Thematic Capital

KIRKBI’s strategic journey towards an increased emphasis on Thematic Capital investments continued in 2021 with focus on building capabilities and investing in companies with positive impact on the sustainable development in the world.

The Thematic Capital investment activities are driven by the owner family’s commitment to contribute to a sustainable development in the world through investments within Energy Transition, Circular Plastic, Land Sustainability and Building Billund.

The focus area in 2021 was to continue building capabilities and an organisational set-up to cater for the new investment areas within Circular Plastics and Land Sustainability.

Energy Transition

KIRKBI’s Energy Transition strategy targets investments in wind and solar energy with an increasing focus on other impactful initiatives that can contribute to the decarbonisation of the world’s energy system. The geographic focus is on Northern Europe and North America.

While KIRKBI continuously supports the LEGO Group in furthering its environmental sustainability ambitions, KIRKBI also invests in the green energy transition to contribute to the increase of global renewable energy production.

ENERGY TRANSITION

CIRCULAR PLASTICS

LAND SUSTAINABILITY

BUILDING BILLUND

Part of KIRKBI’s Energy Transition investments includes ownership in two offshore wind farms, Borkum Riffgrund 1 and Burbo Bank Extension, and the solar energy developer, Adapture Renewables Inc.

Wind investments

In 2012, KIRKBI and William Demant Invest invested jointly into Borkum Riffgrund 1, with KIRKBI owning 31.5 %. The Borkum Riffgrund 1 wind farm is located in the German North Sea. The wind farm consists of 78 Siemens 4 MW turbines with a total capacity of 312 MW and is capable of providing green energy corresponding to the consumption of 320,000 German households.

In 2016, KIRKBI invested into Burbo Bank Extension with 25 % ownership. Burbo Bank Extension is located approximately seven kilometres off the coast of Liverpool in the UK. The wind farm consists of 32 MHI Vestas 8 MW turbines with a total capacity of 258 MW and is capable of providing green energy to 230,000 UK households.

Ørsted has retained 50 % ownership and has handled the construction and operation of both wind farms.

Solar investments

Founded in 2012, Adapture specialises in developing, engineering, building and operating distributed utility-scale solar photovoltaic (PV) projects in North America. Adapture supports the transition of commercial energy supply to renewable sources of power by connecting large-scale solar PV systems to the grid. Adapture is based in Oakland, California and operates more than 30 solar power projects in 19 states across the USA.

During KIRKBI’s ownership period, the capacity of the operating solar portfolio has increased from 70 MW to more than 240 MW. In 2021, Adapture continued the investments and expansion of its solar power capacity through new solar parks.

Circular Plastics

Globally, plastic waste is a significant problem. Waste management practices of plastics are not broadly in place leading to increasing amounts of unhandled plastics, harmful to environment and climate. This is a result of a majority of plastic types being difficult or impossible to decompose or reuse.

The lack of circularity of plastics is an important area to address globally, and KIRKBI sees a potential to contribute through investments with high impact by targeting – but not limited to – sorting, recycling and the development of new plastic types.

Circular Plastic is a new Thematic investment area where KIRKBI wishes to support the transition towards a world where plastics never become waste.

In 2020, KIRKBI completed a minority investment in the innovative Norwegian plastic recycling company Quantafuel. The company develops, owns and operates plastic-to-liquid plants, transforming mixed plastic waste previously destined for landfill or incineration into highquality synthetic fuels (recycled carbon fuels) or chemical feedstock (naphtha) for new plastic production.

The company employs 45 employees with the majority being employed at its first production facility located in Skive, Denmark. KIRKBI owns 10 % of the company.

In 2021, KIRKBI invested in Ambercycle - a materials science company building circularity in the fashion industry to reduce plastic waste from textiles.

Land Sustainability

As a new area under Thematic Capital, Land Sustainability is concentrated around forest landscape restoration where deforesting through centuries has led to severe implications for both climate, environment and biodiversity.

The current focus within this area is to start building capabilities and engage in investments into planting trees and establishing more forest to create a positive impact on environment, climate and biodiversity.

Building Billund

KIRKBI has always been actively engaged in supporting the development of the town of Billund. KIRKBI’s dedication to the local community of Billund is rooted in the significance that the town represents to KIRKBI and the LEGO Group as the founding place of both companies.

In 2015, KIRKBI initiated a vision plan for the development of the town together with Realdania and Billund Municipality. The City Vision provides a framework for supporting and strengthening Billund’s unique character as the Capital of Children. For KIRKBI specifically, the vision provides a framework for how KIRKBI can support this development through Real Estate and other activities.

In 2021, KIRKBI completed the development of a new residential property in the midtown of Billund. The property called Kastaniehjørnet is a modern residential complex with a mix of private, public and rental housing, designed with emphasis on sustainability, functionality and access to the outdoors.

Further, LEGO® Campus, the new headquarter of the LEGO Group, was finalised and will be inaugurated in spring 2022.

The long-term focus and vision plan for Billund include the development of a new town district where the existing trotting track is located. During 2022, the existing structures on the ground will be demolished and temporary facilities will be established to accommodate various activities. Further, KIRKBI will continue the work related to a value programme and a master plan for the entire area in collaboration with citizens and stakeholder groups will be established.

In 2021, KIRKBI completed the development of a new residential property in Billund called Kastaniehjørnet.