PepsiCo Inc. is investing millions in a private equity fund aimed at opportunities in recycling and reuse of plastics.
The Purchase, N.Y.-based company said the $15 million investment in Closed Loop Partners' Leadership Fund is being made through its PepsiCo Beverages North America unit.
The fund, one of several financing initiatives by Closed Loop to advance a circular economy, aims to invest in projects that strengthen recycling infrastructure and create circular supply chains, PepsiCo said.
"The recycling landscape in America continues to be challenging, and as companies — including PepsiCo — set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and action to increase access to recycled material," said Jason Blake, chef sustainability officer at PepsiCo Beverages North America, in a statement.
The beverage and food company was a founding member of Closed Loop Fund, which later became the Closed Loop Infrastructure Fund, in 2014. Closed Loop has branched out into several funds aimed at the circular economy.
"Demand for recycled materials in packaging is growing at an unprecedented rate, signaling an opportunity for greater investment in the recycling infrastructure that keeps these commodities in play," Closed Loop Partners CEO Ron Gonen said in a statement.
PepsiCo also has invested in the group's Beverage Fund through the American Beverage Association's Every Bottle Back Initiative. The fund works to improve PET beverage bottle recycling. And earlier this year, the company was a founding partner of Closed Loop Partners' Composting Consortium.
"PepsiCo's investment in the Closed Loop Leadership Fund builds on its existing partnership with our firm, setting a clear path forward for the food and beverage industry to advance circular supply chains for packaging," Gonen said.
PepsiCo wants to cut use of virgin plastic from nonrenewable sources by 50 percent by 2030, and in the United States the company expects to convert all Pepsi-branded products to 100-percent recycled bottles by the same point. Plans are to have the Pepsi Zero Sugar brand in 100 percent recycled PET by next year.
Closed Loop Partners also recently revealed its venture capital group has surpassed a target of raising $50 million through its second fund. The money will be used "to scale breakthrough circular economy solutions across plastics and packaging, fashion, food & agriculture, and supply chain technology," the firm said.