Ingka Group's €1 Billion Push Towards a Circular Economy

Ingka Group, the largest IKEA retailer, plans to invest €1 billion in recycling companies. The move aims to mitigate waste from discarded IKEA products, focusing particularly on textiles. The investment is part of a broader effort towards a circular economy, aligned with EU environmental regulations.

Ingka Group, which operates a majority of IKEA stores worldwide, is set to make a substantial investment of €1 billion into recycling companies. This strategic financial move aims to address waste management issues associated with discarded IKEA furniture, bedding, and mattresses, which often end up in landfills or are incinerated.

This investment strategy comes in anticipation of European Union legislation that will impose fees on retailers for each clothing or textile product sold, thereby incentivizing the recycling of growing amounts of textile waste. The Ingka Investments division has allocated around 667 million euros of the fund for future initiatives with a concentration on textile recycling.

Further investments will bolster existing partnerships with companies like RetourMatras, a mattress recycler, and plastics company Morssinkhof Rymoplast. With an eye on the high carbon impact of materials, Ingka aims to uphold its circular economy goals, targeting recycling volumes that match IKEA's sales by 2030.

(With inputs from agencies.)