Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, has announced plans to invest approximately €1 billion in companies that are strengthening global recycling infrastructure.
This initiative is part of Ingka’s broader strategy to transition towards a circular economy by increasing the availability of recycled materials and reducing carbon emissions.
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Every year, the global economy consumes 75% more natural resources than the Earth can regenerate, leading to immense waste production. However, less than 20% of waste is currently recycled.
Ingka Investments aims to bridge this gap by funding companies that can enhance recycling technologies and increase the supply of secondary raw materials.
Peter van der Poel, Managing Director of Ingka Investments, stated: “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.
Through investments, we are committed to doing our part to ensure that valuable materials are recycled and reused in the production of new products.”
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By GlobalDataCircular investments’ impact on waste reduction
Since the establishment of Circular Investments in 2017, Ingka Group has focused on investing in businesses that promote circularity across key materials, including plastics, mattresses, textiles, wood, and food waste.
“We want to invest in financially and environmentally resilient companies,” said Lukas Visser, Circular Investments Portfolio Manager at Ingka Investments. “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.”
Through its portfolio, Ingka Investments has supported the recycling of approximately 2.7 million tonnes of materials, preventing over 9.4 million tonnes of CO2e emissions.
Scaling up recycling capabilities
Several key investments exemplify how Circular Investments is advancing recycling capacity across industries:
- RetourMatras, a mattress recycling company, transforms used mattresses into valuable materials, including repoliol, a circular alternative to fossil-based materials. The company operates industrial-scale facilities in the Netherlands, England, and France, with an annual capacity of 2.5 million mattresses.
- Morssinkhof Rymoplast, a leading post-consumer plastic recycler, has doubled its plastic recycling capacity to 515,000 tonnes per year with support from Ingka Investments. It now operates 11 recycling facilities across Belgium, Germany, Poland, and the Netherlands, with two new plants under construction in Belgium.
- Next Generation Group, a technology provider, develops innovative recycling solutions for plastics and organic waste, offering scalable and efficient alternatives to traditional waste management.
Looking ahead, Ingka Investments is urging policymakers to strengthen recycling-focused legislation.
“What would help us go further is if legislation was stronger at prioritising recycling over incineration and landfilling, for example by ensuring that Extended Producer Responsibility schemes were resulting in higher recycling rates,” van der Poel noted.
The investment arm continues to collaborate with industry stakeholders and regulators to drive systemic change, ensuring that recycling infrastructure aligns with the principles of a circular economy.
