Climate change as a result of environmental degradation is a global issue attracting a lot
of attention from governments, environment bodies, activists, and individuals from various parts
of the world. Nestle Company has drawn criticism as a significant contributor to environmental
degradation. The company is facing environmental pressure to take an active role to help curb
climate change (Eugénio et al., 2020). Addressing environmental pressure will help the company
maintain and enhance competitive advantage and sustainability in the future.
Nestle is facing pressure to do away with the single-use plastic and embrace sustainable
packaging. The company has been meeting the environmental pressure due to the increased
production of bottled water, relatively growing pollution in the ocean, and landfills. Failure to
use sustainable packaging and production processes has triggered concerns from the investors.
Some investors assert that besides the company generating profits, it has a social responsibility.
In the long run, protecting the environment is relative to earnings since consumers purchase from
companies that are keen on reducing global warming (Eugénio et al., 2020). Additionally,
Nestle's accusation is of failing to be accountable for plastic waste around the world.
There is growing concern from the environment movements who states that Nestle is
among the companies that contribute to high levels of plastic waste pollution. The reports
suggest that Nestlé's solution to the problem execution may not be a long-term solution. The
concerns directly edge Nestle Company's competitive advantage. Despite, Nestle Company
stating that they are implementing sustainable ways in their operation, the amount of plastic
waste is increasing each year. Hence, the company needs to develop sustainable packaging other
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than those of reusability and recyclable nature. Additionally, the company efforts are futile since
they lack clearly outlined goals, investment, and a good implementation model.
Eliminating single-use plastic is difficult since it is used in food preservation and keeping
water fresh, but there is a need for a sustainable initiative to reduce plastic pollution. The circular
economy vision is the most viable method of dealing with the environmental pressure at Nestle.
The circular economy is a collaborative and continuous process between production, distribution,
reusing, and recycling (Valavanidis, 2018). The system aims to reduce waste throughout the
product's life cycle. It stresses product design change, sustainable technologies, coordinated
recycling and reusing, remanufacturing, and changing business models. Furthermore, the system
seeks to minimize raw materials through a restoration system and reduce plastic waste.
Implementation of a Circular Economy is a first-order change since Nestle knows the
root of the problem. Nestle already has a system that seeks to reduce single-use plastic; hence it
needs to improve and make it more efficient and embrace structural change (Hong et al., 2019).
It makes it easy for stakeholders to adopt a circular economy because they are aware of the
existence of a system. The circular economy's goal is the integration of economic and
environmental sustainability; hence, it contributes to a viable business model while solving
environmental pressures (Valavanidis, 2018). Additionally, the circular economy's adaptation
may reduce the cost of operation since resources are recycled, reused, and repurposed within the
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Figure: Circular Economy model (UNEP, 2017).
The design involves the company designing the single-use plastic by increasing
reusability. The introduction of innovative materials, such as certified circular polymers, aid in
reducing single-use plastic waste. Produce requires the company to collaborate with various
sectors to reduce global warming by embracing renewable energy use and packaging using
compostable materials (UNEP, 2018). In distribution, the retailers educate and create awareness
of how the products can be reused and offer maintenance services. Consumers contribute to the
circular economy by buying eco-friendly products, repairing, and returning the products for
reuse. The producers have the responsibility of recovering materials from consumers in the reuse
stage. Eventually, the materials are recycled in a cost-efficient and improved system that reduces
plastic wastage (UNEP, 2018). Effective implementation of the steps means reduced raw
materials used at the design stage
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Various steps are required to implement the Circular economy successfully at Nestle
Company. They include planning and developing an action plan, education and creating
awareness, innovation, and optimization, and engagement. The first step is planning and
developing an action plan. Planning entails setting goals aligned to Nestle's ethics and values and
developing an action plan on how to counter environmental pressure through a circular economy.
The action plan can be implemented through the BECE framework, which involves determining
the drivers, constraints of the circular economy, business innovation, and generating approaches
in delivering value to customers (Heyes et al., 2017). Establishing Nestle's internal and external
drivers, such as product quality, cultural values, and communal engagement can be an effective
tactic in the adaptation of a circular economy.
Educating and activating Nestle Company on the Circular economy lays the foundation
for the change. The company's stakeholders, employees, and management need to understand the
circular economy goals and how to help in implementation. Educating the company will be done
through a training session to conceptualize how to participate and contribute to the integration of
the change (Cramer, 2020).
Innovation and optimization will help Nestle head towards curbing the environmental
pressures. The step involves evaluating the processes that need improvement, accessing the best
option of materials that can be recycled, determining various designs that can easily dismantle,
and optimizing energy (Cramer, 2020). Implementing the step requires engagement with the
Research and development to explore how recycling and upcycling can be incorporated in Nestle
Engaging the supplies, consumers, and partners is the final step in implementing the
circular economy at Nestle Company. It will incorporate outlining the Circular Economy model
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and its components, giving a clear and honest picture of the system's positive and negative
impacts. When people understand and buy into the idea, the pricing becomes secondary.
Acquiring funding on Research and development will facilitate data collection, evaluation of
performance, and development of strategies to improve the system (Heyes, 2017). Also, Nestle
consulting the consumers on their opinion regarding the model removes the barrier between
The circular economy is likely to face barriers from the stakeholders in various stages.
Some of the resistance include the high financial cost of execution, resistance to change, and the
value of improving the business model. The circular economy requires high investment to
maintain the implementation and maintenance of the system; hence stakeholders may be
unwilling to cover the high cost (Ritzéna, 2017). The change may experience resistance since
some stakeholders may be reluctant to take the risk since it is a long-term commitment; for
instance, the retailers may be unwilling to educate consumers on the model operation.
Additionally, sustainable raw materials are expensive compared to plastic; hence stakeholders,
including shareholders, may resist the change due to the high cost of improving the business
Nestle can counter the resistance by seeking partnerships with organizations that
advocate for a sustainable environment to reduce execution costs (Ritzéna, 2017). It can also
offer to cover the cost of the supply chain incurs in the facilitation of the change. Moreover, the
company can carry out world-wide campaigns to create awareness for the consumers.
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Cramer, Jacqueline. (2020). Practice-based model for implementing circular economy: The case
of the Amsterdam Metropolitan Area. Journal of Cleaner Production, Volume 255.
Eugénio, T., Rodrigues, S. C., & Gonçalves, M. J. (2020). Sustainability Report Evolution: The
Nestlé Case Study Applicability. In Mapping, Managing, and Crafting Sustainable
Business Strategies for the Circular Economy (pp. 180-202). IGI Global.
Heyes. G, Sharmina, F. Mendoza, J., & Gallego, A., & Azapagic, A. (2017). Developing and
implementing circular economy business models in service-oriented technology
companies. Journal of Cleaner Production. 177. 621-632. 10.1016/j.jclepro.2017.12.168.
Hong, P. C., Kallarakal, T. K., Moina, M., & Hopkins, M. (2019). Managing change, growth,
and transformation. Journal of Management Development.
Ritzéna. S and Gunilla. O.S (2017). Barriers to the Circular Economy – integration of
perspectives. Elsevier B.V publishers.
UNEP (2018). SINGLE-USE PLASTICS: A Roadmap for Sustainability.
Valavanidis, Athanasios. (2018). Concept and Practice of the Circular Economy.