Ingka Investment, the investment division of the Ingka Group, which is the largest manager of stores in Ikea, intends to invest 1 billion euros in companies that are working to increase recycling infrastructure. The company’s goal is to encourage the recycling of more end-of-life products and convert them into secondary raw materials.
The investments will put a special focus on companies focused on textile recycling
Ingka’s intention is better manage waste that are generated when Ikea furniture, bedding or mattresses are discarded and end up incinerated or in landfills; but its ambition is also to promote recycling in the general market. Two-thirds of the funds will go towards new investments in recycling companies, with a particular focus on textiles, while the remainder will go to companies Ingka has already invested in.
With this commitment, the group intends to advance its sustainability strategy and strengthen your program Circular Investmentslaunched in 2017 to invest in companies that contribute to the transformation towards a circular economy. They point out that through this initiative the companies in their portfolio have recycled around 2.7 million tons of materials in total, avoiding more than 9.4 million tons of carbon dioxide.
According to them, the world economy consumes 75% more natural resources each year than the Earth can regenerate, generating enormous amounts of waste, but less than 20% of it is recycled. Ingka’s intention is to contribute to improving these figures by investing in firms focused on develop technology, prevent waste or provide recycled materials.
Along with announcing his investment, Ingka has shared some success stories from his program. For example, the work ofe RetourMatraswhich recycles mattresses and produces repoliol, an alternative to replace fossil-based materials in new foam products, which are used by several clients, including Ikea. Quote also Morssinkhof Rymoplast, which recycles post-consumer plastics and produces recycled plastics, point out that Ingka’s investment has allowed it to double its recycling capacity to 515,000 tons of plastic per year.
“Our ambition to invest €1 billion in growing recycling infrastructure is crucial to the Ingka Group’s broader sustainability strategy going beyond our own operations.“; commented Peter van der Poel, CEO of Ingka Investments, in a statement. “Through investments, we are committed to doing our part to ensure that valuable materials are recycled and reused in the production of new products.”.
However, the company has taken advantage of the opportunity to demand stricter legislation. Considers that regulations must prioritize recycling more over incineration and landfilling, for example, ensuring that Extended producer responsibility plans will lead to higher recycling rates.
It also points out that it favorably welcomes ecological design regulations aimed at promoting demand for recycled materials.
“Ingka’s ambition for circular investments is just one pillar of how we keep the good things going: keeping products and materials in circulation at the highest possible value for as long as possible“, they explain from the company. “The more we reuse, repair or recycle our products and materials and reduce the use of virgin materials, the more we will help combat climate change and protect nature for future generations.”.