#Supply Chain

Nestlé accelerates sustainable packaging initiatives

The Swiss-based multinational food and drink processing firm, Nestlé, has announced it is set to invest US$2bn as it seeks to increase its sustainable p...

Sean Galea-Pace
|Jan 22|magazine9 min read

The Swiss-based multinational food and drink processing firm, Nestlé, has announced it is set to invest US$2bn as it seeks to increase its sustainable packaging initiatives.

Nestlé will reduce its use of virgin plastics by one third by 2025 whilst working to advance the circular economy and endeavor to reduce plastic waste from oceans, lakes and rivers. 

“No plastic should end up in landfill or as litter,” said Mark Schneider, CEO of Nestlé. “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 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. We welcome others to join us on this journey.”

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What does this mean for Nestlé?

Nestlé has a firm sustainability drive and has a drive to enhancing the quality of life and helping to contribute to a healthier future. The firm harbours ambitions to help 50mn children lead healthier lives, improve 30mn livelihoods in communities directly connected to business activities and also strive to deliver zero environmental impact in operations. Building on its commitment in 2018 to make 100% of its packaging recyclable or reusable by 2025, Nestlé is set to source up to 2mn metric tons of food-grade recycled plastics and allocate over US$1.5bn to pay a premium for the materials between for the next five years. This latest news affirms the company's intent to continue to operate with a green approach.

Inside its supply chain

Nestlé’s supply chain professionals play a vital role in ensuring quality products reach customers and consumers. In order to achieve this goal, Nestlé works with commercial teams to develop the demand forecast and collaborates with suppliers worldwide to ensure responsibly sourced materials. Nestlé balances inventory levels to establish the right supply of products. Supply chain is responsible for safely storing and transporting products to meet customers’ and consumers’ needs efficiently. Nestlé’s procurement professionals ensure responsibly-sourced supply and create value. With hubs in Switzerland, Panama and Malaysia, the division offers several services, such as the management of procurement for specific raw materials, packaging, indirect materials and other services.

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