Companies

IKEA invests 200 million euros to speed up action to become climate positive by 2030

V Rishi Kumar Hyderabad | Updated on November 27, 2019 Published on November 27, 2019

File photo   -  Nagara Gopal

In connection with COP25, Inter IKEA Group announces the decision to invest 200 million euros to speed up the transformation to become a climate-positive business.

The investment will focus on two portfolios – one to transform the IKEA supply chain into using renewable energy, and one to remove carbon from the atmosphere through reforestation, restoration of degraded forests and better forest management practices.

More than half of the IKEA climate footprint comes from materials in the products and production.

“Our ambition is to reduce more greenhouse gas emissions in absolute terms by 2030 than the entire IKEA value chain emits while growing the IKEA business,” says Torbjörn Lööf, CEO at Inter IKEA Group.

The first portfolio will support the ambition to use 100% renewable energy (electricity, heating, cooling, and other fuels) in production by 2030. It will be built on collaboration with direct suppliers.

The second portfolio will invest in projects aimed at removing and storing carbon through reforestation and responsible forest management. Wood is one of the main materials that IKEA uses and for many years IKEA has worked to promote responsible forest management around the world. Responsibly managed forests play a vital role in protecting ecosystems, supporting biodiversity and climate change mitigation.

In India too, the different IKEA business units are working towards becoming climate positive. The IKEA purchasing organization works with 60 + local suppliers who produce IKEA products as part of the global supply chain, enabling them to be more people and planet positive and transition towards using 100 per cent renewable energy in their production. It is also working towards using renewable and recyclable raw materials for the products.

IKEA retail stores are working towards becoming carbon neutral retail stores in the future. It is using renewable energy by adopting more electric vehicles in logistics. In India, it has already achieved 20% use of electric vehicles in logistics operations and aims to reach 60% in the next 3 years. An important initiative also has been to convert rice straw into raw material for products to reduce air pollution which has resulted in the creation of a new collection FÖRÄNDRING using only rice straw.

“We believe that the best way to minimize our climate impact and to contribute to limiting climate change to 1.5°C is mainly by reducing our greenhouse gas emissions - but we also need to remove existing carbon from the atmosphere. We can make a positive difference through our integrated supply chain, our global presence, and our forest and climate expertise,” says Lena Pripp-Kovac, Chief Sustainability Officer, Inter IKEA Group.

Published on November 27, 2019
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