Ingka's Billion-Dollar Commitment to Circularity

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Ingka Group is the largest IKEA retailer. Picture: Ingka Group
Ingka's US$1bn investment aligns with its broader sustainability goals to reduce waste, boost recycling rates and support the circular economy

Ingka Investments, the investment arm of Ingka Group, which includes IKEA, has announced plans to invest more than US$1bn in businesses that enhance its recycling infrastructure.

The move aligns with its broader sustainability goals to reduce waste, boost recycling rates and support the circular economy.

Ingka highlights the growing challenge of global resource consumption, stating: “Every year, the global economy consumes 75% more natural resources than the Earth can regenerate. This generates tremendous amounts of waste, yet less than 20% of waste is recycled.”

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The investment focuses on improving recycling processes for key materials such as plastics, mattresses, textiles, wood and food waste. Ingka Group aims to make recycling more efficient, scale up access to secondary raw materials and reduce carbon emissions across the supply chain.

Driving the shift to a circular economy

Ingka Group launched Circular Investments in 2017 to support businesses that align with the circular economy model, where materials and products are reused, repurposed and recycled to minimise waste. The company’s aim is to foster innovation in recycling technology and increase the availability of recycled materials for industrial use.

Circular Investments has already made significant strides, with portfolio companies estimated to have recycled 2.7 million tonnes of materials since 2017, avoiding more than 9.4 million tonnes of CO2 equivalent (CO2e). These efforts contribute not only to environmental resilience but also to financial sustainability.

Lukas Visser, Circular Investments Portfolio Manager at Ingka Investments, explains: “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.”

Lukas Visser, Circular Investments Portfolio Manager at Ingka Investments

Lukas adds that the focus is on companies capable of preventing waste or supplying recycled materials, reinforcing Ingka Group’s commitment to sustainability across the supply chain.

Successful recycling projects

Ingka Investments has supported several companies that exemplify innovation and measurable impact in recycling. Key projects include:

  • RetourMatras: Specialising in mattress recycling, RetourMatras processes used mattresses into valuable materials. It produces repoliol, a sustainable alternative to fossil-based materials used in new foam products. IKEA currently incorporates repoliol in 31 upholstery and mattress product lines.

  • Morssinkhof Rymoplast: A post-consumer plastic recycling company, Morssinkhof Rymoplast produces recycled plastics for global and local brands. With Ingka’s investment, the company has doubled its plastic recycling capacity to 515,000 tonnes annually, meeting growing demand for recycled materials.

  • Next Generation Group (NGG): NGG offers cutting-edge recycling solutions for plastics and organic waste. It provides economically and environmentally efficient technologies, helping industries reduce waste and reintroduce materials back into the supply chain.

These companies represent the scalable potential of innovative recycling practices. Their work ensures that valuable materials are reused rather than ending up in landfills or incineration plants, a crucial step for achieving global sustainability targets.

Peter van der Poel, Managing Director of Ingka Investments

The need for supportive legislation

Peter van der Poel, Managing Director of Ingka Investments, emphasises that the US$1bn-plus recycling investment is a critical component of Ingka Group’s broader sustainability strategy.

He says: “Our €1bn ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our own operations," adding that the organisation is "committed to doing our part to ensure that valuable materials are recycled and reused in the production of new products".

However, Peter stresses that governmental support is essential to make these efforts successful. He advocates for stronger legislation to prioritise recycling over incineration and landfill disposal.

For example, he notes: “It should ensure that Extended Producer Responsibility schemes are resulting in higher recycling rates."

Peter adds that Ingka Investments is actively collaborating with governments and industry stakeholders to address these challenges.


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