Preferred Packaging Program Pathway to Circularity by Blackwoods

Preferred Packaging Program Pathway to Circularity

CONTENTS Preferred Packaging Program – Overview

Preferred Packaging pathway to circularity

The Packaging data tool – What it is I What it is not

Packaging Data tool “What each field means” EXPLAINED

Packaging Data tool – A step by step guide on filling out the template

Decoding Definitions

Understanding Plastic Identification codes

Sources of further information

PREFERRED PACKAGING PROGRAM

ABOUT At Blackwoods, we are taking a progressive approach to the materials we use in our packaging, continually evaluating the materials we source to reflect our commitment to recycling, reducing waste generation and our use of toxic chemicals in our packaging materials.

HOW By moving away from using plastic and packaging that cannot be continually used, reused, recycled and reprocessed as part of a circular economy. We are continually focused on eliminating plastic where possible and encouraging our supplier partners to design, source materials in line with Blackwoods Preferred Packaging guidelines.

WHY By reducing waste generated with packaging it helps address various environmental, economic and social considerations. To help ensure we comply with regulations and conserve our virgin resources like timber and petroleum-based plastics. 3

Preferred Packaging – Pathway to Circularity RED – Do not use. These items are banned or being phased out by 2025. AMBER – Use only when GREEN materials are not an option GREEN – materials are widely recyclable and Blackwoods Preferred option.

MATERIAL TYPE

Green – PREFERRED / WIDELY RECYCLABLE in AU

Amber – Avoid using. Lost value recyclability or limited infrastructure in AU

Red – DO NOT USE (not compatible for recycling) TO BE PHASED OUT LATEST END 2025

RIGID PLASTICS GUIDE

If clear or natural non coloured monomaterial: PET / rPET LDPE (Australia only) HDPE (food use only) (Australia only) PP / rPP Note 1: Plastic that can use the recyclable logo specific criteria applies The packaging does not include any components, inks, adhesives, or labels that prevent recyclability AND The packaging is not made from plastic or fibre that contains perfluoroalkyl or perfluoroalkyl substances (PFAS) or that contains any intentionally added PFAS.

If lightly tinted or coloured, transparent rigid plastics in green list: PET / rPET Coloured HDPE (Including transparent and opaque colours) (Australia only) cPET LDPE PP

SOFT PLASTICS GUIDE

Mono Polyolefin mono material: e.g., single layer film PE (Including HDPE, LDPE, LLDPE) PP Note 1: Plastic that can use the recyclable logo specific criteria applies The packaging does not include any components, inks, adhesives, or labels that prevent recyclability AND The packaging is not made from plastic or fibre that contains perfluoroalkyl or perfluoroalkyl substances (PFAS) or that contains any intentionally added PFAS.

Laminate Films Composite materials Only if within APCO soft plastic thresholds (see guidance material)

If clear or natural non coloured monomaterial: HDPE (non-food use) (Australia only) Opaque / dark colours / Carbon black: PET PVC PLA PS/HIPS EPS (EPE, EVA/PEVA, EPP, PS) PLA LDPE (New Zealand only) Fragmentable plastic (photodegradable) Any rigid plastic that uses carbon black pigments, is dark and opaque or uses more than one plastic in a single component Any polymers / plastic not listed under green list Any flexible plastic not explicitly mentioned in green section

COMPOSTABLE MATERIALS GUIDE

Certified Home compostable materials certified to: Australian Standard - AS 5810: 2010 Biodegradable plastics suitable for home composting (Australian Home Composting Standard) or European Standard (EN13432) and clearly marked as home compostable.

PVC PP PS and EPS PLA PET Bioplastics (including PLA, PHA, starch based) Industrial compostable materials (even including certified) Biodegradable I Compostable materials Should not be used unless certified to Australian or European standards. Additives: Oxy degradable materials PFAS in fibre- based materials BPA is plastic containers, etc. Plant based.

These guidelines will help support our teams to make better sourcing decisions and is a key tool that will help us reach out material goals. November 2023

MATERIAL TYPE

Green – PREFERRED / WIDELY RECYCLABLE in AU

Amber – Avoid using. Lost value recyclability or limited infrastructure in AU

Red – DO NOT USE (not compatible for recycling) TO BE PHASED OUT LATEST END 2025

PAPER I PULP I CARDBOARD

Recycled – FSC I PEFC I GRS I RCS: Liquid Board, Corrugated cardboard, card paper, carton board, paper Must not contain PFAS

Liquid board with aluminium layer (long life) Recycled I Mixed - FSC I PEFC I GRS I RCS Recycled I Mixed – Verifiable chain of custody – invoices Virgin - FSC I PEFC Must not contain PFAS Recycled I Mixed - FSC I PEFC I GRS I RCS Recycled I Mixed – Verifiable chain of custody – invoices Virgin - FSC I PEFC

Conflict and high-risk regions Virgin paper and cardboard, containing: PFAS, coated with wax, silicone, High wet strength boxboard Plastic coated Composite materials

TIMBER

Recycled – FSC I PEFC I GRS I RCS 100% Post consumer recycled Virgin - FSC I PEFC

TEXTILES

Organic fibres only, recycled organic fibres, post-consumer recycled fibre PP- Polypropylene

rPET – recycled polyester, recycled nylon

Petroleum based fibres -PET – Virgin polyester, Virgin Nylon

DESSICANTS

Micro- Pak or similar with test reports Natural and Plastic Free Desiccants

Silica Gel

METALS

Uncontaminated Aluminium or Steel. Single metal type per packaging only

Two or more metals that are not separable.

PRINTING INKS

Minimise colours or select clear unpigmented, non-toxic, natural unpigmented materials. Non-washable, (aqueous, plant -vegetable based etc.).

Use light colours to minimise loss of value of plastic. Inks, bonding agents, and lacquers negatively impact recyclability and can restrict recycling

Toxic or hazardous inks. Inks that bleed. Large print areas >30% and dark colours. Metallic and mineral inks. Use of Carbon black

COATINGS

A polyolefin-based (PE) coating can be used for a water- resistant coating.

Plastic polymer coatings and laminates should be minimal and only on one side of the paper

Bio-plastic coatings, waxes and silicone, PP coating, PFAS should not be used.

PRINTING

Use laser marked, nontoxic inks for date stamp, especially on clear PP

On coloured PP, minimise direct printing as it reduces recycling and value

On clear PP avoid all direct printing

LABEL ADHESIVES

minimise coverage area. nontoxic, washable and the package free of residues under caustic wash conditions pH>12 and <40C

Pressure sensitive label adhesives to be dispersible in caustic wash conditions pH ≥12 and ≥70⁰C. Ensure the selection of adhesive will assist the removal process of the label

Large areas of glue and non-water soluble/ dispersible adhesives - can clog up recycling equipment and may contaminate recycled resin.

Conflict timber / wood Timber / Wood from High-risk regions

These guidelines will help support our teams to make better sourcing decisions and is a key tool that will help us reach out material goals. November 2023

SUPPLY CHAIN SPECIFIC PACKAGING – SECONDARY AND TIERTIARY PACKAGING MATERIAL TYPE

Green Preferred

Amber Use only when green option is not available

Red DO NOT USE I PHASE OUT

SHRINK WRAP I FILM For Pallets

Paper Pallet wrap

CARDBOARD I PAPER

Recycled content Post consumer waste. Preferred materials FSC I PEFC Shall be clip -free

Bleached white board

White base with Black text Plastic based, when used on plastic materials Paper based when used on paper materials

Coloured paper based

Coloured labels on shrink wrap

CORNER I EDGE I STRAPPING GUARDS

Cardboard edge and corner guards Polyethylene strapping Elastic Polyethylene foil strapping

Metal edge and corner guards PET strapping Metal strapping

Plastic edge and corner guards

PACKAGING TAPE

Natural I Biodegradable (with certifications I test reports) I Paper based Note: must pass holding strength test and must be approved by Blackwoods Quality Team

PP – Polypropylene Water based acrylic adhesive

LABELS

Clear LDPE soft plastic wrap

Coloured or tinted HDPE PP PVC Compostable materials Hard Rigid plastic Corflute Mixed materials High Gloss varnish and laminated coatings Virgin content High wet strength board

These guidelines will help support our teams to make better sourcing decisions and is a key tool that will help us reach out material goals. November 2023

THE PACKAGING DATA TOOL What the tool is

A tool to capture the Primary and Secondary levels of packaging materials used in Own Brand products, not for resale products, shipped directly or via Blackwoods Global Sourcing.

A tool to enhance efficiency, accuracy and compliance in packaging reporting while reducing manual data entry and time.

What the tool is not

A tool to capture Tertiary packaging- level of packaging materials used in Own Brand products, not for resale products, shipped directly or via Blackwoods Global Sourcing.

A tool to capture packaging material for National Brand products supplied directly by National Brand suppliers.

A tool that is used for marketing claims and communications.

A tool that measures specific environmental impact.

PACKAGING DATA TOOL “What each field means” EXPLAINED

_________________________________________________________________________________ Mastering field by field entry: a deep dive into what each field means within the packaging data tool.

FIELD NAME BW Part Number

WHAT DOES THE FIELD MEAN

This is the unique part number allocated for BW product by color, size. Refers to the different levels used in packaging of the product for sale and shipment: 1) PRIMARY PACKAGING – PRODUCT LEVEL – Used to contain and protect the product and which goes home with the consumer. 2) SECONDARY PACKAGING – is largely in addition to the primary packaging and is used for protection, collating individual product units during storage, transport, and distribution.

Packaging Type

3) SECONDARY PACKAGING – DISPLAY LEVEL- Secondary packaging can also come in some product types to display primary packs on shelf. Other terms used in the industry are: Retail-ready packaging (RRP) Shelf ready packaging (SRP) or Counter – top display units (CDUs) 4) TERTIARY PACKAGING -SHIPPING – Used to protect and ship packaged products This is pallets, stretch wraps, strappings, corner edges, shipping labels. 5) PRIMARY AND TERTIARY PACKAGING LEVEL – Combination of a primary and tertiary packaging level is for heavy bulky items where the packaging that is used to contain and protect the product is also the tertiary packaging as the product is bulky and the entire product with primary and tertiary packaging goes home to the consumer.

Packaging Component

This field contains a list of the different types of packaging that are used to package products at each level of the packaging hierarchy. For e.g., At primary packaging level it could be insert card, swing ticket, box, etc. For e.g., At Secondary packaging – display level it could be – Carton.

Material Type

Is a high-level description of the type of packaging material. In some instances, Material type may be different from the drop-down values, in this case select Other.

Description of Material Type

This field contains the description of each material type. Plastics are of different resins and colors / clear. It is important to check with the supplier to select the correct material as the end of life, depends on the selection

End of Life

This is a calculated field, please do not delete or try to enter any value in this field. End of life of the packaging material is determined when selecting the material type and description of material type. End of life of packaging material in Australia is different from other countries. End of life of packaging materials will continue to change, as recycling options grows. This section will be updated when changes occur.

Pack Quantity

This is an important field. This field states the selling unit quantity at each level in the packaging hierarchy.

FIELD NAME

WHAT DOES THE FIELD MEAN

Packaging weight

This field contains, the weight in grams(gms) of the packaging material used at each level in the packaging hierarchy. Please ensure to only enter the number. DO NOT ADD GMS

Virgin material content

For reporting purposes, we have to capture the amount by % of virgin material used in the packaging. Please ensure to only state the number.

Recycled Content

For reporting purposes, we have to also capture the amount by % of recycled material used in the packaging. Please ensure to only state the number.

Validation of documents

If the % of recycled content can be validated by a test report / 3rd party certification, please state accordingly. If stated yes, it is important to capture the type of certificate and certificate number. Also attach a copy of the valid certification in the respective Quality folder.

Number of components per pack

This field contains, the number of packaging components used at each level in the packaging hierarchy. For e.g., Primary level – sticker – the product could have 2 stickers. So, the value 2 is required to be entered.

PACKAGING DATA TOOL – A step by step guide

_________________________________________________________________________________

This guide provides step-by-step instructions on how to input the packaging used at different levels in the Packaging hierarchy of a Product. The Packaging Data tool provides tailored drop-down value fields to identify the type of material used and providing the End of life of the packaging in Australia. IMPORTANT: Please make sure to include all packaging material. If in doubt, please contact the QA team.

Navigate to " The Packaging Data Tool". The packaging data tool is part of the product specification document QMS045.

PART NUMBER - Enter the Blackwoods allocated Part Number for the product.

TYPE OF PACKAGING -Using the drop-down values, select the 1st level of packaging for this product. Remember to always start from the Primary packaging level.

PACKAGING COMPONENT -Using the drop-down values, select the packaging type used to packaging the product.

MATERIAL TYPE -Using the drop-down value, select the type of material used at each packaging level.

DESCRIPTION OF THE MATERIAL -Using drop down values, select the correct value that best describes the material used at this level of packaging. The supplier should be able to provide the information, plastic resin code.

END OF LIFE OF MATERIAL TYPE - The "End of Life" tab is a calculated field. Depending on the Material type selected, and description of the material selected, the end of life of this material is determined based on the most current recycling options available in Australia.

PACK QUANTITY -Please select the "SELLING UNIT" in this packaging type. Please note, pack quantity may or may not be different for each level of packaging.

TOTAL NUMBER OF COMPONENTS IN THIS PACK - PACKAGING LEVEL -Please select, the number of packaging components used at this packaging level for the product. For eg - The product has 1 packaging component.

WEIGHT OF PACKAGING - Please enter the weight of the packaging material for this packaging level. REMEMBER - packaging weight must be entered in GMS only.

% VIRGIN CONTENT -check with the supplier, to determine the % of virgin material versus recycled material used for the material at this packaging level. Enter value (Number only).

% RECYCLED CONTENT -check with the supplier, to determine the % of recycled material used for the material at this packaging level. Enter value (Number only). Total entered value between recycled content and virgin content must equal 100%.

VALIDATION OF RECYCLED CONTENT - Check with supplier if they can validate the recycled content used for this material. Select using drop down values - Yes or No.

PROOF OF VALIDATION: If selected yes, use this field to manually enter the type of certificate number, test report and save valid test report / certification in Quality Folder under Product Part number. If Selected No, type in N/A.

15 Now go to the 2nd row, type in the part number again and complete the rest of the tabs. Make sure all levels of packaging - Primary, Secondary and where applicable Tertiary level of Packaging is captured. YOU HAVE NOW COMPLETED THE PACKAGING HIERARCY DATA FOR THIS PRODUCT PART NUMBER.

DECODING DEFINITIONS

_________________________________________________________________________________ Glossary of definitions of key words used within Preferred Packaging.

NAME

Primary Packaging Secondary Packaging

DEFINITION

The packaging that is in direct contact with the product, often referred to as “retail packaging”. Primary packaging does not include for e.g.: sew in labels that are attached to a glove 1- The packaging used to ship products already in primary packaging. Main goal is to protect the products and provide branding during shipping. 2- Secondary packaging can also come in some product types to display primary packs on shelf.

Tertiary Packaging

The packaging used most often by warehouses to ship secondary packaging. Main goal is to protect the shipments during their time in transit Note – examples include pallets, corrugated pads used to separate layers or boxes, stretch wrap used to secure stacks of cartons. Also see Distribution packaging

Bioplastics

Bioplastics are plastic materials produced from renewable biomass sources, such as vegetable fats and oils, corn starch, straw, woodchips, sawdust, recycled food waste, etc. One advantage is they do not use fossil fuel as a raw material.

(B2B) packaging

Packaging used to distribute products between businesses or business units.

Certified compostable

Certified compostable means that claims of compliance with Australian Standard AS4736-2006, Compostable and biodegradable – Biodegradable plastics suitable for composting and other microbial treatment” and the Australian standard AS5810-2010- Home composting – Biodegradable plastics suitable for home composting” have been tested and verified.

Compostable packaging

A packaging or packaging component (1) is compostable if it is certified to AS4736, AS5810 or a similar composability standard, and if its successful post-consumer (2) collection, (sorting), and composting is proven to work in practice and at scale (3). Notes 1. ISO 18601:2013: A packaging component is a part of packaging that can be separated by hand or by using simple physical means (e.g., a cap, a lid and (non-in-mould) labels). 2. ISO 14021 clarifies post-consumer material as material generated by households or by commercial, industrial, and institutional facilities in their role as end users of the product which can no longer be used for its intended purpose. This includes returns of material from the distribution chain. 3. ‘At scale’ implies that there are significant and relevant geographical areas, as measured by population size, where the packaging is actually composted in practice.

Composites

Composite materials are also referred to as composites, are a combination of two or more materials that are mixed or joined for packaging purposes. E.g., Paper- polyethylene, Plastic -aluminum, Plastic – paper- Aluminum, cardboard-polyethylene

Corflute®

Is an Australian made plastic sheet, it has twin wall profile polypropylene (PP) sheet.

Distribution packaging

The packaging used to distribute the product through the supply chain, e.g., shippers, stretch wrap, pallets etc. This is also referred to as business-to-business (B2B) packaging within the APCO Annual Reporting Tool. 15

NAME

DEFINITION

Gable Top Carton

Refrigerated (gable top) cartons, usually made of paper and plastic, (Coated paper) usually used to hold perishable goods. Usually form an angular point similar to that of a gable top.

Hazardous substances

They are toxic to humans or other living organisms; are flammable, explosive, or corrosive; are ozone depleting; or contribute to climate change. Examples often mentioned for packaging include - heavy metals (e.g., in some inks and pigments), - Bisphenol A (in polycarbonate plastics and the lining of steel cans), - Plasticizers (e.g., some phthalates in PVC plastics) - PFOA (perfluorooctanoic acid) and PFOS (perfluoro octane sulfonate), forever chemicals used in plastics, aluminum foil, stain resistant, grease resistant, water-resistant packaging materials.

Industrial compostable

Refers to commercial composting of materials through industrial composting facilities.

Kerbside

Local council bins. Note – Kerbside solutions may differ state wise in Australia.

Liquid Paper Board – aseptic (foil linked)

Aseptic packages (also known as composite packaging) are made by combining Polyethylene with paperboard and aluminum foil. Normally used for long life products.

Molecular Sieve

Molecular sieves are adsorptive materials often used as desiccants for the purpose of removing moisture from gases and liquids. They are often made from a type of zeolite, which is a crystalline material with a porous structure that allows for selective adsorption of molecules

OxoFragmentable plastic

‘Oxo-fragmentable’ products are made from conventional plastics and supplemented with specific additives in order to mimic biodegradation. In truth, however, these additives only facilitate a fragmentation of the materials, which do not fully degrade but break down into very small fragments that remain in the environment. Oxo-fragmentable materials do not biodegrade under industrial composting conditions as defined in accepted standard specifications such as EN 13432, ISO 18606, or ASTM D6400.

Oxobiodegradables

So-called ‘oxo-biodegradables’ and other additive-mediated plastics are not bioplastics. Also known as “degradable”, “oxo-degradable”, “oxo-biodegradable”, or “oxo-fragmentable”, and sometimes even “compostable”.

Part Number

Is a distinct product item, normally with a unique identifier or code to assist with inventory management. Part number is allocated to a product item, depending on size, color.

End – of – Life

A term used to describe the expected disposal option for packaging when the customer/consumer has removed the product.

NAME

Plastic Resin Codes (See section – “Understanding Plastic identification codes)”

DEFINITION

“Resin identification Codes are not “recycling codes”. Voluntary Plastic coding system to make it easier in materials recovery and recycling facilities to sort and separate items according to their resin type. Compliance to ASTM D7611:2023 is required. See Explanation of the code.

NOTE: The term “recyclable” or other environmental claims shall not be placed in proximity to the Code.” Size of code shall normally equal or exceed 12mm(1/2inc) in height and width. Recyclable packaging

A packaging (1) or packaging component (2,3) is recyclable if its successful postconsumer (4) collection, sorting, and recycling (5) is proven to work in practice and at scale. Notes 1. A package can be considered recyclable if its main packaging components, are recyclable according to the above definition, and if the remaining minor components are compatible with the recycling process and do not hinder the recyclability of the main components. 2. 2. A packaging component is a part of packaging that can be separated by hand or by using simple physical means (ISO 18601), e.g., a cap, a lid and (non-in-mould) labels. 3. 3. A packaging component can only be considered recyclable if that entire component, excluding minor incidental constituents (6), is recyclable according to the definition above. If just one material of a multi-material component is recyclable, one can only claim recyclability of that material, not of the component as a whole (in line with ISO 14021). 4. 4. ISO 14021 defines post-consumer material as material generated by households or by commercial, industrial, and institutional facilities in their role as end users of the product which can no longer be used for its intended purpose. This includes returns of material from the distribution chain. It excludes pre-consumer material (e.g., production scrap). 5. 5. ISO 18601:2013: A packaging constituent is apart from which packaging, or its components are made, and which cannot be separated by hand or by using simple physical means (e.g., a layer of a multi-layered pack or an in-mould label).

Recycled Content

Is content made from pre- consumer and post-consumer material. (AS/ISO14021) Pre consumer material is material waste diverted from manufacturing. (Excludes rework) Post consumer material is material waste generated by households or by commercial, industrial and institutional facilities. Material that is composed of biomass from a living source and that can be continually replenished. Renewable materials include paper and cardboard from sustainably grown wood fiber.

Renewable material

UNDERSTANDING PLASTIC IDENTIFICATION CODES

_________________________________________________________________________________ Voluntary Plastic coding system to make it easier in materials recovery and recycling facilities to sort and separate items according to their resin type. Compliance to ASTM D7611:2023 is required.

Resin

Definition

rPET

Recycled Poly (ethylene terephthalate)

cPET

Crystalline Polyethylene Terephthalate

HDPE I rHDPE

High Density Polyethylene

PVC

Poly (Vinyl chloride)

PE- LDPE

Low density polyethylene

PE-LLDPE

Linear Low-density polyethylene

EP (Polymeric foams) and PS

EPS, EPE, XPE I XLPE, PE foam, Silicone foam, EVA foam PS – Polystyrene

Polypropylene

rPP

Recycled Polypropylene

PLA, Nylon, Acrylic, Bioplastics, Other resins.

PLA- Polylactic acid. Bioplastics made plant-based material.

PET

Poly (ethylene terephthalate)

Applicable logo

SOURCES OF FURTHER INFORMATION

_________________________________________________________________________________ Few links that can provide further guidance and support on preferred packaging.

 Australian Institute of Packaging (AIP)  Australian Packaging Covenant Organization (APCO)  Australian Govt – Department of Climate Change, Energy, The Environment and Water  Ellen Macarthur Foundation  NSW Environment Protection Authority  Planet ARK