Companies

IKEA franchise partner Ingka eyes climate-positive status by 2030

Our Bureau Hyderabad | Updated on September 03, 2020 Published on September 03, 2020

To invest €600 million to enable the transition to a net zero carbon economy

The Ingka Group and IKEA plan to work towards becoming climate positive by 2030.

Over the coming year, Ingka has committed to invest €600 million more into companies, solutions and its own operations to enable the transition to a net zero carbon economy. This increases its overall investments into sustainability to €3.8 billion.

The announcement was made at an Ingka Group virtual sustainability event, called ‘One Home, One Planet’. The two-day co-creation event saw participation from over 300 sustainable leaders, NGOs and business partners from different parts of society working together to help develop, shape and find solutions to help to make a positive impact for customers, communities, co-workers and the planet.

Ingka Group is a strategic partner in the IKEA franchise system, operating 380 IKEA stores in 31 countries. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres.

Since 2009, the Ingka Group, through its investment arm Ingka Investments, has continued to invest in innovative companies that support its sustainability goals, including achieving its 100 per cent renewable energy generation target.

As the company takes the next step, it will focus on investing in companies and solutions that have a direct impact towards the Paris Agreement and the UN Sustainable Development Goals.

The company is implementing a zero-fossil fuel approach to align with new updated environmental, social and corporate governance (ESG) standards. In addition, a review of global and local pension funds across 31 countries will also be conducted, to ensure they align with ESG standards.

“We believe it’s good business to be a good business. Despite the significant challenges we’re facing in the world, we still have it in our own hands to change the direction of the climate crisis. We want to be part of the solution, which is why we will continue to focus our future investments to ensure a cleaner, greener and more inclusive recovery,” said Juvencio Maeztu, Deputy CEO and CFO of Ingka Group.

“'In IKEA India, we will continue to work with circularity. In the coming years, we aim for 50 per cent of cardboard and plastics from our retail operations and customer take-back to be returned to IKEA supply chain, as raw material to make for new home furnishing products. We will adopt electric vehicles in our business operations to reduce carbon footprint. We are defining our roadmap to entirely run our operations through renewable energy by 2025. We will continue to create a more sustainable life at home in India by inspiring our customers to make informed sustainable choices to reduce their direct environmental impact,” said Peter Betzel, CEO and Chief Sustainability Officer, IKEA India.

The Ingka Group is committed to take climate action, contributing to the IKEA overall commitment to reduce more greenhouse gas emissions than the IKEA value chain emits, by 2030. Earlier this year, IKEA announced that it had reduced the climate footprint by 4.3 per cent. The company currently owns 546 wind turbines in 14 countries, two solar farms with 1.5 million solar panels, and more than 920,000 solar panels on the roofs of IKEA stores and warehouses. These investments have contributed towards Ingka Group reaching its goal to produce as much renewable energy as it consumes. By 2025, Ingka Group aims to consume and purchase 100 per cent renewable electricity in all its buildings in India.

“This highlights the role business can play in addressing the challenges of climate change. We must direct investments towards green technologies and solutions that are clean. Companies big and small have an important role to play and an opportunity to turn the challenges we face into solutions, as we build back better,” said Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change and speaker at OHOP.

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Published on September 03, 2020
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