Nestlé is aiming to accelerate the development of sustainable packaging solutions by investing up to CHF 2 billion (£1.59bn) to lead the shift from virgin plastics to food-grade recycled plastics.
Building on its 2018 commitment to make 100% of its packaging recyclable or reusable by 2025, Nestlé will reduce its use of virgin plastics by one third during the same period whilst working with others to advance the circular economy.
The food giant is committing to sourcing up to 2 million metric tons of food-grade recycled plastics and allocating more than CHF 1.5 billion to pay a premium for these materials between now and 2025. It added it will seek operational efficiencies to keep this initiative earnings neutral.
In addition to its inhouse research through the Nestlé Institute of Packaging Sciences, which launched in 2018, the company will launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.
“No plastic should end up in landfill or as litter,” said Mark Schneider, CEO of Nestlé.
“Making recycled plastics safe for food is an enormous challenge for our industry. That is why in addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable.
“We are taking bold steps to create a wider market for food-grade recycled plastics and boost innovation in the packaging industry. We welcome others to join us on this journey.”
