Ingka Investments, the investments arm of the largest IKEA retailer Ingka Group, aims to invest about €1 billion in companies that are increasing recycling infrastructure.
Every year, the global economy consumes 75 percent more natural resources than the Earth can regenerate. This generates tremendous amounts of waste, yet less than 20 percent of waste is recycled. To support the transition towards a circular economy, Ingka is aiming to invest about €1 billion in companies that will contribute to recycling infrastructure. In doing so, the company invests in recycling more end-of-life products into secondary raw materials.
“To future-proof our business we want to invest in financially and environmentally resilient companies. When a product’s life at home ends, Circular Investments begins. Ingka Investments is committed to transitioning towards a circular economy and retaining the value of materials. For us, that means investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials,” says Lukas Visser, Circular Investments Portfolio Manager, Ingka Investments.
The investment is part of Ingka Group’s Circular Investments initiative to finance companies contributing to the transition to a circular economy with a focus on making a difference for plastics, mattresses, textiles, wood and food waste.
Circular Investments’ portfolio includes companies, such as “RetourMatras”, which focuses on recycling mattresses, transforming them into valuable materials for reuse, “Morssinkhof Rymoplast”, which produces recycled household plastics for products for both global and local brands, or “Next Generation Group”, which offers a wide range of innovative and future-oriented plastic recycling solutions, as well as solutions for the treatment of organic waste.
“Our €1 billion ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our operations. What would help us go further is if legislation was stronger at prioritizing recycling over incineration and landfilling, for example by ensuring that Extended Producer Responsibility schemes were resulting in higher recycling rates. We also welcome eco-design regulations to encourage the demand for these recycled materials and we are actively collaborating with relevant authorities and other stakeholders to address these issues,” adds Peter van der Poel, Managing Director of Ingka Investments.
