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Better company

Investing with impact

Our financial approach is based on 75 years of earning money before we spend it, which allows us to be financially independent and purpose-driven in our decisions. 

We think in generations, not quarters, and invest in the long-term good of our customers, our business, people, society and our planet.  

As Ingka Group, we invest in our own business, including in our stores, property and innovation. In addition, Ingka Investments, Ingka Group’s investment arm, strengthens long-term growth, secures our financial position and supports sustainability goals by making responsible investments in people and businesses. It manages assets worth EUR 25 billion of assets.  

Our approach

Our Investment Policy for Ingka Group states that all investments should have a positive impact on both people and the planet. It makes Environmental, Social, Governance (ESG) factors an integral part of the screening and due diligence process.  

We invest in the growth and transformation of our business and in new development opportunities based on our strategic priorities. Investments allow us to retain and increase the value of our assets and enable better ways of meeting and exceeding customer expectations, while creating a positive impact on people, our planet and society. Our investment decisions are made with a long-term perspective, always in line with our values and Code of Conduct.  We ensure that we have the option to exit from an investment if it turns out to not be in line with our values, within a reasonable time frame. 

Ingka Investments makes a wide range of investments from stocks and bonds on the financial markets to wind- and solar parks and forestland. It balances its investment activities across three key strategic movements: financial resilience, business development and sustainable future.

wind turbines

Progress and challenges in FY21

In FY21 our capital expenditure amounted to EUR 3.2 billion. This included continued investment in our business transformation in our stores, distribution and customer fulfilment networks, the digital customer experience and shopping centres. Our physical expansion included opening 10 new IKEA stores (including city stores), 4 new IKEA shops and 12 new planning studios. We also opened one Customer Distribution Centre. New capabilities were added like the automated warehouse in Zagreb, which increases store capacity to fulfil e-commerce orders.  

Ingka Centres made its first acquisition in the USA and entered the Canadian and Indian market  

At Ingka Investments, we made good progress on our investment goals during FY21. We focused on making acquisitions, and majority and minority investments in cutting-edge companies to build a network of partners that can help us improve the IKEA customer journey. We also invested EUR 450 million in projects to help create a sustainable future. 

co-workers in IKEA store

Ingka Investments

Our approach

Ingka Investments makes a wide range of investments from stocks and bonds on the financial markets to wind- and solar parks and forestland. It balances its investment activities across three key strategic movements:

  • Financial resilience – safeguard, strengthen and prioritise the liquidity of Ingka Group for the long term.
  • Business development – support creating the IKEA of the future by investing in innovative companies that can help our retail business develop new capabilities, services and revenue streams.   
  • Sustainable future – invest in assets that support IKEA to become a more sustainable business and enable real carbon footprint reductions for Ingka Group, our customers and beyond the IKEA business.

Ingka Investments’ activities are organised in six portfolios: Business Development Investments, Prioritised Cities Real Estate Investments, Venture & Growth Capital, Renewable Energy Investments, Forestland Investments and Financial Markets Investments. 

We take an active partnership approach to investments. Where we acquire or have a majority investment, we can play a particularly active role in reducing risks and maximising returns, while ensuring a positive impact for society and the environment. Many of our investments are minority shareholder investments, however, we believe we can still play a positive role by actively engaging with the companies we invest in, sharing our know how and promoting a more sustainable direction.  

What did we do in FY21?

We strengthened our ESG approach for Ingka Investments in 2021, aiming to ensure that all investments are aligned with our commitment to sustainability and our values. This includes ruling out sectors and companies that do not align with our commitment to people and planet, such as the fossil fuel sector, while actively seeking investments that will have a positive impact from a financial and sustainability perspective such as solutions to tackle climate change, unsustainable consumption and inequality.  

Highlights from the year at Ingka Investments included: 

  • Securing sufficient liquidity to run Ingka’s operations during the global pandemic. 
  • Investing in banking services that democratize financial services in a responsible way. This included a major investment in Ikano Bank, and a minority investment in fintech platform company Jifiti.
  • Committing to increase our investment in renewable energy to EUR 6.5 billion by 2030, and entering the Russian energy market with an investment in eight solar parks.
  • Extending our investments in zero-emission last mile delivery services with a new investment in Fluid Truck and DST  
  • Expanding our forest investments, including an afforestation project covering 5,500 hectares in New Zealand.   
  • Investing in companies working on mattress and plastics recycling and supporting the production of plant-based protein products 
Plastic bottles

Making Ingka more accessible and convenient

We are investing in innovative technology solutions and businesses that can help make IKEA more efficient, sustainable and convenient for our customers.  

In 2021, we made a minority investment in Fluid Truck, an app-based rental solution, which has an increasingly electrified delivery fleet across the US. Our US retail business is working with Fluid Truck to help its transport partners rent electric trucks for last mile deliveries, in New York and Los Angeles. 

We also invetsed in DST, the largest electric vehicle (EV) operations platform in China. The capital will be used to add new capabilities to its digital platform, expand its maintenance network and enter international markets. We have been working with DST in China since 2019, which has enabled us to achieve 100% electric deliveries in Shanghai. Read more on reducing our climate footprint: travel and transport.

An investment in what3words, a new type of global address locator system, will help us to improve home deliveries. By providing reliable and highly accurate location information, more first-time deliveries are successful, reducing CO2 emissions and vehicles on the road. 

We are also investing in city centre real estate, which can help us bring IKEA closer to customers through new IKEA store formats in city locations. Recent investments include Paris and London.   

street with an old building

Democratising banking in a responsible way

We believe there is a great opportunity to democratise financial services, giving more people the opportunity to live a better life at home. Currently many people that are financially viable candidates for financing are underserved, for example students, freelancers, and part-time workers. We want to offer financial services that enable everyone to make important purchases, while keeping their budget in balance. 

We have become part-owner of Ikano Bank, and will develop financing solutions to help our customers improve their life at home or grow their business.  

We also made a minority investment in fintech platform company Jifiti, that provides leading point-of-sale financing solutions. This will enable more IKEA customers to take out small loans to spread the cost of their purchases in store or online.  

Kids playing on the floor

A renewable energy future

Our investments in renewable energy generation support our goal to be climate positive and contribute to the transition to a net-zero society. 

We have invested EUR 2.5 billion since 2009. Our total installed renewable energy power is more than 4.0 terawatt-hour (four terrawatt-hour), equivalent to the annual consumption of 800 IKEA stores or over 1 million European households. Since 2020, we have generated more renewable energy than the energy we consume across all of our operations. We are now prioritising renewable energy production in China, India and Russia. By expanding renewable generation in these markets, this will help us achieve our goal to consume 100% renewable electricity in all countries where we operate by 2025.  

In FY21, we strengthened our ambition for renewable investment, committing an additional EUR 4 billion by 2030, a total investment of EUR 6.5 billion. We acquired a 49% stake in eight photovoltaic renewable energy parks in Russia, which currently generate 160 megawatts, equivalent to the power requirements of all 17 of our Russian stores.

field with solar panels

Investing in forests

Since 2014, we have bought forests in several countries as part of our financial strategy to invest in resources which have a positive impact on people and planet. We also restore forestland which has been degraded or deforested. Our approach is audited by the Forest Stewardship Council (FSC®). 

For all these investments, our priority is responsible forest management – protecting the forest and its biodiversity for today and future generations. We take a long-term approach, working with stakeholders, and ensuring that we plant more trees than we harvest. In FY21, we planted 5.86 million seedlings.  

In FY21, we bought 8,100 hectares of forestland in Estonia and purchased 4,386 hectares of high conservation value forestland in the USA, where we will be restoring long-leaf pine habitat and safe-guarding habitat for the gopher tortoise (a priority species for conservation).  

We also made a large scale afforestation investment – planting trees to create new forests– in New Zealand. Here we will plant new forests on a 5,500 hectares site, creating long-term employment, supporting biodiversity and storing carbon. [link to news stories]. Planting of new forest also took place in the Baltics and in the USA. In FY22 more investments will follow in the USA, New Zealand and Europe. 

Read more about our approach to investment in responsibly managed forestland.

forest

Towards a circular economy

We invest in innovative companies that can help us achieve the IKEA goal to be a circular business by 2030. 

These investments focus on companies that can offer: new solutions for products at the end of their life; circular business models; and solutions that reduce the costs of circularity or can help us reduce our carbon footprint. 

For example, our significant investment in Dutch mattress recycling company RetourMatras, has enabled it to open its fourth facility. It now has the capacity to recycle all 1.5 million mattresses disposed of in the Netherlands each year, has recently started operating in Belgium and has plans for further expansion in Europe. Our investment will also help RetourMatras open an innovative new facility to turn old foam into repolyol, the main source material for new foam.  

We have also invested in Dutch plastics recycler Rhymoplast Morssinkhof, that together with IKEA of Sweden, developed the first IKEA product made from post-consumer recycled plastics, HALLBAR, which is now on the market in Europe.   

Tank

Read more about our movements here