Multinational food manufacturer Nestlé has announced plans to invest CHF 2 billion (£1.58 billion) to shift from virgin plastics to food-grade recycled plastics.
It also intends to accelerate the development of innovative sustainable packaging solutions from its investment.
The Swiss company has made a commitment to make 100% of its packaging recyclable and reusable by 2025, and will reduce its use of virgin plastics by a third in that time.
With a limited market for food-grade recycled plastics, Nestlé has decided to boost the market with its investment with the aim of sourcing up to 2 million tonnes of food-grade recycled plastics and allocating more than CHF 1.5 billion to pay a premium for these materials between now and 2025.
In addition to its research at the Nestlé Institute of Packaging Sciences, the company will invest CHF 250 million in a sustainable packaging venture fund to invest in start-up companies that focus on packaging innovation such as new materials, refill systems and recycling solutions.
Nestlé chief executive 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 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.”