NETHERLANDS – Ingka Investments, the investment arm of Ingka Group—the largest Ikea retailer—has announced a EUR 1 billion commitment to companies enhancing global recycling infrastructure.

The move supports the transition to a circular economy, a key focus of Ingka’s broader sustainability strategy.

Each year, the global economy consumes 75% more natural resources than the Earth can regenerate, leading to massive waste generation. Yet, less than 20% of this waste is recycled. Ingka aims to address this imbalance by investing in companies that help close the recycling loop.

Peter van der Poel, Managing Director of Ingka Investments, said: “This EUR 1 billion investment is crucial for advancing recycling systems and aligns with our sustainability goals. We are committed to ensuring valuable materials are recycled and reused in the creation of new products. However, stronger legislation, such as prioritizing recycling over incineration, would significantly accelerate progress. We also support eco-design regulations to drive demand for recycled materials and are actively working with stakeholders to address these issues.”

Since 2017, Ingka Group’s Circular Investments initiative has focused on advancing the circular economy, targeting key areas such as plastics, textiles, mattresses, wood, and food waste. Ingka Group represents around 90% of global Ikea retail sales.