The move builds on Nestle's 2018 commitment to make 100% of its packaging reusable or recyclable by 2025
Nestle intends to set-up a sustainable packaging venture fund to invest in start-ups (Credit: Flickr/Nestle/https://www.flickr.com/photos/nestle/)
Food and drink manufacturer Nestle has pledged to invest up to 2bn Swiss francs ($2bn) in a bid to move away from virgin plastic.
As part of this, the Swiss-based giant has committed to sourcing up to two million metric tonnes of food-grade recycled plastic between 2020-2025.
In 2018, the company vowed to make 100% of its packaging recyclable or reusable by 2025, alongside a commitment to reduce its use of virgin plastic by a third.
Nestle CEO Mark Schneider said: “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.”
Nestle to set up a sustainable packaging venture fund
Nestle also intends to set up a SFr250m ($259m) sustainable packaging venture fund to invest in start-ups involved in new material development, refillable packaging systems and recycling solutions.
The initiatives come as part of the firm’s efforts to bring its greenhouse gas emissions to net-zero by 2050.
Ellen MacArthur Foundation CEO Andrew Morlet said: “We are pleased to see Nestle commit a SFr2bn ($2bn) 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.”
Alongside these initiatives, Nestle will continue in-house material development through its Institute of Packaging Sciences.
Launched in September 2019, the research facility was set up to accelerate the company’s efforts to bring environmentally-friendly packaging solutions to market.
The institute focuses on several science and technology areas, such as refillable and reusable packaging, and bio-based, compostable and biodegradable materials.