Environmental Attributes of Reusable Supply Chain Assets Play a Critical Role in Supporting Retailer’s Sustainability Commitment

CHEP and IFCO, member companies of the Brambles Group, announced the companies’ shared pallets and bulk containers and Reusable Plastic Containers (RPCs) have been identified by Kroger1 as critical to reducing waste in the company’s supply chain. The nation’s second largest retailer highlighted CHEP and IFCO in its 2016 Sustainability Report. By replacing more single-use packaging and platforms with reusables, Kroger aims to meet or exceed the United States Environmental Protection Agency’s zero waste threshold of 90% diversion from landfill in its facilities by 2020.

“Kroger is committed to being a positive force for change when it comes to sustainable business practices, and CHEP and IFCO play an important role in our effort to meet our zero waste goals and continuously improve the sustainability of our supply chain,” said Suzanne Walker-Lindsay, Kroger Director of Sustainability.

Kroger’s sustainability report states, “Kroger partners with CHEP and IFCO, which both contribute to global sustainability through their ‘shared’ business models of pooled pallets, bulk containers and reusable plastic containers (RPCs). These packaging solutions bring both operational efficiencies and environmental benefits. Compared with one-way packaging, reusable platforms and containers offer a lower carbon footprint, reduced water consumption and less waste.” In addition, Kroger notes its use of RPCs for fresh produce improved product quality and reduced waste by eliminating the use of more than 73,000 tons of waxed and corrugated boxes.

“We are committed to providing our customers with sustainable solutions that help them make their supply chains more efficient and environmentally friendly,” said Juan Jose Freijo, Global Head of Sustainability for Brambles. “Kroger is a valuable partner and we are pleased to contribute to their zero waste vision. Those companies working together on common goals will be the ones with the greatest impact on environmental sustainability.”

CHEP and IFCO supply chain solutions provide clear environmental benefits versus alternatives. For example, Kroger’s commitment to CHEP pallets avoided more than one million pounds of solid waste and eliminated 430 tons of carbon dioxide (CO2e), the equivalent of growing more than 41,000 trees for 10 years.2 Separately, production of IFCO RPCs requires 65% less water and 34% less energy than one-way packaging. In addition, the use of IFCO RPCs results in a 31% reduction in greenhouse gas emissions and an 85% reduction in solid waste versus single-use cardboard boxes.3

Kroger, CHEP and IFCO are also members of the Consumer Goods Forum, whose members have committed to reducing food waste by half within retail and manufacturing operations by 2025, while also contributing to the United Nation’s 2030 food waste reduction goals.

Mr. Freijo concluded, “We look forward to continuing our partnership with Kroger and other retailers and manufacturers to reduce the environmental impact of the fast-moving consumer goods supply chain and to help preserve our natural resources for future generations.”

About CHEP and IFCO:

CHEP is a global provider of supply chain solutions serving the consumer goods, fresh food, beverage, manufacturing and retail sectors in more than 60 countries. CHEP offers a wide range of logistics and operational platforms and support services that are designed to increase performance and lower risk while improving environmental sustainability. CHEP’s 11,500-plus employees and more than 275 million pallets and containers deliver comprehensive coverage and exceptional value, supporting more than 500,000 customer touch-points for global brands such as Procter & Gamble, Sysco, Kellogg’s and Nestlé. CHEP is part of the Brambles Group, the operator of a portfolio that includes IFCO, the leading provider of Reusable Plastic Containers (RPCs) to the fresh food supply chain globally, as well as specialist container solutions providers to the automotive, aerospace and oil and gas sectors. For more information, visit www.chep.com or follow us on Twitter @CHEPNA.

IFCO is the leading global provider of reusable packaging solutions for fresh foods, serving customers in 50+ countries. IFCO operates a pool of over 270 million Reusable Plastic Containers (RPCs) globally, which are used for over 1.4 billion shipments of fresh fruits and vegetables, meat, poultry, seafood, eggs, bread, and other items from suppliers to grocery retailers every year. IFCO RPCs ensure a better fresh food supply chain by protecting freshness and quality and lowering costs, food waste and environmental impact compared to single-use packaging. IFCO is a Brambles Company. www.ifco.com.

1 National Retail Federation, 2015.2 CHEP Sustainability Calculator.3 Comparative Life Cycle Assessment of Reusable Plastic Containers and Display- and Non-Display-Ready Corrugated Containers Used for Fresh Produce Applications, Franklin Associates, March 2016

DSM Strategic CommunicationsSean McBride, 202-309-3050smcbride@dsmstrategic.com

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