1G$ recycling effort for this IKEA’s major partner

The investment branch of the Ingka group, the world’s leading IKEA retailer, which manages strategic assets and investments to support the company’s sustainable vision, has announced an investment of over one billion dollars in recycling companies.

This effort aims to improve the waste management of IKEA products at the end of their life cycle, such as furniture, mattresses, and bedding items.

The goal is to reduce the residual waste remaining after incineration or landfilling, thus contributing to an overall reduction in waste.

Investments will primarily be directed towards companies specializing in textile recycling, with Ingka planning to allocate two-thirds of its investment budget to this sector.

The remainder of the company’s investments will be dedicated to financing businesses that specialize in recycling mattresses, plastics, and wood.

It should be noted that the European Union has recently developed legislation, set to come into effect by 2028, imposing fees on retailers for each textile or clothing item sold.

The funds raised will be used to finance the sorting and recycling of the increasing amounts of discarded textiles.

However, this regulation will pose significant challenges for many sectors, affecting both small businesses and large ones, such as IKEA, for which the European Union represents a crucial part of its market.

In addition to its investments in forests, solar and wind energy, as well as real estate, Ingka Group is pursuing an ambitious strategy.

By 2030, it aims to recycle as many mattresses, plastics, and textiles as IKEA sells in the same period.

This initiative perfectly aligns with the group’s sustainable development strategy, which aims to reduce its environmental footprint and foster an emerging circular economy.