Rethinking Sustainability in a Global Retail Giant

Sustainability has moved from being a peripheral concern to a central business imperative, especially for global corporations with extensive supply chains and environmental impact. Among such companies, Ingka Group—the largest franchisee operating IKEA stores worldwide—has taken a leading role in redefining how large-scale retail can align with environmental responsibility. With operations covering nearly 90% of all IKEA stores globally, Ingka Group is uniquely positioned to influence both consumer behavior and industrial practices.

At the heart of this transformation lies a bold commitment to the circular economy, an approach that seeks to eliminate waste, extend product lifecycles, and regenerate natural systems. This shift is not merely theoretical but deeply embedded in the company’s investment strategy, operational model, and long-term vision.

The Structure of Ingka Group: A Multi-Dimensional Organization

Ingka Group operates through three primary business areas, each contributing to the broader mission of sustainability and growth. The core business, IKEA Retail, manages hundreds of stores worldwide, serving millions of customers every year. Complementing this is Ingka Centres, which develops and operates meeting places—dynamic retail environments anchored by IKEA stores and designed to enhance customer experience.

The third and perhaps most strategically transformative arm is Ingka Investments. This division focuses on allocating capital into ventures and assets that align with the company’s long-term values, particularly sustainability. Over time, Ingka Investments has expanded into several portfolios, including capital markets, forestry, renewable energy, real estate, venture capital, and business development. In 2022, a new and highly significant portfolio was introduced: circular economy.

Entering the Circular Economy: A New Frontier

The addition of the circular economy portfolio marked a turning point in Ingka Group’s sustainability journey. Rather than treating waste as an inevitable byproduct, the company began viewing it as a resource—an opportunity for innovation, efficiency, and value creation. This shift required not only financial investment but also expertise, research, and collaboration across industries.

It was within this context that an MBA intern with a background in waste management and industrial recycling joined the circular economy team in early 2023. Supported by an Impact Internship Award, this opportunity represented a unique convergence of academic learning and real-world application in a completely new industry environment.

Adapting to a New Environment: Cultural and Professional Integration

Relocating to the Netherlands for the internship brought both excitement and challenges. From the very first day, however, the experience was marked by a strong sense of inclusion. The team demonstrated openness and flexibility, seamlessly switching to English in meetings and discussions to ensure clear communication.

This inclusive environment made it possible to build meaningful professional relationships within a relatively short two-month period. The collaborative culture encouraged knowledge sharing and active participation, allowing the intern to quickly become an integral part of the team despite the limited duration of the internship.

Navigating Data and Information Challenges

One of the less obvious but highly impactful challenges of working within the circular economy sector was the difficulty of accessing reliable data. Many companies in this space are privately held, meaning that publicly available financial and operational information is limited. This required a different approach to research—one that relied heavily on piecing together insights from industry reports, news articles, trade associations, and specialized databases.

In this context, the ability to effectively use search tools and critically evaluate sources became a crucial skill. The process was often time-consuming, requiring persistence and analytical thinking to build a comprehensive understanding of potential investment targets.

Exposure to Diverse Recycling Industries

During the internship, there was an opportunity to analyze a range of companies operating across various segments of the recycling and circular economy landscape. These included one of Europe’s largest plastic recyclers, a manufacturer of plastic processing machinery, a company specializing in food waste solutions for industrial kitchens, a developer of advanced plastic sorting technologies, and a mattress recycling business.

Although there were no active transactions taking place during this period, the experience of reviewing financial data and operational metrics provided valuable insights into how these businesses function and where opportunities for growth and investment might lie.

A Deep Dive into Wood Recycling: A Strategic Priority for IKEA

The most significant project undertaken during the internship was a comprehensive market research study on wood recycling. This topic holds particular importance for IKEA, as the company consumes approximately 1% of the world’s industrial roundwood production. With only about 15% of its wood currently coming from recycled sources, increasing this percentage represents both a challenge and an opportunity.

The research involved mapping the entire wood recycling value chain, from collection and processing to end-use applications. It required identifying inefficiencies, technological gaps, and potential entry points for investment. The goal was not only to find economically viable opportunities but also to ensure that these investments would contribute meaningfully to environmental sustainability.

Working closely with a team associate, the project culminated in the identification of three key investment themes. Each theme was supported by a detailed list of companies that could potentially align with IKEA’s strategic objectives.

Expanding Horizons: Plastic Recycling in North America

In addition to the wood recycling study, a high-level analysis of the recycled plastic market in the United States and Canada was conducted. This research focused on understanding regional recycling capacities, technological capabilities, and the competitive landscape.

The objective was to identify companies that matched the desired investment profile, taking into account factors such as scalability, innovation, and alignment with circular economy principles. This work added a global dimension to the internship, highlighting how regional differences can influence both challenges and opportunities in recycling industries.

Financial Modeling and Operational Insights

Beyond market research, the internship also involved more technical tasks such as financial modeling. One notable project focused on evaluating new operational opportunities in France for a mattress recycling company. This required building financial projections, assessing risks, and analyzing potential returns.

Another task involved working with enterprise resource planning data to better understand cash flow dynamics within a company. These experiences provided a deeper appreciation of how financial and operational data can inform strategic decision-making.

Managing Workload and Accountability

With multiple projects running simultaneously and a limited timeframe, effective time management became essential. Setting clear deadlines, organizing regular check-ins with stakeholders, and prioritizing tasks were key strategies for maintaining productivity and ensuring high-quality outputs.

This aspect of the experience underscored the importance of personal accountability in a professional setting. Without the structure of long-term timelines, it was necessary to create a disciplined approach to work, balancing independence with collaboration.

Personal Reflections: A Transformative Experience

As the internship came to an end, leaving the team and the city of Amsterdam was not easy. The experience had been both professionally enriching and personally rewarding. The opportunity to live in a vibrant city, combined with the presence of friends from the MBA program, added an extra layer of enjoyment to the journey.

More importantly, the internship provided a deeper understanding of how large organizations can drive meaningful change through strategic investments and innovation. It demonstrated that the transition to a circular economy is not only possible but also essential for long-term sustainability.

Building a Circular Future

The work being done by Ingka Group illustrates a broader shift in how businesses approach sustainability. By integrating circular economy principles into its investment strategy, the company is not only reducing its environmental footprint but also creating new avenues for growth and value creation.

This experience highlights that the journey toward sustainability is complex and requires collaboration across industries, disciplines, and geographies. It also shows that individuals—whether interns or executives—can play a meaningful role in shaping this future.

The lessons learned from this internship extend far beyond a single organization. They offer a glimpse into what the future of business might look like: one where profitability and sustainability are not opposing goals, but mutually reinforcing priorities.