Swiss company Nestlé has announced that it is investing $30 million in the Closed Loop Leadership Fund, the private equity fund of New York City-based circular economy investment firm Closed Loop Partners. The investment is intended to help lead the shift from virgin plastics to the use of food-grade recycled plastics in the U.S. and is the first to use Nestlé’s packaging venture fund established earlier this year. The packaging venture fund is part of Nestlé’s overall investment of up to 2 billion Swiss francs designed to accelerate the development of sustainable packaging solutions.
The Closed Loop Leadership Fund is a private equity fund that was created to acquire companies along the value chain to build circular supply chains. The fund invests in companies that aim to increase recycling rates in the U.S. and keep valuable materials in packaging supply chains by integrating and improving all aspects of supply chains, from access, collection and sortation to processing, Nestlé says in a news release announcing the investment.
The investment will be used to finance the Closed Loop Leadership Fund’s acquisition of well-established, best-in-class companies that are advancing the circular economy in the U.S., Nestlé says. The fund aims to increase recycling rates by an additional 25 percentage points in areas serviced by the portfolio companies. Nestlé says having access to high-quality food-grade recycled polyethylene terephthalate (PET), polyethylene (PE) and polypropylene (PP) will increase Nestlé’s ability to incorporate recycled plastics into packaging across its food and beverage portfolio.
Source: Waste Today Magazine
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