Cadbury

1

Executive Summary...................................................3 Message from the Managing Director .............4 Company Summary...................................................5 Summary of Initiatives.............................................. 7 Action Plan & KPI Table..........................................8 Company Contact.................................................... 15

2

This interim National Packaging Covenant Action Plan is issued following the demerger of Cadbury and Schweppes in Australia. After a long and fruitful partnership Cadbury and Schweppes are going their separate ways in 2009. This new action plan provides Cadbury with the opportunity to re-baseline the National Packaging Covenant KPIs based on Cadbury data, and reset our targets. The National Packaging covenant initiatives fit well within our Global Environmental Programme, called ‘Purple Goes Green’. Cadbury has a global target of 10% reduction in packaging as part of our Purple Goes Green commitments. This target has been publicly stated, and programmes to meet the target are subject to ongoing assessments to ensure they are on target. Cadbury has enjoyed significant benefits from a number of good results of initiatives designed to reduce packaging and it’s environmental impacts throughout the supply chain. We are proud of our achievements, including: • The average percentage of Post Consumer Recycled content in our packaging continues to increase, reflecting ongoing success in influencing our suppliers to provide recycled content materials. • ECoPP has been included in our product design review processes with the use of the “Packaging Impact Quick Evaluation Tool” (PIQET). PIQET was developed through the RMIT Centre for Design and funded by a small industry group. PIQET was commissioned as a web format in May 2008 and our Australia Packaging design teams trained in it’s use. • In 2008, Cadbury used approx 300T less packaging than in 2007.

3

I am excited to share with you the updated Cadbury National Packaging Covenant Action Plan. We continue to support the strengthened National Packaging Covenant, and continuing our commitment, which began as a founding signatory of the National Packaging Covenant in 1999. Our National Packaging Covenant commitments are a good fit with our own global environmental initiatives and targets, which are a part of everyday business within Cadbury in Australia. I encourage you to read through our action plan for 2009-10 to see how Cadbury is contributing to Australia’s improved management of packaging for the benefit of the environment.

Mark Callaghan General Manager Cadbury Australia and New Zealand

4

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. We create brands people love - brands like Cadbury, Trident and Halls. Our heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa and chocolate. Since then we have expanded our business throughout the world by a programme of organic and acquisition led growth. On 7 May 2008, the separation of our confectionery and Americas Beverages businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.

A few facts and figures
• • • • • • We make and sell three kinds of confectionery: chocolate, gum and candy We operate in over 60 countries John Cadbury opened for business in 1824 - making us nearly 200 years young We work with around 35,000 direct and indirect suppliers We employ around 50,000 people Every day million s of people around the world enjoy our brands

If you’d like to know more about Cadbury, please see our company brochure in Appendix 1. In Australia, Cadbury creates brands such as Cadbury and The Natural Confectionery company. The corporate head office for Australia and New Zealand is located in Melbourne. Cadbury has a number of facilities located throughout Australia. Our Australian manufacturing sites are located at: Burnie – A milk processing plant, Tasmania Claremont – A chocolate confectionery factory, Hobart, Tasmania Notting Hill – A candy confectionery factory, Melbourne, Victoria Ringwood – A chocolate confectionery factory, Melbourne, Victoria Scoresby – A candy confectionery factory, Melbourne, Victoria Cadbury’s role within the supply chain is as a manufacturer and brand owner. We influence up stream to materials suppliers and downstream to wholesalers and retailers.

5

Environmental Management Programme
Cadbury’s commitments and actions taken under the National Packaging Covenant are part of our larger Environmental Management Programme. We operate under a global EHS Policy. Our policy states that we will Conduct our business in compliance with environmental, health and safety laws and with our global standards, and regularly assess the compliance of our operations against these requirements. It also states that we will strive to minimise the environmental costs and impacts of our global operations.

Cadbury’s global environmental programme launched to realise our policy statement is called ‘Purple Goes Green’. Purple Goes Green included public statements of specific targets, along with programmes launched to achieve these targets. Of particular relevance to the National Packaging Covenant was a target included within the Purple Goes Green programme to reduce packaging by 10% by 2010. Our global environment programme includes regular measurement and assessment to determine that we are on track to meet our 2010 targets.

6

Summary of Initiatives
A full account of measures to reduce the environmental impacts of our packaging is included in below in Table 1 – Action Plan. This summary provides the highlights of our Action Plan. 1. The Life Cycle Analysis tool (PIQET) to be mandated for the New Product Development Process to ensure a PIQET analysis is undertaken and details provided as part of the Gate paper approval process.

2. The commissioning of the Database system for the accurate recording of packaging usage. Currently the packaging suppliers are relied upon for the annual packaging usage. This detailed data by pack type will provide insight to enable targeting of areas of higher packaging usage. 3. Specific packaging projects initiatives for 2009/10 a. Replacement of PVC material in Confectionery with REPET (25%) for seasonal chocolate products. b. Reduction in the amount of packaging and plastic required to transport & display seasonal chocolates products. c. Packaging format change to block Chocolate from a metallised paper wrap to a renewable paper board source. Although there will be an increase material usage (tonnes of paper board), consumer research has shown this will significantly improve households placing this form of packaging into the recycle bin.

d. Improved recycling information on packs will assist the consumer’s awareness of packaging recycling. e. Undertake research and development trials with the aim to replace existing petroleum based films with renewable resource materials for use with bar wraps, share bags and twist wraps.

7

Cadbury Australia’s National Packaging Covenant Action Plan is outlined in Table 1, below.

Table 1: Action Plan
Packaging optimised to integrate considerations about resource efficiency, maximum resource reutilization, product protection, safety and hygiene. Carton board grade. The change from a 310 to 260gsm external board grade on all outer displays (CLM and RWD) commenced in 2008. Specification changes to continue through 2009/10 1, 3 The reduction of paper board tonnes achieved through this initiative is to be reported for 2009 & 2010. Cadbury Packaging team December 2010

Seasonal Products conversion from PVC to REPET Clam shells with inclusion of 25% PCR.

3, 22

The evaluation of Clam Shells on line field is to occur during 2009. The aim will be to commence production at the start of 2010. All clam shells will then be PVC free. Reduction in tonnes of paper board and plastic

Cadbury Packaging team

December 2010

Hollow Novelty Easter range – improvement in shipper efficiency, resulting in reduction in the amount of board and plastic required to transport & display each Novelty item. Fun Filled Freddo Shipper & pack optimisation. Conversion to occur in April 09.

1, 3, 22

Cadbury Packaging team

December 2009

1, 3, 22

Reduction in amount of board and plastic required to transport & display each item, reported in 2009 and 2010. The reduction of aluminium foil achieved through this initiative is to be report for 2009 & 2010

Cadbury Packaging team

December 2009

A reduction in the Aluminium foil width (up to 5mm) is to be evaluated in 2009, for introduction in 2010 following the run out of materials.

1, 3, 22

Cadbury Packaging team

December 2010

8

Cadbury Block Chocolate range - packaging format change from a metallised paper wrap to a renewal able paper board source. Although there will be an increase material usage (tonnes of paper board), consumer research has shown that consumers will recycle this form of packaging. Conversion to commence in April 2009. Design of a Corrugated Quarter Pallet Display solution to replace rigid plastic moulded display. Design development with our corrugated supplier to be undertaken during the 1st half of 2009. Implementation during 2nd half of 2009. Standardise the use of the metallised wraps. Further discussion required with material supplier, with expected reduction in material usage of 30 tonnes per annum. Undertake research and development trials with the aim to replace existing petroleum based films with renewable resource materials for use with bar wraps, share bags and twist wraps. Introduce across the new renewable source rewind as existing material is used out. Efficient resource recovery systems for consumer packaging and paper. A single resource recovery system is implemented across all Cadbury sites in Australia. Packaging and paper recycling rates are measured. Currently around 80% of materials disposed of from Australian Cadbury factories are recovered or recycled. This system will be continued in 2009 and 2010.

3, 6, 22

% of recyclable content in packaging

Cadbury Packaging team

December 2010

1, 3, 6, 22

Reduction of plastic and cardboard to be reported in 2009 and 2010.

Marketing Services

December 2009

1, 3, 6, 22

The reduction of wrapping achieved through this initiative is to be report for 2009 & 2010

Cadbury Packaging team

December 2009

3, 22

Report examples of improvements made to packaging and their effect on minimising the environmental impacts of the packaging

Cadbury Packaging team

December 2010

16, 21

Measurement of consumer packaging recycled and sent to landfill respectively, from on-site collection facilities

Environment Manager, Australia & New Zealand. Procurement Manager, Australia & New Zealand.

December 2010

9

Consumers able to make informed decisions about consumption, use and disposal of packaging of products.

Cadbury Block Chocolate range - packaging format change from a metallised paper wrap to a renewal able paper board source. Consumer research has shown that this new packaging format will significantly improve households placing this form of packaging into the recycle bin. Improved recycling information on packs will assist the consumer’s awareness. The change to the packaging will occur in the market place in May 2009 and will have specific labelling encouraging householders/consumers to place the packaging components into their curb side recycling. The use of a renewal able paper source board will assist the paper recycling quality. Improved recycling information on packs to assist the consumers to understand the effective disposal of each packaging component used in Cadbury consumer packs. Cadbury Block Chocolate range will commence this in May 09.

3, 6 22

Report examples of improvements made to packaging and their effect on minimising the environmental impacts of the packaging & that the ECoPP has been adopted in 2009 and 2010.

Roman Domansky

Fully implemented by June 2009

3, 22

Report examples of improvements made to packaging and their effect on minimising the environmental impacts of the packaging & that the ECoPP has been adopted in 2009 and 2010. This initiative will be reflected in the ratio of recycled materials to waste collected.

Ringwood Packaging team

ongoing

Supply chain members and other signatories able to demonstrate how their actions contribute to goals (1) – (3) above.

Ensure each site maintains an Environmental Management System aligned with ISO 14001.

16, 21

Supply Chain Team.

Ongoing

Ensure each site maintains and develops recycling collection systems onsite. Cadbury Ringwood has implemented a segregated office waste system in 2009 for recyclable material and white paper. Measure and record waste generation and recycling at each site.

16, 21

This initiative will be reflected in the ratio of recycled materials to waste collected.

Supply Chain Team.

Ongoing

10

Set targets for waste reduction at each site and report performance against these targets. The developing of a Database system for the accurate recording of packaging usage. Currently the packaging suppliers are relied upon for the annual packaging usage. This detailed data by pack type will provide insight to enable targeting of areas of higher packaging usage. The Life Cycle Analysis tool (PIQET) training has been implemented with the Packaging design teams. The New Product Development Process is to be updated to ensure a PIQET analysis is undertaken and details provided as part of the Gate paper approval process. All signatories demonstrate continuous improvement in their management of packaging through their individual Action Plans and Annual Reports. Contribute to covenant funding requirements as required each year

16, 21

The database has been in development over the past two years. Expected implementation by Oct’09. Joint systems will be maintained for two years to establish a clear material usage pattern.

Packaging Knowledge Management Team

October 2009

3,22

Project Development records will contain detail of the PIQET Life Cycle Assessment undertaken on each new packaging design project – demonstrate implementation of ECoPP.

H. Ainsworth & Ringwood Packaging team

December 2009 and ongoing

Financial contribution to covenant each year is as required

Confectionery Packaging Manager

2010, 2011

• Submit Annual Report against renewed Cadbury Action Plan • Develop Cadbury baseline KPI’s • Report annually progress against developed KPI’s

28

Annual Report Submitted by 31st October each year. Cadbury baseline KPI’s developed for first annual report. KPIs reported in each annual report.

Environment and Sustainability Manager Confectionery Packaging Manager Confectionery Packaging Manager

2010, 2011

27

2010, 2011

28

2010, 2011

11

Cadbury Australia’s Baseline data for 2008 is contained within Table 2 below. The baseline from Cadbury Schweppes has been segregated. In this way, following the sale of Schweppes, Cadbury will be able to compare against a Cadbury baseline.

Table 2: KPI Table
KPI
1C Ratio of product to packaging (by weight).

Baseline data
2006/07: 0.1448 2007/08: 0.1081

Target
2008/09: 0.147 (Note that a change in product offering across the Cadbury range in 2009/10 will effectively re-draw the baseline for the ratio of product to packaging, hence the target is being re-set) Completion of actions as stated in table 1 of this report

3 Improvements in design, manufacture, marketing and distribution to minimize the environmental impacts of packaging. 4 Changes to protection, safety, hygiene, shelf-life or supply chain considerations affecting amount & type of packaging used. 6 Total weight, by type, of “nonrecyclable” packaging sold per annum into the Australian market.

Actions as stated in Table 1 of this report

Actions as stated Table 1 of this report

Completion of actions as stated in table 1 of this report

2007/08 baseline Material Composite Plastic LDPE Polystyrene Polypropylene Total Tonnes 1591 357 2 487 2437 % of total packaging 12 3 0 4 18.6

2008/09 target Material Composite Plastic LDPE Polystyrene Polypropylene Total Tonnes 1591 357 2 487 2437 % of total packaging 12 3 0 4 18.6

(Note that a change in product offering across the Cadbury range in 2009/10 will effectively re-draw the baseline for the ratio of product to packaging, hence the target is being re-set)

12

16 Percentage of signatories providing recycling collection facilities for postconsumer packaging generated on-site.

Cadbury has recycling facilities on all sites for both office and site produced waste streams. The list of waste streams recycled at Cadbury is extensive, including major waste streams such as waste product, and many types of packaging including cardboard, paper, plastic, foils etc. 2008 baseline Waste Type Recycled Landfilled Tonnage 10,982 2529 % of Tonnage 81.3 % 18.7 %

Cadbury will continue to maintain on-site recycling facilities on all sites over the 2009-10 period.

21 Estimated tonnage of consumer packaging recycled and sent to landfill respectively, from on-site collection facilities

2009 target

Waste Type Recycled Landfilled

Tonnage 10,982 2529

% of Tonnage 81.3 % 18.7 %

22 Number of signatories who have formally adopted the ECoPP and developed systems for its implementation.

ECoPP has been formally adopted The average percentage of Post Consumer Recycled content in our packaging continues to increase, reflecting ongoing success in influencing our suppliers to provide recycled content materials. ECoPP has been included in our product design review processes with the use of the “Packaging Impact Quick Evaluation Tool” (PIQET). PIQET was developed through the RMIT Centre for Design and funded by a small industry group. PIQET was commissioned as a web format in May 2008 and our Australia Packaging design teams trained in it’s use. In 2008, Cadbury used approx 300T less packaging than in 2007

ECoPP remains formally adopted. Completion of actions as stated in Table 1 of this report

26 Implementation of Buy Recycled purchasing policy or practices.

Buy recycled practices are implemented. Current % of total purchased packaging which is recycled: 28%.

Target % of total purchased packaging which is recycled: 24%. The targeted reduction in recycled packaging is due to a change in packaging design across major sections of the Cadbury Range. Data collections systems to remain in order to ensure data collection for 2009 and 2010 NPC reports.

27 Establishment of baseline performance data.

Baseline data is established and reported as per this table of this report.

13

28 Annual Reporting against Action Plan.

2008 Annual report was completed.

2009 and 2010 annual reports to be completed by 31st October each year, outlining progress against baseline data, individual action plan commitments, targets and timelines Targets are as described in this column of this table, along with completion of actions in Table 1 of this report.

29 Demonstrated improvement and achievements against individual targets & milestones.

Baseline information is as provided in this column of this table, and in Table 1 of this report.

14

Joe Croke Environmental Sustainability Manager Australia and New Zealand Cadbury 323-351 Canterbury Road Ringwood, Victoria 3134 Ph: 03 9210 1604 Fax: 03 9870 9072

15 15