THE FUTURE OF THE CIRCULAR ECONOMY - Altstoff Recycling Austria AG - TRANSPARENCY REPORT 2018 - Altstoff ...
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Altstoff Recycling Austria AG – TRANSPARENCY REPORT 2018 THE FUTURE OF THE CIRCULAR ECONOMY.
WE ARE THE FUTURE OF THE CIRCULAR ECONOMY.
WE MANAGE THE 360-DEGREE CIRCULAR ECONOMY. PREMIUM.
03
R
Editorial
Recycling is a good thing. We have been involved in recycling every
day for the past 25 years, and we excel at it: Austria is consistently
one of the best environmental performers in the EU, which is in no
small part due to the commitment of the Austrian business commu-
nity. Many businesses have long accepted their responsibility for the
circular economy, environmental protection and sustainability. This is
a sound basis for teaming up with ARA to tackle emerging challenges
such as implementing the EU Circular Economy Package, which sti-
pulates higher recycling rates from 2025, among other things.
CIRCULAR RATHER THAN LINEAR
With its Circular Economy Package, the European Union has set itself
the objective of transforming our linear economic system into a cir-
cular one. Businesses are called on to develop business and product
innovations so they can undergo this transformation while still making
a profit. However, present-day circumstances rule out fulfilling all EU
requirements at reasonable effort and expense. In our view, some eco-
nomic and environmental requirements are excessive and therefore
unrealistic. Instead of trying to achieve a vague maximum, we aim to
reach an optimum result by applying an evidence-based environmen-
tal and raw materials policy.
Our 360-degree circular economy approach is part of the solution.
Sustainable product and process design is essential going forward,
as it saves resources, allows recycling and increases the use of
secondary raw materials. ARA Circular Design, the most recent
addition to our services, allows us to develop tomorrow’s innova
tions today.
INNOVATIVE FROM EXPERIENCE
ARA customers benefit from our many years of experience in recy-
cling and the circular economy. Our non-profit company was foun-
ded 25 years ago to help Austrian businesses fulfil their producer
responsibility obligations. Since then, ARA has gradually estab
lished itself as a recycling expert and leading innovator. Today, we
share Austrian circular economy expertise with professionals at the
national and international level. More than 15,000 valued customers
place their trust in us. They can rely on us to help them meet their
obligations and contribute to the circular economy in a sustainable
and cost-efficient manner.
We are convinced that following the beaten path will not be enough
to tackle the new challenges and meet the 2025 recycling targets.
This is why we are focusing on innovation in all parts of our value
chain, and we are not afraid to make bold changes. Doing so will
allow us to continue delivering premium 360-degree circular econo-
my solutions so we can address challenges like resource scarcity and
climate change. Every bit of waste that is turned into a raw material
is a success.
Thank you for choosing ARA.
Christoph Scharff Werner Knausz
CEO CEO
ARA AG: A DRIVING FORCE FOR RECYCLING AND THE CIRCULAR ECONOMY
05
E
Editorial
Every day, reports tell us that resources are becoming scarce, that
waste amounts are growing and that the climate is changing. Our
economic system is undergoing deep-seated change, one import-
ant reason being that it has no other choice. The United Nation’s
Sustainable Development Goals, the European Union’s Circular
Economy Package and the concept of corporate sustainability, which
has become firmly established in many firms, represent only three
among numerous programs that are evidence of this transformation
and that have had an impact on the public discourse.
Circular economy concepts are part of this transformation and con-
tribute to solving resource problems. Austria has been a trailblazer
and role model here, and ARA has positioned itself as an interna-
tionally recognised trendsetter for the circular economy. Keeping
materials in the loop for as long as possible is standard practice for
ARA and its license partners. As a case in point, a large proportion
of the packaging sold in Austria is recycled domestically.
This approach achieves two goals: Industry can rely on having avail
able high-quality raw materials, and reuse makes industry less
dependent on suppliers in international markets. Waste materials can
be recycled in Austria and do not have to be marketed globally, which
reduces the risk of having to depend on buyers. Recently, we saw
precisely that risk materialise when China surprisingly banned
imports of plastic waste. For businesses, participating in ARA System
means an investment in securing raw material supplies and minimi-
sing risk.
FROM LEGAL CERTAINTY TO RECYCLING DESIGN
Ensuring a circular economy for the future – this describes what
ARA is all about. Focusing on a circular economy means more than
just implementing all relevant Austrian and international standards
from the Federal Waste Management Plan to the EU’s Circular
Economy Package. It also includes solutions for corporate waste
management with cost optimisation, consultancy services on waste
issues and auditing, plant and transportation logistics solutions, and
product and process innovation. In other words: Whether your
company is big or small, ARA and its expert network offers solutions
for all firms to handle the challenges of the circular economy.
I would like to congratulate ARA AG on its 25th anniversary, thank
the team and the board for their professional work and wish ARA
continued success.
Alfred Berger
Chairman of the Supervisory Board of ARA AG
Director Marketing & Sales NÖM AG
06
Contents
EDITORIAL
Foreword by the Management Board............................. 03
Foreword by the chairman of the Supervisory Board...... 05
WHAT DRIVES US
Altstoff Recycling Austria AG –
Your premium partner for sustainability......................... 10
ARA System – How it works........................................... 11
A 360-degree circular economy
for our customers and the environment.......................... 12
World of change............................................................. 12
ARA – Partner in sustainability: Strategic
sustainability for the Austrian economy.......................... 13
Achieving a circular economy......................................... 15
Experts for a 360-degree circular economy..................... 16
Our network, your advantage......................................... 17
R&D for competitive edge.............................................. 17
ARA Innovation Space................................................... 18
Going the extra mile for Austrian business...................... 19
WHAT WE OFFER
COMPLIANCE SERVICE
25 years experience – 25 years security.......................... 24
Even simpler, even more efficient................................... 24
Cost-efficient tariff rates................................................ 25
Non-profit status benefits customers............................. 25
Financing of ARA System............................................... 26
A convincing offer.......................................................... 29
07
Contents
COLLECTION
Packaging collection secures raw materials...................... 32
Packaging collection in 2017............................................ 32
High level of acceptance
for ARA’s household scheme............................................ 34
Raising awareness:
Getting consumers on board............................................ 35
Better systems, lower costs.............................................. 36
Solutions for business and industry.................................. 37
Corporate waste management......................................... 37
Best practice: ARA waste management........................... 38
ARA event service:Clean and cost-effective...................... 39
SORTING AND RECOVERY
Closing the loop on raw materials .................................... 42
Different price movements
for secondary raw materials ............................................. 43
Recovery performance in 2017 ........................................ 44
ARA Circular Design ........................................................ 46
New recycled plastics, made by ARA ............................... 49
Sustainable climate protection ........................................ 49
TRANSPORT AND LOGISTICS SERVICE
Clear collection contracts with excellent partners ............ 53
Transport: A no-go without logistics ................................ 54
Track checked recycling –
A transparent circular economy ....................................... 54
The digital world of transport: DiGiDO ............................ 55
ANNEX .......................................................................... 57
ARA mission statement, p. 58 ARA management, p. 62 Economic indicators, p. 64 Human resources indicators, p. 71
Ownership structure, p. 60 Supervisory board, p. 63 Environmental indicators, p. 68
WHAT DRIVES US
10
What drives us
PARTNERSHIP
SUSTAINABILITY WITHOUT A WORRY
What can businesses do to achieve the statutory recycling
rates? What can they do to avoid waste? How can they
reduce CO2 emissions? And how can they source raw
materials cost-effectively and remain competitive while at
the same time honouring their commitment to resource
conservation and environmental protection? ARA has
answers to these questions. We specify technical measures
and provide consultancy services to support businesses in
achieving their sustainability goals in production, logis-
ALTSTOFF tics and recycling – in a cost-efficient manner and provi-
ding benefits to society. We are the premium partner for
RECYCLING sustainability with 25 years experience and more than
AUSTRIA AG – 15,000 customers.
YOUR PREMIUM SECURITY
LEGAL COMPLIANCE GUARANTEED
PARTNER FOR Information gives you a competitive edge, especially in
SUSTAINABILITY highly regulated fields such as waste management, recy-
cling and the circular economy. We hand this advantage
directly to our customers, which allows them to take action
on time and in a forward-looking manner. We provide infor-
ARA has been the driving force for mation about future requirements and challenges in Austria
recycling in Austria since 1993. We live and the EU to meet all compliance standards at all times.
the 360-degree circular economy and
shape the transformation to a sustainable INNOVATION
THINK TANK FOR THE CIRCULAR ECONOMY
economy for a sustainable society.
As a pioneer in sustainability, ARA has focused on circular
economy issues since day one. Taking social and environ-
mental responsibility is indispensable to ensure a high level
of acceptance and business success in the long run. We do
not stop at the implementation of our customers’ sustaina-
bility plans – we think several steps ahead and do research
on process and product innovations with our partners,
so our customers are well prepared for future challenges.11
What drives us
ARA SYSTEM –
HOW IT WORKS
ARA System is a non-profit company that organises
the collection and recovery of packaging waste from
households and businesses in line with the targets and
requirements specified by the Austrian Federal Ministry
for Sustainability and Tourism.
By signing up for our services, businesses transfer their
obligation to take back used packaging to ARA AG, an
authorised collection and recovery scheme under the
Austrian Waste Management Act.
ERS / FILLERS /IMPORTE
PACK RS
(PR I MARY OB LIGATION)
1
S
R ER WH
TU OL
AC ES
UF
1) Primary obligation for service packaging 2) Primary obligation for mail-order companies
AL
AN ER
M S/
G RE
IN
G T
KA
AI
C
LE
PA
SR
2
LS
UE
EF
ITUT
S
SER
RAW MATE R IALS, SU B ST
US I N E SS E N D U
AN D B
DARY
VATE
PR I
CO N
SE
RE
CO
VE S
RY S ON
IE TI
CO
A LIT CIA
M P O
PA CI SS
NI NI A
ES MU IPAL
WA N IC
STE
MANAG S MU
E M E NT COM PAN I E
(COLL
ECTION, SORTI NG)
The municipalities, municipal associations and over 200 waste
management and recovery companies implement the collecti-
on scheme in 94 collection regions based on the specifications
provided by the collection and recovery schemes.12
What drives us
A 360-DEGREE CIRCULAR ECONOMY FOR OUR CUSTOMERS AND THE ENVIRONMENT
Global challenges: Supranational approaches
climate change, scarcity to achieving sustainable
of resources, social change environmental and economic
ARA policies: U.N. Sustainable
NETWORK Development Goals, EU Circular
Economy Package
EMPLOYEES & RESEARCH &
EXPERTS Compliance Collection DEVELOPMENT
service service
Product design
ARA Circular Transport &
Design logistics
ENVIRON-
MENTAL AND SUSTAINABLITY
QUALITY STRATEGY
MANAGEMENT
Sorting Recovery
LEGAL
COMPLIANCE
National approaches to Legal requirements and
achieving sustainable environmental challenges for businesses:
and economic policies in Austria: Waste legal compliance, competition,
Management Act, Packaging Ordinance, sustainable production
Federal Waste Management Plan,
government program, RESET 2020
WORLD OF CHANGE
A Addressing the global challenge of sustainable manage-
ment requires concerted action at the global level. The
United Nations Agenda 2030 for Sustainable Development
specifies 17 Sustainable Development Goals (SDGs) that
aim at transforming our world by achieving environmental
protection, social justice and sustainable economic growth
for all. 193 nations have committed themselves to this plan
of action, and the Austrian federal government intends to
publish an implementation report in 2020.
We have already taken action to support our partners in
achieving their corporate sustainability goals in production,
recycling and logistics by offering a 360-degree circular
economy solution.13
What drives us
ARA – PARTNER IN SUSTAINABILITY:
STRATEGIC SUSTAINABILITY
FOR THE AUSTRIAN ECONOMY
COMMON GOALS OUR TASKS YOUR ADDED VALUE
SECURITY Promote green packaging
Circular economy and
Close loops consistently Achieve recycling targets
climate protection
Ensure the long-term use of raw materials Source raw materials at a low cost
(SDGs 12 and 13)
Take climate protection measures Reduce carbon emissions
INNOVATION Develop market opportunities
Innovation and
Promote innovation Promote circular design
corporate sustainability
Seize the circular economy Increase efficiency
(SDGs 9 and 11)
as an opportunity for development Ensure legal compliance
TRANSPARENCY Communicate transparently
Education, dialogue
Promote sustainable production Ensure social compliance
and partnership
and sustainable consumption, offer Reach goals together
(SDGs 4 and 17)
partnerships and build networks Use ARA’s network
CIRCULAR ECONOMY We support our customers in the process.
AND CLIMATE PROTECTION
EDUCATION, DIALOGUE AND PARTNERSHIP
Transforming our largely linear economic system into a cir-
Nobody can improve the world by himself – we need new
cular system means that products and processes have to
skills and networks. SDG 4 (sustainable education) and SDG
be designed so as to save resources and reduce waste and
17 (partnerships) show the way how to approach future
emissions. ARA customers are already contributing signifi-
challenges. ARA has focused on raising awareness and com-
cantly to this goal: Material loops are being closed so that
municating sustainability issues for the past 25 years. Our
raw materials can be used long term. This benefits both the
environmental education programmes teach green behavi-
environment, as it reduces carbon emissions, and our custo-
our to pre-schoolers in Austria, which lays the foundation for
mers, as it allows them to reach the statutory recycling rates
the conscious use of resources and sustainable consumption
and ensures raw material security.
patterns in adulthood. Companies are increasingly encoun-
tering consumers who value sustainable products and are
INNOVATION AND willing to pay for high-quality fair-trade goods.
CORPORATE SUSTAINABILITY
Companies that regard SDG 9 (innovation, industry and
infrastructure) and SDG 11 (sustainable cities and human
settlements) as a chance and offer innovative products
and services early on will both gain an edge on their
competitors and contribute significantly to the trans-
formation of our economic system. This, in turn, will pay
off in terms of market chances and higher efficiency.
In many cases, optimising corporate waste management
is the first step leading to profitable business innovation.LET’S WORK TOGETHER TO MAKE THE CIRCULAR ECONOMY HAPPEN
15
What drives us
EU CIRCULAR ECONOMY PACKAGE
ACHIEVING
A CIRCULAR
ECONOMY
In Austria, 67 % of packaging is recycled today. This share high-tech, biomass and plastics. The latter material is ad-
is drastically lower at the global level, though: the global dressed in a plastics strategy.
circularity gap. Of the 92.8 gigatonnes of material used by
The separate collection of waste materials and sustainable
the global economy, only 8.4 gigatonnes are recovered. In
recycling make sense from both an economic and environ-
other words, only 9 % of raw materials are recycled globally.
mental perspective. Thanks to concerted efforts undertaken
The European Parliament took a clear step towards the over the past years, Austria has already achieved the high
circular economy by adopting the Circular Economy 2025 recycling targets – with one exception: plastic, which
Package in April 2018. While the end of landfilling has yet poses a considerable challenge. Based on present possi-
to come in the EU – a significant step that Austria took a bilities, meeting the high recycling targets will just not be
long time ago –, the package focuses primarily on the imple- possible at reasonable effort and expense. Innovative solu-
mentation of higher recycling and re-use targets by 2025 to tions are needed to tackle this challenge, and we are already
2035. The EU Action Plan for the Circular Economy looks at developing them.
all stages of the value chain – production, consumption and
recovery as well as innovation and investment – and focuses
on five types of waste: food, construction and demolition,
EU CIRCULAR ECONOMY PACKAGE: TARGETS 2025 TO 2035
Current
EU targets
Packaging Directive Status quo
2008 Austria EU targets
2015 2025 2030 2035
Recycling / reuse 58 % 55 % 60 % 65 %
MUNICIPAL WASTE
Landfill (maximum) 3% 10 %
PACKAGING WASTE Recycling 55–80 % 67 % 65 % 70 % 70 %
Paper 60 % 85 % 75 % 85 % 85 %
Plastic 22.5 % 34 % 50 % 55 % 55 %
Glass 60 % 86 % 70 % 75 % 75 %
Ferrous metal 70 % 80 % 80 %
50 % 87 %
Aluminium 50 % 60 % 60 %
Wood 15 % 18 % 25 % 30 % 30 %16
What drives us
EXPERTS FOR
A 360-DEGREE
CIRCULAR
ECONOMY
We offer circular economy solutions based on 25 years of
experience and the know-how of our specialised subsidiaries:
We take social COMPLIANCE
COMPLIANCE
SERVICE FOR
and environmental SERVICE FOR
PACKAGING
WEEE AND
responsibility: BATTERIES
We provide consulting, WASTE
information and MANAGEMENT
AND
ARA
tailored solutions INDUSTRY
SERVICES
EVENT SERVICE
to support our custo-
mers in achieving
their corporate SUSTAINABLE
PACKAGING
ARA
PLASTIC
sustainability goals DESIGN RECYCLATES
in production,
recycling and logistics. DiGiDO –
PLATFORM FOR
LOGISTICS
EXCHANGING
SERVICES
TRANSPORT
DATA
IT SOLUTIONS
FOR
WASTE
MANAGEMENT17
What drives us
OUR R&D FOR
NETWORK, COMPETITIVE
YOUR EDGE
ADVANTAGE
A driver of innovation in the circular economy, ARA is a ARA works together with academia in the field of resource
member of numerous interest groups and is represented management. This allows us to quickly incorporate the latest
in several expert forums and organisations in Austria and scientific findings in our work.
abroad. We use these platforms for exchanging informa-
tion, discussing positions and sharing our expertise. As the initiator and co-founder of the Circular Economy
Coalition for Europe (CEC4Europe), ARA contributes
significantly to the work of this pan-European research
SELECTED MEMBERSHIPS network. Comprised of universities and scientists,
Sustainability working group of the Austrian Economic CEC4Europe develops evidence-based processes and
Chamber strategies for research management and the circular econ-
Ethics working group of the Austrian Economic Chamber omy. CEC4Europe works closely with the European insti-
(ARGE proEthik) tutions and is a member of the coordination group of the
Austria Recycling – Verein zur Förderung von Recycling European Circular Economy Stakeholder Platform, a joint
und Umweltschutz in Österreich initiative by the European Commission and the European
Federal Association of the German Waste Management Economic and Social Committee.
Industry (Bundesverband der Deutschen Entsorgungs-,
Wasser- und Rohstoffwirtschaft e. V.)
As an industrial partner, ARA co-initiated the Christian Doppler
Christian Doppler Research Association
Laboratory for Anthropogenic Resources at TU Wien tech-
Circular Economy Coalition for Europa – CEC4Europe nical university. The laboratory conducts top-level research
Federation of Austrian Industries in the field of research management and focuses on the use
International Solid Waste Association – ISWA of discarded consumer goods, buildings and infrastructure
Austrian Society for Environment and Technology facilities as a future source of raw materials.
(Österreichische Gesellschaft für Umwelt und Technik)
Austrian raw materials alliance, initiated by the Austrian
Federal Ministry for Digital and Economic Affairs
Austrian Water and Waste Management Association
(Österreichischer Wasser- und Abfallwirtschaftsverband)
Packaging Recovery Organisation Europe – PRO Europe
P/S/R Cluster Sammel- und Verwertungssyssteme
Austrian Business Council for Sustainable Development –
respACT
Environmental Technology Cluster (Umwelttechnik-
Cluster)
ARA
Association of Austrian Waste Management Companies INNOVATION
(Verband Österreichischer Entsorgungsbetriebe) S PACE
Austrian Economic Chamber18
What drives us
ARA’s 25th anniversary was a fitting occasion to launch a new
format for exploring the circular economy and the conser-
vation of resources. The ARA Innovation Space comprises a
multidisciplinary team of students and scholars, the creative
industries and businesses who work on the future of the cir-
cular economy in cooperation with our partners, the Univer-
sity of Applied Arts Vienna and TU Wien technical university.
The team focuses on four main topics: (1) the recyclables
plastic, aluminium and fibres, (2) buildings and infrastructure,
(3) circular design and (4) circular business models. ARA
Innovation Space activities include workshops about inno-
vation formats, interactive exhibitions as well as videos and
art installations on all aspects of the circular economy.19
What drives us
GOING THE EXTRA
MILE FOR AUSTRIAN Anti-litter
BUSINESS
campaign
We have long supported and provided our
expertise to cooperation projects initiated
by the Austrian business community, such
as the sustainability agenda of the Aus-
trian beverage industry or the anti-litter
campaign Reinwerfen statt Wegwerfen
(which roughly translates as „Toss it in the
bin”).
The sustainability agenda of the Austrian beverage indus-
try is a voluntary commitment of numerous market partici-
pants. It has helped save around 215,000 tonnes of CO2 per
year thanks to the implementation of many different mea-
sures, which makes it an important tool for reducing the
environmental impact of beverage packaging. The agenda
focuses above all on sustainable packaging design, clima-
te protection, material recovery and litter prevention. ARA
has supported the agenda by ensuring a high recovery rate
for drink packaging and providing cooperation in the bott-
le-to-bottle recycling of PET bottles. In cooperation with
the Austrian Economic Chamber and the Austrian Beverage
Association, ARA has succeeded in strengthening the signifi-
cance of the sustainability agenda. The number of members
has increased to 1,000.
An initiative of the Austrian business community, the
anti-litter campaign Reinwerfen statt Wegwerfen sup-
ports measures to prevent or reduce litter. The campaign
focuses on raising public awareness so as to promote
respect for the environment and the careful use of natu-
ral resources. ARA is responsible for the implementation
of the initiative in cooperation with the Sustainability
Agenda working group of the Austrian Economic Chamber.WHAT WE OFFER
COMPLIANCE SERVICE 25 years experience – 25 years security .......................... 24 Even simpler, even more efficient................................... 24 Cost-efficient tariff rates................................................ 25 Non-profit status benefits customers............................. 25 Financing of ARA System............................................... 26 A convincing offer.......................................................... 29
24
Compliance service
MEETING 25 YEARS EXPERIENCE – 25 YEARS SECURITY
Legal compliance is essential for any business activity.
PRODUCER So it really pays off to work with an experienced business
RESPONSIBILITY partner who is familiar with the relevant legislation and the
big picture.
OBLIGATIONS
We have supported businesses in meeting their producer re-
sponsibility obligations since 1993. Together with its subsi-
diary ERA, ARA takes on all obligations that producers have
under the Austrian Packaging Ordinance, WEEE Ordinance
and Batteries Ordinance. Our experience makes us the go-
to expert on packaging, WEEE and batteries compliance
and the circular economy in Austria.
EVEN SIMPLER, EVEN MORE EFFICIENT
Our customers are right to expect solutions that are tailored
to their individual needs. ARA license partners benefit from
numerous tools that make meeting producer responsibility
obligations really simple. Our convenient online services
are a case in point. The ARA hotline and customer service
centres in Carinthia, Salzburg and Tyrol ensure that queries
from all across the country are handled promptly and pro-
fessionally.
We offer a broad range of services in the field of packaging
compliance to make life easier for our customers. ARAplus
experts use process checks to analyse the processes our
customers use for the classification of packaging and for
YOUR DATA
establishing the amount of packaging they place on the mar-
ARE SECURE
ket. For those of our customers who have a large number
Our customers can rely on
us to provide the highest
of items and products, our Sample Editor makes it easier to
standard of data security. calculate the compliance fee.
ARA’s online data submis-
sion system has a modern
Since 2015, the Federal Packaging Coordination Board
bank-standard security
system, which has been (Verpackungskoordinierungsstelle – VKS) has been in charge
confirmed by an independent of auditing the packaging data submitted by obligated
third party through ÖNORM businesses in Austria (including, of course, our customers).
A 7700:2008-12 certification.
ARAplus experts share their many years of experience with
Only 20 web applications in
Austria have been certified to audits by offering audit coaching and assistance during
this standard, and ARA’s on- internal and external audits, so our customers can be secure
line data submission system
in the knowledge that they are compliant – in Austria and
is one of them.
the EU.
Our web portal is one of the
most secure web portals in
the country.25
Compliance service
RVE Connect is a new, legally certain solution for submit-
ting and receiving legally binding declarations as provided
for in the Austrian Packaging Ordinance. It’s a quick and
simple way for customers to obtain these declarations from
their suppliers through an online platform and to store them
in a personal, secure data room.
We also offer a special service portfolio for WEEE complian-
ce. It includes the classification of electrical and electronic
equipment and batteries and the taking on of obligations on
behalf of foreign-based customers as an „authorised repre-
sentative”. In addition, we offer a competent consultancy
service for most European target markets to assist Austri-
an mail-order companies or businesses that wish to supply
their customers abroad with equipment that is already
covered by a compliance agreement.
COST-EFFICIENT TARIFF RATES NON-PROFIT STATUS BENEFITS CUSTOMERS
Our tariff rates are calculated separately for household ARA is the only compliance scheme in Austria that has
and commercial packaging and for each tariff category. been a member-owned non-profit company from day one.
The rates reflect the expenses the various packaging We observe sound business principles with maximum effi-
materials cause in the collection and recovery cycle. We pass ciency and cost transparency. Our customers benefit from
on cost savings and unscheduled surpluses to our customers ARA’s non-profit orientation, a high level of economic
in keeping with ARA’s non-profit status. efficiency and the ongoing optimisation of packaging
collection, sorting and recovery. A 56 % decline in unit costs
ERA’s tariff rates, too, are calculated to reflect the expenses coupled with a 35 % performance increase over the past
the various types of equipment incur in the collection and 25 years confirms the success of our approach.
recovery cycle. For the past two years, foreign-based manu
facturers could avail themselves of ERA’s uncomplicated
solution for WEEE compliance in Austria. To date, two-thirds
of all foreign manufacturers in Austria have chosen to part-
35%
ner up with us. This helps finance the collection scheme and
keeps costs low – which benefits all our customers.
PERFORMANCE
INCREASE
56 %DECLINE IN
UNIT COSTS
OVER THE PAST
25 YEARS26
Compliance service
EFFICIENT PRODUCER RESPONSIBILITY SOLUTION
FINANCING OF ARA SYSTEM
Our scheme is financed through packaging compliance fees on the one hand and revenues
from the recovery of the collected waste materials on the other. This implies that the econo-
mic situation and international market developments have a significant impact on the finan-
cing of ARA System. Over the past 25 years, we have become experts at bringing packaging
waste to market. No other scheme is more successful at that than we are – this saves our
customers a lot of money and fosters a sustainable circular economy.
For every euro a customer pays in packaging compliance fees, we generate additional reve-
nues of 23 cents through recycling. This money is used to finance the infrastructure services
provided by the Austrian municipalities and municipal associations, the collection, transport
and sorting services of private and public waste management companies, the cost of ther-
mal recovery, the VKS as well as ARA’s sales overhead and R&D.
Recovery Profits or dividends do not play a role in the calculation: ARA is strictly non-profit. Our
license partners can count on us to implement the provisions of the Packaging Ordinance
revenues at the lowest possible cost: We measure our success by how much money our customers
and non- have saved.
profit orien- CONTRACT NEGOTIATIONS FOR COMPETITIVE RATES
tation lead Contracts for the collection and sorting of packaging waste are awarded through period-
ic tendering, which allows us to reap the benefits of competition. The tender process for
to lower the collection of light-weight packaging and metal packaging for the period 2018–2021
costs for was concluded in June 2017. Covering 85 % of the population in 105 lots, the tender was
conducted according to the best bidder principle and in line with the Austrian Federal
our custo- Public Procurement Act. However, the fragmented responsibility of currently six compliance
mers. schemes operating in Austria’s collection regions has also led to efficiency losses and more
logistics work for handling and transport.
TURBULENT RAW MATERIALS MARKETS
The cyclical volatility in international raw materials markets, fluctuations in energy prices
and primary raw materials prices, protectionism, import restrictions and numerous other
factors make accurate forecasts difficult. That does not make business calculations any
easier – neither for our customers nor for us. Still, we set our prices and tariff rates fairly and
carefully based on many years of expertise; we do not rely on speculation. This is something
our customers appreciate.27
Compliance service
€ 1 IN ARA COMPLIANCE
FEES IS USED TO PAY FOR
€ 0.33
Municipalities,
municipal associations
€ 0.67
Private and public waste
management companies
€ 0.23 IN ARA-GENERATED RECOVERY
REVENUES IS USED TO PAY FOR
€ 0.13
€ 0.05 Sales, system operation
and other overhead
VKS and other system-
related services
€ 0.02
Recovery companies
€ 0.03
Waste management
± €0
A NON-PROFIT
companies
COMPANY OWNED
BY AUSTRIAN
BUSINESSESA PIONEER, INNOVATOR AND MARKET LEADER AMONG AUSTRIAN COMPLIANCE SCHEMES
29
Compliance service
A CONVINCING OFFER
In Austria, the market for the collection and recovery of
household packaging was opened up to competition in
2015.By offering the best price/performance, ARA has been
able to remain competitive. With a market share of around
80 % after three years, we have been able to secure our
position as a reliable and strong partner for our customers.
As market
leader, we
Even though we are now one among several providers, we
still feel it is our responsibility as the technology and market bear a special
leader to ensure the continued success of the separate
collection of packaging in Austria. The high level of accep-
responsibility.
tance among consumers and the high quality of the mate-
rial collected contribute significantly to the success and cost
efficiency of packaging recycling.
ARA MARKET SHARES, HOUSEHOLD SCHEME
Glass Paper Metal Plastic
81.9 % 76.6 % 83.0 % 73.1 %
Source: EDM portal, market shares household 2017
ARA subsidiary ERA is the market-leading compliance service for WEEE and batteries in Austria,
with a market share of around 43 %, up from 29 % in 2009, and just under 60 % for batteries.COLLECTION Packaging collection secures raw materials...................... 32 Packaging collection in 2017............................................ 32 High level of acceptance for ARA’s household scheme............................................ 34 Raising awareness: Getting consumers on board.............. 35 Better systems, lower costs.............................................. 36 Solutions for business and industry.................................. 37 Corporate waste management......................................... 37 Best practice: ARA waste management............................ 38 ARA event service: Clean and cost-effective..................... 39
32
Collection
PACKAGING PACKAGING
COLLECTION COLLECTION
SECURES RAW IN 2017
MATERIALS
A ARA and its subsidiary Austria Glas Recycling finance and
organise the efficient collection, sorting and eco-friendly
recovery of packaging waste. Together with our partners,
we provide consumers and businesses across Austria with
modern, comprehensive, convenient and cost-effective PAPER PACKAGING
Paper packaging is collected to-
waste management solutions.
gether with other paper products
(such as newspapers, journals
In 2017, ARA and Austria Glas Recycling managed a total of or other print products) in more
than 1.4 million bins across the
around 700,900 tonnes of packaging waste from households country. This allows us to realise
as well as business and industry. Of this, around 663,300 synergies, which is always a plus:
The household collection scheme
tonnes were recycled or incinerated with energy recovery
can be designed to take account
by more than 80 recovery partners. The difference between of total paper waste arisings in
the amount collected and the amount recovered can be each region and logistics can be
optimised. ARA works together
explained by non-packaging waste and municipal solid with municipalities and municipal
waste as well as changes in waste stocks. The total amount associations, who organise the
municipal waste paper collection.
also includes packaging collected together with municipal
In addition, around 1,200 munici- GLASS PACKAGING
solid waste pursuant to the provisions of the Remuneration pal recycling yards accept paper Austria Glas Recycling organises
Ordinance, with the proportionate cost being covered and paperboard packaging from the collection and recovery of
households and small businesses used glass packaging throughout
by license fees (rather than municipal waste fees). with household-like arisings; Austria. Around 73,900 bottle
businesses with an average amount banks are available for the
of waste paper of 15 to 100 kilo- collection of clear and coloured
Around 90 % of the packaging collected separately was
grammes per week can sign up glass. In 2017, Austria Glas Recy-
recycled, and the rest was incinerated for energy recovery. for our regional shopping area cling collected around 188,900
scheme. Under this scheme, tonnes of used glass on behalf
ARA-licensed paper packaging is of ARA System. Around 240,000
picked up at regular intervals and tonnes of glass packaging were
free of charge. sent for recycling.
275,000 189,000
TONNES OF TONNES OF
PAPER PACKAGING GLASS PACKAGING
COLLECTED COLLECTED33
Collection
LIGHT-WEIGHT PACKAGING
In 2017, ARA collected around
205,500 tonnes of light-weight
packaging from households as well
as business and industry. There are
two household schemes: In around
60 % of Austria, packaging made
of plastic, composite materials
and drink cartons are collected WEEE AND BATTERIES
together with packaging made In Austria, around 80,000
of wood, textiles, ceramics and tonnes of WEEE and 2,500
biodegradable materials (yellow tonnes of waste batteries are
bag or bin scheme). In Vienna and collected every year; of this,
parts of Lower Austria, Salzburg ERA accounts for around 40 %.
and Carinthia, more than 3 million
Every Austrian resident col-
Austrians can use a collection
lects about 9.5 kilogrammes
scheme for plastic bottles (which
of WEEE per year – a top
are, in some regions, collected
together with drink cartons or result in Europe. Around 2,100
metal packaging). Other types collection points are available
of light-weight packaging are to consumers and manufac-
collected together with municipal METAL PACKAGING turers across the country; ERA
solid waste and incinerated with ARA managed around 31,400 provides 100 such points.
energy recovery. tonnes of metal packaging In addition, people can return
(ferrous metal and aluminium) WEEE to retailers when they
Around 2.4 million Austrian house- in 2017. Most of the around
purchase a new, equivalent
holds – i.e. significantly more than 47,500 bins available for the col-
device which fulfils the same
half of the country’s households – lection of metal packaging
functions as the old one,
benefit from a convenient pick-up from households are located at
service for light-weight packaging central collection points. In some provided that the shop’s sales
or plastic bottles. While yellow regions, metal packaging is col- area is greater than or equal to
bags prevail in rural areas, yellow lected together with light-weight 150 square metres. Consumers
bins are used in urban areas. packaging. In others, it is collected can always return batteries to
together with other metal waste vendors free of charge, even
In addition, households can drop (e.g. scrap metal, ironmongery) when not buying new ones.
off large-volume or bulky light- and sent for recovery, with the
weight packaging at around 700 associated costs being covered by
municipal recycling yards. the municipalities.
205,000 31,000 9.5
TONNES OF LIGHT TONNES OF KG WEEE
WEIGHT PACKAG- METAL PACKAGING PER CAPITA
ING COLLECTED COLLECTED34
Collection
HIGH LEVEL OF
ACCEPTANCE FOR
ARA’S HOUSEHOLD
SCHEME
Consumers appreciate that our packaging collection scheme
HOUSEHOLD is convenient and flexible. ARA and Austria Glas Recycling work
SCHEME 2017 closely with waste management companies, municipalities
1.08
and municipal associations and are responsible for the col-
lection of packaging from households. A legal reorganisati-
on was implemented in 2018: The collection of light-weight
and metal packaging in the country’s collection regions was
+2 % MILLION allocated to collection and recovery schemes based on their
on 2016
TONNES market shares for the period 2018–2022. ARA, as the mar-
ket leader, is still responsible for around 85 % of the regions.
OF PACKAGING
AND PAPER WASTE In 2017, more than 1.82 million collection bins were made
available for the collection of packaging from households,
which represents an increase by around 2 % from 2016 that
was above all attributable to an increase in the number of bins
for paper and light-weight packaging. At the same time, we
extended the coverage of the pick-up service for light-
weight packaging (yellow-bag scheme): As many as 1.66
million Austrian households benefited from this highly con-
venient kerbside collection scheme at end-2017 (2016: 1.62
million households).
In 2017, around 1.08 million tonnes of packaging and waste
paper were collected separately through the household sche-
me, which also includes small businesses with household-like
packaging waste arisings. The amount collected in 2017 was
a little higher than in 2016. Part of the amount was collected
by ARA and Austria Glas Recycling on behalf of other collec
tion and recovery schemes under the shared-use model or
is to be allocated to other collection and recovery schemes.
The per-capita amount of packaging and waste paper
collected through the household scheme was 113.3 kilo-
grammes in 2017, which roughly corresponds to the 2016
amount. Vorarlberg again ranked first among the Austrian
provinces (147.6 kilogrammes). Including the amount col-
lected through recycling yards and the Öko-Box scheme,
the per-capita amount was 122.9 kilogrammes in 2017.35
Collection
RAISING
AWARENESS:
GETTING CONSUM-
ERS ON BOARD
X
Consumer acceptance is essential to our success with
97%
recycling. In a representative survey conducted by IMAS in
2017, 98 % of respondents said that they sort their waste,
and 97 % believe that sorting waste is a very good or good
idea. In fact, it has long become an integral part of people’s THINK THAT SORTING
lives. This is corroborated by the fact that 72 % of respon- WASTE IS A GOOD IDEA.
dents feel they do not have to make an extra effort to sort
their waste. To continue this success story, we have to keep
raising awareness and motivating people to do their part.
260 waste consultants throughout the country ensure that
consumers have direct access to information about the
separate collection of packaging and regional specifics of
the system.
Early-life influences tend to shape later behaviour; this is
also true for green and sustainable behaviour. This is why
Per-capita amount
ARA developed ARA4kids, a play-and-learn programme of packaging
for children aged 4–10. ARA4kids teaches children about
waste prevention, litter prevention as well as the separate
and waste paper
collection and recycling of packaging. Austria Glas Recycling collected separately
also focuses on environmental and sustainability education
for kids by running a programme featuring Bobby Bottle,
through the house
a genie in a bottle. hold scheme:
We also rely on sports sponsoring to enhance the emo-
tional appeal of environmental protection, take account of
the rise in on-the-go consumption and reach out to young
people in their leisure time. The young athletes serve as role
113.3 kg
models for sustainable behaviour. Since 2013, we have been
a partner of the Austrian Football Association, ÖFB, as foot-
ball offers excellent opportunities for communicating our
environmental message to a large audience.36
Collection
COLLECTION AND RECOVERY EXPENSES
BETTER SYSTEMS,
LOWER COSTS
We leave no stone unturned to provide our customers with the best service at the best price.
To this end, we are continually working on improving our collection and recovery scheme.
Under the Austrian Waste Management Act, all authorised collection and recovery schemes
Optimised have had to share use of the existing infrastructure for the collection of packaging from hou-
seholds and small businesses (bins, bag solutions and recycling yards) since 2015. Collection
collection amounts are split between the schemes in accordance with their monthly market shares
so that cost responsibility is now linked to the compliance market.
and reco-
The compensation for collection and recovery services is regulated in ARA’s service agree-
very lead ments with municipalities, waste management companies and recovery companies. Periodic
to cost- tenders and price reviews ensure the market conformity of the terms and conditions.
efficient In 2017, we were able to offer largely unchanged conditions despite a difficult environment
and to cut collection costs by integrating the pick-up service for drink cartons (Öko-Box) into
tariff our collection scheme for light-weight packaging.
rates. Looking at recovery prices, the consistent management of material flows, quality improve-
ments and the conclusion of long-term contracts have helped us counter the massive cost
pressure in the thermal recovery of mixed plastic. Since 2016, the Remuneration Ordinance
(Abgeltungsverordnung) has caused substantial additional costs for household packaging.
The tendering process for collection and sorting services for light-weight and metal packa-
ging from 2018 was concluded on time in 2017. We were able to prevent our customers from
incurring substantial additional costs by using a multi-stage tendering process, expanding
the mixed collection schemes in some regions, stepping up competition and expanding the
business model for the sorting of metal packaging.37
Collection
SOLUTIONS FOR CORPORATE
BUSINESS WASTE MANAGEMENT:
AND INDUSTRY 100 % SUSTAINABLE
X
Providing solutions for commercial and industrial pack Over the past decades, our perception of waste manage-
aging waste has been a core feature of ARA’s service ment has undergone a fundamental transformation: What
range since day one. This sets Austria apart from other was once the mere disposal of waste has become a highly
EU countries where producer responsibility has often regulated and technologically sophisticated industry, a fu-
been limited to household packaging. ture-oriented market that requires great knowledge and
economic expertise.
The first step to accessing ARA’s commercial waste service
is to register with the VKS waste producer register, which Our experts develop waste management concepts in kee-
we compiled and updated until 2016. Once a company has ping with the complex legal requirements, they check and
been registered, it can outsource its documentation and update existing concepts and highlight necessary adaptati-
proof of compliance obligations. The register ensures that ons of quality management systems (e.g. ISO or EMAS cer-
collection and recovery schemes for commercial packaging tification). Outsourcing waste management tends to make
manage licensed material only. sense as soon as the amount and quality of the waste pro-
duced exceeds that of a typical household.
We offer our business and industry customers different
packaging management solutions depending on the amount
of packaging waste they produce.38
Collection
BEST PRACTICE
ARA WASTE MANAGEMENT
Out- OUTSOURCING LEADS TO LOWER COSTS
Major players in the domestic food industry have outsourced the entire waste management
sourcing function to ARAplus – with clear goals in mind: to reduce waste, lower costs and streamli-
waste ne waste management processes. Together, we have been able to lower costs and increase
flexibility – a veritable success story.
manage- First we look at the situation as is. Specifically, we examine where waste and recyclable
ment has streams come from. Then we develop a solution that allows for better sorting and opti-
mum recovery of the waste materials. Some companies no longer have employees who are
a great responsible for waste sorting and management; they have outsourced the entire function to
savings ARAplus, which adds flexibility and comes with other advantages in light of seasonal output
fluctuations. This is an important factor for many industrial companies.
and opti- Outsourcing to ARAplus has allowed us to halve the share of residual waste, the manage-
misation ment of which is cost-intensive.
potential.
RECYCLING – WHAT ELSE?
ARA has operated a separate collection and recycling scheme for Nespresso Austria coffee
capsules since 2009. Nespresso customers can drop off used capsules at more than 1,500
collection points across Austria. From there, the collected capsules are sent for recycling
at a state-of-the-art recycling facility operated by ARA recovery partner Höpperger in the
west of Austria. The coffee grounds are separated from the aluminium pods, which can be
fully recycled – cut up and melted in aluminium mills, the pods are a high-quality recycling
material. The coffee grounds can be used to produce biogas and electricity in a process de-
veloped specifically for this purpose. The system is considered one of the best in Europe and
has attracted plenty of interest at the international level.
SAFE MANAGEMENT OF WASTE LITHIUM BATTERIES
ARA and its subsidiary ERA are experts at the safe management of waste lithium batteries,
which are often used in wireless electrical appliances. Waste lithium batteries need to be
handled carefully; otherwise they may pose a risk of fire. This is why the Ordinance on Waste
Treatment Obligations (Abfallbehandlungspflichtenverordnung) stipulates certain require-
ments regarding the safe collection and storage of lithium batteries. ERA’s expertise in this
field allows us to offer the best solution. A case in point is the development of a special col-
lection container that has been tested and approved for the transport of hazardous goods.39
Collection
ARA EVENT SERVICE:
CLEAN AND
COST-EFFECTIVE
Big events are regional attractions that pose an increasing
challenge for the organisers in terms of mobility, safety and
security, food and drink provision as well as keeping the
18
venue clean. Hosts and organisers can rely on ARA’s event
service to help them minimise the environmental impact
of their events. They have a reliable partner to whom they can
outsource the waste management function (including the
drawing up of a waste management concept).
Our event service provides a dense network of modern in- BIG EVENTS
frastructure for the separate collection of packaging and a MANAGED
IN 2017
solution for catering and dining areas. We look after the col-
lection points during the event and organise the pick-up and
treatment of waste.
In addition, our experts organise the cleaning of the venue
900,000
VISITORS
after the event, document the amount of waste collected
SORT THEIR
and compile a sustainability report. The organisers bene-
WASTE
fit doubly, first by projecting a positive image with a clean
venue, and second by saving money, as the sorting of was-
te leads to significantly smaller amounts of residual waste
(which is costly to manage). In 2017, around 900,000 visitors
of 18 big events were able to sort their waste thanks to the
ARA event service.SORTING AND RECOVERY Closing the loop on raw materials..................................... 42 Different price movements for secondary raw materials............................................. 43 Recovery performance in 2017......................................... 44 ARA Circular Design......................................................... 46 New recycled plastics, made by ARA................................ 49 Sustainable climate protection......................................... 49
42
Sorting and recovery
CLOSING
THE LOOP ON
RAW MATERIALS
R
Recycling is a source of high-quality raw materials. For the
past 25 years, ARA has provided valuable secondary raw
materials and energy resources to industry, thus sub
stituting natural resources and fossil fuels such as coal,
crude oil and natural gas. We are good at keeping materials
in the loop so they can be used as long and as often as possib-
le. Today, 67 % of packaging is recycled in Austria; this is one
of the highest values in the EU.
The EU Circular Economy Package poses great challenges in
terms of packaging recycling. We are working hard on making
our processes even more efficient so we can achieve higher
recovery rates in a cost-efficient manner. Sorting will play
a key role here, as technological advances in this field have
been (and are expected to remain) fast-paced: High sorting
quality allowsfor high-quality recovery.
Today’s state-of-the-art automated sorting equipment for
light-weight packaging uses near-infrared spectroscopy
to identify and automatically separate the different types
90 %
RECOVERED
of plastic using air currents. Future detection and separa-
tion processes will rely on shape recognition and artificial
intelligence.
DOMESTICALLY
67 %
RECYCLED –
A TOP RESULT
IN THE EU43
Sorting and recovery
DIFFERENT PRICE
MOVEMENTS
FOR SECONDARY
RAW MATERIALS
The recovery revenues we generate are largely determined
by price movements in secondary raw materials markets,
which affect the marketing opportunities for packaging col-
lected by ARA.
In the second half of 2017, the import restrictions im-
posed by the People’s Republic of China had a massive
effect on the price of plastic waste, above all PE film.
At the end of 2017, Chinese imports of plastic waste
dropped to almost zero. The resulting oversupply and
limited recycling capacity on the European market led
to a sharp decline in revenues from secondary plastics. Even though ARA
Even though ARA recovers 90 % of its materials domes-
tically and has never exported to Asia, the Europe-wide
recycles 90 % of its
market slump was felt keenly. In contrast, the prices for materials in Austria
PET bottles remained broadly stable and even increased
somewhat compared with 2016. Exports to Asia have al- and does not export
ways been much less important for PET than for PE film.
to Asia, the Europe-
The price of ferrous metal packaging continued to recover in
2017: After a volatile period in spring, prices stabilised at a
wide slump in the
high level during the remainder of the year. All in all, revenu- plastic waste market
es in 2017 were somewhat higher than in 2016.
was felt keenly.
Positive market developments were observed for alumini-
um packaging, with short-term price spikes in the first and
fourth quarters of the reporting year. The 2017 result is ab-
ove last-year’s figure.
Looking at waste paper, the markets for packaging-grade
paper – which are relevant to us – improved, in some cases
even markedly, in the second half of the year. All in all, the
2017 results were better than in 2016, which allowed us to
lower the respective tariff rates during the year.44
Sorting and recovery
RECOVERY
PERFORMANCE
IN 2017
GLASS PACKAGING
More than 85 % of the 188,900
tonnes of glass packaging collected
in 2017 were recycled domestically;
PAPER PACKAGING the rest was shipped to Germany,
In 2017, ARA managed around Italy, Croatia and the Czech Republic.
275,200 tonnes of paper packa- Glass recycling is 100 % recycling –
ging and sent 269,400 tonnes for glass packaging can be remelted
recovery. indefinitely and made into new
Recycling paper is a valuable raw products without any quality loss.
material for the paper industry. All Recycled glass melts at lower
the paper waste collected sepa- temperatures than virgin raw
rately in Austria is made into new materials, which saves energy and
products. Recyclable paper waste helps reduce carbon emissions.
is used above all in the production The energy savings achieved every
of sanitary paper and newsprint year are roughly equal to the
as well as packaging made of energy consumption of 52,000
paper, cardboard, paperboard and households and help reduce the
corrugated board. carbon footprint of Austria.
269,000 185,000
TONNES OF TONNES OF
PAPER PACKAGING GLASS PACKAGING
RECOVERED RECOVEREDYou can also read
