$30 million invested by Nestlé in US Recycling Initiative “Closed Loop”.
In a startup to upgrade US recycling infrastructure and safe access to food-grade recycled plastics, Nestle has decided to make an investment of $30 million.
The invested sum will be added to the Closed Loop Leadership Fund, the private impartial fund of Closed Loop Partners which aims to assist the transfer from virgin plastics to food-grade recycled plastics throughout the US.
It represents the debut investment from Nestlé’s sustainable packaging venture fund, which was initiated in early 2020 as a segment of its CHF 2 billion investment.
This also includes the company’s objective to redesign its packaging into 100% recyclable or reusable by 2025, as well as minimize the utilization of virgin plastics by one third. At present, Nestlé affirms that 87% of its packaging materials used are recyclable or reusable.
Closed Loop will utilize the fund to finance its accession of firms that are apparently enhancing the United States’ circular economies. As a result, Nestlé will procure access to recycled plastics feedstock fabricated by these companies with the goal to achieve more quantities of food-grade recycled plastics for its packaging.
Ron Gonen, CEO of Closed Loop Partners declared- “Nestlé’s investment is a remarkable commitment to aid the updation, optimization and financing of circular economy infrastructure in the US and exploit avant-garde technologies for carrying materials in manufacturing supply chains.”
“Apart from the investment, Nestlé has planned to set up an end-market for the food-grade recycled plastics processed through the companies acquired by us. This will allow us to fully close the loop on precious stuffs,” he further added.
With an access to premium-quality food-grade recycled PET, polyethylene (PE) and polypropylene (PP), Nestlé’s ability to meld recycled plastics into packaging throughout its food and beverage portfolio will be boosted.
Steve Presley, Chairman and CEO of Nestlé USA said- “It is necessary that we do our bit to assist keeping recyclable materials out of landfills, and multiply recycling rates in the US, and this investment is a notable move in this regard. It is also a vital step in our attempt to get access to premium-quality, food-grade recycled plastics which can be processed into new packaging material to be utilized across our product portfolio.”
Additionally, the company declared a new replenishable system for its pet food in Chile and the move to make use of recyclable paper to pack its individual Maggi bouillon cubes in France.
Nestlé is also setting up a new Creating Shared Value Prize, in collaboration with the non-profit organization Ashoka, which will provide grants for unconventional ideas in fields like substitute for delivery systems and measures to deal with plastic waste.