IKEA said Ingka Group’s investment arm will allocate €1 billion into recycling companies to address waste from discarded IKEA products, focusing on textiles, wood, and other materials.
Two-thirds of the funds will support new recycling ventures, with the remainder boosting existing investments like RetourMatras and Morssinkhof Rymoplast.
This initiative aligns with the EU’s proposed legislation to charge retailers fees for unsorted textiles, encouraging recycling over incineration.
Ingka aims to recycle as much as IKEA sells by 2030, with plans to announce a major textile recycling investment soon. Legislative measures could also level the cost gap between recycled and virgin materials.
Ingka Group is the largest IKEA franchisee, operating IKEA stores in 31 countries and accounting for 90 percent of global IKEA sales.