Fellow business leaders, don’t wait to act on plastics

Globally, more than 2 billion metric tons of trash are produced every year. Only 13.5% gets recycled. At this moment, we have an incredible opportunity to turn that around. That takes bold action, and the support of binding, international regulation.

Over the years at Nestlé, we’ve accelerated our action on packaging. We’ve learned the importance of a holistic approach, including close collaboration across the public and private sectors. Those learnings can shed light on the road ahead. But the uncomfortable reality is that this action will not be enough without a larger systemic approach.

Here’s what we’ve learned, and what it will take to drive progress together.

It takes collaboration to address the full life cycle of packaging.

Packaging sustainability is a major focus at Nestlé. The efforts of many actors, both inside and outside the company, have shown results. We’ve reduced the amount of plastic used in our product packaging, from 1.5 million metric tons of plastic in 2019 to 0.9 million in 2023. That progress has required that we make packaging a priority in our business decisions.

Reducing our use of packaging is important, but these numbers don’t tell the whole story. We are not able to eliminate plastics entirely. In those cases, we strive to use material that will enter circularity, continuing to create value in the future. There are steps of the circular economy that are outside our control. That’s why we began expanding our strategy.

We fund 220+ waste collection projects around the world. Those projects support local organizations to help fill the gaps in circularity in their own neighborhoods.  In Indonesia, for example, our partnerships support dozens of local waste collection entrepreneurs with the equipment they need to process and recycle materials. These are the types of investments you need community by community. Projects like these demonstrate the value of collected and sorted materials, but they aren’t a substitute for clear national management systems.

Multiple challenges need to be addressed: the economic model for collection and sorting, technical challenges with recycling small pieces, and accessibility of affordable recycled materials.

The waste and pollution problem simply can’t be fixed by voluntary corporate action alone.

Progress will plateau without systems change.

Clear, consistent rules and structure will help us scale up and accelerate packaging sustainability.

The UN Treaty to End Plastic Pollution has the potential to set binding global rules for governments. Those rules can drive new legislation on eliminating materials, streamlining product design, and responsibility for waste management systems and infrastructure. These rules will create the business landscape of the future. That can mean norms for products themselves, such as design standards for PET that can be recycled consistently. (For instance, the nine Consumer Goods Forum Golden Design Rules for plastic packaging feature key elements to support thriving markets for recycled materials.) It also means improving how systems can capture value from would-be trash. With greater standardization of the rules for product design and recycling, we can make recyclable materials the best choice everywhere.

More than 20 million people depend on the sorting and management of discarded plastic waste for their livelihood.

Systemic solutions aren’t just about solving environmental challenges. They’re also an opportunity to capture social benefits. In fact, today, the livelihoods of more than 20 million people depend on the sorting and management of discarded plastic waste. A holistic solution creates clear opportunities for communities: less waste, a cleaner environment, and more jobs.

Solutions for complex issues require clear, consistent systems.

Harmonizing legislation is more critical than ever to tackle challenging issues going forward. Small flexible plastic packages, sometimes referred to as “sachets,” are one example. As a company that operates in 188 countries, we work hard to offer products that everyone can access and afford. Small, flexible packaging products allow consumers to purchase more affordable portions and help to avoid food waste. These benefits are particularly important for low-income families.

Significant R&D investments like the Nestlé Institute of Packaging Sciences confirm that we’re deeply committed to developing solutions to packaging challenges. Those solutions are possible when we can design for a harmonized system, rather than a patchwork of different requirements. Developing viable alternatives will take time; clear, consistent, mandatory regulation is the enabler.

Next week, the latest push towards a global plastics treaty needs your attention.

Yes, the idea of treaties and ‘harmonization’ can feel a bit abstract, but it matters. This treaty has the potential to drive the national policies and action needed to unlock progress.

We’re working with more than 200 businesses in the Business Coalition for a Global Plastics Treaty to accelerate support for this effort. Please join us. Add your voice to this push to persuade governments that this is a critical next step. Harmonizing legislation facilitates trade, creates jobs, and increases the value of recycling. Together, we can strengthen our approach to regulating plastics, from production to end-of-life, driving towards a circular economy.