Nestle pledges $2.07 billion in food-grade recycled plastics
Nestlé announced that it will invest up to CHF 2 billion (USD$2.07 billion) to fund the development of sustainable packaging solutions and lead the shift to food-grade recycled plastics.
In 2018, Nestle announced its commitment to make 100% of its packaging recyclable or reusable by 2025. Nestlé will reduce its use of virgin plastics by one third in the same period whilst working with others to advance the circular economy and endeavor to clean up plastic waste from oceans, lakes and rivers.
Most plastics are difficult to recycle for food packaging, leading to a limited supply of food-grade recycled plastics. To create a market, Nestlé is committed to sourcing up to 2 million metric tons of food-grade recycled plastics and allocating more than USD$1.55 billion to pay a premium for these materials between now and 2025. Nestlé will seek operational efficiencies to keep this initiative earnings neutral.
In addition to its significant in-house research through the Nestlé Institute of Packaging Sciences, the company will launch a USD$258 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.
The two initiatives come in addition to Nestlé’s major ongoing efforts in research, sourcing and manufacturing to make its packaging recyclable or reusable and contribute to its goal to achieve zero net greenhouse gas emissions by 2050.