Nestle has deployed its first investment from its sustainable packaging venture fund to support the Closed Loop Leadership Fund's acquisition of companies that are advancing the circular economy in the United States.
The Closed Loop Leadership Fund, the private equity fund of Closed Loop Partners, "aims to increase recycling rates by an additional 25 percentage points in areas serviced by the portfolio companies."
In order to fulfill that goal, the fund strategically acquires businesses in the value chain that "keep valuable materials in packaging supply chains by integrating and improving all aspects of supply chains, from access, collection, sortation to processing." The end goal is to create a circular supply chain.
"It is important that we do our part to help keep recyclable materials out of landfills, and increase recycling rates in the U.S., and this investment is a significant move in that direction," said Steve Presley, Chairman & CEO of Nestlé USA, in a statement. " It is also a critical step in our effort to secure access to high-quality, food-grade recycled plastics which can be converted into new packaging material for use across our product portfolio."
As a result of the investment, Nestlé will be able to acquire the recycled plastics processed by feedstock companies within the Closed Loop Leadership Fund and utilize additional food-grade recycled plastics for its packaging.
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