In addition to sustainable actions discussed throughout this report, the following examples represent a cross section of initiatives related to corporate sustainability within the Alcan Packaging Group.

Safety, Health and Environment (SHE)
As an integral part of Alcan's Environment, Health and Safety Policy, the Packaging Group maintains a customized strategy to promote the health and safety of personnel and to protect the environment and Alcan property.

Known as SHE (Safety, Health and Environment), this initiative is now an essential part of the decision-making process, whether it involves planning and design, construction of a new installation, development of a new product or process, or modifications to machinery or production processes.

At the heart of each SHE management system is a dedicated steering committee at each site with responsibility for managing the program, setting objectives, and assessing progress. The first step in implementing SHE is to conduct a full risk assessment of machines and processes and establish corrective action plans where necessary. The next step is to go deeper into the process and identify any risks attached to the manual operations.

With annual objectives that include accident reduction and goals for high-level plant hygiene and housekeeping, SHE performance is regularly assessed at each facility. This is accomplished through compliance and best-practice audits using external consultants at least once every three years. SHE coordinators and managers communicate performance, best practices and objectives to employees and initiate action plans at the plant level. In addition, all third parties must familiarize themselves with our SHE practices on a plant-specific basis. Responsibility is defined at each level of the group, and SHE objectives and performance are part of annual personnel evaluations.

CLEAN
Since we produce packaging products for the food and pharmaceutical industries, our standards must include manufacturing hygiene and clean working conditions.

Alcan Packaging initiated CLEAN in 1997, a working culture that sensitizes employees to the possible consequences of their actions regarding environment, safety, health, product contamination and poor plant housekeeping. Especially important in serving the needs of our consumer packaging clients, CLEAN is more than an organized workspace, it includes a safe and accident-free work environment as well as impeccable product quality and hygiene. CLEAN combines SHE best practices with the highest housekeeping and manufacturing hygiene standards.

As a result, the employee working environment has improved through better lighting, air-conditioning, a cleaner and more organized workplace, improved storage areas and easier access to emergency equipment and exits. CLEAN initiatives have eliminated casual exposure to solvent vapours through proper handling and storage procedures, noise levels have been reduced, pollutants and air emissions have been minimized thereby improving manufacturing hygiene, and our facilities are well maintained and create a positive impression with customers.

The Packaging Group provides a complete CLEAN training and implementation program, and conducts regular internal audits to assess progress. Critical to the program's success is the commitment and participation of our employees. CLEAN helps provide a positive working environment and gives Alcan Packaging a clear competitive advantage that strengthens the group's leadership position in the marketplace.

Risk Management
As a component of our SHE strategy, risk management is a key tool for Alcan Packaging and involves risk analysis of our machines and our activities. Whether it is an existing set-up, a modification to a machine or building, or a new machine or process, all machines and activities are assessed.

Each packaging site systematically identifies hazards and ranks them according to the relative probability and severity of occurrence. A risk matrix is then used to prioritize actions and resources. All environment, health and safety issues in a plant, regardless of the nature of discovery—risk analysis, internal or external audits, or external consultants—are scored on the risk matrix, which clearly identifies and prioritizes actions to be taken. The risk matrix will also illustrate the effect of the action and whether the risk probability and severity have been reduced or eliminated.

Volatile Organic Compounds (VOCs) Reduction
Emissions from solvents used in packaging and printing processes, known as volatile organic compounds, can contribute to the production of ground-level ozone. Excess ozone, along with other pollutants, can produce photochemical smog, which can harm animal and plant life. Many of the solvents used in the inks and lacquers found in Alcan packaging plants are listed as VOCs.

In the last five years, businesses in the Packaging Group have invested $27 million in VOC abatement technology. The combination of this investment with other efforts, such as switching to water-based inks and lacquers or recovering solvents, has resulted in the Packaging Group achieving a reduction of more than 50% in the volume of VOC solvent emissions between 1994 and 2001. Where it was practical to introduce water-based lacquers and coatings, we also significantly reduced the need for bulk storage of solvents and special waste disposal. In addition, we reduced costs and eliminated CO₂ emissions associated with the thermal oxidizer unit formerly required for VOC abatement.

VOC Emissions
(in thousands)

CERAMIS—A Sustainable Product Development
In the field of transparent packaging barriers, Alcan Packaging has recently introduced CERAMIS, a new packaging product containing non-metallic, inorganic barrier coatings. The CERAMIS coating replaces thick barrier layers with a high-tech, ultra-thin layer of ceramic material. Not only does the process reduce material consumption and improve production efficiencies, it also eliminates solvents used in the traditional processes and their related VOC emissions. There is no release of toxic emissions in the CERAMIS process nor is there any water contamination.Our customers and society also benefit from this product development in that the process is cost effective, the solution is a versatile, transparent barrier against gas, water and aromas, and it can also effectively withstand mechanical stress.

To fulfill the rapidly increasing demand for these barrier films in Europe, Alcan Packaging commissioned its first related production line in Nehr, Switzerland in mid-2001. We are confident that demand will continue to grow as we strive for market leadership in this field in Europe and introduction of this barrier technology in the North American marketplace.