Shape and navigate ecosystems and regulation (including via partnerships) In parallel, securing alignment and partnerships with governments and other stakeholders remains vital. Immature technologies require regulatory support to scale up. Companies investing into green materials need a certain level of offtake security from willing buyers – and benefit from unified transparency standards that initially may not exist. With many new or technical fields emerging, governments and corporations alike benefit from collaboration to share expertise and set standards that can help to grow the industry. Policy engagement is just as critical. We don’t wait for regulation – we help shape it. Christophe Beck, CEO, Ecolab Winning companies have been able to shape and navigate supportive regulations, as well as to rally support, standards and coalitions in their broader ecosystems. Take utilities, whose scaling-up of renewables is typically achieved by discussing tariff structures, permitting frameworks and investment approvals with regulators. Or the shipping industry: the International Maritime Organization’s direction on introducing a carbon price for shipping came on the back of major players such as Maersk advocating in favour of one, even as governments delay a consensus.67 In sectors such as chemicals, where a lack of homogenized standards remains a roadblock for adoption of greener products, company initiatives can serve as a blueprint, such as Dow’s Carbon Footprint Ledger which applies existing carbon accounting frameworks (e.g. ISO 14067, Greenhouse Gas Protocol, mass balance accounting) to certify low-carbon products.68 Regulatory frameworks will continue to evolve in the years ahead and companies will need to develop tailored strategies for each market and adapt those strategies as policies shift. However, companies should avoid the mistake of assuming policy support or public funding will be permanent, particularly considering election cycles. Over- reliance on regulatory backing during market scale- up can leave businesses exposed when policies shift or funding is reduced. To unlock [full potential], policy and regulations must be aligned with and support investments and the industry’s efforts to sustainably scale and create long-lasting value. Rasmus Errboe, CEO, Ørsted CASE STUDY 8 IKEA (Ingka Group) – Working across private and public sectors to shape regulation on mattress recycling SHAPE REGULATION Ingka Group, the largest retailer in the IKEA franchise, has invested in RetourMatras, a leading mattress recycler with the capacity to process 1.5 million mattresses annually in the Netherlands, allowing up to 85% of materials (e.g. foam, metal, textile) to be recovered. In cooperation with various brand-owners, including Ingka and the Dutch government, an extended producer responsibility scheme was formed, which diverts over 2 million disposed mattresses per year from incineration to recycling, avoiding 76 kg of CO2 emission per mattress. By leveraging its multinational presence, Ingka is taking lessons learned and shaping recycling policies across multiple regions, accelerating the transition to a circular economy. Key policy actions advocated by the company include: –Prioritizing recycling through legislation. –Requiring mandatory harmonized municipal collection systems. –Supporting a mattress extended producer responsibility (EPR) blueprint for the EU. –Asking for public reporting on collection and recycling rates, as well as on how collected funds are spent to support national and EU recycling targets. –Allowing mattresses disposed for recycling to cross EU borders. Sources: Executive leadership interview with Ingka Group. Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 36

Already a Multi-Trillion-Dollar Market 2025