Ingka Group¹, the largest IKEA retailer, announces in the run up to Earth Day that it will accelerate its investments in renewable energy by an additional €4 billion to support the transition towards a renewable energy future. The investment will support reducing the company’s climate footprint and a broader transition to a net-zero society.
In the past decade Ingka Group has invested €2.5 billion into renewable energy in onsite and offsite wind and solar power enabling the company to generate more renewable energy globally than it consumes. Entering a critical decade for climate action this acceleration, by Ingka Investments², to €6.5 billion marks the next step towards 100% renewable energy across the value chain.
“We are in the most important decade in the history of humankind – climate change is no longer a distant threat, and we must all do our part to limit global warming to 1.5°C. The cost of inaction is just too high and brings substantial risks to humanity and our business. We know that with the right actions and investments we can be part of the solution and reduce the impact on the home we share – our planet – while future proofing our business. For us, it is good business to be a good business,” says Jesper Brodin, CEO of Ingka Group.
IKEA is committed to the Paris Agreement and to contributing to limiting the global temperature rise to 1.5°C above pre-industrial levels through the IKEA climate positive ambition*. Switching to renewable energy while increasing energy efficiency, transitioning to a circular business model, and enabling people to live within the boundaries of the planet, are key enablers for reducing emissions.
“Using renewable energy across our operations and value chain is a significant part of delivering on our science-based targets and commitment to the Paris Agreement. We have already come a long way, and in this critical decade we need to come together to accelerate a just transition to a society powered by renewable energy,” says Pia Heidenmark Cook, Chief Sustainability Officer, Ingka Group.
The investments will focus on adding wind and solar projects in new countries. The company will also consider new types of investments in areas such as energy storage, hydrogen fuel development, and charging infrastructure. Ingka Group recently announced the acquisition of a 49% stake in 8 solar PV parks in Russia. The energy capacity of the parks equals 160 megawatts, which will provide enough electricity to power all 17 IKEA Stores in Russia plus part of the MEGA shopping centres based around the country.
Today, Ingka Group owns and manages 547 wind turbines and 10 solar parks in 15 countries, as well as 935,000 solar panels on the roofs of IKEA stores and warehouses, bringing its total installed renewable energy power to more than 1.7 gigawatt.
In addition, IKEA Foundation steps up its ambition in alignment with the Paris Agreement and commits an additional 1 billion euro over the next five years to reduce greenhouse gas emissions. This includes replacing polluting sources of energy with renewable ones and providing access to energy to communities.