Coveris - Leading the change in No Waste production: The strategy behind procurement at Coveris

LEADING

THE CHANGE IN NO WASTE PRODUCTION: THE STRATEGY BEHIND PROCUREMENT AT COVERIS

LEADING THE CHANGE IN NO WASTE PRODUCTION: THE STRATEGY BEHIND PROCUREMENT AT COVERIS

Ivan Schober, Head of Group Procurement at Coveris, sits down with us to discuss the company’s journey towards sustainable manufacturing.

WASTE BEHIND

AS A LEADING EUROPEAN PACKAGING COMPANY WITH OVER €1BN IN ANNUAL SALES, COVERIS’

‘NO WASTE’

VISION TO AVOID WASTE IN ALL ITS FORMS, ACROSS PRODUCTS, PACKAGING AND OPERATIONS, IS AN AMBITIOUS ONE – BUT IT’S ALSO A DECISION THAT COULD DRIVE SIGNIFICANT CHANGE IN THE INDUSTRY.

Here to talk to us today about the company’s sustainable strategy is Ivan Schober, Head of Group Procurement at Coveris, a role with spend under group procurement which was €510m in 2023.

“We have 30 manufacturing locations across the EMEA region, where we produce paper and plastic-based packaging for various industries such as food, pet food, industrial or home and personal care products,” says Ivan.

For Ivan, one of the major challenges for procurement professionals in the industry has been developing a sustainable way to manage plastic production in contemporary manufacturing.

“Many people assume plastic is automatically bad,” says Ivan. “But in fact, plastics are much better than their reputation. Currently, plastics are, for example, providing the lowest carbon footprint in manufacturing, compared to paper, glass and metal, as they require a lot of energy in production. Those are heavy industrial processes that require a lot of CO2.

“Moreover, plastic packaging even helps to avoid waste. For example in regards to food waste, as through its barrier properties, it gives products a significantly longer shelf life.”

In order to achieve this on a larger scale, Coveris is employing two key strategies. The first is educating people on the advantages plastic

packaging can provide to the environment when reused. The second is replacing the original multi-structure base of plastic packaging with new structures made up of one single material for much easier recycling.

“It’s a challenge for the industry to redesign these products without compromising on barrier properties, scalability and performance,”

says Ivan. “But it’s leading towards positive change. In the last few years, we have seen so much innovation within the company while being able to provide more value to our customers, using our dedicated science labs to continuously develop more sustainable packaging solutions.”

This focus on sustainability and innovation is being deployed across

30

3 PRODUCTION FACILITIES BUSINESS UNITS

4,100 EMPLOYEES SUSTAINABILITY

€ 200,000,000

110

“AS A FRONT-RUNNER IN TECHNOLOGY, COVERIS IS ALSO CONVERTING PRINTED WASTE WITHIN ITS RECOVER

BUSINESS, REMOVING INK FROM FILMS FOR HIGH-QUALITY

PCW RESINS, WHICH ARE RARE ON THE MARKET”

the business. However, ensuring that all products are aligned towards being as sustainable as possible

begins with the process of procuring raw materials.

“From the corporate perspective, we need to look at our sourcing and procurement strategy,” says Ivan. “Of the raw materials we buy for our processes, many of them are resins, then there’s the masterbatch, inks, films and adhesives. We need to make sure we’re buying from suppliers who are contributing the lowest carbon emissions.

“To do this, we’re now asking our suppliers for CO2 data on every single product we procure. This is helping us build a future-focused strategy, with reducing our carbon footprint driving our decisions.”

One such partner is film supplier Hanseatisches Folienkontor (HFK).

“HFK is our number one partner for sourcing non-PE film,” says Ivan. “A core element of our business is in the extrusion of polyethylene film. We are continuously increasing recycled content in PE film, but we have limited influence on non-PE films

“HFK

that we must procure externally. As a global company, HFK can help us find these alternative solutions – not only within Europe but outside of it. It’s a great company, and we have a longstanding relationship with them.”

Looking ahead, Coveris hopes to increase its sustainability efforts even further and is deeply invested in recycling, converting waste to close the loop.

At HFK, we specialise in distributing a wide range of films for the packaging industry from across the globe. Our extensive product portfolio includes BOPP, BOPE, BOPET, BOPA films and aluminium foil.

Our core dedication revolves around offering forwardthinking films to meet the evolving demands of the market. We’re proud to collaborate closely with global producers focused on developing sustainable alternatives for years, collectively establishing us as a leading provider in the industry.

With our global diversification strategy, we ensure reliable and consistent supply, even in times of uncertainty. Benefit from our global network, which allows us to leverage regional advantages and minimise risks for you.

In addition to our diverse product portfolio, we offer a range of value-added services, including the entire purchasing and import processes, warehousing, consignment stock, just-in-time deliveries through our warehouse networks, flexible conditions and consulting options.

“With our newest recycling business ReCover we recycle plastic packaging in-house and bring it back into the value chain by closing the loop,” says Ivan.

As a front-runner in technology, Coveris is also converting printed waste within its ReCover business, removing ink from films for highquality PCW resins, which are rare on the market.

Our goal is to combine high-quality and innovative films with tailored service solutions. Contact us today at hello@hh-fk.com to learn more about how we can support your business. www.hh-fk.com

But within the No Waste strategy, Coveris is not only avoiding waste in packaging and products but also within its production:

“We are also proactive in our procurement of green energy contracting virtual and physical PPA (Power Purchase agreements),

ADDED VALUE

Family first

while simultaneously exploring generating our own energy from renewable sources – such as building photovoltaic panels on our facilities in Austria and Germany,” concludes Ivan.

Learn more about Coveris at coveris.com.

When Ivan isn’t working, he makes sure to spend as much time as he can with his family.

“I’ve had to give up selfishness since having children,” Ivan says. “I used to play ice hockey and golf, but I’ve stopped because I believe my time should be given to my family. My son loves swimming, so I take him to training and competitions and picked up the sport myself two years ago. Then my daughter does horse riding, so every weekend I’m helping with her training, and taking care of the horse.”

A passion for travel

Ivan enjoys travelling with his family and has visited several countries with them over the years. This quality time is of particular importance to him, as he has to travel long distances for work.

Staying informed

“When it comes to business, I try to stay educated,” says Ivan. “My passion is analytics, so I work on understanding global data and macroeconomics. This can be a little bit of a heads up as to where your market is going in the short and medium term while helping you make the right decision from a procurement perspective.”

Connect with Ivan