Nestlé To Invest CHF 2bn In Sustainable Packaging Solutions
Nestlé has announced that it is to invest up to CHF 2 billion (€1.86 billion) in developing sustainable packaging solutions that will help the company to switch to food-grade recycled plastics and reduce the use of virgin plastics.
The food giant aims to reduce the use of virgin plastics in its operations by one third by 2025 as part of a commitment, made in 2018, to make 100% of its packaging recyclable or reusable by the same period.
'Circular Economy For Plastics'
Andrew Morlet, CEO of Ellen MacArthur Foundation, said, "We are pleased to see Nestlé commit a CHF 2 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 reuse 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."
Food-Grade Recycled Plastics
Between now and 2025, Nestlé aims to source up to two million metric tonnes of food-grade recycled plastics and allocate more than CHF 1.5 billion towards paying a premium for these materials.
It will also launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on packaging innovation, refill systems, and recycling solutions.
The fund is in addition to the company's in-house research on packaging solutions, conducted by the Nestlé Institute of Packaging Sciences.
'An Enormous Challenge'
Mark Schneider, CEO of Nestlé, commented, "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."
Nestlé will also collaborate with other organisations for cleaning up plastic waste from oceans, lakes, and rivers.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.