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Nestlé to invest up to CHF2B in sustainable packaging

Nestlé SA will invest up to CHF2 billion to ramp up the development of its sustainable packaging solutions as part of its goal to make 100% of its packaging recyclable or reusable by 2025.

The Swiss food and beverage company is looking to source up to 2 million metric tons of food-grade recycled plastics and allocate more than CHF1.5 billion to pay a premium for these materials until 2025. This is part of its commitment to cut its use of virgin plastics by one-third by 2025.

In addition, Nestlé will launch a CHF250 million sustainable packaging venture fund to invest in startup companies focused on packaging innovation, including new materials, refill systems and recycling technologies. The fund will complement its existing research through the Nestlé Institute of Packaging Sciences.

"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," Nestlé CEO Mark Schneider said in a statement.

The company noted that it will seek operational efficiencies to keep this initiative earnings neutral.