capita per annum in rural areas; • 55.2 kg per capita per annum in semi-rural

areas;• 29.5 kg per capita per annum in urban areas;• 44.3 kg per capita per annum in suburban

areas.

• Selective collection ( Figures at the end of 2008).

43.5 million inhabitants benefit from door-to-door selective collection (by the council).

Number of recycling banks:• approximately 265,000 recycling banks

in France; • including approximately 134,000 containers

for glass

Average rate of refusal: 23%.

336 local authorities involved in an optimization process with approved companies, covering 32.2 million inhabitants.

45


45

Key

figu

res

Financial summary

46

Fina

ncia

l sum

mar

y

Consolidated balance sheet and income statement ACTIVITY IN 2008

The number of contracts both approved companies (Eco-Emballages and Adelphe) had with local authorities continued to fall (1,240 at the end of 2008 against 1,365 at the end of 2007), since many interdistrict councils decided to group together under the new ‘D’ pricing scale; the population under contract remained stable at 59.6 million and the sorting population rose from 59.4 to 59.6 million inhabitants (+0.3%). Currently, only 487 municipalities (representing 0.5 million inhabitants) are not under contract with either approved company. Net consolidated book income excluding minority interests stood at €32,674 after allowances for and reversals of provisions for future expenses, a book profit generated by consolidation rules governing deferred tax, whereas the book results of both approved companies were zero. The Group share of net position thus stood at 2.5 million euros at the end of 2008.

REVENUE AND EXPENSES Contributions received in 2008 from producers, importers and distributors totalled €423.4 million for 22,487 members against €412.3 million in 2007. As for expenses, at the end of 2008 Eco-Emballages and Adelphe had commitments to 1,240 interdistrict councils (representing approximately 36,200 municipalities) covering 59.6 million inhabitants currently served by the multiple materials selective collection system (against 59.4 million end 2007). Over 3.7 million metric tons were recov-ered, including 3 million recycled metric tons. This corresponds to a recycling rate of 62.8% and a reuse rate of 79.6% of the total contributing bed of 4.7 million metric tons. Operating expenses booked in 2008 totalled €458.4 million, against €459.5 million in 2007, down 0.2%. They break down into the following main categories.

€411 million for selective collection (92% of total expendi-●

ture), including nearly €383.3 million for local authorities against €381.4 million in 2007 (up 0.5%), including €5.5 million for the national communication campaign with the AMF.

€2.5 million for research, development and studies, sharply ●

down on the previous financial period (€3.4 million in 2007).€6.6 million for communication, up on 2007 (€5.9 million), ●

reflecting 2008 events such as the awareness-raising campaign “Here, I sort my waste as well”, the opening of a public area on Eco-Emballages’ website, and environmental education initiatives.

€26.1 million for running expenses, accounting for 5.9% of ●

total expenditure (against 5.6% in 2007). Lastly, non-operat-ing income/expenses net of tax in 2008 showed a loss of €43.2 million, against a gain of €15.0 million in 2007. After a €66.3 million net reversal of provisions for expenses (made possible under the new approval framework and in accordance with the company’s articles of association) and the recognition of deferred tax on underlying gain, the period showed a net consolidated income of €32,674. It should be noted that, in accordance with the terms of approval, the book results of both approved companies (Eco-Emballages and Adelphe) were also equal to zero.

GROUP FORECASTS FOR 2009

Financial year 2009 will see the approved companies serve 59.6 million inhabitants. 3.9 of the 4.7 million metric tons of household packaging contributed to Eco-Emballages should be recycled in the period. Cash flow forecasts for Eco-Emballages show that the net liquid funds should remain positive throughout 2009, without even counting the amounts frozen in Primores funds and fixed-term deposits, which are available in the medium term (2010 or 2011). On the basis of cash flow forecasts submitted to the Board of Directors’ meeting of 30th January 2009, net liquid funds should stand at a minimum of €24.8 million and could be as much as €53.6 million if one includes the fixed-term investments and income from the liquid part of funds still invested with Primores. The Consultative Approval Commission meeting of 16th December 2008 also ratified the 25% increase in the cor-porate contribution scale at 1st January 2010, already announced at the briefing following the General Meeting of 10th June 2008 and unanimously voted by the Board of Direc-tors’ meeting of 1st December 2008. Although the scale has not been revised upwards since 2004, sorting and recycling performance has improved dramatically, attaining a recycling rate of 63% at the end of 2008. 2009 will also be characterized by stronger company governance, in particular by adopting secure management procedures, and through the work of the Audit Committee, composed of directors and required to convene once a quarter. Its remit is to examine the company’s annual financial statements and notes thereto, and ensure that internal control procedures are followed.


47

Fina

ncia

l sum

mar

y

Balance sheet

LiabiLities●2008

(at 31/12/2008)2007

(at 31/12/2007)

In euros

Capital 1,752,600 1,752,600

Unavailable reserves 44,679 44,529

Reserves and consolidated income (loss) 737,329 704,804

EqUITy 2,534,608 2,501,933

Non-group interests 547,311 547,627

Minority interests 547,311 547,627

CONTINGENCy AND LOSS PROVISIONS 21,585,417 88,319,175

Bank borrowings 80,448,787 121,414,044

Trade notes and accounts payable 239,663,224 265,164 101

Taxes payable, liabilities to personnel

28,590,954 27,922,067

Other liabilities 8,345 651 3,077,049

Unearned income 460

LIABILITIES 357,049,076 417,577,260

GRAND TOTAL 381,716,412 508,945,996

assets●

2008 (at 31/12/2008)

2007 (at 31/12/2007)

In euros GrossAmortization and

provisions Net Net

Goodwill 3,731,161 3,731,161 0 0

Intangible assets 6,170,313 4,476,250 1,694,064 2,992,366

Tangible assets 5,301,600 3,350,980 1,950,620 2,228,022

Long-term investments 346,595 0 346,595 328,423

TOTAL LONG-TERM ASSETS 15,549,669 11,558,390 3,991,279 5,548,810

Advances and prepaids 226,850 0 226,850 231,968

Member receivables 148,088,886 7,388,631 140,700,255 140,794,471

Other receivables 10,056,173 3,890,986 6,165,187 10,349,448

Short-term investments 252,157,998 50,882,255 201,275,743 303,714,159

Cash 28,763,661 0 28,763,661 47,896,201

Prepaid expenses 593,438 0 593,438 410,939

TOTAL CIRCULATING ASSETS 439,887,005 62,161,872 377,725,133 503,397,185

GRAND 455,436,674 73,720,262 381,716,412 508,945,996

48

Income statement 2008 2007

In Euros (at 31/12/08) (at 31/12/07)

Net sales 423,781,041 412,510,283

Reversal of amortization and provisions 77,369,501 28,414,738

Reversal of provisions for future expenses 0 0

Operating subsidies 21,530 58,349

Other income 477,805 888,016

TOTAL OPERATING INCOME 501,649,877 441,871,385

Raw materials and supplies bought 401,081,263 399,757,140

Other purchases and external charges 29,828,228 31,060,169

Taxes 1,367,160 1,627 622

Wages and salaries 8,372,363 8,143,067

Social security charges 4,553,317 4,859,662

Depreciation allowances and provisions 12,926,329 12,924,517

Other expenses 261,934 1,133,657

TOTAL OPERATING EXPENSES 458,390,594 459,505,834

OPERATING INCOME (LOSS) 43,259,283 -17,634,448

Financial income from investments 6,134,843 17,757,457

Other interest income 756,451 327,409

Excess depreciation and expense transfers 2,345,651 0

Foreign exchange gains 75 112

TOTAL FINANCIAL INCOME 9,237,020 18,084,978

Amortization and financial provisions 50,882,255 1,649,904

Losses on sales of short-term investments 1,548,019 1,302,704

Interest expenses 75,773 68,819

Foreign exchange losses 254 107

TOTAL FINANCIAL CHARGES 52,506,301 3,021,535

FINANCIAL INCOME (LOSS) -43,269,280 15,063,443

OPERATING RESULTS BEFORE TAX -9,998 -2,571,005

Extraordinary gains in operations 160,085 10,260

Proceeds of assets sold and other capital gains 721 4,762

Excess provisions charged and expense transfers 0 54,069

TOTAL EXTRAORDINARy INCOME 160,806 69,091

Extraordinary losses in operations 104,963 142,830

Book value of assets sold and other capital losses 2,262 3,172

Unusual depreciation and provisions 10,544 50,602

TOTAL EXTRAORDINARy LOSSES 117,769 196,603

EXTRAORDINARy ITEMS 43,037 -127,513

Income tax expense 365 19,167

NET INCOME (LOSS) OF CONSOLIDATED COMPANIES 32,674 -2,717,684

Amortization of goodwill

NET INCOME (LOSS) OF CONSOLIDATED GROUP 32,674 -2,717,684

Minority interests 0 0

NET INCOME (LOSS) Group share 32,674 -2,717,684

48

Fina

ncia

l sum

mar

y

Designed and produced by – June 2009 – Photo credits: Eco-Emballages photo library/ P. Desgrieux, Alexis Cordesse, Florence Daudé (AMF), Frans Lemmens, Ludovic Parisot, Bruno Vautrelle, age fotostock, Fotolia et Getty. Printed on recycled paper.

Documents

annual report. 08 - Eco-Emballages · Chap. II Collective and ... Since December 2008, an audit has been con - ... 8 Chap. I Chap. I / Operation, organization and missions F or the