Kirkbi to Significantly Step Up Investment in Plastics Circularity

Kirkbi Climate, the climate investment arm of the family behind Danish toy maker Lego, plans to significantly increase its investment in technologies supporting a more circular plastics economy. The company currently manages a climate portfolio worth more than DKK 10 billion (around EUR 1.3 billion) and intends to invest up to a further DKK 10 billion in climate solutions over the next five years.

Kirkbi Climate focuses on three strategic areas: the energy transition, circular plastics and sustainable land use. In plastics, the company is targeting business models and technologies that reduce plastics consumption, replace fossil-based feedstocks, and improve sorting, reuse and recycling.

Advert

In an interview with Bloomberg, CEO Anupam Bhargava said plastics recycling would be an area in which Kirkbi Climate plans to invest “massively”. Future capital is expected to be split roughly between energy projects and recycling, with European markets among the key areas of focus.

Kirkbi is also moving towards a more active investment model. Rather than acting solely as a financial investor, the company wants to play a greater role in building and scaling businesses, taking stakes that allow it to exert meaningful influence on their strategic development.

The company sees tighter European packaging regulation as a major driver of investment. The EU Packaging and Packaging Waste Regulation (PPWR) is pushing companies towards greater circularity in packaging, with specific design-for-recycling requirements due to take effect from 2030. The regulation also sets a recycling target of at least 55% for plastic packaging waste by the end of 2030.

Kirkbi has already been investing in plastics and recycling companies for several years. Its portfolio includes businesses developing new recycling processes as well as alternative materials and technologies aimed at advancing a more circular plastics economy.

More information: www.kirkbi.com, www.lego.com

Kirkbi A/S + Lego Group, Billund, Danmark