Nestlé said it has invested the whooping sum of $30 million in the Closed Loop Leadership Fund, a private equity fund of circular economy investment which is poised to lead the shift from virgin plastics to the use of food-grade recyclable plastics.
This investment is the first to utilize Nestlé’s packaging venture fund established earlier this year, which is part of the company’s overall investment of up to CHF 2 billion to accelerate the development of innovative sustainable packaging solutions.
A statement made available by the company, as seen by Nairabrands, quoted the company’s Head of Sustainable Packaging, Véronique Cremades-Mathis, to have said:
“This investment is one of many solutions we are exploring to address the global plastic waste challenge. It will help create a more sustainable recycling system and, at the same time, assist us in achieving our commitment to reduce our use of virgin plastics by one third by 2025. This is particularly important as increasing the use of recycled plastics could substantially reduce the environmental impact of our packaging.”
The investment will be used for the financing of Closed Loop Leadership Fund’s acquisition of well-established, best-in-class companies that are advancing the circular economy in the U.S. The Fund aims to increase recycling rates by an additional twenty-five percentage points in areas serviced by the portfolio companies.
No mention was made about when the new technology will become available outside of the USA, especially in Nigeria where Nestle dominates the consumer goods industry.