Ingka Group will accelerate its investments to further enable the transition to reach the IKEA overall commitment to become climate positive by 2030*. Over the coming year, the company has committed to invest EUR 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 EUR 3.8 billion.
Since 2009 Ingka Group1, through its investment arm Ingka Investments2, has continued to invest in innovative companies that support its sustainability goals, including achieving its 100 percent 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,” says Juvencio Maeztu, Deputy CEO and CFO Ingka Group.
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 percent while growing the IKEA business with 6.5 percent. 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.
“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,” says Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change and speaker at OHOP***
IKEA is fully supportive of the EU Green Deal, urging the EU to build its recovery package ‘to support and accelerate the transition towards a climate neutral and circular economy and the Exponential Climate Action Roadmap** to halve greenhouse gas emissions in absolute terms by 2030 to help make a positive impact for customers, communities, co-workers and the planet.
Over the past few years, Ingka Group has also invested in and is collaborating with companies such as:
- RetourMatras, a company that makes it possible to recycle more than 90 percent of the materials in a mattress,
- Morssinkhof Rymoplast, a leading player in the European plastic recycling industry,
- Winnow, a company that has developed an AI-enabled food waste tracking solution to help reduce food waste in commercial kitchens,
- Aerofarms, an indoor urban farming company,
- Terramera, working with bio-pesticides, and
- Optoro, a provider of a software platform for reverse logistics for retailers.
The announcement was made at a Ingka Group virtual sustainability event, called ONE HOME, ONE PLANET, a two day co-creation event, with over 300 sustainable leaders, NGOs and business partners from many 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.
Read more about Ingka Group’s sustainability performance and commitments in the new Annual & Sustainability Summary report.
*Becoming climate positive is about reducing more greenhouse gas emissions than what the IKEA value chain emits. IKEA will eliminate GHG emissions in line with Paris Agreement, store carbon in land, plants and products, go beyond IKEA – by addressing a footprint larger than the IKEA value chain, take action together – engage with others to realise a 1.5°C world. Read more about the IKEA commitment here.
**The Exponential Climate Action Roadmap outlines the global economic transformation required by 2030 to meet the Paris Agreement on climate.
***ONE HOME, ONE PLANET is a two-day sustainability focused co-creation event, first held in 2019, with over 300 sustainable leaders, NGOs and business partners from many 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.
1Ingka Group is a strategic partner in the IKEA franchise system, operating 380 IKEA stores in 31 countries. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centers.
2Ingka Investments make strategic investments and acquisitions that secure our long-term financial strength and support the growth, business transformation and sustainability goals of Ingka Group.