Nestlé is to invest up to two billion Swiss Francs (£1.6bn) to help build a market for food-grade recycled plastics.
Following a promise made in 2018 to make 100% of its packaging recyclable or reusable by 2025, the food and drink giant has now committed to reducing its use of virgin plastics by a third in the same period.
The firm says the majority of plastics currently in use are difficult to recycle for food packaging and notes as a result, there is a limited supply of food-grade recycled plastics.
To change this, Nestlé says it will source up to two million metric tonnes of recycled plastics suitable for use packaging food and pay a premium for access to these materials between now and 2025.
The company says this will help advance the circular economy and cut the amount of plastic waste ending up in oceans, lakes and rivers.
Mark Schneider, CEO of Nestlé, said: “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.”