Ingka Investments plans to invest approximately €1 billion in companies that are enhancing recycling infrastructure, having already backed a recycling firm for upholstery and mattresses through its Circular Investments portfolio.

Source: InternetRetailing

In 2017, Ingka Group launched Circular Investments to support companies that aid in the transition to a circular economy. Firms that focus on tackling issues related to plastics, mattresses, textiles, wood, and food waste may reap the benefits.

To future proof our business we want to invest in financially and environmentally resilient companies.

The initiative aims to prevent millions of tonnes of CO2 emissions from being produced while also boosting the availability of recycled materials in the market. Since its beginning, portfolio companies are estimated to have recycled around 2.7 million tonnes of materials, thereby avoiding over 9.4 million tonnes of CO2 emissions.

One notable beneficiary of prior investments is RetourMatras, which produces repoliol—a circular alternative that replaces fossil-based materials in new foam products—on an industrial scale. This material is utilized by various clients, including Ikea, across 31 different upholstery and mattress product lines. The company operates facilities in the Netherlands, England, and France.

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.

The group emphasized the need for stronger legislation to facilitate these efforts, advocating for prioritizing recycling over incineration and landfilling, such as through the implementation of Extended Producer Responsibility schemes.