Lego owners Kirkbi to double climate fund, invest heavily in plastic recycling ahead of EU packaging rules

Kirkbi, the holding company behind Lego, plans to double its climate investment portfolio from $1.6 billion to $3.2 billion over five years. The fund's CEO says plastic recycling will be a major focus, driven by the EU's 2030 requirement that all packaging be recyclable under the Packaging and Packaging Waste Regulation. Kirkbi Climate currently manages about 10 billion Danish kroner and will split future investments roughly between energy and recycling. The EU generates around 35 kg of plastic packaging waste per person per year, most from imported fossil fuels. Recycling has struggled because virgin plastic is often cheaper, but Kirkbi expects tighter regulation to make the market viable. The fund is shifting toward active ownership, aiming for board-level influence in companies rather than passive stakes.