Investments are expected in renewable energy, innovative start-ups and the sustainability of stores, warehouses and products
IKEA stores owner Ingka Group is to invest €600m in sustainability projects over the coming 12 months, as it works to meet IKEA's commitment to become climate positive by 2030, the multinational announced yesterday.
The investments are likely to be equally split between renewable energy, innovative start-up projects, and work to make its stores and warehouses more sustainable, the firm told Reuters, touting potential renewable energy projects that are in the pipeline in both Russia and China.
Ingka is also committed to delivering zero investments in fossil fuels in line with newly adopted environmental, social, and governance (ESG) standards, and is conducting a review of pension funds across 31 countries to ensure the funds align with its new standards, it added.
IKEA's sustainability targets commit the Swedish firm to cutting greenhouse gases by more than it emits by 2030, covering the entire value chain, from the production of raw materials to the disposal of products by customers.
As part of meeting the goal, the company is also looking for partners that could help with the reuse, resale and recycling of IKEA products, its chief financial officer Juvencio Maeztu told Reuters.
"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," he said. "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."
Ingka has previously worked with innovative green companies such as RetourMatras, which formulated techniques to recycle more than 90 per cent of the materials in a mattress, and Winnow, which developed smart technology to help reduce food waste in commercial kitchens. It claims to have spent more than €3.2bn on sustainability related investments over the past decade.
"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," Ingka said in a statement.
IKEA itself - which is composed of several companies - 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 warehouse, Ingka said. However, to reach its 2030 target IKEA would need to reduce its emissions by a further 21 million tonnes, according to the firm.
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