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IKEA’s parent company invests €1b into recycling projects

The investment arm of IKEA retailer Ingka Group – Ingka Investments – has invested €1 billion in companies increasing recycling infrastructure.

According to Ingka Group, the global economy is said to consume 75% more natural resources than the Earth can regenerate each year. By investing in companies contributing to improving recycling infrastructure, Ingka Group will invest in recycling more end-of-life products into secondary raw materials.

In 2017, Ingka Group established Circular Investments for companies contributing to the transition to a circular economy with the focus to make a difference for plastics, mattresses, textiles, wood and food waste. Since then, it estimates that its portfolio companies have recycled around 2.7 million tonnes of materials overall.

‘Active collaboration’

Peter van der Poel, managing director, Ingka Investments, said: “Through investments, we are committed to doing our part to ensure that valuable materials are recycled and reused in the production of new products. 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.

“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.”

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