A Real Solution - An environmental revolution is underway that will impact communities, governments and businesses across the globe. Conservation and management of finite resources are at stake as we address the "perfect storm" of rising energy prices, societal and customer expectations to go green.

The healthcare industry is no exception, and packaging will play a key role in providing solutions, as it represents upwards of 30-50% of the overall waste stream. As manufacturers and suppliers position for the future, a clear understanding of customer requirements including return on environment will not only have a profound impact on package design, but present significant opportunity for those on the cutting edge of this revolution.

Packaging performance in sustainability and environmental excellence are increasingly referenced by investors as leading indicators for management quality and long-term shareholder value throughout the entire supply chain.

Performance based packaging metrics are the foundation that can be directly mapped to sustainability efforts, including associated impact on profitability, capital cost and increased revenue. When done correctly, suppliers, manufacturers, distributors and end users can share success with sound corporate environmental stewardship, profit improvement and growth.

Sustainability Scorecards Start With the Customer and End User

The use of sustainability scorecards has been widely recognized as the foundation of environmental preferred procurement (EPP) practices. Companies such as Wal-Mart, Procter and Gamble, and IBM have effectively and dramatically impacted package design criteria within retail and consumer markets utilizing these tools. Kaiser Permanente, the largest hospital group in the U.S. (spends more than $1 billion each year on medical products), expects to do the same by leading environmental stewardship initiatives within the healthcare community. Kaiser projects to roll out the first healthcare sustainability scorecard in conjunction with the Broadlane Group (key supply chain partner) by September.

What the Healthcare Sustainability Scorecard Measures

It is important to first understand that the healthcare sustainability scorecard is mapped to actual product use and from that, specific scores are provided for each supplier. These scores will then be included in the overall decision making process that will provide an environmental benchmark included in the procurement decision making process. More than 30 groups of specialty clinicians at Kaiser Permanente for example are responsible for selecting medical and pharmaceutical products.

"This score factors into clinicians' decisions-along with product performance and cost," said Robert Gotto, Kaiser's procurement director. Gotto believes the scorecard is a powerful tool. "It gives you detailed product information at the point when our clinicians are evaluating products, and they have the detailed information to make informed decisions."
This is a fundamental shift from the prior decision-making process where knowledge of packaging, chemical composition and environmentally friendly processes are unknown.

The healthcare sustainability scorecard will focus initially on a spreadsheet that suppliers fill out for each of their products, and it looks at 10 criteria. Six of those criteria relate to specific chemicals, and the other four involve the recycled content of the packaging. Based on a numbering system, an environmental factor to differentiate products and suppliers will be established.

Healthcare Scorecard is a Good Start

"Green washing" or misleading marketing claims can damage credibility and in serious situations, result in litigation. The use of sound metrics based on a clear understanding of the voice of customer and waste stream dynamics will not only avoid costly mistakes, but position organizations to reap benefits with increased profitability, sales growth and positive corporate perception. The healthcare scorecard is a good start, but much more is needed as we progress into the future.

The use of an acceptable life cycle analysis (LCA), one that is generated on mathematical modeling, and includes all appropriate factors associated with cradle to cradle metrics, is the foundation. Software applications such as the Wal-Mart model, Sustainable Packaging Coalition model continue to expand and improve. The ability to provide an objective assessment that supports a properly weighted average on all environmental factors will be key.

It will also be important to recognize and adjust to the dynamics of a changing waste management stream. The impact concerning waste to energy, biodegradability, recycling and landfill options can dramatically change design decisions and render a package as less than environmentally friendly if not done correctly. Maintaining a good understanding of voice of the customer, and evolving changes in the waste stream will be vital to an organizations success.

Use Sustainability to For Market Edge

The medical waste stream represents significant cost to hospitals and end users to dispose of it properly. As hospitals embrace EPP, they expect to see cost savings, better regulatory compliance and enhanced corporate social responsibility for sustainable packaging. And they want it done right. Packagers who respond can gain a marketplace advantage. The following steps should be considered as part of an effective strategy:

1. Develop a mission statement for sustainable packaging
   No matter where you are along the packaging supply chain, make it part of your company environmental policy by taking the following actions:
   • Get senior management to buy in.
   • Make it part of standard operating procedures and incorporate as part of the new product.
   • Development process, cost reduction and compliance requirements.
   • Work collaboratively with other functional disciplines to support the strategy across your organization.
2. Develop a legislative benchmark and compliance strategy
   • Understand the legislative requirement in all global locations where you sell products and packaging.
   • Set action plans focused on compliance. Work with regulatory bodies across the globe as well as industry groups to develop sound legislative policy and positions. That is especially true for areas where your organization anticipates future requirements.
3. Continue an ongoing engagement with voice of the customer
   • Understand strengths, weaknesses, and opportunities within the challenges of waste management. Do that for your organization, and do it for your customers. Know their waste management processes, trends and challenges.
   • Understand present and future direction. That gives you the basis for developing effective strategies to better meet these evolving needs. In doing so, you enhance the opportunities to increase revenue, lower cost and prove the basis for good corporate citizenship.
4. Build metrics, corporate goals and competitive benchmarks on LCA modeling
   • Be concerned about the perception of "green washing"-non-legitimate labeling and marketing claims.
   • Use LCA models to support your efforts. They help you focus on source reduction and sustainable package material choice; identify sustainable manufacturing processes and equipment; impact the supply chain; and identify shared opportunities in cost savings with suppliers, distributors and end users.

Eliminate or change materials that create environmental deficiencies in medical waste
Look to replace PVC and plasticizers. Use materials that are inert or non-harmful in common waste management technologies such as landfill, incineration, chemical disinfection, autoclave and microwave systems.