Ingka Investments aims to invest around €1bn in companies that are increasing recycling infrastructure, having already supported an upholstery and mattress recycling firm through its Circular Investments’ portfolio.
In 2017, Ingka Group established Circular Investments to invest in companies contributing to the transition to a circular economy. Companies focused on making a difference in plastics, mattresses, textiles, wood and food waste, could benefit.
It looked to avoid millions of tonnes of CO2e were produced, while increasing the availability of recycled material on the market. It estimates that since its inception, portfolio companies have recycled around 2.7 million tonnes of materials overall, avoiding over 9.4 million tonnes of CO2e.
One of the initiatives to benefit from previous investment is RetourMatras. They produce repoliol – a circular alternative to replace fossil-based materials in new foam products – on an industrial scale. This is used by various customers, including Ikea in 31 upholstery and mattress product lines. The business operates facilities in the Netherlands, England and France.
“To future proof our business we want to invest in financially and environmentally resilient companies,” explained Lukas Visser, Circular Investments portfolio manager, 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. For us, that means investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials.”
The group stressed that it needs stronger legislation to help, with recycling prioritised over incineration and landfilling, for example by ensuring Extended Producer Responsibility schemes.
“We also welcome eco-design regulations to encourage the demand for these recycled materials and we are actively collaborating with relevant authorities and other stakeholders to address these issues,” added Peter van der Poel, managing director, Ingka Investments.
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
