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Document DEVICE REPORTHPM Legrand APC Action Plan
Australian Packaging Covenant 5 Year Action Plan 2011 - 2015
Prepared by: Michael Tsang 22 August 2011 1

Table of Contents

Page

Executive Summary

3

Company Background

4

One-Site

7

Packaging Review

8

Action Plan 2011-2015

9

SPG Review Schedule

10

Covenant Contacts

11

2

Executive Summary
With a presence in more than 70 countries and a global workforce exceeding 35,000 people, Legrand is a world specialist in products and systems for electrical installations and information networks for the residential, commercial and industrial sectors. Legrand is the world leader in the manufacture and sale of switches and socket outlets as well as cable management products.
In Australia and New Zealand, Legrand is part of the HPM Legrand portfolio of brands which also includes: HPM, BTicino, Cablofil and Nelson. Products are distributed through third party networks of more than 5000 electrical wholesalers and retail outlets.
HPM Legrand aims to set the benchmark for both technological innovation and inspirational design, boosting the profile of modern electrical systems within both the Trade and Consumer segments. With such a breadth of product offering the company can offer comprehensive solutions for large projects with the efficiency and service benefits of working with one electrical supplier.
By becoming an APC signatory, HPM Legrand is committed in making a positive impact in the environment that it is growing its business. HPM Legrand will continue to pursue goals as outlined by the APC in the areas of Design, Recycling and Product Stewardship.
Key events in 2011
HPM Legrand is launching its new Excel Life range in August 2011. HPM Legrand will also begin relocating into one site in Prestons from 3 separate sites in September 2011. Most of HPM Legrand's resources are currently focused on the mentioned product launch and relocation. However, we will ensure minimal disruption to the business and our commitment to the APC. Once the company relocation to the One-Site is complete in late 2012, HPM Legrand will be in an even position to grow its business and consolidate its APC long term action plan.
The attached 5 year action plan demonstrates our commitment as an APC signatory in this transitional period for HPM Legrand.
Giuseppe Parola CEO & Managing Director HPM Legrand
3

Company Background
The Brands:
4

HPM
An iconic brand within the Australian and New Zealand electrical industries, HPM denotes quality, reliability and convenience. The product range includes:
- switches and power outlets for residential and commercial installations - dimmers and fan controllers - multi-media outlets - sensor switches - home networking systems - ventilation equipment - residential power protection - garden lighting
Legrand
A leading international brand, Legrand offers value-added solutions for the full spectrum of electrical installations and information networks: from residential to commercial and industrial projects. The product range includes:
- switches and power outlets - multi-media outlets - home automation control systems - energy-saving lighting management sensors - emergency lighting - power protection and time switches - industrial plugs and sockets - distribution boxes and switchboard accessories
BTicino
A recipient of the Compasso D'Oro, Roter Punkt and Intel Design awards, BTicino is an Italian brand synonymous with the perfect synthesis of design and technology. The product range includes:
- audio, video and handsfree door entry systems - switches and power outlets in more than 50 distinctive coverplate styles - home automation control systems for lighting, sound and temperature control
Cablofil
Cablofil is the world's most specified cable tray brand. Its success in both power and data cabling applications has brought conventional ladder tray in the Northern Hemisphere to the brink of extinction. Cablofil has achieved market domination because it's the most versatile, reliable, fastest to install wire mesh cable tray available ­ any fitting can be created onsite.
5

Nelson
Specialising in cost effective lamps and light fittings for domestic and commercial use, Nelson is an Australian brand that has become an industry leader in energy-saving compact fluorescent lamps and low-energy downlight kits. The product range includes:
- incandescent, halogen and fluorescent lamps - high intensity discharge lamps - light fixtures - transformers - bug zappers - garden lighting
6

One Site
In July 2012, HPM Legrand will operate in one site at the Nexus Industry Park, Prestons NSW.
In 2009, Legrand has decided to relocate its three existing sites (Waterloo, Auburn and Famco in Melbourne) to a single site in the Nexus Industry Park, Prestons. The $35 million purpose-built building will ensure all HPM Legrand's core business functions (Head Office, Manufacturing & Warehouse) are in the best competitive and cost-effective position to drive the company forward. The 23,000 square metre building will be designed, constructed and owned by the Mirvac group. This single site will achieve greater synergy, more effective communication between departments and consequently better outcomes for the business now and in the future. The new site will include a training centre, a "state of the art" showroom, an open office environment, a unified manufacturing layout and an efficient warehouse. In addition, the single site will also greatly enhance environmentally friendly activities such as:
 Water usage  Energy saving ­ light controls  Environmental standards  Drought tolerant gardens  Recycling rain water  Recycling within the workplace
7

Packaging Review
HPM Legrand's position in the packaging supply chain is primarily as a brand owner / packaging user.
The major forms of packaging are as follows:
1) Plastic bags:
HPM Legrand uses around 500,000 plastic bags annually in retail and around 1,500,000 in trade. The company has achieved a good reduction in material consumption just by resizing the retail bag dimension from 2009. Before this we had only two sizes of plastic bag, a small and a big one. We designed a medium bag which will better fit the medium sized products previously put in a large bag. This simple yet effective step gave us great savings in term of amount of plastic used.
2) Blister packaging and plastic shells:
This is the packaging type HPM Legrand has spent most time optimising. For products made in Australia, the blister packaging has been completely eliminated and replaced by thin plastic bags. In addition, all the scraps of plastic generated by the process are also eliminated. This was one of our worse areas of material wastage and now it has been another saving and waste reduction.
3) Carton boxes:
In the last 2 years, HPM Legrand has successfully standardised the dimensions and the quantities in the carton boxes used. This has led to better filled cartons and a reduction in number of different cartons used. All the new boxes and packaging solutions created now show the recycle logo on the label or on the carton in addition to compliance markings.
Handling of packaging-related wastes
Using data from 2009 and 2010, it shows that we are recycling between 65% - 75% of the packaging related wastes at the 3 sites. HPM Legrand uses Veolia Environmental Services to handle the general and recycled materials. Compactors are used in Auburn and Prestons. Cardboard wastes from Waterloo are sent to Prestons via Veolia fortnightly. Once the relocation is complete in July 2012, the intercompany movement of stock and waste processing will be optimised.
HPM Legrand will continue to revise its packaging design from end 2011/early 2012 on the retail HPM and Nelson range. The review will be accelerated once the One-Site relocation is complete in July 2012.
8

Action Plan 2011 - 2015

Covenant performance goals and KPIs

Actions

Responsibility

Baseline data

Target or performance goal

Timeline

Evidence

Goal 1. Design ­ optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety

KPI 1 Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging

50% existing packaging against the SPGs to be reviewed

R&D, Marketing, Communications, Purchasing and Industrialisation

Reviewing of existing packaging against the SPGs has not started

To review 50% of existing packaging against 30 June 2015 the SPGs

All review documents and progress reports will be kept

100% of new packaging against the SPGs to be reviewed

R&D, Marketing, Communications, Purchasing & Industrialisation

New packaging requirements to be reviewed for applicable new products from Dec 2011

All new packaging introduced over the next 5 years will be reviewed against the SPGs and Group guidelines. New retail packaging review will start Dec 2011

Goal 2. Recycling ­ the efficient collection and recycling of packaging

KPI 3 Proportion of signatories with on-site recovery systems for recycling used packaging

Continue to operate a recovery system for used packaging for the current sites and combined

Warehouse & Distribution and OH&S

site

KPI 4 Proportion of signatories with a policy to buy products made from recycled packaging

Investigate the possibility of creating a buy recycled policy, in line with regulations and specific

Purchasing

needs of our customers and

corporate directives

An on-site recovery system for used packaging is implemented

To ensure all used packaging is recovered and recycled in a cost-effective way

There is currently no Buy Recycled Policy in place

To establish a cost- effective policy for the purchasing of recycled products where appropriate

Goal 3. Product stewardship ­ a demonstrated commitment to product stewardship by the supply chain and other signatories

KPI 6 Proportion of signatories that have formal processes for working with others to improve design and recycling of packaging
KPI 7 Proportion of signatories demonstrating other product stewardship outcomes

Establish a formal process for communicating with our suppliers/customers regarding the design and recyclability of our packaging
Advise our customers and suppliers of our participation in the covenant, and encourage relevant parties to sign the APC

Marketing, Purchasing and Industrialisation
Marketing and Purchasing

There is no formal process for engaging our suppliers to improve design and recycling of packaging

To establish a formal policy for working with our suppliers/customers to improve the design and recyclability of our packaging

We have not formally promoted our covenant commitment to our customers and suppliers

To demonstrate our covenant commitment to our customers and suppliers by informing them of our Buy Recycled Policy and details of onsite Recovery System.

KPI 8 Reduction in the number of packaging items in litter

Investigate use of disposal instructions on all packaging

R&D, Technical Services and Management

Some of our specific packaging already has the recycling logo

To ensure all packaging has the correct markings/label, appropriate instruction sheets for recycling or disposal

30 June 2015 30 June 2015 30 June 2015 30 June 2015 30 June 2015 30 June 2015

All review documents and progress reports will be kept
An on-site recovery system will be mapped out and policy implemented
A formal policy will be mapped out and documented
A formal policy will be implemented. Relevant meeting minutes will be kept
Records of formal communication between us and our customers and suppliers, regarding the APC will be kept An active database with all product specifications including packaging will be in place
9

SPG based review schedule:

Brands
Bticino HPM Legrand Nelson Cablofil

Review by
Dec 2012 Dec 2013 Dec 2013 Dec 2013 Jan 2014

Review of Bticino packaging has started in 2011 and will complete by Dec 2012.
Review of HPM and Nelson packaging will commence in Jan 2012 and complete by end 2013.
Legrand Group has commenced review on entire Legrand packaging in 2010 and will advise the global divisions the finalised designs. Our Communications team will work closely with Group designers to ensure design changes meet the SPG requirements.

10

Covenant Contacts

Mr. Michael Tsang has been assigned as the HPM Legrand's Covenant contact on 28 April 2011. Michael is a Project Manager working in the Industrialisation Department and reports to Mr. Grant Coe, Industrialisation Manager and Mr. Giuseppe Parola, CEO and Managing Director.

Name:

Mr. Giuseppe Parola

Title:

CEO & Managing Director

Signature: Date:

25 August 2011

Covenant Contact:

Name: Title: Company: Address: Email: Tel: Mobile:

Mr. Michael Tsang Project Manager HPM Legrand Unit 2, 79 -99 St. Hilliers Road, Auburn 2144 NSW [email protected] (02) 8719 4333 ext. 4868 0410 678 098

11


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