Average weights based methodologies (average bill of materials)
Guidelines and requirements
Introduction
In order to produce a Company Report for submission to Éco Entreprises Québec (ÉEQ),
companies must compile the quantities of designated materials used in the containers,
packaging and printed matter they generate. To do so, they must establish the weight of
each packaging item and accurately classify materials according to specific categories and
sub-categories.
They may compile the required data by weighing each item or obtain the information from
manufacturers or suppliers. However, if a company markets many different reportable
products and/or the information is not available from suppliers, significant effort and
resources are necessary to complete the task.
From now on, companies may simplify weighing and classification tasks by using
representative average weights and characteristics of reportable product packaging. This
methodology, known as average bill of material (ABOM), allows a company to group
together products with similar packaging weights and characteristics, and to weigh only the
products that best represent the group. The resulting weight and material classes for these
products are then attributed to all products in the same group (an ABOM group).
Detailed methodology and requirements
Once all reportable products have been identified by the company (as a “brand owner” or
“first supplier” of products intended for consumers), sales figures must be extracted from
the accounting system to determine quantities of products sold, directly or indirectly, in the
province of Quebec during the calendar year. The resulting information should preferably
be compiled in spreadsheet format.
The company may find it useful to also extract identifying information along with product
sales figures in order to appropriately classify the products, including a detailed chart of
accounts assignment for each product, per department, sub-department or category, etc.
This information may be useful to identify and group products with similar packaging
characteristics.
Creating an ABOM (products group)
The information extracted from the sales report will be useful for identifying groups of like
packaging materials and creating ABOM groups. Typically, the most detailed level of
classification is used, and each classification level is examined to determine if products in
the each group are considered similar in terms of types and quantities of packaging
materials used. Where packaging materials differ, they can be further broken down into
smaller ABOM groups.
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Requirements – Creation of groups:
When grouping products with similar packaging in terms of size, weight and material, ÉEQ
minimally requires:
A majority of products to have the same primary type of packaging in the same
material sub-category (ex.: cardboard box, etc.)
A majority of products to have similar sizes and packaging weights
In order to simplify the process, ÉEQ may accept:
A group that includes similar products with different packaging types, weights or
sizes, as long as these products do not represent a significant portion of the total
sales of each product group
Establishing the characteristics of an ABOM
Once ABOM groups have been defined, sample products are then selected to represent
each ABOM group. The sample size for each ABOM group should be directly proportional to
the diversity of items in the ABOM group. Where an ABOM group is completely
homogeneous (e.g. an ABOM consisting of only 250 ml steel cans), a sample size of one is
appropriate. Otherwise, samples of the most representative products (ex.: top sellers) are
to be used.
The ABOM method requires that you determine the weight and material sub-categories for
packaging materials associated with your reportable products. Options for identifying
weights and material sub-categories are:
Option 1 – Obtain lists of weights and technical characteristics of materials from
vendors or industry associations, where available. If this method is selected, steps
should be taken to ensure the accuracy of weights provided, such as random
verification. This could include a discussion with the vendor as to how the weights
were determined. Verify that processes are in place to obtain accurate weights (i.e.
not estimated weights).
Option 2 – Physically examine packaging components to determine their weight
and general material categories. This may require the acquisition of a weight scale
accurate to 0.2 grams in order to determine the weight of each packaging
component.
For either option, care should be taken to include all components, such as printed materials
(ex.: user guide), and to exclude packaging items that are not provided to the end
consumer (ex.: secondary and tertiary packaging). Additionally, durable packaging items
should also be excluded as stipulated in the 2014 Schedule of Contributions (3.3.1 f).
Where the products themselves are included in classes of reportable materials (such as
“magazines” and “paper for general use”), the weight of these products should be included
in reported weights.
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Requirements – Sampled products:
In establishing the weight and material sub-categories of packaging components
associated with the sample products, ÉEQ minimally requires:
The sampled products to be representative (in terms of packaging weight and
material), of:
 a significant proportion of sales in their respective group;
 the majority of the products in their class.
Delisted products or those that were not sold during the period to be necessarily
excluded from sampled products.
The weight and sub-categories of materials to be updated at least once every three
years.
The weight and sub-categories of materials relating to sampled products for which
there is a change in packaging to be updated during the year in which the change
occurred.
The data used for sampled products to be relevant to the reference year for
which it will be used. For example, if product packaging changed this year, it
cannot be used to report materials in a previous Company Report.
Packaging components the consumer disposes of separately from the main
packaging to be considered distinctly in weight and material sub-categories.
In order to simplify required efforts, ÉEQ may accept:
Given that the quantity of each product sold may change, sampled products may
not be among the best selling or most representative products. In that case and
only in that case, ÉEQ will accept an ABOM group used in one of the two previous
reports. It is understood that the ABOM group must be updated within a three-year
period.
The weight of each packaging material can then be incorporated into the spreadsheet.
Once all the weights and material sub-categories of sampled products are determined, the
average weight per material in each ABOM group can then be calculated on the
spreadsheet.
ABOM group weights can be calculated using a straight average or a weighted-average of
the weights in each material sub-category. For example, should product A be a 50 g steel
can with a sales figure of 30, and product B be a 54 g steel can with a sales figure of 10,
the straight average would be 52 g and the weighted-average would be 51 g. The
calculation method must be the same for all ABOM groups. Although both methods are
accepted, ÉEQ recommends the use of the weighted-average (30 x 50 + 10 x 54 = 2,040 /
40 = 51 g).
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Once ABOM group weights have been determined, the weights associated with each
material sub-category can be multiplied by total sales quantities of all products in each
ABOM group. From there, the total weight for each material sub-category is determined for
reporting purposes.
Requirements – Products with no packaging:
Products that have no packaging (ex.: sold in bulk) must be carefully considered in the
establishment of an ABOM methodology. ÉEQ requires that these products be
appropriately compiled so as to do not distort the ABOM group. Two options are allowed:
Option 1 – Identify products with no packaging and exclude them from ABOM
consideration. No packaging information is associated to these products, and
sampled products for an ABOM group are only those that have packaging. ÉEQ
recommends this option.
Option 2 – Should products with no packaging be included in the sampled
products of an ABOM group, the ABOM amount must be applied to all products of
the group, including those with no packaging. In this way, products with no
packaging are attributed ABOM characteristics.
Tip - Hangtags
A separate ABOM group can be created to report all products that have only hangtags as
packaging.
Maintenance of the ABOM system
Once these processes have been established and your spreadsheet developed, the
preparation process for future Company Reports should be much easier. However, material
weights and categories should be checked regularly to ensure that they still reflect the
products being marketed.
ABOM categorizations should also be regularly examined to ensure they constitute
reasonable groupings and each ABOM’s packaging materials profile is still accurate. If not,
the ABOM grouping and calculations should be revised accordingly. As previously
indicated, sampled product characteristics must be updated at least every three years, and
delisted products or products with no sales are to be excluded.
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Requirements – Information and document retention:
As prescribed in the Schedule of Contributions, companies must keep all documents and
information used to establish reported quantities of designated materials for at least five
years. For a company using an ABOM methodology, this notably includes:
Sales records for all products marketed in Quebec and ultimately intended for the
consumer
The specific ABOM group to which each product is associated
The list of all products used as samples for each ABOM
Calculations relating to each ABOM group’s specifications (weights and material
sub-categories)
Calculations of total marketed quantities of each designated material using the
ABOM methodology
Other issues
ÉEQ’s minimal requirements for methodologies using average product characteristics, such
as the ABOM methodology, are applicable starting with the 2014 Company Report. These
requirements cannot be applied retroactively to prior Reports.
ÉEQ allows the use of methodologies using average product characteristics in order to
simplify contributors’ reporting process. These methodologies must not be implemented to
deliberately lower quantities of designated materials marketed or payable contributions.
ÉEQ reserves the right to refuse any methodology that does not adequately reflect the
marketed quantities of designated materials and payable contributions.
ÉEQ will be pleased to provide assistance to companies who plan to implement a new
methodology based on average product characteristics or review an existing methodology,
or wish to obtain ÉEQ’s approval prior to implementation.
Contacting Éco Entreprises Québec
ÉEQ’s team is available to assist you in the reporting process, from material classification,
to methodology or deduction questions. Contact us at 514-987-1700 or 1-877-987-1491
or by email at [email protected].
Source
Adapted by Éco Entreprises Québec from Multi-Material British Columbia (MMBC) reference
guide: “A Guide to Help Businesses Meet Their Recycling Obligations in British Columbia,
Revised August 6, 2013”, which was integrated into the CSSA 2014 National Stewards
Guidebook.
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