The investment fund of Lego's owners will double its portfolio dedicated to plastic recycling technologies. The strategy responds to new EU regulations aimed at increasing the recyclability of packaging by 2030.
The climate unit of Kirkbi, the fund managing the fortune of the Danish billionaires who own Lego, plans to double its $1.6 billion portfolio over the next five years. According to information published by expansion.com, plastic recycling will be a key area for its future investments, as stated by Anupam Bhargava, CEO of Kirkbi Climate.
The European Union has set 2030 as the deadline for all packaging to be recyclable, under the EU Regulation on Packaging and Packaging Waste (PPWR). This requirement is part of a set of measures aimed at reducing carbon emissions and waste in the European community.
Bhargava highlighted that the new regulations will increase investor confidence, stating: "The new rules will generate greater confidence among investors like us, as the market will eventually mature." However, recycling has faced obstacles due to insufficient investment and the fact that virgin plastic has been cheaper than recycled plastic.
The CEO also mentioned that the recycling value chain is currently fragmented and inefficient. Despite this, he warned that the industry must prepare for the deadlines set by the packaging regulations, stating that "the industry needs to prepare now."
The parent company of Lego manages assets worth 189 billion Swedish crowns, equivalent to nearly 25 billion euros, and its climate unit manages 10 billion Swedish crowns. Future investments will be split between energy and recycling, with a special focus on certain EU countries and the plastics sector.
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