Nestlé and the Sustainability Backlash: The Role of the New Federal Decree and the Impact on the Market
- Piva Advogados
- Jul 22, 2024
- 2 min read
Big Brands Thwart Sustainable Packaging Goals: What to do about it?
Nestlé's recent review of its sustainability targets for the use of plastic packaging has revealed a significant step backwards. The company, which promised to make its packaging 100% “reusable or recyclable” by 2025, now adopts the target of “plastic designed for recycling”. This change has resulted in a significant increase in non-recyclable plastic waste, which, according to 2022 data, amounts to an additional 280,000 tons per year.
Claiming supposed infrastructure barriers, that it would not be possible to reach 100% of reusable or recyclable packaging by 2025, the reality of the figures, provided by the company itself, shows that since 2018, Nestlé's proportion of recyclable packaging has fallen from 55% to 51% in 2022.
Meanwhile, on July 11, 2024, Federal Decree No. 12,106/2024 was published, regulating the tax incentive for the recycling production chain, in accordance with Federal Law No. 14,260/2021. The decree seeks to encourage the use of recyclable and recycled raw materials in production processes, offering tax deductions for individuals and companies taxed on the basis of real profit that support projects approved by the Ministry of the Environment and Climate Change - therefore, mostly smaller companies.
The incentives include training projects, technical advice, exchanges, small business incubation, research, infrastructure, equipment acquisition and strengthening the participation of waste pickers, among others. The decree sets a limit of 6% of income tax for individuals and 1% for companies, with proposals published in the Federal Official Gazette and available on the Ministry's website.
This scenario raises crucial questions about the real obstacle to sustainability: is the problem infrastructure and the cost of raw materials, or the lack of engagement of consumers and investors in environmental responsibility?
One possible solution is the implementation of sustainability guarantee seals, which could encourage major brands to adopt more responsible and environmentally positive practices. Legislation and decrees, by focusing on smaller companies, aim to balance the market and promote sustainable practices. However, it is essential that consumers, investors and the market in general make conscious choices, prioritizing products and practices that promote long-term environmental well-being.
Have you ever wondered what impact you are having with your consumption choices? Not only small businesses, but especially consumers should be encouraged by the state to make informed decisions, with access to clear information and labels that guarantee sustainability. This will help align the economy with environmental policies and promote a significant shift towards more responsible practices.
By:
Sabrina Chabab Piva
Source:
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