Nestlé invests £1.59bn in recyclable plastics

By Gwen Ridler

- Last updated on GMT

Nestlé hoped to build a circular economy with a £1.59bn investment into sustainable packaging
Nestlé hoped to build a circular economy with a £1.59bn investment into sustainable packaging

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Food giant Nestlé is to dramatically reduce its reliance on virgin plastics as part of a CHF2bn (£1.59bn) investment in sustainable packaging.

On the back of its 2018 commitment to make 100% of its packaging recyclable or reusable by 2025, the manufacturer will reduce its use of virgin plastics by a third during the same period.

More than CHF1.5bn (£1.19bn) will be used to source 2 million tonnes of food-grade recycled plastic to be paid at a premium, in the hopes of creating a market for the resource. Nestlé will seek operational efficiencies to keep this initiative earnings-neutral.

‘Close the loop’

Mark Schneider, chief executive of Nestlé, said: “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 launch a CHF250m (£198m) sustainable packaging venture fund to invest in start-up companies with a focus in this area. 

Welcome commitment

Commenting on Nestlé’s plastic commitments, Andrew Morlet, chief executive of circular economy charity the Ellen MacArthur Foundation, said: “We are pleased to see Nestlé commit a CHF2bn 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. Achieving the commitments announced today will significantly contribute towards realising this vision.”

Meanwhile, Britvic is tackling waste with a series of measures aimed at boosting recycling.

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1 comment

Sandy H. in Penticton

Posted by S.L. Hayes,

A good START Nestles! However, the ridiculous amount of water you steal from our water supplies is disgusting. We all should be able to access clean, safe water. If a company is allowed to extract this product at the expense of the majority of people living here, it is a disgrace. Obviously money makes companies and some people above what is best for our planet. Shame on Nestles-I will not purchase your products.

We are approaching the federal and the provincial government regarding this matter and hope to stop-or at least limit the amount of water you take for company profit.

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