Green initiatives: Ikea to invest EUR1 bn to increase recycling infrastructure; UNDP/Coke tie-up to scale up management of plastic waste in Asia

Ingka Investments, the investments arm of Ingka Group, the largest Ikea retailer, aims to invest about EUR1 billion in companies that are increasing recycling infrastructure.

Every year, the global economy consumes 75% more natural resources than the Earth can regenerate. This generates tremendous amounts of waste, yet less than 20% of waste is recycled. To support the transition towards a circular economy, Ingka is aiming to invest about EUR1 billion in companies that will contribute to recycling infrastructure, to invest to recycle more end-of-life products into secondary raw materials. 

In 2017, Ingka Group established Circular Investments to invest in 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 2017, it says it estimates that its portfolio companies have recycled around 2.7 million tonnes of materials overall, avoiding over 9.4 million tonnes of CO2e. 

Peter van der Poel, Managing Director, Ingka Investments, said: “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.” 

Several key investments exemplify how Circular Investments is advancing recycling capacity across industries:

In related news, The United Nations Development Programme (UNDP) and The Coca-Cola Foundation (TCCF) have partnered to help address the growing challenge of plastic waste management in Asia, a region that is home to significant environmental opportunities and challenges. Rapid urbanisation, increasing demand for single-use plastics, and gaps in waste management infrastructure have contributed to a rising volume of plastic waste, making effective solutions more urgent than ever.

A significant portion of the world’s plastic waste enters the ocean through waterways in the region, posing serious threats to marine ecosystems, human health, and livelihoods. Sixteen of the top 20 polluting rivers in the world are in Asia, and account for more than two thirds of the global annual volume of plastics flowing into the world’s oceans. 

In response to this urgent issue, UNDP and TCCF are scaling up efforts in nine Asian countries—Bangladesh, Bhutan, Cambodia, India, Maldives, Nepal, Philippines, Sri Lanka, and Vietnam—supported by a US$15 million grant from TCCF to support UNDP’s initiatives across the region.

The three-year multi-country programme will help improve plastic waste management, promote recycling, reduce plastic leakage into the environment, foster country-based solutions, and facilitate regional collaboration. By adopting and disseminating best practices across the region, the programme aims to inspire policy changes and community-level actions to reduce and help to eliminate disposable plastic and improve the livelihoods of waste workers.

While expanding successful initiatives, the programme will focus on developing innovative business models for waste collection and recycling, offering technical advice on environmental best practices and tapping into the latest technology to improve collection and recycling, to reduce plastic leakage.

"Tackling plastic waste isn't just about cleaning up – it's also about building a smarter development model. Across Asia, countries are combating the problem by embracing the circular economy. Through our Zero Waste and Plastics initiatives, we are helping them craft policies, attract investments, and reduce the consumption of single-use plastics,” said Christophe Bahuet, UNDP Deputy Regional Director for Asia and the Pacific. “With this initiative, we are also empowering communities to scale up solutions that will effectively reduce plastic pollution and safeguard our planet."

“Collaboration is key to help improve waste management systems and strengthen recycling infrastructure. Through our collaboration with UNDP, the Foundation aims to advance solutions that minimise packaging waste, support better collection methods, and enhance processing capabilities. This approach not only helps address plastic waste more effectively but also contributes to long-term improvements in local communities and the broader environment.” said Carlos Pagoaga, President, The Coca Cola Foundation.

The Coca-Cola Foundation’s mission is to make a difference in communities around the world where The Coca-Cola Company operates and where its employees live and work. It supports transformative ideas and institutions that address complex global challenges and leave a measurable and lasting impact. Its giving is focused on sustainable access to safe water, climate resilience and disaster risk preparedness and response, circular economy, economic empowerment, and causes impacting our hometown community.

Since its inception in 1984, it has awarded US$1.6 billion+ in grants in service of its mandate to strengthen communities across the world.

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