IKEA’s parent company commits US$1.03B to global recycling innovations

NETHERLANDS – Ingka Investments, the investment arm of Ingka Group—the largest IKEA retailer—has announced plans to invest €1 billion (US$1.03bn) to strengthen global recycling infrastructure.

This initiative is a key pillar of Ingka Group’s broader strategy to transition to a circular economy. It aims to increase the availability of recycled materials while reducing carbon emissions.

Global waste and resource challenges underscore the urgency of such efforts. The world consumes 75% more natural resources annually than the Earth can regenerate, yet less than 20% of waste is recycled.

Ingka Investments seeks to bridge this gap by funding innovations in recycling technology and expanding access to secondary raw materials.

Managing Director of Ingka Investments, Peter van der Poel, remarked, “Our €1 billion ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy.

“Through investments, we are committed to ensuring that valuable materials are recycled and reused in producing new products.” 

Advancing circular investments

Since launching Circular Investments in 2017, Ingka Group has prioritized funding businesses that promote circularity in key sectors, including plastics, mattresses, textiles, wood, and food waste.

Lukas Visser, Circular Investments Portfolio Manager at Ingka Investments, highlighted the group’s focus, “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.”

These efforts have supported the recycling of approximately 2.7 million tonnes of materials and prevented over 9.4 million tonnes of CO2e emissions. 

Several notable investments highlight Ingka’s significant impact on recycling infrastructure, driving advancements across various industries. 

One such investment is RetourMatras, a mattress recycling company that converts used mattresses into valuable materials such as repoliol, a sustainable alternative to fossil-based products.

Operating facilities in the Netherlands, England, and France, RetourMatras processes an impressive 2.5 million mattresses annually, contributing to a more circular economy by extending the lifecycle of discarded materials.

Another key player Ingka supports is Morssinkhof Rymoplast, a leading recycler of post-consumer plastics. With Ingka’s backing, the company has doubled its recycling capacity to 515,000 tonnes annually.

Morssinkhof Rymoplast operates 11 facilities across Belgium, Germany, Poland, and the Netherlands, with two additional plants under construction in Belgium.

This expansion underscores its role in addressing the growing demand for recycled plastics and reducing reliance on virgin materials.

Lastly, Ingka’s investment in Next Generation Group further emphasizes its commitment to innovation.

This technology provider develops cutting-edge recycling solutions for plastics and organic waste, offering scalable and efficient alternatives to traditional waste management practices.

By supporting such initiatives, Ingka is driving systemic change and fostering the adoption of more sustainable practices across the recycling industry. 

Advocating for systemic change

Looking ahead, Ingka Investments urges policymakers to strengthen recycling legislation to prioritize recycling over incineration and landfilling.

Van der Poel emphasized the importance of robust Extended Producer Responsibility (EPR) schemes to drive higher recycling rates.

Collaborating with industry stakeholders and regulators, Ingka Investments continues to champion systemic change, ensuring that recycling infrastructure evolves to support a truly circular economy.

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