Ingka Investments, the investment arm of Ingka Group, the world's largest IKEA retailer, has announced a major commitment of €1 billion to bolster global recycling infrastructure. This investment aims to address the growing waste crisis and accelerate the transition towards a circular economy, where resources are kept in use for as long as possible.

With the global economy currently consuming 75% more resources than the planet can regenerate annually, and less than 20% of waste being recycled, Ingka Group is taking a proactive approach. The €1 billion investment will target companies specializing in recycling key materials such as plastics, mattresses, textiles, wood, and food waste.

Several successful examples within the Circular Investments portfolio highlight the impact of this investment strategy. RetourMatras specializes in mattress recycling, transforming discarded mattresses into valuable materials such as repoliol, a sustainable alternative to fossil-based materials that is now used in new IKEA products.

Morssinkhof Rymoplast, a leading post-consumer plastic recycler, has significantly expanded its capacity thanks to Ingka's support, contributing to the production of recycled plastic products for a variety of brands. Finally, Next Generation Group offers innovative and eco-friendly solutions for both plastic recycling and the treatment of organic waste, further demonstrating the breadth and impact of Ingka's circular economy investments.

"To future proof our business we want to invest in financially and environmentally resilient companies," says Lukas Visser, Circular Investments Portfolio Manager. "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.”

This initiative builds upon the work of Ingka Investments' Circular Investments arm, established in 2017. Since its inception, Circular Investments has supported companies that have collectively recycled an estimated 2.7 million tonnes of materials, preventing over 9.4 million tonnes of CO2 emissions.

Peter van der Poel, Managing Director of Ingka Investments, emphasized the need for complementary policy changes to maximize the impact of these investments. “Our €1 billion ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our own operations,"1 he stated. "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.”