Swiss-based Nestlé will invest up to CHF 2 billion ($2.067 billion) to shift from virgin plastics to food-grade recycled plastics and develop innovative sustainable packaging solutions towards a waste-free future.
As part its 2018 pledge to make its packaging recyclable or usable by 2025, the food giant will cut its use of virgin plastics by one third in the same period, along with collaborating with other to develop the circular economy, according to a statement on Sunday.
Amid limited supply of food-grade recycled plastics, Nestlé will purchase up to 2 million metric tonnes of food-grade recycled plastics and allocate over CHF 1.5 billion to pay a premium for these materials until 2025.
Through operational efficiencies, the Swiss-based food and beverage company will keep this initiative earnings neutral.
Moreover, the company will set up a CHF 250 million sustainable packaging venture fund to invest in start-up companies that works on developing innovative packaging.
“Making recycled plastics safe for food is an enormous challenge for our industry. That is why in addition to minimizing plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable,” Mark Schneider, CEO of Nestlé, remarked