What strategic shifts has Nestlé made in packaging materials, particularly regarding the transformation from single-use plastics to sustainable alternatives?
Over the past five years, Nestlé has focused on sustainability in packaging by reducing the use of packaging materials, improving packaging materials and supporting improvements in systems for end of life management.
The company’s strategy is built around five pillars, which include reducing plastic usage, scaling up reuse and refill systems, pioneering alternative materials for easier recycling, and supporting infrastructure to enhance waste management.
Efforts to redesign packaging have involved removing unnecessary packaging, shifting to paper, integrating recycled content and moving from multi-material to mono-material, in support of making recycling more efficient.
Additionally, Nestlé has sought to change behaviors and rethink mindsets around packaging, both internally and among consumers and business partners. The goal is to ensure that packaging continues to protect product quality and freshness throughout its shelf life while also supporting sustainable practices. The company recognizes that consumers often prioritize product safety and convenience, which is why the packaging must meet logistical demands without compromising environmental goals.
Can you elaborate on the challenges Nestlé has faced with implementing reusable and refill systems?
Nestlé has piloted over 20 reusable and refill projects across 12 countries, exploring various models like bulk dispensers in stores and community-based refill systems. These pilots revealed that while there is significant potential, scaling up reusable and refill systems faces barriers due to supply chains and existing regulations optimized for single-use packaging. For instance, moving to reusable packaging requires comprehensive changes in categories, such as shifting all dry or powdered foods or liquid products in single-serve formats to reusable packaging.
Successful implementation of reuse systems also depends on the type of materials used, such as glass, metal, or specific plastics, and the number of cycles they can endure. For example, a pilot in Germany with stainless steel cups designed for 100+ cycles, was appreciated by consumers, but highlighted the challenges in scaling up take-back and washing infrastructure to get empty packaging back to factories. Creating a system where packaging is shared by multiple companies, like pool packaging with interchangeable labels, can also help streamline reuse but requires support from co-packers, collection points, and logistical infrastructure.
How can the transition to a circular economy with reuse and refill systems be made easier for consumers?
Facilitating the shift to a circular economy requires the creation of enabling conditions. This is a combination of regulatory changes, logistical systems development, and consumer education. Regulatory frameworks must address reuse and refill practices by category, such as personal care or food products, and support decarbonizing the logistics infrastructure. This may involve investments in sorting facilities, standardized packaging pools, and washing facilities, all of which play critical roles in building a circular system.
Moreover, competition laws might need to evolve to enable standardized packaging solutions across industries, allowing companies to share reusable packaging materials. Global standards on hygiene and safety are also vital for ensuring the success of reuse models. Communication and education programs will be key to driving consumer behavior changes, encouraging the adoption of reuse practices, and clarifying the benefits of moving away from single-use packaging.
What role is Nestlé playing in the Global Plastics Treaty and other regulatory advocacy efforts?
Nestlé actively participates in advocacy for a circular economy, engaging in the UN Global Plastics Treaty as an observer, supporting extended producer responsibility laws, and promoting best practices for recycled content. The UN Treaty, which aims to establish a global framework to manage plastic pollution across the lifecycle of plastics, could lead to harmonized regulations on plastic materials, chemicals of concern in plastic products, and sector-specific requirements. Nestlé’s involvement, including co-chairing the Business Coalition for the Global Plastics Treaty, supports creating policies that promote sustainable approaches to packaging material production and consumption.
The company has taken numerous voluntary actions to reduce plastic use, redesign problematic packaging, and support better collection systems. We want to emphasize that voluntary corporate efforts alone cannot address the issue of packaging waste management at scale. Regulatory framework change is essential to normalize systems change for best practices in packaging sustainability to be the new normal.
How does Nestlé adapt its packaging sustainability strategy across different regions?
Nestlé tailors its approach to packaging based on local conditions, while maintaining the global principles of "less packaging, better packaging, and better systems." Countries are categorized into three archetypes: those with advanced waste management and regulation, countries with good collection systems but high landfilling, and regions where waste management is primarily managed by the informal sector. This categorization helps Nestlé identify the specific regulatory, technological, and educational interventions needed to advance sustainability efforts in each context.
In regions with developed waste management systems, efforts focus on optimizing extended producer responsibility programs and promoting reuse policies. For areas with less advanced infrastructure, Nestlé works on improving waste collection and recycling systems, often partnering with organizations like the Ellen MacArthur Foundation and local capacity-building initiatives to enhance municipal level waste management solutions.
How is Nestlé educating consumers about sustainable packaging practices?
Nestlé has implemented on-pack communication strategies to guide consumers on how to properly dispose of or recycle packaging. We have standardized information on packaging back-of pack, including recycling instructions along with typical required information like ingredients and nutrition information. In some regions, such as Europe, there will be standardizing recycling symbols, while in others, the company has introduced apps to help consumers find the nearest collection points for their packaging.
Additionally, Nestlé has voluntarily published a list of materials targeted for phase-out, our “Negative List”, with materials such as PVC and carbon black, to improve the recyclability of its packaging. The elimination of these materials not only enhances the recycling process but also adds value by making packaging easier to sort and recycle, thereby driving systematic improvements in global recycling scale up efforts.
With regard to Nestlé’s sustainability goals, such as the reduction in plastic usage and achieving 100% recyclable or reusable packaging how is progress being tracked?
Since 2018, Nestlé has made significant progress in reducing its packaging weight, cutting virgin plastic usage to 813,000 tons by year end 2023. However, the company acknowledges that reachingan ambition like 100% of packaging being recyclable globally require more than voluntary commitments; it also needs regulatory support to expand infrastructure and influence consumer behavior to use it. For example, designing packaging for recycling systems does not necessarily mean it will be recycled, if the proper infrastructure and consumer participation incentives are not in place.
The distinction between companies "designing for recycling" and the much larger system change need for packaging to be "recyclable" has become clearer over time, as infrastructure limitations have been highlighted. Nestlé continues to push for regulatory changes that can bridge this gap, advocating for increased investment in recycling infrastructure and policy reforms to ensure that recyclable packaging materials are actually processed, closing the loop in the circular economy.
