Nestle S.A., the world’s largest food company, said Thursday said it will invest up to $2.1 billion to drive the development of sustainable packaging products and create a new market for food-grade recycled plastics.
The Vevey, Switzerland-based company said it was adding to its 2018 commitment to make all its packaging recyclable or reusable by 2025 by reducing its use of virgin plastics by 33 percent in the next five years.
“Most plastics are difficult to recycle for food packaging, leading to a limited supply of food-grade recycled plastics,” the company said.
To create a market, Nestlé said it was committed to sourcing up to two million metric tons of food-grade recycled plastics and allocating more than $1.6 billion to pay a premium for these materials between now and 2025.
Nestle is also launching a $260 million sustainable packaging venture fund to invest in start-ups focused on creating new materials, refill systems and recycling solutions for packaging.
“No plastic should end up in landfill or as litter,” said Ulf Mark Schneider, Nestle CEO. “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. 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.”