PepsiCo Commits to $35 Million with Closed Loop Partners to Launch Recycling Initiative

Published on: 24 January 2022 12:15 PM
by KnowESG

A Brief Summary

PepsiCo announced a $35 million investment with Closed Loop Partners, a circular economy investor, to launch the Closed Loop Local Recycling Fund, which aims to increase recycling in communities with no or limited access to recycling, reduce waste, and unlock the supply of recycled plastic and other valuable materials.

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The money will be utilised to build small-scale modular Materials Recovery Facilities (MRFs) in underserved areas where bigger municipal MRFs are not currently available. Each new plant will be able to recycle at least 8,000 tonnes of materials each year, resulting in higher-quality plastic and lowering the costs and emissions involved with transporting materials to distant facilities.

According to the firms, lack of community access to recycling infrastructure is frequently attributable to a lack of finance or a physical distance from processing plants. These challenges are addressed by the new small-scale modular MRFs, which need less capital to install than bigger facilities and reduce the need to transport materials to distant locations.

PepsiCo announced last year the launch of pep+, a comprehensive sustainability framework that encompasses a wide variety of ESG activities in agricultural, climate, water, and packaging sustainability, as well as consumer health. The business also announced a set of packaging targets, including a pledge to reduce virgin plastic per serving by 50% across its worldwide food and beverage portfolio by 2030 and to employ 50% recycled material in its plastic packaging.