PERFORMANCE REPORT 2014 ARA PERFORMANCE REPORT CONTENTS CONTENTS

2014: KEY FACTS AT A GLANCE 4

PREFACE 6

COMPANY PROFILE 10 ARA: Recycling for Austria 11 Legal framework 12 2013 amendment to the WMA and 2014 Packaging Ordinance 12 Ownership structure 14 Management structure 14 Stakeholders and their requirements 15 Mission statement 15 Organisation chart 15 Company values of ARA AG 16 Sustainability as a business principle 17 Risk management 18 Subsidiaries 19 Memberships 19

BUSINESS PERFORMANCE 22 License partners 23 International compliance service 24 License partner forum 24 License partner audits 24 License rates until 2014 25 License rates from 2015 25

WASTE PREVENTION 26 Resource management research 27 ARA Best Study Award 27 “Minimise waste” initiative 27 Waste prevention awards 28 Waste prevention service for big events 28 ARA spot: Preventing food waste 29 Austria Glas Recycling waste prevention fund 29

COLLECTION AND RECOVERY 32 Nationwide collection scheme 33 Recovery of packaging waste 41 Paper packaging 42 Light-weight packaging 46 Metal packaging 50 Wood packaging 52 Glass packaging 53 CONTENTS ARA PERFORMANCE REPORT

ENVIRONMENTAL IMPACT 56 External environmental impact 57 Internal environmental impact 57 Sustainability agenda of the beverage industry 57

COMMUNICATIONS 62 Waste consultants: Direct contact with consumers 63 TRENNT – ARA AG’s magazine 63 Campaign 2014 63 Social media 63 ARA4kids 64 School competition 64 Info on new regulations 64 Support for social projects 65 Anti-litter campaign 65

SURVEYS AND STUDIES 66 Views on waste sorting 67

EMPLOYEES 68 Remuneration 70 Further training 70 Health and safety 70 Work-life balance 70 Internal communications 71 Idea management 71 Anti-corruption policy 71 Job creation 71

OBJECTIVES AND CHALLENGES 72 Objectives achieved in 2014 73 Objectives and challenges in 2015 75

CONTACTS AND ADDRESSES, Imprint 76

Validation and certification 78 GRI application levels 78 GRI content index 79

Making-of: Crazy Golf 82

3 ARA PERFORMANCE REPORT 2014: KEY FACTS AT A GLANCE 2014: KEY FACTS

2012 2013 2014 Number of license partners 15,550 16,035 16,341 License fee revenues in € million 143.8 135.8 132.7 Waste managed, tonnes 829,607 835,465 844,948 Waste recovered, tonnes 778,240 782,781 805,142

ARA’s packaging compliance scheme plays a around 670,000 tonnes of CO2 equivalents per proactive role in climate protection: The separate year, which is a substantial contribution to reduc- collection and recovery of packaging helps save ing greenhouse gas emissions.

WASTE MANAGED IN 2014 (tonnes)

PAPER GLASS LIGHT-WEIGHT METAL WOOD TOTAL PACKAGING Households 83,305 221,733 182,066 1 37,631 – 524,735 Business and industry 253,808 – 43,447 3,810 19,148 320,213 Total 337,113 221,733 225,513 41,441 19,148 844,948

1 Including wood packaging.

ARA SYSTEM’S RECOVERY PERFORMANCE IN 2014

337,113 t 215,373 t 199,156 t 34,262 t 19,238 t Paper Glass Light-weight packaging Metal Wood

Total: 805,142 t

4 2014: KEY FACTS AT A GLANCE ARA PERFORMANCE REPORT AT A GLANCE

COLLECTION BINS AND BAG COLLECTION FROM HOUSEHOLDS IN 2014

Paper 1,272,397 Glass 74,924 Light-weight packaging (yellow bin) 254,745 Metal 47,300 Number of collection bins 1,649,366 Number of households covered by the bag scheme for light-weight packaging (yellow bag) 1,539,140

PER-CAPITA AMOUNT COLLECTED FROM HOUSEHOLDS 1 IN 2014, BY PROVINCES (kilogrammes per capita per annum)

PAPER 2 GLASS LIGHT-WEIGHT PACKAGING METAL TOTAL Burgenland 77.6 32.6 26.7 5.1 142.0 Carinthia 72.0 26.4 13.1 3.2 114.7 Lower Austria 71.3 23.7 16.1 3.4 114.5 Upper Austria 69.0 25.8 18.3 3.4 116.5 Salzburg 58.4 30.3 19.3 2.4 110.4 Styria 78.8 30.8 23.4 4.3 137.3 Tyrol 56.8 39.6 32.3 4.9 133.6 Vorarlberg 80.1 34.1 27.2 5.9 147.3 Vienna 67.5 15.4 3.8 1.7 88.4 Austria 69.8 26.1 17.2 3.4 116.5

1 The household collection scheme includes packaging waste from small businesses. 2 Print materials and paper packaging are collected together.

ARA 1995–2014: AMOUNT OF WASTE MANAGED INCREASED BY 35 %, LICENSE TARIFFS LOWERED BY AROUND 60 % Tonnes E/t 900,000 Amount managed +35 % 450 1995: 623,600 t – 2014: 844,948 t 800,000 400 700,000 350 600,000 300 500,000 250 400,000 200 300,000 150 200,000 Ø License rates –60 % 100 100,000 1995: 310 €/t – 2014: 123 €/t 50

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: ARA, AGR, data projection for 2014.

5 ARA PERFORMANCE REPORT PREFACE

PREFACE

2014 was an exceptional year for ARA AG, as we had Accordingly, our operational focus over the past business to prepare for the most significant changes to the legal year was on amending the ARA Compliance and License environment in 20 years: the amendment to the Austrian Agreement and on putting the cooperation with municipal- Waste Management Act, the new Packaging Ordinance, ities and disposal companies on a new footing to reflect the and an ordinance on the classification of packaging (Ver- changed situation. The new legal framework has also had packungsabgrenzungsverordnung). an impact on costs and prices, leading to a marked increase in the cost structures of all packaging compliance schemes On 1 January 2015, new regulations were introduced for operating in Austria from 1 January 2015. As the market the licensing of collection and recovery schemes (CRSs) for leader, we have been particularly affected by the change in household packaging; new schemes have been licensed cost structure. to strengthen competition. In addition, the regulations introduce an explicit definition of household and commer- The acquisition of a 51 % stake in Austria Glas Recycling cial packaging, prohibit the creation of parallel collection GmbH allowed us to strengthen our economic base and infrastructure and oblige market entrants to share use take advantage of the synergies inherent in the provi- of existing collection facilities. The principle of producer sion of compliance, collection and recovery services for responsibility has been extended to apply to packaging all packaging materials. When the WMA amendment not only when it is collected separately, but also when it is made it necessary to rethink the collection and recovery discarded in general waste bins. scheme for drink cartons, Öko-Box, this review resulted in the merger of ARA and Öko-Box. In addition, ARA’s sales While the main objective of the regulations (promot- structure was changed to reflect the legislative changes. ing competition, ensuring that there is more than one Our new service subsidiary, ARAplus, offers an innovative compliance scheme for household packaging) has been and expanded range of services that go far beyond typical achieved, the success of the newly adopted – and basically packaging compliance services. sound – producer responsibility regulations will crucially depend on the level of commitment to enforcing their International comparisons again confirm that packaging implementation, on the effective monitoring of CRSs by waste management in Austria is highly effective. ARA Sys- the Environment Ministry as the supervisory authority and tem managed around 845,000 tonnes of packaging waste in on the effective monitoring of the affected businesses by 2014, and the bulk of this waste was recycled or incinerat- the Packaging Coordination Board. ed. More than 90 % of it was recovered in Austria, providing the domestic industry with valuable raw materials.

6 PREFACE ARA PERFORMANCE REPORT

ARA’s compliance service is not only about saving resourc- “Recycling for Austria” is our motto. Because ARA is a es, though: Our 16,000+ customers also help protect the member-owned, non-profit company, we do not focus climate. Our collection and recovery schemes are cli- on maximising profit but rather on ensuring the efficient mate-neutral and help save around 670,000 tonnes in CO2 collection and recovery of packaging at the lowest cost equivalents per year, which is a substantial contribution to possible for our customers. reducing greenhouse gas emissions. Both the Environment Agency Austria and the Vienna University of Technology In addition, we make sure that the value added is retained have confirmed this result. in Austria. Maximising ecological benefit and minimising economic expenditure is our stated goal. This way, we Convenient and efficient collection schemes for consum- remain true to the sustainability principle to which ARA’s ers, high-quality raw materials for the domestic industry, a owners, management and staff have been committed leading position in Europe: Austria has achieved a lot in the since the company was established in 1993. field of packaging recycling. We of ARA are playing our part to ensure that this system, which we helped build over the ARA’s success has been built on the trust our customers past 20+ years, remains a success under the new frame- place in us and on Austrian consumers’ and businesses’ work conditions and that it is developed further in line with commitment to sorting waste. Thanks are also in order to EU regulations. Over the past years, and above all in 2014, all partners for the good cooperation and to all employees we have gone to great lengths to facilitate the transition to for their excellent performance: Our tremendous success a new market situation with heightened but fair competi- over the past 20+ years and our strong position to meet fu- tion. Our efforts have been successful – the transition has ture challenges would not have been possible without you. gone smoothly.

Alfred Berger Christoph Scharff Werner Knausz Chairman of the Supervisory Board CEO CEO

7 This year, the design of the ARA Performance Report is guided by the motto “Crazy Golf”, which is the name of the winning project in ARA’s “Mission: Environment” competition. It was submitted by students of the 2B class of HLP Mödling high school, who put the spot- light on packaging recycling in the public space and transformed the town of Mödling into a mini golf course. Find more details about their highly original project on page 82. 337,000 TONNES OF PAPER PACKAGING RECOVERED. COMPANY PROFILE

10 COMPANY PROFILE ARA PERFORMANCE REPORT

Altstoff Recycling Austria AG (ARA) is Austria’s leading ARA: RECYCLING FOR AUSTRIA packaging collection and recovery scheme. All businesses affected by packaging regulations can join ARA in accord- Altstoff Recycling Austria AG ance with the Austrian Waste Management Act and ensure - is owned by Austrian businesses. compliance with the Austrian Packaging Ordinance. By - has been Austria’s leading packaging compliance scheme entering a Compliance and License Agreement with us and for more than 20 years. paying the license fees due, businesses can outsource to - sends 90 % of the packaging collected for recovery in us the obligations they have under the ordinance. We use Austria, thus providing the domestic industry with valua- license fee revenues to organise and finance the collection, ble raw materials. sorting and recovery of packaging waste in Austria. Our - ensures that the value added is retained in Austria. nationwide, modern and comprehensive recycling schemes - embraces its environmental responsibility. for all types of packaging are available to both consumers - subscribes to a code of ethics and is a member of the and businesses. The compliance service for glass packaging proEthik ethics working group. is co-organised by ARA and Austria Glas Recycling, the - is a non-profit company: Cost savings are passed on to collection and recovery scheme for glass packaging. our customers. - is committed to increasing efficiency: Our current rates are 60 % below the 1995 level.

ARA SYSTEM

Obligated businesses become The non-profit ARA System runs nationwide collection and recovery schemes Cities, municipalities, waste ARA license partners and trans- for packaging from households and businesses in line with the targets specified associations and more than fer their take-back obligation by the Austrian Environment Ministry. 200 disposal and recovery for packaging to ARA AG. companies are the backbone of the collection system.

PACKAGING - Paper MUNICIPALITIES MANUFACTURERS - Plastics - Metal - Wood ARA AG* - Composite materials PACKERS - Textile fibres WASTE DISPOSAL FILLERS - Ceramics COMPANIES IMPORTERS - Biodegradable materials

WHOLESALERS WASTE RECOVERY RETAILERS AGR * - Glass COMPANIES

ARA AG Altstoff Recycling Austria AG AGR Austria Glas Recycling GmbH * System operator in line with Art. 29 Waste Management Act for the respective packaging material(s).

11 ARA PERFORMANCE REPORT COMPANY PROFILE

LEGAL FRAMEWORK - Provide a clear definition of household and commercial packaging The Austrian Waste Management Act (WMA) of 2002 sets A clearer legal definition of household and commercial out the legal basis for regulating waste management in packaging has been established and better control mech- Austria. It covers measures for the prevention, minimisa- anisms have been implemented to improve legal certainty tion, recovery and disposal of waste. for businesses, CRSs, and the disposal industry. Based on a market study, the new classification ordinance specifies Packaging waste is subject to special regulations: Under uniform and binding criteria for the classification of pack- the WMA and the 2014 Packaging Ordinance, businesses aging (household or commercial). that place packaging or packaged products on the market in Austria are obliged to either take back and recover pack- - Maintain the high standards achieved aging themselves or join a collection and recovery scheme Packaging recycling helps protect the environment by (CRS). The WMA also regulates the issuance of permits to conserving raw materials and protecting the climate. CRSs and oversight by the Austrian Ministry of Environ- Austria is one of the best recyclers in Europe – in no ment. A 2015 ordinance on the classification of packaging small part thanks to ARA’s work over the past 20+ years (Verpackungsabgrenzungsverordnung) provides a uniform – and needs to retain its pioneering role in the interest definition of two types of packaging (household and com- of the environment. Minimising environmental damage mercial packaging) to which different regulations apply. and conserving natural resources are still some of the main objectives of the amended WMA. This is why the amendment provides for a marked increase in the funds 2013 AMENDMENT TO THE AUSTRIAN earmarked for waste prevention. WASTE MANAGEMENT ACT AND THE 2014 PACKAGING ORDINANCE - Maintain the high level of convenience for households and businesses As from 1 January 2015, the 2013 amendment to the WMA Packaging collection in Austria has to remain highly and the 2014 Packaging Ordinance (replacing the 1996 convenient for households, and the well-developed Packaging Ordinance) have led to substantial changes in collection infrastructure must be retained. The changes producer responsibility regulations and, as a result, also in necessary in the household scheme are being negotiated the field of compliance, collection and recovery of pack- in a stakeholder dialogue process. aging in Austria. The 2013 WMA and the 2014 Packaging Ordinance have been complemented by the packaging - Ensure cost-effectiveness classification ordinance (see above), which became effec- Whenever it is economically feasible to do so, packaging tive on 29 January 2015. will be collected and recovered separately, and the cover- age rates will be adjusted accordingly. OBJECTIVES OF THE NEW REGULATIONS AND IMPLEMENTATION WHAT’S NEW FOR BUSINESSES THAT PLACE PACKAGING ON THE MARKET IN AUSTRIA? - Ensure fair competition Affected businesses can now choose between several For household packaging, using a CRS is now mandatory CRSs offering compliance services for household pack- for so-called entities with a primary obligation. These are aging in Austria. The new regulations aim to promote fair packers/fillers, importers, own-use importers and mail-or- competition. der companies as well as manufacturers and importers of service packaging, provided that they have a registered office or place of business in Austria. The primary obliga- tion also extends to cross-border mail-order sales.

12 COMPANY PROFILE ARA PERFORMANCE REPORT

Customers of entities with a primary obligation (e.g. PACKAGING COLLECTION UNDER THE NEW trading companies) can no longer fulfil the obligation for FRAMEWORK household packaging on behalf of their suppliers by enter- ing a compliance agreement with a CRS (which implies that Each CRS is responsible for the sorting and recovery of a the legally binding declaration they had to issue to that share of the packaging collected in each category (paper, effect becomes obsolete, too). In contrast, the suppliers of glass, metal and light-weight packaging) that corresponds entities with a primary obligation (e.g. packaging manu- to its monthly market share. The waste has to be picked up facturers, suppliers of service packaging, foreign suppliers) from designated regional transfer points. The same proce- can still take on the obligation for household packaging. To dure is intended to apply to commercial packaging, too. do so, they need to enter an agreement to that effect with the respective customer and issue a legally binding decla- The principles for the collection of packaging from house- ration (Rechtsverbindliche Erklärung) to certify participation holds and small businesses are determined in a stakeholder in the CRS for the packaging they supply to this customer. dialogue process set up by the Environment Ministry. The latter remains responsible for the packaging under Stakeholders are representatives of Austria’s social part- administrative law, though. ners, provincial governments, the Austrian Association of Cities and Towns, the Austrian Association of Municipali- While taking back and recovering household packaging ties, the disposal industry, CRSs, and the newly established without the involvement of a CRS is no longer an option, Packaging Coordination Board. obligated businesses are still allowed to choose whether they want to take back commercial packaging themselves The new system should bring little or no changes at all for or use a CRS. households. The WMA amendment prohibits the duplica- tion of collection facilities, i.e. CRSs may not build up their TWO SHARED-USE MODELS: own collection infrastructure for household packaging; in- stead, they have to share use of existing structures (that is, - Shared use at the system level (Article 30 WMA) the existing schemes operated by ARA, AGR and Öko-Box, Under this model, a new CRS entering the market as well as municipal recycling centres and municipal waste concludes an agreement with an existing CRS on the paper and residual waste collection schemes). nationwide shared use of the collection infrastructure for a particular packaging material.

- Direct contracts with municipalities and disposal companies (Article 29c WMA) Under the second model, a new CRS concludes shared- use agreements with all municipalities and all collection partners across the country.

The collection partners and municipalities are obliged to conclude contracts with CRSs and to treat them equally. Price differences are possible only if they are objectively justified. The allocation of household packaging waste to the CRSs is made based on their respective market shares. Transfer stations have to be set up in each administrative district.

13 ARA PERFORMANCE REPORT COMPANY PROFILE

OWNERSHIP STRUCTURE MANAGEMENT STRUCTURE

ARA AG is a stock corporation under Austrian law, with the MANAGEMENT BOARD non-profit ARA association being the majority shareholder. All businesses that manufacture or import packaging, or Werner Knausz, CEO trade in packaged goods, can become members (and thus Christoph Scharff, CEO co-owners) of the association. Only waste disposal compa- nies are excluded from joining the association. SUPERVISORY BOARD

ARA AG’s ownership structure reflects a division into three Sabine-Susanne Aigner-Haas equal groups (manufacturers, packers/fillers/importers and Alfred Berger, Chairman retailers/wholesalers of packaging) and equal representa- Nicole Berkmann tion of all packaging materials in line with the provisions of Wolfgang Buchsbaum the Packaging Ordinance. Within the group of packaging Rainer Carqueville manufacturers, the companies representing the individual Alfred Fogarassy, Vice Chairman materials hold their share either indirectly as members of Gerhard Haider the ARA association or through a separate body. While the Susanne Lontzen manufacturers of packaging made of paper, plastics, metal Alfred Matousek, Vice Chairman (ferrous metal and aluminium), glass, drink cartons and Johann Reiter wood chose to set up separate entities, the manufacturers of Adolf Seidl all other materials are represented by the ARA association. Thomas Spannagl

OWNERSHIP STRUCTURE OF ARA AG

Share 80.2 % 3.3 % 3.3 % 3.3 % 1.65 % 1.65 % 3.3 % 3.3 % Ferro ProAlu PTP ÖKK ARO Pack Pack ARA association Pro Glas associa- VGA VHP GmbH associa- associa- GmbH tion ERA tion tion Vetropack Stölzle associa- Austria Oberglas tion GmbH GmbH Whole- Packers, Packaging Ferrous Drink salers/ fillers, manu- Paper Glass Plastic Aluminium Wood metal cartons retailers importers facturers 1

1/3 1/3 1/3

ARA AG

24.5 %

49 % 51 % 100 % 100 % 100 % 51 % 24.5 %

Austria Glas ERA GmbH ARES GmbH ARAplus GmbH NetMan GmbH Recycling GmbH

1 For the following materials: ceramics, textile fibres, other composite materials and biodegradable materials.

14 COMPANY PROFILE ARA PERFORMANCE REPORT

STAKEHOLDERS AND Municipalities THEIR REQUIREMENTS - Reduce residual waste arisings - Provide fair compensation for services rendered Environment Ministry - Coordinate with municipal waste collection - Fulfil national targets in line with the EU Waste Framework Directive and the EU Packaging Directive Waste management and recovery companies - Make sense economically and ecologically - Maintain profitable business relations - Provide secondary raw materials and substitute fuels Businesses - License partners: compliance service at the lowest Employees sustainable cost - Offer job security - Waste producers: convenient and tailored solutions - Ensure good working conditions

Consumers - Provide convenient, simple and reliable collection MISSION STATEMENT schemes - Keep financial burden of packaging tariffs and waste fees Providing compliance services for packaging waste at the as low as possible lowest cost possible

ORGANISATION CHART

Management Board Werner Knausz Christoph Scharff

SALES PRODUCTION

Communications Sales and Customer Service Household System Finance Christian Mayer Frank Dicker Erwin Janda Christoph Zwick

Legal Accounting and Industrial and Commercial Controlling Heribert Löcker Sales Support System, Product Management Erwin Gschmeidler Reinhard Pinter Harald Pichler Personnel and Administration IT Susanne Neubauer Technical Services Martin Wieser Dieter Schuch Quality Management Environmental officer Reinhard Pinter Evelyne Antreich

Internal Audit Reinhard Pinter

15 COMPANY VALUES OF ARA AG

Guiding principles Operational partners

- Fulfil the requirements of the Austrian WMA and the We work together with numerous partners and use the Packaging Ordinance at the lowest possible economic advantages of competitive procurement in awarding con- cost while achieving the greatest possible benefit to the tracts. The smooth cooperation with our partners – city and environment municipal governments, waste management associations - Maintain non-profit orientation in our core business and private-sector waste disposal and recovery companies (i.e. providing packaging compliance services in Austria) – and our strong capacity for innovation form the basis for - Equal treatment of all packaging materials the success, efficiency and acceptance of our packaging - Strictly material-specific calculation of tariffs and, collection scheme. wherever possible, expense-based cost allocation; no cross-subsidies between packaging materials Employees - Allow competition between packaging materials - Provide financial transparency ARA’s employees represent the company and its values - Promote political and social acceptance in line with and goals in all contacts with customers and partners. market requirements Competent, responsible, reliable and flexible, our staff - Ensure competition at every level of the value-added help maintain a company culture which is based on mutual chain, particularly through competition in the awarding respect, both in-house and in external relations. Our fam- of contracts ily-friendly human resource policies are essential for the performance and job satisfaction of our staff. Services Company environment Our core business is to offer packaging compliance services for all packaging materials that are disposed of by house- ARA’s business activities help protect the environment holds and the commercial sector. We organise the collec- and make an active contribution to climate protection. In tion, sorting and recovery of packaging waste throughout addition to providing secondary raw materials and energy Austria. Together with our partners, we have established sources, we also promote the prevention of waste. Mini- one of the leading collection and recovery schemes in mising the environmental impact of the collection, sorting Europe. We also offer innovative waste management solu- and recovery of packaging waste is one of our top priori- tions to customers in Austria and abroad. ties. At the same time, we are also working hard to achieve a high level of acceptance among consumers, businesses, Customers and owners administrators, and politicians, above all by providing them with information. ARA was established and is ultimately owned by the com- panies and organisations to which the Austrian Packaging Corporate governance Ordinance pertains. The same terms and conditions apply to all customers, and we act in the best interest of ARA’s ARA is committed to open communications and mutual owners and to the benefit of all license partners alike. The trust between management and employees. All goals company goals are stated in ARA’s mission statement and are well defined; all tasks and responsibilities are clearly guiding principles. Our customer relations are based on assigned. In our dealings with each other – including deal- transparency, accountability and trust. ing with criticism – we are open, constructive and solu- tion-oriented. Independent action and cross-departmental Efficiency principle thinking are encouraged and supported.

By providing our customers with compliance services at Quality goals the lowest sustainable cost, we aim for market and price leadership in a competitive environment. ARA operates on ARA has a strong commitment to the principles of legal a non-profit basis in the core business, while at the same and contractual compliance. As a quality-oriented com- time observing the principles of sound business, maximum pany, we always aim to improve our performance. This is efficiency and cost transparency. why we also review the economic impact of our quality and environmental goals, which are set at regular intervals. COMPANY PROFILE ARA PERFORMANCE REPORT

SUSTAINABILITY AS A relevant sustainability issues. ARA publishes an annual BUSINESS PRINCIPLE Sustainability Report, which conforms to GRI sustainability reporting guidelines. The success of packaging recycling in Austria would not have been possible without the integration of social and economic aspects, as both are essential to fulfilling the QUALITY AND ENVIRONMENTAL environmental targets: Businesses have to accept the MANAGEMENT SYSTEMS producer responsibility principle, and consumers have to be willing to sort their waste. ARA has been committed to ARA has had an ISO 9001-certified quality management the principle of sustainability since its foundation in 1993. system in place since 1997. Our environmental manage- We aim to achieve economic success based on a long- ment system in line with ISO 14001 was implemented in term strategy that also takes account of the company’s 2010. The two management systems are regularly updated social and environmental responsibility. This approach and monitored in internal audit procedures, and are recer- is enshrined in ARA’s company values and its quality and tified by Quality Austria at regular intervals. environmental management systems, which cover all

17 ARA PERFORMANCE REPORT COMPANY PROFILE

Most of our partner companies in the waste collection, well as the efficiency of the QM system are assessed in sorting and recovery industry have quality and/or envi- annual Management Reviews. New objectives and tasks ronmental management systems in place, too, which are are specified on the basis of these findings. typically certified to ISO 9001, ISO 14001, EMAS or the Austrian EFB standard. This means that large parts of the performance chain – licensing, collection, sorting and re- RISK MANAGEMENT covery – are subject to one and the same quality manage- ment system. The Management Board is also responsible for risk man- agement. One essential aspect is to ensure the exchange of Our own quality management (QM) system is pro- risk-related information within the company and between cess-oriented and ensures that all sustainability issues ARA and its owners and the Supervisory Board. In this are adequately covered. As an integral part of operational context, risk means possible positive or negative devia- processes, the QM system includes defining and monitor- tions from the company goals and benchmarks. Our risk ing company goals, establishing adequate organisational management activities focus on systematically identifying, structures and providing the resources required. The QM avoiding and minimising risk, as well as on taking adequate system is documented in a QM manual, and the individual precautionary measures. These goals are achieved by quality assurance processes are outlined in a QM map, analysing, evaluating and minimising possible sources of which is available to all ARA employees via the company risk. For instance, the volatility risk of revenues from selling Intranet. ARA’s Management Board is ultimately in charge secondary raw materials has increased sharply since the of maintaining and constantly improving the QM system. economic crisis of 2008/09. The achievement of quality and environmental goals as

MANAGEMENT SYSTEM

COMPANY VALUES AND MISSION STATEMENT

Provision of services and management of day-to-day business, implementation of corrective measures on an ongoing basis, communications and information

CONTROLLING Monitoring of Internal audits assess - customer satisfaction - compliance with legislation - environmental impact - compliance with defined processes - labour protection

MANAGEMENT REVIEW

PLANNING BASED ON REVIEW RESULTS - Employee assignment and training - Adapting the Management System and Company Values, if required - Goals to achieve sustainable improvements - Adapting processes and workplace evaluations, if required - Measures, responsibilities, and deadlines

18 COMPANY PROFILE ARA PERFORMANCE REPORT

SUBSIDIARIES the industry’s extensive data recording and data submis- sion requirements. ARES (Advanced Recycling Solutions GmbH), a 100 % subsidiary of ARA AG, provides tailor-made disposal solutions for business and industry. With its comprehen- MEMBERSHIPS sive range of services, ARES helps businesses implement professional waste management solutions. ARA is a member of numerous interest groups and is represented in several expert forums and organisations in AGR (Austria Glas Recycling GmbH) is a non-profit Austria and abroad. We use these platforms for exchanging company that has collected and recycled glass packaging information, discussing positions and transferring know- in Austria since the 1970s. Glass recycling is a prototype how. and role model for circular economy systems. The scheme operated by AGR is exemplary in that it strikes a fine Most important memberships balance between providing an economically efficient and - Ethics working group of the Austrian Economic Chamber a needs-based service. Internationally, it is recognised as a (ARGE proEthik) best-practice example in terms of recycling rates as well as - Federal Association of the German Waste Management environmental and sustainability standards. ARA AG holds Industry (Bundesverband der Deutschen Entsorgungs-, a 51 % stake in AGR. Wasser- und Rohstoffwirtschaft e. V.) - Christian Doppler Research Association ARA AG’s service subsidiary, ARAplus GmbH, is a one-stop - International Solid Waste Association – ISWA shop for the full range of services provided by the ARA - Austrian Society for Environment and Technology group. ARAplus specialists provide consultancy services on (Österreichische Gesellschaft für Umwelt und Technik) packaging compliance and help customers arrive at inte- - Austrian raw materials alliance, initiated by the Austrian grated and professional waste management solutions. Federal Ministry of Science, Research and Economy (Österreichische Rohstoffallianz) ARA AG and the ERA association together operate Elektro - Austrian Water and Waste Management Association Recycling Austria GmbH (ERA), the Austrian specialist (Österreichischer Wasser- und Abfallwirtschaftsverband) for Waste Electrical and Electronic Equipment (WEEE). - Packaging Recovery Organisation Europe – PRO EUROPE The non-profit ERA provides a comprehensive compliance - P/S/R Cluster Sammel- und Verwertungssyssteme service for WEEE and batteries, taking on all delegable - Austrian Business Council for Sustainable Development – obligations that manufacturers, wholesalers/retailers, im- respACT porters and exporters of electrical equipment and batteries - Environmental Technology Cluster have under the Austrian WEEE Ordinance and the Batteries (Umwelttechnik-Cluster) Ordinance. Thanks to its affiliation to ARA AG, ERA draws - Association of Austrian Disposal Companies on a substantial knowledge base in waste management. (Verband Österreichischer Entsorgungsbetriebe) - Austrian Economic Chamber NetMan (Network Management und IT Service GmbH) is - Sustainability Agenda working group of the Austrian ARA’s subsidiary for data communications and information Federal Economic Chamber management services. NetMan has many years of experi- ence in the development and implementation of complex software solutions with a focus on client-server database applications. NetMan offers several solutions tailored to the needs of waste management companies for meeting

19

34,000 TONNES OF METAL PACKAGING RECOVERED. BUSINESS PERFOR- MANCE

22 BUSINESS PERFORMANCE ARA PERFORMANCE REPORT

ARA uses license fee revenues and recovery revenues to convenient and safe online reporting tool for submitting finance the collection, sorting and recovery of used pack- packaging waste data, which helps reduce their adminis- aging and the completion of other mandated tasks (e.g. trative burden. waste prevention measures). In line with ARA’s non-profit status, surpluses or deficits arising in one calculation period ARA’s key account managers understand the importance are considered in the calculation of rates for the subse- of building strong customer relationships. Queries are quent period. handled promptly by our hotline, which is staffed by experienced professionals, and customer service centres in Carinthia, Salzburg and Tyrol. Our subsidiary ARAplus LICENSE PARTNERS (founded in 2014) offers a one-stop shop for all services provided by the ARA group, and we have expanded the Obligated businesses (so-called entities with a primary range of services we provide. obligation under the Austrian Waste Management Act) become ARA license partners to use our services. While we We offer in-house training courses for those employees are required by law to ensure a high level of market devel- of our customers who are in charge of waste licensing and opment, it also helps protect our customers from distortion disposal. Of course, we make sure that the information of competition through free-riding. provided always reflects the latest developments: updates to compliance criteria, legislative changes, or measures Top-quality services and a strong customer focus have taken to simplify the process, such as the launch of ARA’s allowed us to secure our role as Austria’s go-to packaging online reporting tool. We also host and organise numerous compliance scheme. Thanks to the expansion of ARA’s events – e.g. excursions to disposal and recovery compa- online services, customer communication has become nies, guided tours of recycling plants, and industry get-to- simpler and faster. For instance, almost all customers use gethers – which are an excellent opportunity to learn more the Internet to request contract forms, and many use our about ARA and its partners.

KEY DATA FROM ARA’S FINANCIAL STATEMENT (€ million) 2012 2013 2014 1 Equity 2.155 2.155 2.155 Revenue License fees 143.845 135.765 144.696 Sale of secondary raw materials 37.890 34.724 32.682 Expense for waste collection, sorting and recovery –143.149 –142.324 –147.806

1 Including Öko-Box GmbH (merger completed in 2014). Data as of 24 April 2015, preliminary data before issuance of the audit report and approval by the relevant bodies.

23 ARA PERFORMANCE REPORT BUSINESS PERFORMANCE

INTERNATIONAL COMPLIANCE LICENSE PARTNER AUDITS SERVICE ARA AG regularly hires auditing firms to conduct license We provide an international compliance service to assist partner audits, which examine the accuracy of the pack- customers who export packaging to other EU countries. As aging data reported. This helps minimise distortion of a one-stop provider of compliance solutions in Austria and competition, ensures a level playing field for all custom- abroad, we organise, manage and fulfil all obligations our ers and protects them against unfair cost allocation due customers have under waste and environmental law. We do to underreporting by competitors who fail to fulfil their so in cooperation with other leading compliance scheme obligations under the Packaging Ordinance. In 2014, Ernst operators in Europe who have made a commitment to high & Young GmbH and Deloitte GmbH audited more than quality standards and sustainable recycling solutions. 900 license partners on behalf of ARA. Under the 2013 amendment to the Waste Management Act, the Packaging Coordination Board will be responsible for organising these LICENSE PARTNER FORUM audits in future.

The license partner forum hosted by the ARA association is a platform where our customers can obtain up-to-date information about ARA AG and address requests and recommendations to the company and the association. The most important topics in 2014 were the amendments to Austrian waste legislation, our anti-litter initiative, pack- aging management in Eastern Europe, and Netman GmbH, which belongs to the ARA group.

RESULTS OF LICENSE PARTNER AUDITS

2012 2013 2014 Audits conducted, of which 483 (100 %) 462 (100 %) 529 (100 %) 100 % correct or marginal deviations 1 268 (55 %) 296 (64 %) 357 (67 %) Suspended 2 24 (5 %) 21 (5 %) 12 (2 %) Significant deviations identified 102 (21 %) 65 (14 %) 57 (11 %) Refund required 89 (18 %) 80 (17 %) 103 (19 %) Additional plausibility checks 378 380 380 Additional eco checks3 118 114 82

1 Deviations below 10 %. 2 These audits are continued at a later date. 3 This type of audit focuses on qualitative criteria only.

24 LICENSE RATES UNTIL 2014 LICENSE RATES FROM 2015

Our license tariffs are calculated separately for the house- The changes in the legal framework from 1 January 2015 hold and commercial schemes and for each tariff category. have significant structural and economic implications for The rates reflect the expenses the various materials cause our rates, so that there is no direct comparability between in the collection and recovery cycle. Before implemen- the rates of 2015 and those of earlier periods. The 2013 tation, tariffs are subject to an external audit procedure amendment to the Waste Management Act and the classi- and submitted for approval to the Austrian Environment fication ordinance provide a uniform and binding definition Ministry. At € 123 per tonne on average, ARA’s 2014 tariffs of household vs. commercial packaging at the product are at the lowest level in company history. Our policy of group level. ARA’s tariff categories have been adjusted to passing on cost savings and unscheduled surpluses to our reflect this change, and separate (household and commer- customers shows our continued commitment to ARA AG’s cial) rates are indicated for all packaging materials. non-profit status.

TARIFFS As of 1 January 2015 RATES (e/KG) EXCL. VAT Household packaging 1.01.0 Paper, household 0.095 1.02.0 Glass, household 0.082 1.03.1 Ferrous metal, household 0.240 1.03.2 Aluminium, household 0.290 1.04.1 Plastic, household 0.565 1.04.2 Beverage cartons, household 0.590 1.04.3 Other composite materials, household 0.565 1.04.4 Ceramics, household 0.140 1.04.5 Wood, household 0.018 1.04.6 Textile fibres, household 0.200 1.04.7 Biodegradable materials, household 0.450 Commercial packaging 2.01.0 Paper, commercial 0.035 2.02.0 Glass, commercial 0.050 2.03.1 Ferrous metal, commercial 0.060 2.03.2 Aluminium, commercial 0.080 2.04.1 Foils, commercial 0.070 2.04.2 Moulded containers, commercial 0.070 2.05.0 EPS, commercial 0.190 2.06.0 Beverage cartons, commercial – 2.07.0 Other composite materials, commercial 0.100 2.08.0 Ceramics, commercial 0.140 2.09.0 Wood, commercial 0.008 2.10.0 Textile fibres, commercials 0.200 2.11.0 Biodegradable materials, commercial 0.100 WASTE PREVENTION

26 WASTE PREVENTION ARA PERFORMANCE REPORT

Since 2004, we have invested around € 4.5 million in the ARA BEST STUDY AWARD promotion of waste prevention. With the “Minimise waste” initiative, we have supported investments in the amount The postgraduate MSc Program on Environmental Tech- of around € 12.2 million. In doing so, we are honouring nology and International Affairs (ETIA) – a joint program our commitment to promote waste prevention projects of the Diplomatic Academy of Vienna and the Vienna Uni- for businesses, research institutions, municipalities and versity of Technology – offers interdisciplinary training that consumers. is essential in the field of environmental protection. The program offers an innovative combination of environmen- Under the amended Waste Management Act, collection tal technology with a sound knowledge of international and recovery schemes have to jointly finance waste pre- affairs and economics. vention measures from 2015 in accordance with the guide- lines defined by the Environment Ministry. This means that In 2014, ARA presented the ARA Best Study Award for ETIA ARA will no longer be able to allocate the funds itself. graduates for the fifth time. The award promotes teaching and research of modern waste management, which covers the entire life cycle of goods including manufacturing, RESOURCE MANAGEMENT sales and consumption. With this award, we continue our RESEARCH long-standing cooperation with academia in the field of resource management and waste prevention. In 2003, we initiated (and initially financed) a professorship for resource management at the Vienna University of Tech- nology. Our close cooperation since then has allowed us “MINIMISE WASTE” INITIATIVE to adjust our collection and recovery procedures in light of the latest scientific findings, while at the same time adding The “Minimise waste” initiative, which we launched in a practice-oriented perspective to teaching. This confirms 2005, has become a well-established feature over the past our decision to initiate the professorship and to promote few years and was continued in 2014. It allows us to sup- excellence in resource management research. port the implementation of waste prevention projects in businesses, municipal government units and undertakings In 2012, the Vienna University of Technology launched the as well as education and health institutions. Christian Doppler Laboratory for Anthropogenic Re- sources, with ARA as an industrial partner. The laboratory focuses on how to best use discarded consumer goods and infrastructure facilities as a source of raw materials. Waste, the raw material of the future, plays a central role in these efforts. In 2014, the Christian Doppler Laboratory passed the first biannual evaluation with flying colours, so that the Christian Doppler Society authorised the continuation of its work until 2017.

27 ARA PERFORMANCE REPORT WASTE PREVENTION

WASTE PREVENTION AWARDS WASTE PREVENTION SERVICE FOR BIG EVENTS By awarding special prizes in the context of well-estab- lished Austrian awards, ARA has recognised businesses ARA takes action to prevent waste at festivals and other that implement resource-saving measures. big events, for instance by promoting the use of drinking glasses and reusable cups instead of one-way cups. We pro- In 2014, the ARA special prize of the Smart Packaging state vide consultation services for event organisers about waste prize went to ALPLA for their innovative foam technology prevention and waste disposal, and we provide information used in extrusion blow moulding of plastic bottles. to event visitors. In 2014, our waste prevention service was used at the Vienna harvest festival, Global 2000’s Tomor- Our special prize of the 2014 Green Packaging Star Award row Festival, the Vienna rubbish festival, Vienna’s “Cinema was collected by Mosburger GmbH, who convinced the jury under the Stars” film festival, and others. with an eco-friendly bicycle pannier bag.

The ARA special prize of the waste industry’s innovation prize, Phönix, went to Liese Esslinger for a school project workshop.

28 WASTE PREVENTION ARA PERFORMANCE REPORT

ARA SPOT: PREVENTING FOOD WASTE AUSTRIA GLAS RECYCLING WASTE PREVENTION FUND Our short testimonial video with Austrian comedian Robert Palfrader helps raise awareness of food waste. Palfrader Austria Glas Recycling (AGR) has a dedicated fund for the delivers a serious message with a smile: “One out of five prevention of waste, which is used to support outstanding food items ends up in the bin – what a waste”. The spot was waste prevention initiatives. The large number of submis- shown in 47 cinemas across Austria in the reporting year. sions and the diversity of projects show that environmental and climate protection play an important role for both businesses and public authorities in Austria. The selected projects help prevent waste by raising awareness and pro- viding training as well as through network-building.

29

215,000 TONNES OF GLASS PACKAGING RECOVERED. COLLECTION AND RECOVERY

32 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

NATIONWIDE COLLECTION SCHEME While households and small businesses accounted for some 62 % (524,700 tonnes) of this, commercial and indus- Packaging comes in so many forms and materials that it trial waste producers accounted for around 38 % places high demands on the flexibility of waste collection (320,200 tonnes). schemes. The different types of packaging all require convenient and economic solutions that facilitate efficient collection and eco-friendly recovery. ARA System offers HOUSEHOLD SCHEME tailored solutions to meet these various demands both for residential waste collection in Austrian urban and rural Our convenient and flexible collection service for con- communities as well as for commercial and industrial waste sumers is available throughout Austria for ARA-licensed collection. packaging. In 2014, the service was expanded to include Öko-Box, a collection and recovery scheme for drink car- The system requirements regarding the design and size of tons. ARA AG and AGR GmbH (for glass), in close coopera- domestic and commercial collection schemes are specified tion with disposal companies, city and municipal govern- by the Austrian Environment Ministry in its permits. The ments, as well as waste associations, ensure that the size Ministry also defines annual collection and recovery rates and coverage of the schemes is adequate in light of the for the individual packaging materials; compliance with Environment Ministry’s quantitative targets. these targets is mandatory and must be documented. Our main focus lies on collecting packaging waste as In 2014, ARA’s collection schemes managed 844,948 tonnes cost-efficiently as possible while at the same time meeting of packaging waste. local requirements regarding the number and size of bins

ARA SYSTEM’S SERVICE PERFORMANCE IN 2014: WASTE COLLECTED FROM HOUSEHOLDS, BUSINESS AND INDUSTRY (tonnes)

PACKAGING MATERIAL AMOUNT COLLECTED 1 Paper, cardboard, paperboard, corrugated board 337,113 Glass 221,733 Light-weight packaging (plastics, composite materials, textile fibres, ceramics, wood, 225,513 packaging made of biodegradable material, drink cartons) Metal 41,441 Wood 19,148 Total 844,948

1 Gross amount collected (including non-packaging waste of the same material and residual waste as well as drink cartons through the Öko-Box scheme); data for paper, board, cardboard, corrugated board: net amount collected.

33 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

as well as collection frequency. In the reporting year, a holds). By taking over Öko-Box in 2014, ARA expanded its total of 1,649,366 bins were available for the collection household scheme to include a separate collection service of packaging waste from households. This represents an for drink cartons, which are collected in special cardboard increase by around 3 % from one year earlier, which is due boxes. to a rise in the number of bins for paper and light-weight packaging. 524,735 tonnes of packaging were collected from house- holds and small businesses with household-like packag- At the same time, we also increased the number of ing waste arisings (which are included in the household households covered by the bag collection scheme for scheme wherever feasible). Of this, 484,929 tonnes were light-weight packaging. At end-2014, around 1.54 million recovered after sorting out non-packaging of the same Austrian households benefited from this highly convenient material and general waste. Compared with one year kerbside collection service (2013: 1.52 million house- earlier, this represents an increase in the amount collected

HOUSEHOLD COLLECTION IN 2014: NUMBER OF BINS AND HOUSEHOLDS COVERED BY THE BAG COLLECTION SCHEME (as at December 2014)

PAPER GLASS LIGHT-WEIGHT PACKAGING METAL TOTAL Collection Collection Collection Households, bag Collection Collection bins bins bins collection bins bins Burgenland 109,899 1,221 2,695 97,851 1,528 115,343 Carinthia 99,850 2,492 11,917 121,288 2,383 116,642 Lower Austria 486,217 20,424 111,438 466,082 10,106 628,185 Upper Austria 178,505 6,916 39,704 198,942 3,069 228,194 Salzburg 26,139 1,629 16,944 119,883 1,202 45,914 Styria 226,832 31,325 54,518 276,527 19,559 332,234 Tyrol 18,050 2,195 5,134 82,423 2,309 27,688 Vorarlberg 31,283 1,980 393 137,778 1,410 35,066 Vienna 95,622 6,742 12,002 38,366 5,734 120,100 Austria 1,272,397 74,924 254,745 1,539,140 47,300 1,649,366

34 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

by 8,392 tonnes (1.6 %), which can be attributed above all to a rise in the collection levels of paper packaging and to the integration of Öko-Box (drink cartons). The amount of packaging recovered increased by 21,270 tonnes (4.6 %) compared with 2013.

The per-capita amount of packaging and waste paper col- lected was 116.5 kilogrammes in 2014, slightly below the 2013 value of 117.4 kilogrammes, with Vorarlberg again ranking first (147.3 kilogrammes) among the Austrian provinces.

AMOUNT COLLECTED FROM HOUSEHOLDS 1 IN 2014, BY PROVINCES (tonnes)

PAPER 2 GLASS LIGHT-WEIGHT METAL TOTAL PACKAGING Burgenland 22,312 9,360 7,660 1,466 40,798 Carinthia 40,039 14,661 7,289 1,801 63,790 Lower Austria 115,917 38,540 26,178 5,465 186,100 Upper Austria 98,400 36,791 26,135 4,838 166,164 Salzburg 31,204 16,205 10,287 1,307 59,003 Styria 95,791 37,490 28,376 5,200 166,857 Tyrol 41,046 28,623 23,328 3,512 96,509 Vorarlberg 30,068 12,795 10,193 2,221 55,277 Vienna 119,295 27,268 6,648 3,028 156,239 Austria 594,072 221,733 146,094 28,838 990,737 Additional amount managed 3 35,972 8,793 44,765 Amount of packaging from 83,305 221,733 182,066 37,631 524,735 households 4

1 Including packaging waste collected from small businesses that use the household scheme wherever feasible. 2 Print products and paper packaging taken together. 3 Drink cartons collected separately and packaging collected by the municipal waste collection service or other schemes. 4 Including non-packaging waste of the same material and residual waste.

35 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

EVENT SERVICE under the Packaging Ordinance regarding documentation and proof of compliance. In addition, the waste producer To promote the separate collection of single-serving drink service centre offers guidance on the disposal of commer- bottles that are typical of on-the-go consumption, we offer cial packaging waste and verifies the license status of the a special service for venues where people consume such material collected. The main goal of such checks is to avoid drinks in large quantities: festivals, leisure facilities (such as additional costs for license partners that would arise if swimming pools), motorway service areas, etc. non-packaging waste and non-licensed packaging entered the system. Some 20,000 commercial waste producers The event service targets disposal companies, event used our service in 2014. Depending on the amount of organisers, sponsors, and local authorities. We provide packaging waste they produce, commercial waste produc- a collection infrastructure and organise the pick-up and ers can choose between three waste disposal schemes: recovery of the packaging waste. Commercial bring scheme In 2014, around 1,062,000 visitors of 71 big events were able to use separate collection facilities on 218 event days. Customers who opt for this solution benefit from a maxi- mum degree of flexibility: - Free choice of disposal companies COMMERCIAL AND (competing service providers) INDUSTRIAL WASTE SERVICES - Tailor-made collection service - Compensation for pre-sorting waste Providing solutions for commercial and industrial pack- aging waste has been a core feature of ARA AG’s service ARA has around 130 bring sites throughout Austria where range since day one. Today, commercial and industrial our customers can drop off licensed packaging waste free waste makes up around 38 % of the packaging we collect. of charge. The packaging must be sorted into fractions and This percentage is above 50 % if we add the packaging emptied completely. Customers may outsource the trans- produced by small businesses, which is usually collected porting of waste to a disposal company of their choice. through the household scheme. At 320,213 tonnes, the Before the waste material is accepted, the bring site team amount collected in 2014 was around 0.3 % higher than in checks the quality of the material and its license status. 2013. Small business scheme Thanks to our growing range of services, we have been able to establish a competitive benchmark for the manage- We offer a variety of disposal schemes for businesses ment of packaging waste in Austria. Innovative solutions that produce only small amounts of packaging waste. For for business and industry, our commitment to excellent instance, small businesses can dispose of a predefined customer service for license partners and commercial maximum amount of certain packaging materials through waste producers, consistent single-supplier manage- the shopping area scheme or the household scheme. This ment, a low administrative burden, and a highly attractive regular waste collection service is free of charge and avail- price-performance ratio – all these have made ARA the go- able for paper packaging, plastic foils and containers as to partner for packaging waste management in Austria. well as EPS. In addition, ARA has contractual agreements with about 1,300 recycling yards (which are operated by Registering with ARA AG’s commercial waste producer ser- municipalities or waste management associations) where vice is the first step to participating in the system. With this small businesses can drop off sorted and licensed packag- step, we take on all obligations our license partners have ing waste.

36 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

Commercial pick-up system

This needs-based service for large-scale waste producers is the most cost-effective solution for many customers, as it allows them to combine in-house collection and recovery measures with our services: The commercial pick-up sys- tem facilitates the smooth integration of in-house logistics with ARA System solutions. It is only available to custom- ers that generate certain minimum amounts of packaging waste.

AMOUNT COLLECTED FROM BUSINESS AND INDUSTRY IN 2014 (net, tonnes)

PACKAGING MATERIAL AMOUNT COLLECTED Paper, cardboard, paperboard, corrugated board 253,808 Light-weight packaging (plastics, composite materials, textile fibres, ceramics) 43,447 Metal 3,810 Wood 19,148 Total 320,213

37

COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

RECOVERY OF PACKAGING WASTE

In 2014, around 844,948 tonnes of packaging waste were collected from households, business and industry, which represents a slight increase by 1.1 % compared with 2013. Of this, 805,142 tonnes were recycled or incinerated with energy recovery by our 70+ recovery partners. The difference between the amount recovered and the amount collected can be explained by non-packaging waste and residual waste.

85 % of the waste recovered was recycled, while the rest was incinerated for heat or energy recovery.

A breakdown by packaging materials shows that paper, cardboard, paperboard and corrugated board accounted for around 42 %, glass for 27 %, light-weight packaging for 25 %, metal for 4 %, and wood for 2 % of the waste recov- ered. In 2014, we again managed to meet or exceed the collection and recovery rates specified by the Environment Ministry for all packaging materials.

ARA SYSTEM’S RECOVERY PERFORMANCE IN 2014 1 (tonnes)

PACKAGING MATERIAL TOTAL Paper, cardboard, paperboard, corrugated board 337,113 Glass 215,373 Light-weight packaging (plastics, composite materials, textile fibres, ceramics, 199,1562 packaging made of biodegradable material, drink cartons) Metal 34,262 Wood 19,238 Total 805,142

1 Net amount of packaging collected (excluding non-packaging waste of the same material and residual waste). 2 Including light-weight packaging collected with the municipal solid waste collection service and incinerated for energy recovery.

41 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

PAPER PACKAGING of the waste paper scheme for the specific requirements of each region.

COLLECTION City and municipal governments as well as waste man- agement associations are our contractual partners in the In 2014, ARA collected 337,113 tonnes of paper packaging, collection of paper waste. ARA pays the share of the cost which represents an increase by 7,628 tonnes or +2.3 % caused by the infrastructure and collection of paper pack- from 2013. aging. Our cooperation with municipalities in the tendering of collection services allows us to achieve cost savings With around 1,270,000 collection bins throughout the while maintaining high quality standards. country, ARA’s paper collection scheme is highly conven- ient. The bins are placed in designated public areas (bring 594,072 tonnes of paper waste were collected from Aus- scheme) or directly at the doorstep (pick-up service). A trian households and small businesses in 2014. Packaging combination of the two is common practice, especially in made of paper and paperboard is typically collected at urban areas. recycling yards. Because of that, the average share of paper packaging in municipal collection schemes has de- Paper packaging from households and small businesses is clined. This trend underlines the efficiency of the separate collected together with other paper products (e.g. news- collection service for packaging made of paper, cardboard, papers, journals, or other print products) in colour-coded paperboard and corrugated board from shopping areas (red) bins. This allows us to optimise the collection logistics and at recycling yards, which is financed by ARA.

42 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

The per-capita amount of waste paper collected through We provide other tailor-made solutions for small business- the household scheme was 69.8 kilogrammes on average. es that meet customers’ needs and take account of region- al circumstances. Our shopping area scheme is available The collection results reported for the nine Austrian prov- for businesses that produce no more than an average of 15 inces do not reflect different degrees of environmental to 100 kilogrammes of waste paper per week. Under this awareness; they are above all due to regional differences in scheme, which is free of charge, licensed paper packaging household and collection structures. For instance, in Aus- is picked up at regular intervals. Around 27,000 business- tria’s capital, Vienna, the per-capita amount of waste paper es all across the country used this service in 2014. ARA is higher than in the other provinces. This is because in organised more than 300 collection tours, most of them on Vienna, paper waste generated by small businesses is often a weekly or bi-weekly basis. collected through the household scheme. By contrast, in Upper Austria, Salzburg, and Tyrol, substantial amounts of In addition, around 1,300 recycling yards (which are op- waste paper go to recycling yards and recycling centres. erated by municipalities and waste management associ- ations) accept licensed and sorted paper packaging from The bulk of paper packaging – around 197,100 tonnes or households and small businesses. some 60 % of the total amount collected by ARA in 2014 – is collected from business and industry (excluding recycling yards).

WASTE PAPER: TOTAL AMOUNT MANAGED 2005–2014 (tonnes)

350,000

300,000 324,354 336,326 344,116 346,133 340,618 342,784 335,805 332,672 329,485 337,113 250,000

200,000

150,000

100,000

50,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

43 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

RECOVERY required for the production of certain types of paper products can be achieved through separation at source The entire amount of paper packaging collected by (above all commercial and industrial waste) or by sorting ARA AG (337,113 tonnes) was recycled at seven recycling the material collected (above all household waste). While facilities. more than one half of the paper waste collected from households is sorted and recovered separately (paper Recycling paper has become a valuable raw material for packaging and other waste paper such as newspapers and the paper industry, as technological advancements have magazines), the remaining paper packaging is recovered paved the way for its use in numerous paper products. All together with mixed paper waste. paper waste collected in Austria is made into new paper products. This highlights another advantage of the sepa- Recyclable paper waste is used above all in the production rate collection of waste paper: When collected separately of sanitary paper and newsprint as well as in primary prod- and in pure fractions, waste paper does not have to be ucts for the packaging industry. In Austria, packaging made landfilled or incinerated; this helps avoid costly measures of paper, cardboard, paperboard and corrugated board is for the treatment and disposal of residual waste and cuts made mainly (and for some types of packaging even entire- the cost of residual waste management. ly) of waste paper. Paper can be recycled more than once, but its quality deteriorates each time. On average, paper Paper waste comes in different quality grades. Basically, fibres can be recycled six times before they are eliminated we distinguish between a mixed paper fraction (packaging from the production process together with impurities and plus other paper waste) and pure fractions (e.g. corrugated ink and dye residue. board or newspapers and magazines). The pure fractions

WASTE PAPER (PAPER PRODUCTS AND PACKAGING): BINS AND AMOUNT COLLECTED through the household scheme IN 2014, BY PROVINCES

COLLECTION BINS AMOUNT COLLECTED (t) PER-CAPITA AMOUNT (kg) Burgenland 109,899 22,312 77.6 Carinthia 99,850 40,039 72.0 Lower Austria 486,217 115,917 71.3 Upper Austria 178,505 98,400 69.0 Salzburg 26,139 31,204 58.4 Styria 226,832 95,791 78.8 Tyrol 18,050 41,046 56.8 Vorarlberg 31,283 30,068 80.1 Vienna 95,622 119,295 67.5 Austria 1,272,397 594,072 69.8

44 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

45 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

LIGHT-WEIGHT PACKAGING associations, these collection schemes focus on recyclable plastic alone. In these regions, other light-weight packag- ing can be disposed of through the general waste collec- COLLECTION tion service, where it is used for energy recovery. The costs for this are covered by ARA. In 2014, ARA collected 225,513 tonnes of light-weight packaging from households, business and industry. Around 2.1 million Austrian households – i.e., significantly more than half of the country’s households – benefit from There are two household schemes for light-weight pack- a convenient pick-up service for light-weight packaging aging, one for PET bottles and the other for all types of or plastic bottles. While yellow bags prevail in rural areas, light-weight packaging. In around 60 % of Austria, pack- yellow bins are used in urban areas. aging made of plastic or composite materials is collected in yellow bags or bins together with packaging made of The scope of the collection schemes for light-weight wood, textiles, ceramics and biodegradable materials. packaging has been adapted over the past years, reflecting changes in the amount collected. The per-capita volume In Vienna, Lower Austria, Salzburg, and Carinthia, more collected was 17.2 kilogrammes in 2014. About 700 than 3 million Austrians can use a separate collection recycling yards across the country also accept light-weight scheme for plastic bottles (which are, in some regions, col- packaging from households. lected together with metal packaging). Following consul- tations with the respective cities, municipalities and waste

46 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

In addition, drink cartons were picked up directly at the and quality loss. This is why the representatives of Austria’s doorstep (Öko-Box scheme) in some regions (especially provincial governments, waste management experts those where plastic bottles are collected separately). In all and composting facility operators have opposed the idea other regions, Öko-Box cardboard boxes can be dropped of of collecting biodegradable packaging together with at post offices and post partners. organic waste. Depending on the regional solution in place, packaging made of biodegradable material is therefore Experience shows that system optimisations and strategic collected in the yellow bin, yellow bag or together with PR activities by ARA, municipalities and disposal com- municipal waste. The bulk of this packaging is disposed panies can help ensure a consistently high quality of the of by carbon-neutral incineration for thermal recovery or material collected. Between 1998 and 2014, the share of energy recovery. other types of waste in the bins for light-weight packaging (i.e. people depositing waste in the wrong bin) declined Business and industry accounted for around 20 % of the from more than 31 % to about 16 %. light-weight packaging collected in Austria in the reporting year. Packaging made of biodegradable material is also col- lected through the scheme for light-weight packaging. At present, it does not make sense to collect such materials in the organic waste bin, as people tend to mistake plastic packaging for biodegradable packaging and deposit it in the organic waste bin, which would lead to contamination

LIGHT-WEIGHT PACKAGING: TOTAL AMOUNT MANAGED 2005–2014 (tonnes)

250,000 225,513 215,165 220,136 219,016 222,313 205,933 199,078 203,253 189,682 200,000 168,010

150,000

100,000

50,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

47 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

RECOVERY foils. Fibres are another important use of post-consumer PET flakes. New technology allows producing food-grade ARA organises and ensures the recovery of light-weight packaging from PET recyclate (even though hygiene packaging in compliance with the Packaging Ordinance. standards for food packaging are high), and this packaging Overall, 199,156 tonnes of light-weight packaging were is indistinguishable from packaging made of virgin plastic. recovered in 2014 (2013: 182,800 tonnes). Today, a substantial share of the PET bottles we collect is used to manufacture new PET beverage bottles (bot- RECYCLING tle-to-bottle recycling).

The packaging waste is shredded, washed, dried, melted Drink cartons (sorted from other waste or collected sepa- and processed into granules. Plastic manufacturers can use rately) are recycled in paper mills. this granulate as a raw material in the manufacture of new products. Plastic packaging needs to be sorted thoroughly Unsorted mixed plastic packaging can also be recycled before it can be recycled, as the different types of plastic under specific circumstances. Shredded packaging is have different melting points and do not mix when melted. agglomerated in large grains and turned into new products without the granulate stage. This procedure, however, PET is a light and virtually unbreakable packaging material allows manufacturing only massive products in simple that is typically made into beverage bottles as well as non- shapes, such as panels, gutters or roofing sheets. food packaging, such as boxes, blister packs or transparent

LIGHT-WEIGHT PACKAGING: BIN AND BAG COLLECTION FROM HOUSEHOLDS and household scheme IN 2014, BY PROVINCES

COLLECTION HOUSEHOLDS, AMOUNT PER-CAPITA

BINS BAG COLLECTION COLLECTED (t) AMOUNT (kg) Burgenland 2,695 97,851 7,660 26.7 Carinthia 11,917 121,288 7,289 13.1 Lower Austria 111,438 466,082 26,178 16.1 Upper Austria 39,704 198,942 26,135 18.3 Salzburg 16,944 119,883 10,287 19.3 Styria 54,518 276,527 28,376 23.4 Tyrol 5,134 82,423 23,328 32.3 Vorarlberg 393 137,778 10,193 27.2 Vienna 12,002 38,366 6,648 3.8 Austria 254,745 1,539,140 146,094 17.2

48 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

THERMAL RECOVERY

Plastic is made above all of crude oil, which means it is a valuable energy resource. Mixed and soiled packag- ing made of plastic and composite materials is cut up, processed and incinerated for energy recovery in industrial plants, where it replaces fossil fuels (such as coal, crude oil and natural gas). One kilogramme of plastic packaging has roughly the same calorific value as one litre of fuel oil. Typical users are cement plants and the pulp industry.

In Vienna, Lower Austria, Upper Austria, Salzburg, and Carinthia, small light-weight packaging is collected togeth- er with general waste and incinerated at waste incineration plants. The energy produced is used in public buildings and district heating networks.

49 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

METAL PACKAGING sent for recovery, with the associated costs being covered by the municipalities.

COLLECTION RECOVERY In total, 41,441 tonnes of metal packaging (ferrous metals and aluminium) were collected on behalf of ARA AG in FERROUS METAL 2014, with household waste accounting for the bulk (91 %) of this amount and commercial waste accounting for some Steel sheet and, more commonly, tinplate are used in the 9 % (or 3,800 tonnes). manufacture of cans, jerry cans, lids and caps, as well as other packaging for multiple purposes, including contain- The separate collection scheme for metal packaging from ers for food, beverages, or chemicals. Metal packaging is households relies above all on colour-coded (blue) bins, collected separately, sorted mechanically and shredded to which are located at designated collection points; in some remove other types of metal, impurities and contaminants regions, metal packaging is collected together with light- (e.g. with magnetic separation). When the material has weight packaging and sorted later. The per-capita amount been compacted into bales or shredded scrap, it is ready collected was 3.4 kilogrammes in 2014, which translates for shipment to steelworks or other recovery companies, into a total amount of 28,838 tonnes. where – mixed with other scrap materials and pig iron – it is a valuable raw material for the steel industry. In some regions, metal packaging is collected together with other metal waste (scrap metal, ironmongery) and

METAL PACKAGING: TOTAL AMOUNT MANAGED 2005−2014 (tonnes)

50,000

41,813 41,129 41,101 41,465 41,441 40,821 40,558 40,340 39,801 39,836 40,000

30,000

20,000

10,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

50 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

Used food and pet food cans, cooking oil containers, or infinitely without losing its specific properties, e.g. stabil- paint containers: They all end up as high-grade construc- ity, plasticity, electrical conductivity, corrosion resistance, tion steel, washing machine chassis, car or airplane parts, or food and drink compatibility. Recycling both uncoated or steel rails. Packaging made of ferrous metal is fully and varnished aluminium is highly efficient. Packaging recycled, which avoids landfilling and saves raw materials, that consists of more than 50 % aluminium can simply be energy, air and water in the manufacture of new products. melted and re-cast.

ALUMINIUM

The packaging industry mainly uses bare foil (chocolate wrappers etc.) or lacquered and printed aluminium (bev- erage cans, yogurt cup tops etc.). Aluminium is also used in composite materials in combination with, for instance, plastic or paper. Aluminium packaging is separated either manually on a picking line or in eddy current separators, where conducting metal objects are separated from non-conducting ones.

Re-melting aluminium requires only around 5 % of the energy necessary for the production of the same quantity of virgin aluminium. Besides, aluminium can be recycled

METAL PACKAGING: BINS AND AMOUNT COLLECTED through the household scheme IN 2014, BY PROVINCES

COLLECTION BINS AMOUNT COLLECTED (t) PER-CAPITA AMOUNT (kg) Burgenland 1,528 1,466 5.1 Carinthia 2,383 1,801 3.2 Lower Austria 10,106 5,465 3.4 Upper Austria 3,069 4,838 3.4 Salzburg 1,202 1,307 2.4 Styria 19,559 5,200 4.3 Tyrol 2,309 3,512 4.9 Vorarlberg 1,410 2,221 5.9 Vienna 5,734 3,028 1.7 Austria 47,300 28,838 3.4

51 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

WOOD PACKAGING made into packaging, so that chips made of wood packag- ing can be recycled, incinerated, or composted without any problem. COLLECTION 19,238 tonnes of wood packaging were sent for recovery Wood packaging is primarily used in commercial and in 2014. industrial packaging and collected through our commercial scheme (2014: 19,148 tonnes); an additional small amount was collected together with light-weight packaging.

RECOVERY

Wood has a long tradition as a raw material of packaging, and few other raw materials can be recovered so easily, cheaply and in such an eco-friendly manner.

After sorting, packaging wood is cut and sliced into wood chips, which are used in chipboard manufacture, as re- newable fuel in thermal recovery plants, and as structural material in composting. Only preservative-free wood is

WOOD PACKAGING: TOTAL AMOUNT MANAGED 2005−2014 (tonnes)

25,000 22,719 21,023 20,719 19,687 19,116 19,148 18,497 18,945 20,000 18,241 17,674

15,000

10,000

5,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

52 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

GLASS PACKAGING performance of the glass life cycle. AGR is a non-profit organisation – unplanned surpluses are considered in ARA’s partner in providing compliance services for glass the calculation of rates for the following period. AGR is packaging, Austria Glas Recycling GmbH (AGR), organises co-owned by ARA AG (51 %), Stölzle Oberglas GmbH and the collection and recovery of glass packaging throughout Vetropack Austria (24.5 % each). Austria. AGR issues the collection and recovery guaran- tee for glass packaging and is formally recognised as a collection and recovery scheme for glass packaging by the COLLECTION Austrian Environment Ministry. In 2014, AGR collected 221,733 tonnes of glass packaging AGR ensures that the glass waste collected is of optimum on behalf of ARA System and shipped it to glass plants for quality so that a large amount of primary raw materials recycling. Thanks to AGR and its partners, around can be replaced by post-consumer glass. This helps protect 234,000 tonnes of waste glass were sent for recycling in the environment by saving resources and energy as well the reporting year. as reducing carbon emissions – a valuable contribution to climate protection. AGR provides a nationwide, convenient and well-estab- lished waste glass collection service in Austria. Around AGR’s environmental management system has received 74,900 waste glass containers in different modules and several national and international awards. It is certified to sizes are available for the collection of clear and coloured EMAS Regulation No. 1221/2009 and ISO 14001, which glass. Collecting clear glass and coloured glass separately ensures continuous improvements in the environmental is essential, as one green bottle is enough to colour-con-

53 ARA PERFORMANCE REPORT COLLECTION AND RECOVERY

taminate 500 kilogrammes of clear cullet, which makes it Facebook presence complement AGR‘s communications unusable for recycling. activities.

Both the collection frequency and the disposal volume are adjusted to regional needs. While bottle banks are emptied RECOVERY up to 53 times per year in urban areas, the frequency is usually once per month in rural areas, and 16 times per Glass can be recycled indefinitely. Glass packaging can be year on average in Austria. remelted many times and made into new products without any quality loss. Thanks to AGR and its partners, around How much glass can be recycled depends on the quality 234,000 tonnes of glass waste were recycled and made of the material collected. Only glass packaging – sorted into new top-quality glass packaging in 2014. More than into clear and coloured glass – should be disposed of in 80 % of the collected material is recycled domestically by bottle banks. To further improve the quality of the glass Vetropack Austria GmbH (in Pöchlarn, Lower Austria, and collected, AGR runs information campaigns and offers Kremsmünster, Upper Austria) and by Stölzle Oberglas incentives for different audiences, e.g. a live and virtual GmbH (in Köflach, Styria); the remaining waste glass is ex- recycling-for-kids programme featuring a genie in a bottle ported to glass plants in Germany, Italy, Croatia, Slovakia, (www.bobbybottle.at) or a mobile phone game called and the Czech Republic. In the first stage of the recovery Recycling Heroes for the young and young at heart. In process, the glass waste is sorted thoroughly in glass addition, AGR provides comprehensive information on plants. Other types of waste and impurities are removed, its website (www.agr.at) and a screen reader for visually as they would complicate the recycling process or even impaired visitors. The blog www.glasrecycling.at and a make it impossible. For instance, ceramics cause inclusions

GLASS PACKAGING: TOTAL AMOUNT MANAGED 2005−2014 (tonnes)

250,000 223,257 221,733 211,887 214,431 216,138 218,875 218,967 201,851 205,035 195,552 200,000

150,000

100,000

50,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

54 COLLECTION AND RECOVERY ARA PERFORMANCE REPORT

that make glass brittle. After manual sorting, waste glass is passed through a magnetic separator, optical sensors and through sieves. Then the cullet is mixed with silica sand, limestone, dolomite, and soda, fed into a furnace where it is melted at 1,580 degrees Celsius, and moulded into new glass bottles and jars. The share of waste glass is up to 90 % for green glass and up to 60 % for clear glass. Recycled glass melts at lower temperatures than the virgin raw materials, which saves energy and helps reduce carbon emissions. The energy savings achieved per year are rough- ly equal to the energy consumption of 50,000 households and help reduce the carbon footprint of Austria.

GLASS WASTE: BINS AND AMOUNT COLLECTED through the household scheme IN 2014, BY PROVINCES

COLLECTION BINS AMOUNT COLLECTED (t)1 PER-CAPITA AMOUNT (kg) Burgenland 1,221 9,360 32.6 Carinthia 2,492 14,661 26.4 Lower Austria 20,424 38,540 23.7 Upper Austria 6,916 36,791 25.8 Salzburg 1,629 16,205 30.3 Styria 31,325 37,490 30.8 Tyrol 2,195 28,623 39.6 Vorarlberg 1,980 12,795 34.1 Vienna 6,742 27,268 15.4 Austria 74,924 221,733 26.1

1 Including glass waste from small businesses.

55 ENVIRON- MENTAL IMPACT

56 ENVIRONMENTAL IMPACT ARA PERFORMANCE REPORT

EXTERNAL ENVIRONMENTAL IMPACT INTERNAL ENVIRONMENTAL IMPACT

Packaging collection has a positive environmental impact To determine the full environmental impact of our business above all because the recycling of packaging made of activities, our environmental management system covers paper, glass, light-weight materials (mainly plastic), metal, not only the external environmental impact, but also eval- and wood reduces carbon emissions, and because the use uates the impact of ARA’s office operations, even if these of packaging waste as secondary fuel helps save coal, fuel effects are comparatively negligible. The relevant factors oil, coke, and natural gas. These beneficial effects are to – e.g. energy consumption (electricity and district heating) some extent offset, for instance by the carbon emissions and paper consumption – are expressed in CO2 equivalents of waste collection vehicles (around 30,000 tonnes of CO2 to make the data comparable. equivalents).

The external impact of ARA’s business activities in 2014 SUSTAINABILITY AGENDA was calculated using a detailed life cycle assessment OF THE BEVERAGE INDUSTRY model covering all packaging materials. The results were evaluated by the Environment Agency Austria and the The sustainability agenda of the Austrian beverage indus- Vienna University of Technology. The model takes into try is a voluntary commitment that has helped save around account the positive impact (carbon savings) of secondary 165,000 tonnes of CO2 on average per year, which makes it raw material production and fuel substitution, as well as an important tool for reducing the environmental impact the negative impact (carbon emissions) of the separate of beverage packaging. In cooperation with the Austrian collection schemes and the direct carbon emissions of the Federal Economic Chamber and the Austrian Beverage recovery process. On balance, ARA helped save Association, ARA has succeeded in further strengthening

670,000 tonnes of CO2 equivalents in 2014 (2013: around the significance of the sustainability agenda. The number 650,000 tonnes). These carbon savings are equivalent to of members has increased from 50 to more than 1,000. 7 % of the annual emissions caused by all passenger cars registered in Austria. The sustainability agenda was originally set to run until 2017. Even before that date, in summer 2011, a supple- This means that our packaging compliance service is ment to the agenda was adopted after negotiations be- not only climate-neutral – the collection and recovery of tween Austria’s social partners. This supplement specifies packaging contributes to protecting the environment. stricter goals and even some new goals. To raise awareness of this fact among our customers, we have awarded climate certificates since 2009 to recognise One set of measures aims at making reusable packaging responsible companies that make an active contribution to more attractive for consumers, for instance by ensuring climate protection by using ARA AG’s packaging compli- good shelf space for reusable bottles, by labelling and ance service. promoting reusable packaging, and by providing more regional products in reusable packaging.

57 ARA PERFORMANCE REPORT ENVIRONMENTAL IMPACT

To further improve the ecological performance of one-way packaging, the supplement provides for a voluntary in- crease of recycling rates for ferrous and non-ferrous metal packaging from 65 % to 70 % by 2013 and of bottle-to-bot- tle recycling from 6,000 tonnes to 9,000 tonnes by 2012.

In addition, a platform was created for financing and or- ganising anti-litter campaigns. This platform, which is part of the Austrian Economic Chamber, was established after consultation with social partners, municipalities and the Austrian Environment Ministry.

INTERNAL ENVIRONMENTAL IMPACT

2012 2013 2014 Power consumption at the office 40.3 t 44.7 t1 47.9 t (life cycle CO2 equivalents) (118,135 kWh) (122,000 kWh) District heating and hot water consumption 29.4 t 17.6 t2 28.2 t (life cycle CO2 equivalents) (148,950 kWh) (89,405 kWh)

Staff transportation (CO2 equivalents) 64.3 t 71.3 t 76.2 t Paper consumption 3.9 t 3.9 t 4.7 t3 (copy and printing paper, procurement data)

1 Increase due to printing of new contracts (2015 Compliance and License Agreement) to reflect legal changes 2 Improved metering 3 High print volume in the wake of legal changes

58

199,000 TONNES OF LIGHT-WEIGHT PACKAGING RECOVERED. COMMUNI- CATIONS

62 COMMUNICATIONS ARA PERFORMANCE REPORT

The producer responsibility principle and the success of TRENNT – ARA AG’S MAGAZINE ARA’s collection and recovery schemes would be unthink- able without a high degree of acceptance among business- TRENNT is issued twice per year as a supplement to the es, politicians, and consumers. Establishing and maintain- Austrian daily newspaper Der Standard. Through our ing excellent communications with all stakeholders has magazine, we reach out to our customers, collection and been a priority for us from day one. recovery partners as well as to political and administrative decision-makers, and, last but not least, the general public. The 2014 issues focused on green building and the circular WASTE CONSULTANTS: economy. DIRECT CONTACT WITH CONSUMERS

Our cooperation with around 260 waste consultants goes CAMPAIGN 2014 back many years now. They ensure that counselling is avail- able at a local level and that consumers are informed about In the reporting year, our public awareness campaign again local and regional specifics of the collection system. We featured Austrian comedian and actor Robert Palfrader, provide them with info material and giveaways for events who relies on humour to remind consumers of the impor- in their regions to make sure that consumers receive up-to- tance of sorting and avoiding waste. date and comprehensive information.

To honour the excellent work of waste consultants in SOCIAL MEDIA Austria, ARA AG and the Umweltschutz magazine estab- lished the “Waste Consultant of the Year” award, which We use Facebook, XING and YouTube to complement was granted for the 17th time in 2014. First prize in the traditional channels of communication, which allows us category targeting grown-ups went to Bettina Leiner of to have a direct dialogue with anyone interested in waste the waste management association of Spittal an der Drau prevention, collection and recycling. for her concept of a Waste Drivers License. For his Energy Bicycle project, Daniel Holzmann of the Grieskirchen waste In addition, ARA AG focuses on webinars as a means of management association won first prize in the category communication with stakeholders: Invited participants can targeting kids. A special prize sponsored by the anti-litter attend presentations and training courses via the Internet campaign Reinwerfen statt Wegwerfen was collected by without leaving their workplace. The webinars are inter- Johannes Kadla of the Melk waste management associa- active and allow two-way communication between the tion for his project #1000schritte (#1000steps). Angelika presenter and the audience. Büchler of the Hollabrunn waste management association was honoured with the lifetime achievement award for her outstanding work in Lower Austria. She has been an active member of various working groups and has implemented great projects over the years.

63 ARA PERFORMANCE REPORT COMMUNICATIONS

ARA4KIDS materials by students of the 2B class of the HLP Mödling high school. The project is presented in this Performance In 2013, we created ARA4kids, an information and motiva- Report. Please refer to page 82 for a detailed making-of. tion programme for children aged 4–10 to promote envi- ronmental awareness from a young age. ARA4kids aims to teach children about waste prevention, litter prevention as INFO ON NEW regulations well as the separate collection and recycling of packaging. The programme consists of different modules that appeal We organised a number of information events in 2014 to to different senses. keep our customers and partners up to date about the changes brought on by the amendment to the Austrian ARA4kids includes an audio book, a comic book with Waste Management Act (WMA) and the new Packaging hidden-object scenes, board games, craft ideas and stories, Ordinance. The events are also an excellent opportunity to a card game and give-aways. A teaching and learning stay in touch with our stakeholders. In March 2014, we or- folder for teachers and pre-school educators provides an ganised a WMA roadshow for municipalities across Austria introduction to the topic, practical examples and teaching in cooperation with the Austrian Association of Municipal- materials. The www.ara4kids.at website contains addition- ities and the Austrian Association of Cities and Towns. The al suggestions and teaching materials for environmental roadshow was attended by 350 people. education. The modular programme is designed above all for children aged 4–10, but also for primary school teach- Because of strong demand, we also hosted five webinars ers, pre-school educators and parents. in January, September and November 2014. Participants could watch the presentation on the WMA amendment on In the reporting year, ARA4kids for the first time included their computer and ask questions via chat. The webinars recycling focus days hosted by two of our disposal partners attracted more than 1,000 participants. in Tyrol. The events were attended by around 570 kids, who had to prove how much they know about the environment In September, ARA System hosted a recycling dialogue on an eventful day of games. Because of the huge success, for a hand-picked group of opinion leaders to exchange a total of 8 recycling focus days will be organised in 2015. information on “Competition in the household packaging sector: What has been achieved and what still needs to be done before 1 January 2015?”. SCHOOL COMPETITION At the packaging summit in October, which was also Following the success of our pilot project for an environ- hosted by ARA, high-level representatives of business and mental competition a year earlier, we held the first nation- industry as well as the Environment Ministry discussed wide competition (“Mission: Environment”) in the school open questions surrounding the 2013 WMA amendment year 2014/15. It will be organised every year from now on. and the 2014 Packaging Ordinance. More than 30 school classes from all across the country submitted their ideas for a project on packaging, saving resources, preventing waste and recycling. The winning entry was “Crazy Golf”, a mini golf course made of recycled

64 COMMUNICATIONS ARA PERFORMANCE REPORT

SUPPORT FOR SOCIAL PROJECTS ANTI-LITTER CAMPAIGN

ARA AG regularly supports social projects. A case in point is In 2012, the Austrian business community launched a our participation in the Kids’ Rally, an initiative launched by voluntary initiative to fight littering. Reinwerfen statt former rally driver Helmut Schindelegger for children with Wegwerfen (“Toss it in the bin”) focuses on awareness-rais- special needs. For the sixth time in 2014, we organised ing measures to keep the country clean and reduce litter edutainment games, which are an opportunity for the kids as well as promoting respect for the environment and the to learn how to sort waste correctly while having fun. careful use of natural resources. ARA, in cooperation with the Sustainability Agenda working group of the Austrian We also continued to support the association Verein T.I.W., Federal Economic Chamber, is responsible for the imple- which helps disadvantaged young people find and keep mentation of this initiative. employment. The association assists its clients in searching for a job, starting their career and solving problems at the Campaign ambassadors in inflatable orange costumes workplace. spread the message at littering hotspots like city or music festivals, sports events like the Alpine skiing World In the reporting year, we again decided to make a donation Championship in Schladming or matches of the Austrian to BOJE instead of sending Christmas gifts to our custom- national football team, but also at shopping centre exit ers and business associates. BOJE is a centre offering crisis roads, arterial roads in the provincial capitals etc. Media intervention, psychotherapeutic support, and counselling cooperations, YouTube clips and a Facebook presence, for traumatised children and adolescents. In addition, prize competitions, event promotions, flash mobs and a we supported the following non-profit organisations and dedicated website (www.reinwerfen.at) make sure we get projects: St. Anna Children’s Hospital, SC Aktivity (a sports the message across. We have also secured the support of club for people with special needs), Blinden- und Sehbehin- Austria’s most famous ski jumper, Gregor Schlierenzauer. dertenförderungswerk GmbH (an association that provides education, training and employment services for blind and visually impaired people), WienWork integrative Betriebe und AusbildungsgmbH (a training and work placement provider for disadvantaged people), Golfen mit Herz (which supports children with cancer), ALUFIT (an aluminium can recycling initiative that runs a return-to-work programme), and EDINOST (a recycling project for plastic bottle caps that helps children in need).

65 SURVEYS AND STUDIES

66 SURVEYS AND STUDIES ARA PERFORMANCE REPORT

VIEWS ON WASTE SORTING infrastructure provided and gave the Austrian system a favourable rating of 1.6 on a scale from 1 (excellent) to 5 The excellent results of the separate collection scheme for (poor). packaging are also reflected in a positive attitude toward waste sorting: A recent survey conducted by IMAS on If Austria is to continue to achieve the ambitious targets behalf of ARA AG among 500 Austrian consumers shows while at the same time maintaining the high quality of the that 95 % of respondents think that the separate collection material collected, further information campaigns are in of packaging is a “very good” or “good” solution. This is an order despite these outstanding results. This is the only increase by one percentage point from 2013, and it is the way Austria can continue to play its pioneering role in this second-highest rating since the first survey 20 years ago. field.

Sorting waste and the separate collection of packaging have long become an integral part of people’s lives. This is corroborated by the steady decline in the share of people who feel they have to make an extra effort to sort their waste. It also shows in the fact that 96 % of Austrians sort their waste. Part of this success can be attributed to the convenient collection system, as 76 % stated that the bins provided were adequate, which is again the best rating ever achieved. In general, 86 % of respondents said they were “very satisfied” or “satisfied” with the collection

CONSUMER VIEWS ON THE SEPARATE COLLECTION OF PACKAGING WASTE A “very good” or “good” solution

100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 %

1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Households sorting waste Separate collection of packaging waste Source: IMAS (2014).

67 EMPLOYEES

68 EMPLOYEES ARA PERFORMANCE REPORT

Our success is driven by the commitment of our highly qualified and motivated employees. As at 31 December 2014, ARA AG had 89 employees and 3 apprentices.

EMPLOYEES

2012 2013 2014 Number of employees (as at end-December) 82 82 89 Women 43 43 48 Men 39 39 41

Full-time 63 64 71 Part-time 15 14 16 On leave 4 3 2

Average (including staff on leave) 81.9 83.7 87.2 Full-time equivalents (including staff on leave) 75.1 73.7 80.6

Apprentices 3 3 3 Women 3 2 2 Men 0 1 1

Management CEOs Men 2 2 2 Women 0 0 0 Heads of departments Men 10 10 10 Women 1 1 1

Education and further training Average cost per capita (€) 602 1,197 699

Work accidents 0 0 0

69 ARA PERFORMANCE REPORT EMPLOYEES

REMUNERATION HEALTH AND SAFETY

In line with its guiding principles, ARA AG has a strictly There were no work-related sick days or occupational performance-based pay scheme, and it offers equal oppor- accidents in the reporting period. As required by law, ARA tunities for promotion to all employees. Bonus payments performs workplace risk assessments and workplace safety reward exceptional performance, and bonuses to heads of trainings at regular intervals. We have appointed in-house departments are paid out depending on whether perfor- first aid helpers and fire prevention experts as well as mance targets (which are specified in annual target agree- company safety specialists who all receive further training ments) have been met. All employees receive a number of on an ongoing basis. Fire safety equipment (e.g. fire extin- additional voluntary benefits, including pension contribu- guishers) is sufficiently available. In 2014, we organised a tions, accident insurance, and restaurant vouchers. lung function test, a hearing test, a vision test, a functional examination of the spine and an indoor climate measure- ment of our premises for our employees. In addition, two FURTHER TRAINING vaccination appointments were booked, with ARA covering the doctor’s fee. To maintain the high service level and increase job sat- isfaction, ARA actively promotes further training of its employees. In 2014, we invested on average € 699 per WORK-LIFE BALANCE employee in training and education. Individual training needs are identified and discussed with each staff member; Family-friendly human resource policies are essential for this is usually done in annual appraisal interviews, where job satisfaction and performance. ARA participates in a we jointly agree on targets and objectives. These discus- work-life balance audit to promote and improve fami- sions help optimise quality of work and strengthen internal ly-friendly measures. The audit aims to develop a com- communications. prehensive set of measures for employees that will allow them to strike a perfect balance between work, family and leisure. Existing measures, like health promotion, support for parents returning to work, and fringe benefits, are continued and complemented by additional measures over the next three years.

70 EMPLOYEES ARA PERFORMANCE REPORT

INTERNAL COMMUNICATIONS ANTI-CORRUPTION POLICY

ARA’s management believes that keeping an open direct ARA implemented anti-corruption guidelines as part of its dialogue with employees is a cornerstone of effective col- compliance measures. The guidelines were put in place to laboration. ARA’s employees are not organised in a union. ensure integrity in ARA’s business conduct and proper con- We hold departmental and interdepartmental meetings on duct of staff, as well as to effectively prevent compliance an ongoing basis. On the company’s Intranet, our employ- violations to protect all employees from possible conse- ees have access to comprehensive corporate information quences under labour law and criminal law. These mea- and, through the pARAdISO portal, information about sures also aim at preventing damage to ARA’s reputation, ARA’s management system. ARA’s in-house blog HurrARA image and property. is another channel for sharing information. All employees are invited to create, read or comment on blog entries, which facilitates an open dialogue and generates new JOB CREATION ideas. ARA System has had a proven positive economic effect, as it has led to the creation of more than 6,600 jobs and IDEA MANAGEMENT has contributed to sustaining the Austrian waste disposal industry, which is largely made up of small and medi- ARA’s idea management taps into the creative thinking of um-sized enterprises. employees by inviting them to express their views on busi- ness processes. All staff members can post suggestions on the Intranet. We also established an idea forum to consider the suggestions made, and we reward employees who put forward suggestions that are deemed useful by the forum and that improve the operating result.

Zertif ikat seit 2012

Member of the proEthik working group

71 OBJECTIVES AND CHALLENGES

72 OBJECTIVES AND CHALLENGES ARA PERFORMANCE REPORT

OBJECTIVES ACHIEVED IN 2014

We have implemented a comprehensive set of measures to attain our objectives (see individual chapters for details).

OBJECTIVES FOR 2014 STRATEGIES AND MEASURES RESULTS

Business operations Keep rates constant Continue to implement internal and Rates lowered for small plastics and external efficiency measures, sales packaging made of paper, optimise the revenues from secondary all other rates remained unchanged raw material sales Comply with Ministry requirements Provide nationwide collection Coverage and recycling targets scheme, comply with provisions fulfilled, required capacities provided regarding coverage and recycling Implement the amended WMA and Implement legislative changes Compliance and License Agreement Packaging Ordinance efficiently and cost-effectively, amended for all license partners, adjust system and services to the new new contracts with municipalities legal framework, and collection partners; inform customers, municipalities shared-use agreement drawn up; and disposal companies about the rate structure and internal processes changes adjusted; information about seminars and webinars provided to customers and partners, application for authori- sation to operate a collection and recovery scheme submitted, data management system (Condat Web) prepared for use by other collection and recovery schemes. Further improve the packaging Offer new services ARAplus established as the new compliance services provided full-service subsidiary; service levels specified

73 ARA PERFORMANCE REPORT OBJECTIVES AND CHALLENGES

OBJECTIVES FOR 2014 STRATEGIES AND MEASURES RESULTS

Collection and recovery Raise the amount of packaging Optimise the collection schemes Collection amount remained broadly collected to the level of the amount unchanged; synergies used from licensed acquiring Öko-Box Reduce the amount of waste put in Produce infomercials and social media Other types of waste in the bins for the wrong bin content about correct waste sorting, light-weight packaging reduced from provide new bin stickers in all of 19.5 % to 16.2 %; around 80 % of all Austria public collection bins (light-weight packaging and metal) provided with new labels Further increase carbon savings Increase the amount collected and Net carbon savings increased from recovered, raise the recycling share, 650,000 to 670,000 tonnes, improve collection efficiency, reduce 79 % of the amount collected fuel consumption, support collection (light-weight packaging and metal) partners in the changeover to was collected using vehicles with alternative drive systems, EURO emission class IV or better Euroclass obligation for collection partners: at least 75 % of services must be rendered using collection vehicles with EURO emission class IV or better, 100 % in urban areas Optimise collection Pilot project on the collection of drink Pilot project implemented cartons through the plastic bottle successfully, collection scheme cutback in Öko-Box collection and shift to collection through the light-weight packaging scheme, expansion of the yellow-bag scheme and new bag for collecting recyclables distributed in Vienna Prevent litter Continue the anti-litter initiative Continuation of the initiative (Reinwerfen statt Wegwerfen) approved for 2015–2017

Internal objectives Ensure optimal work-life balance Develop and implement other Family-friendly measures continued family-friendly measures OBJECTIVES AND CHALLENGES ARA PERFORMANCE REPORT

OBJECTIVES AND CHALLENGES IN mental performance, and we are willing to face challenges 2015 as they emerge to contribute to the sustainable develop- ment of our industry. We are committed to optimising the services we provide to businesses and consumers and to improving our environ-

OBJECTIVES AND CHALLENGES IN 2015 STRATEGIES AND MEASURES

Business operations Comply with Ministry requirements Complete licensing procedures, comply with the provisions for separate collection, coverage and recycling Implement packaging classification ordinance Provide information and support to customers re. classification (Verpackungsabgrenzungsverordnung) and ordinance, develop further Condat Web on shared use remuneration ordinance (Abgeltungsverordnung) Keep rate increases to a minimum Keep free-rider share and transaction costs of the Packaging Coordination Board and shared use as low as possible, minimise effects of remuneration ordinance through internal and external efficiency measures, optimise transport logistics and the revenues from secondary raw material sales Further improve the service level provided Establish service levels and new ARAplus services on the market

Collection and recovery Raise the amount of packaging collected to the Intensify checks of mass flows incl. sorting and recovery level of the amount licensed Optimise collection Optimise collection of drink cartons, clarify the modalities of shared use of Öko-Box collection modules by other CRSs for household packaging, actively participate in the stakeholder dialogue process organised by the Ministry of Environment and the Austrian provinces Prevent litter Continue the anti-litter initiative

Internal objectives Ensure optimal work-life balance Develop and implement other family-friendly measures Use synergies Further harmonise processes within the ARA group

75 CONTACTS AND ADDRESSES, Imprint

76 CONTACTS AND ADDRESSES, Imprint ARA PERFORMANCE REPORT

ARA ALTSTOFF RECYCLING ARA REGIONAL OFFICES AUSTRIA AG MANAGEMENT BOARD REGIONAL OFFICE SOUTHERN AUSTRIA Werner Knausz, CEO Hans Baumgartner Christoph Scharff, CEO Burgfried 104, 8342 Gnas Mariahilfer Str. 123, 1062 Vienna, Austria Tel.: +43 3151/85 53 Tel.: +43 1/599 97-0 Mobile: +43 664/142 04 60 Fax: +43 1/595 35 35 Fax: +43 3151/86 65 E-mail: [email protected] E-mail: [email protected] www.ara.at REGIONAL OFFICE NORTHERN AUSTRIA Karl Grasfurtner AUSTRIA GLAS RECYCLING GMBH Wilhelm-Thöny-Str. 6, 5020 Salzburg MANAGING DIRECTOR Tel.: +43 662/62 70 19 Harald Hauke Mobile: +43 664/180 95 45 Haymo Schöner (authorised signatory) Fax: +43 662/62 70 19-8 Obere Donaustr. 71, 1020 Vienna, Austria E-mail: [email protected] Tel.: +43 1/214 49 00 Fax: +43 1/214 49 08 E-mail: [email protected] IMPRINT www.agr.at PUBLISHER: Altstoff Recycling Austria AG ARA SERVICE CENTRES Mariahilfer Str. 123, 1062 Vienna, Austria E-mail: [email protected] SALZBURG & UPPER AUSTRIA www.ara.at Erwin Bernsteiner Neualmer Str. 37, 5400 Hallein EDITORIAL BOARD: Mobile: +43 664/532 71 79 Management Board of Altstoff Recycling Austria AG Fax: +43 6245/834 82-4 E-mail: [email protected] PHOTOGRAPHS: Lukas Maximilian Hüller, kulturSPIEL CARINTHIA & STYRIA Shutterstock, Inc. Gerhard Genser Radetzkystr. 16/5, 9020 Klagenfurt DESIGN AND LAYOUT: Mobile: +43 699/12 18 28 88 veni vidi confici® | Atelier für visuelle Kommunikation Fax: +43 463/51 52 10 1070 Vienna, Austria E-mail: [email protected] All data and information provided herein reflect the status TYROL & VORARLBERG quo at the editorial close. This report may contain typo- Josef Baumann graphical errors. Eduard-Bodem-Gasse 5, 6026 Innsbruck Tel.: +43 512/21 44 00-20 Vienna, April 2015 Mobile: +43 699/15 90 15 90 Fax: +43 512/21 44 00-50 E-mail: [email protected]

77 ARA PERFORMANCE REPORT VALIDATION AND CERTIFICATION

VALIDATION AND CERTIFICATION

This Sustainability Report has been verified by the The Lead Auditor hereby confirms that this Sustainabili- independent certification company ty Report has been drafted in line with the international guidelines G3.1 for sustainability reporting by the Global Quality Austria Trainings-, Zertifizierungs- und Reporting Initiative (GRI) and that the content and data Begutachtungs GmbH provided in this report correspond to the documentation Zelinkagasse 10, 1010 Vienna, Austria reviewed at ARA AG. The Lead Auditor confirms the self-assessment of level A.

Vienna, April 2015

Konrad Scheiber Martina Göd Chief Executive Officer Lead Auditor Quality Austria

Report Application Level C B A

Report on: Report on all criteria listed Same as requirement for 1.1 for Level C plus: Level B Profile Disclosures 2.1–2.10 1.2

O utput 3.1–3.8, 3.10–3.12 3.9, 3.13 4.1–4.4, 4.14–4.15 4.5–4.13, 4.16–4.17

Management Not Required Management Approach Management Approach Approach Disclosures for each Disclosures for each Disclosures Indicator Category Indicator Category O utput

Report on a minimum of Report on a minimum of Report on each Core G3 and D isclosurestandard

S 10 G3 Core Performance 20 G3 Core Performance Sector Supplement* Indicator Performance Indicators, including at least Indicators, at least one with due regard to the mate- Indicators & Sector one from each of: from each of: riality principle by either: Supplement Perfor- Economic, Social and Economic, Environment, a) reporting on the indicator

mance Indicators O utput Environment. Human Rights, Labor, or Society, and Product b) explaining the reason for Responsibility its omission.

* Sector supplement in final version.

78 GRI CONTENT INDEX ARA PERFORMANCE REPORT

GRI CONTENT INDEX

GRI DESCRIPTION PAGE PROFILE DISCLOSURE 1. Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization 6, 17 1.2 Description of key impacts, risks, and opportunities 6, 73–75 2 Organizational profile 2.1 Name of the organization 1, 77 2.2 Primary brands, products, and/or services 11, 23, 32 ff. 2.3 Operational structure of the organization 15, 19 2.4 Location of organization’s headquarters 11, 77 2.5 Number of countries where the organization operates 11 2.6 Nature of ownership and legal form 14 2.7 Markets served 11 2.8 Scale of the reporting organization 3, 14, 23, 69 2.9 Significant changes regarding the organization’s size, structure or ownership 6 3 Report Parameters 3.1 Reporting period 1 3.2 Date of most recent previous report 17 3.3 Reporting cycle 17 3.4 Contact point for questions 77 3.5 Process for defining report content 15 3.6 Boundary of the report 11 3.9 Data measurement techniques and bases of calculations 3, 25 3.12 GRI Content Index 78, 79, 81 3.13 Policy and current practice with regard to seeking external assurance for the report 78 4 Governance, Commitments, and Engagement 4.1 Governance structure of the organization 14 4.2 Information whether the chair of the highest governance body is also an executive officer 14 4.3 Information about the members of the highest governance body 14, 15 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to 24, 71 the highest governance body 4.5 Linkage between compensation for members of the highest governance body, 70 senior managers, and executives, and the organization’s performance 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided 71 4.7 Qualifications and expertise of the members of the highest governance body for guiding the 16 organization’s strategy on economic, environmental, and social topics 4.8 Statements of mission or values, codes of conduct, and principles relevant to economic, 16 environmental, and social performance 4.9 Procedures for overseeing the organization’s sustainability performance 17, 18 4.10 Processes for evaluating the highest governance body’s own performance, 18 particularly with respect to sustainability performance 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the 18 organization ARA PERFORMANCE REPORT GRI CONTENT INDEX

GRI DESCRIPTION PAGE

4.12 Externally developed charters, principles, or other initiatives to which the organization sub- 16 scribes or which it endorses 4.13 Memberships in associations (such as industry associations) and/or advocacy organizations 19 4.14 List of stakeholder groups engaged by the organization 15 4.15 Basis for identification and selection of stakeholders with whom to engage 15, 24 4.16 Approaches to stakeholder engagement 23, 24, 67 4.17 Key topics and concerns that have been raised through stakeholder engagement 6, 67 PERFORMANCE INDICATORS Economic EC1 Direct economic value generated and distributed 23 EC3 Coverage of the organization’s defined benefit plan obligations 70 EC6 Policy, practices, and proportion of spending on locally-based suppliers 71 EC8 Services provided primarily for public benefit 26 ff., 32 ff. EC9 Describing significant indirect economic impacts 32 ff., 71 Environmental EN1 Materials used by weight or volume 32 ff., 58 EN2 Percentage of materials used that are recycled input materials 32 ff. EN3 Direct energy consumption by primary energy source 58 EN4 Indirect energy consumption by primary source 58 EN5 Energy saved 74 EN7 Initiatives to reduce indirect energy consumption and reductions achieved 75 EN16 Total direct and indirect greenhouse gas emissions by weight 57 f EN18 Initiatives to reduce greenhouse gas emissions 53 f, 73–75 EN22 Total weight of waste by type and disposal method 32 ff. EN26 Initiatives to mitigate environmental impacts of products and services 26 ff., 32 ff. EN27 Percentage of packaging materials that are reclaimed by category 32 ff. EN29 Significant environmental impacts of transportation 58 EN30 Total environmental protection expenditures and investments by type 23 Social Employment LA1 Total workforce by employment type, employment contract, and region 69 LA2 Employee turnover 69 LA3 Benefits provided to full-time employees only 70 LA4 Percentage of employees covered by collective bargaining agreements 70

80 GRI CONTENT INDEX ARA PERFORMANCE REPORT

GRI DESCRIPTION PAGE

LA8 Measures to assist workforce members, their families, or community members regarding 70 serious diseases LA10 Average hours of training per year per employee 70 LA12 Percentage of employees receiving regular performance and career development reviews 70 LA13 Diversity of employees and governance bodies 69 LA14 Ratio of basic salary of men to women 70 LA15 Return to work and retention rates after parental leave 70 Society SO1 Impacts of operations on communities 26 ff., 32 ff. SO2 Analysis for risks related to corruption 71 SO3 Staff training in anti-corruption policies and procedures 71 SO5 Public policy positions and participation in public policy development and lobbying 19 Product responsibility PR1 Life cycle stages in which health and safety impacts of products and services are assessed for 57 improvement PR3 Product and service information required by law 63 PR5 Customer satisfaction 67

3.7, 3.8, These disclosures and indicators are not relevant given the specific business activity and the 3.10, 3.11 business location in Austria. EC2, EC4, EC5, EC7, EN3, EN6, EN8-15, EN17, EN19-21, EN23-25, EN28, LA5-7, LA9, LA11, HR1-11, SO4, SO6-10, PR2, PR4, PR6-9

81 ARA PERFORMANCE REPORT MAKING-OF: CRAZY GOLF

MAKING-OF: CRAZY GOLF image, which allows viewers to zoom into the hidden-ob- ject scene and enjoy every single detail. After the success of the pilot project for an environmental competition a year earlier, we launched our first all-Austri- Our thanks are to the student winners of 2B class and their an competition in the school year 2014/15 (“Mission: Envi- teacher Gabriele Drofenik, the 2A class of HLP Mödling, ronment”). The competition, which will be held annually, the 5B class of Realgymnasium Keimgasse, the 2A class of aims to raise awareness of packaging, saving resources, Volksschule Hyrtlplatz, the participating parents, grand- preventing waste, and recycling. parents and siblings, and the town of Mödling for their commitment to making this happen. Our thanks also go to Out of more than 30 entries submitted by ninth and tenth Ball Packaging Europe HandelsgesmbH, Coca-Cola HBC graders from all over Austria, the “Crazy Golf” project by Austria GmbH, PET to PET Recycling Österreich GmbH, the 2B class of HLP Mödling emerged as the winner. With Pirlo GmbH and Caritas Werkstatt St. Christophen for pro- the help of professionals from the kulturSpiel association, viding us with packaging material, among other things. the students implemented their project – a mini golf course built from recycled materials – as a hidden-object scene Concept, project development, visual realisation and and a film. After participating in “Let’s get creative” work- photography: kulturSPIEL / Lukas M. Hüller shops about packaging recycling and saving resources, Creative partner & film: Hannes Seebacher the 27 students developed the individual scenes of “Crazy “Lets get creative” workshops: Hannes Seebacher, Golf” in cooperation with an international team of artists Kevin Harrison, Sami Ajouri, Lukas M. Hüller led by photographer Lukas Maximilian Hüller. Around 150 Post production photography: Georg Zumbulev, Edge Project shots were put together to form one big high-resolution

82 MAKING-OF: CRAZY GOLF ARA PERFORMANCE REPORT

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