KIRKBI Climate, the sustainability investment arm of the LEGO Group’s parent company, plans to invest DKK 10 billion (approx. US$1.5 billion) over the next five years. This capital injection will double the size of its current climate-focused portfolio, which already exceeds DKK 10 billion.

Future capital is expected to be split roughly between energy and recycling projects, with European markets and plastics serving as core areas of focus. As part of this expansion, KIRKBI Climate plans to invest heavily in plastics recycling in light of tightening European Union (EU) rules on sustainable packaging.

The incoming EU Packaging and Packaging Waste Regulation (PPWR) will require all packaging to be recyclable by 2030—a mandate that KIRKBI Climate believes justifies immediate sector investment.

In an interview with Bloomberg, CEO Anupam Bhargava said the industry needs to get ready now with compliance deadlines looming, adding that the new framework “will create added confidence for investors like us that the market will eventually mature”.

The LEGO Group has a goal to achieve net-zero emissions by 2050 and to reduce its absolute carbon emissions by 37% by 2032, compared to a 2019 baseline.

Shift in investment strategy

Meanwhile, KIRKBI Climate is adopting a new approach, transitioning from a passive, traditional investor into an active, hands-on “business builder”. Rather than acting solely as a financial backer, the company intends to exert real influence on corporate boards to help scale emerging enterprises.

“There is no magic solution where you can invest in a technology company and that will produce amazing results,” Bhargava said. He explained that is because companies in the recycling sector operate in a value chain that is currently highly fragmented and inefficient.

“The idea for the family is that if we are going to help solve climate at scale, then we need to be a business builder,” Bhargava said. “And that means investing in a very different way.”

Strengthening Leadership

KIRKBI Climate has recently appointed Lars Villadsen as Chief Financial Officer/Chief Operating Officer (CFO/COO) and Emma Nehrenheim as Head of Energy Transition.

These strategic appointments strengthen KIRKBI Climate’s leadership capabilities as the company transitions from a thematic investor into an active owner.

Lars Villadsen (left) and Emma Nehrenheim (right).

“Lars and Emma bring exactly the financial, operational, and technical experience we need to put our strategy into action, as we help tackle some of the world's toughest climate challenges,” said Bhargava in an official statement.

Nehrenheim will officially join KIRKBI Climate on November 1, 2026, followed by Villadsen on December 1, 2026.

‧ Lars Villadsen currently serves as CEO of Aspenall Energies Services, a US-based renewable energy developer and operator. He previously co-founded Glentra Capital, where he served as CFO/COO and Operating Partner.

‧ Emma Nehrenheim is currently the Managing Director of the European Battery Alliance and Strategic Leader for the Battery Portfolio at EIT InnoEnergy. Prior to this, she spent eight years at Northvolt in several senior leadership roles.

About KIRKBI Climate A/S

KIRKBI Climate is owned by KIRKBI A/S, the holding company of the LEGO Group and other companies owned by the Kirk Kristiansen family. Established in 2025 to consolidate the family’s climate-focused investments, the company operates with a purpose of building a better future for children.