Nestlé invests £1.59bn in recyclable plastics
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.
