Nestlé invests $3 billion in sustainable packaging
Nestlé has announced plans to invest up to CHF1.5 billion (AU$3 billion) to shift from virgin plastics to food-grade recycled plastics, and to accelerate the development of sustainable packaging solutions. Alongside its research through the Nestlé Institute of Packaging Sciences, the company will also launch a CHF 250 million (AU$376.4 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. 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,” said Mark Schneider, CEO of Nestlé.
Building on its commitments to make 100% of its packaging recyclable or re-usable by 2025, Nestlé will reduce its use of virgin plastics by one-third, while working to advance the circular economy and 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 striving to source up to 2 million metric tonnes of food-grade recycled plastics, and seeking operational efficiencies to keep this initiative earnings neutral. Packaging innovation, including new materials, refill systems and recycling solutions, is another challenge Nestlé faces to achieve a waste-free future.
“We are pleased to see Nestlé commit a CHF2 billion investment toward creating a circular economy for plastics, alongside a reduction of its use of virgin plastic in packaging by one-third by 2025. By eliminating the plastics we don’t need, innovating in areas like re-use models and new materials, and circulating the plastics we do need — also in more challenging food-grade applications — we can create an economy where plastic never becomes waste. Achieving the commitments announced today will significantly contribute towards realising this vision,” said Andrew Morlet, CEO of the Ellen MacArthur Foundation.
The two initiatives come in addition to the company’s ongoing efforts in research, sourcing and manufacturing, to reach its goal of zero net greenhouse gas emissions by 2050. As part of the company’s packaging commitment and to increase transparency. Nestlé will outline further initiatives and provide regular progress updates.
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