Nestlé is to pay a CHF 1.5 billion (£1.19 billion) premium for sourcing up to 2 million metric tons of food-grade recycled plastics between now and 2025.
It will also launch a CHF 250 million (£198.7 million) sustainable packaging venture fund to invest in start-up companies that focus on packaging innovation, including new materials, refill systems and recycling – as well as conducting in-house research through its Institute of Packaging Sciences.
In 2018 Nestlé set a target of making 100% of its packaging recyclable by 2025. It is also looking to reduce its use of virgin plastic by one third in the same period.
Nestlé chief executive Mark Schneider, said: “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.” he added.