Ingka Group welcomes the European Union agreement, now approved by the European Parliament, to increase the target for the share of renewable energy as a part of the energy mix from 32% to 42.5% by 2030, with the possibility of reaching 45%. According to the European Commission, additional investments of €113 billion ($123 billion) in renewable energy and hydrogen infrastructure will be needed by 2030.
“To see that the EU has reached a binding renewable target of 42.5% by 2030 is a positive development and one important milestone as we work to limit global warming to 1.5°C degrees. With only 7 years to go, all of us have to step up in both our ambitions and actions – companies and governments need to work together to invest in a net-zero future for the many people”
– Jesper Brodin, CEO, Ingka Group
Negotiations concerning this target have not been straightforward. The initial proposal from the European Commission was to increase the target to 40%, however this was subsequently raised to 45% after the Russian invasion of Ukraine that saw the EU collectively make the decision to transition away from reliance on Russian fossil-based energy.
Throughout the EU process Ingka Group, together with WWF Sweden and H&M Group, advocated for a renewable energy target of at least 45%, with evidence suggesting a 50% target was achievable. During the Swedish governments Presidency of the Council of the European Union from January to June this year, a joint letter was sent by CEO, Jesper Brodin, together with H&M and WWF Sweden to Swedish ministers Ebba Busch and Romina Pourmokhtari to push for the higher target of 45%.
IKEA aims to become climate positive by 2030*, by reducing more greenhouse gas emissions than the IKEA value chain emits, while growing the IKEA business. As the biggest retailer in the IKEA franchisee system Ingka Group is committed to enabling the renewable energy transition. This includes a commitment to 100% electricity consumption across Ingka Group´s operations by 2030 and to invest €6.5 billion into off-site renewable energy by 2030. Already today, 74.2% of the electricity used in Ingka operations comes from renewable sources and the off-site investments have already enabled them to generate more renewable energy than they consume.
The ambition is to continue to invest in renewable energy and increase its renewable energy portfolio. Since 2022 Ingka Group has announced new investments have been made in Poland, Germany, Sweden and Italy, increasing its investments to more than €3.5 billion in wind and solar power.
“Despite the current global challenges facing many businesses around the world, addressing climate change must remain a top priority. We need to continue to accelerate the renewable energy transition and phase out fossil fuel with speed, its crucial businesses set targets for renewable energy and energy efficiency in line with a 1.5°C future.
As a multinational business we believe that, together with our partners, we can play a role in accelerating action by positively influencing governments and the private sector. Businesses are most efficient when operating in a global market with harmonized standards and legislation,” says Karen Pflug, Chief Sustainability Officer, Ingka Group.
Read more about Ingka Group’s sustainability performance and commitments in the new Annual & Sustainability Summary report.
*IKEA climate positive means to reduce more greenhouse gas (GHG) emissions than the IKEA value chain emits by 2030, while growing the IKEA business. IKEA is committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels. This includes a commitment to halve the absolute net GHG emissions from the total IKEA value chain by 2030. We will achieve this by drastically reducing GHG emissions through science-based targets and by removing carbon from the atmosphere through natural processes and storing it in land, plants and products through better forest and agriculture management within the IKEA value chain. We will contribute to further greenhouse emission reductions in society by going beyond IKEA, such as enabling customers to generate renewable energy at home. Read more about the IKEA commitment here.
About Ingka Group
With IKEA retail operations on 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on Ingka.com.